2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide Generic Cross-Industry Business Process Reference Guide Published by biz4ge® For further information visit our website: biz4ge.kz-a.net or contact us at eMail: biz4ge@kz-a.net RIGHTS AND PERMISSIONS ©2011 Biz4ge® This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike (cc-by-nc-sa) License v3.0. Biz4ge encourages the wide distribution, discussion and use of this “Generic Cross-Industry Business Process Reference Guide” document. Biz4ge grants permission for use and adaptation of this reference guide for internal use…..i.e. it may be used freely by any organisation for use within that organisation. For external use, Biz4ge grants permission for non-commercial publication, distribution and use, provided that proper copyright acknowledgment is made to Biz4ge. 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All users use this reference guide at their own risk, agree to indemnify Biz4ge from any and all claims arising as consequence of this use, and understand that they should seek the appropriate professional advice before and as part of entering into any business architecture related work efforts. Revision: v1.05 Page: 1 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide Table of Contents User Notes: This reference guide is structured in line with the “Business Process Model” found at the beginning of this document. The hierarchical numbering system (i.e. 1.0, 1.1, 1.1.1, etc) used in this document is tied in with that of the “Business Process Model”. The figures in brackets, i.e. Process (x), found after a process are, where applicable, their APQC PCF hierarchy number / unique identification number cross-references. It is intended that the practitioner uses Sections 5.0 and 6.0 respectively of this reference guide if the using organisation both produces a product and delivers an after-sales service related to that product. Alternatively, they should use Section 5.0 only (Section 6.0 being ignored) if they produce a product but no related after-sales service is offered and/or is relevant. In the case of a service-only organisation Section 5s.0 alone should be used and Sections 5.0 and 6.0 should be ignored. Business Process Model ................................................................................................................. 13 1.0 Context to Capability (PCF 1.0 / 10002) ................................................................................... 14 1.1 Context to Vision (PCF 1.1 / 10014) ..................................................................................... 14 1.1.1 Assess the external environment (PCF 1.1.1 / 10017) .................................................. 14 1.1.2 Determine end customer and channel needs and wants (PCF 1.1.2 / 10018) ............. 14 1.1.3 Perform internal analysis (PCF 1.1.3 / 10019) .............................................................. 14 1.1.4 Establish strategic vision (PCF 1.1.4 / 10020) ............................................................... 14 1.2 Vision to Strategy (PCF 1.2 / 10015) .................................................................................... 15 1.2.1 Develop mission statement (PCF 1.2.1 / 10037)........................................................... 15 1.2.2 Evaluate strategic options for achieving objectives (PCF 1.2.2 / 10038) ...................... 15 1.2.3 Select optimal business strategy (PCF 1.2.3 / 10039) ................................................... 15 1.2.4 Align functional & process strategies via business architecting (PCF 1.2.4 / 10040) 16 1.2.5 Create top-level organisational design (PCF 1.2.5 / 10041) ......................................... 16 1.2.6 Develop and set KPIs and targets mapped to top-level organisation (PCF 1.2.6 / 10042).............................................................................................................................. 16 1.2.7 Formulate business unit strategies (PCF 1.2.7 / 10043) ............................................... 16 1.3 Strategy to Capability (PCF 1.3 / 10016) .............................................................................. 16 1.3.1 Review and implement capital structure ...................................................................... 16 1.3.2 Extend refine and agree business architecture ............................................................ 17 Revision: v1.05 Page: 2 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 1.3.3 Develop business plan and set budget goals ................................................................ 17 2.0 Concept to Catalogue (PCF 2.0 / 10003) .................................................................................. 18 2.1 Concept to Competence (PCF 2.1.3 / 10065)....................................................................... 18 2.1.1 Maintain ideas bank ...................................................................................................... 18 2.1.2 Identify promising new technologies and trends (PCF 2.1.3.1 / 10070)....................... 18 2.1.3 Incubate and develop new technologies (PCF 2.1.3.2 / 10071) ................................... 19 2.1.4 Assess integrating new technology into products / services / production processes (PCF 2.1.3.3 / 10072) ....................................................................................................... 20 2.1.5 Document and protect intellectual property ................................................................ 20 2.2 Competence to Confidence (PCF 2.1 / 10061) ..................................................................... 20 2.2.1 Evaluate market performance of existing products / services / production processes (PCF 2.1.1 / 10063) ......................................................................................... 21 2.2.2 Define desired product / service / production process development requirements (PCF 2.1.2 / 10064) .......................................................................................................... 21 2.2.3 Confirm product / service / production process concepts align with business goals (PCF 2.1.4 / 10066) .......................................................................................................... 21 2.2.4 Manage product, service and production process lifecycle (PCF 2.1.5 / 10067) .... 22 2.3 Confidence to Catalogue (PCF 2.2 / 10062) ......................................................................... 22 2.3.1 Create an innovation and development framework .................................................... 23 2.3.2 Design, build, and evaluate products, services and processes (PCF 2.2.1 / 10080) 23 2.3.3 Test market for new or revised products / services / production processes (PCF 2.2.2 / 10081) .................................................................................................................. 24 2.3.4 Prepare for production launch (PCF 2.2.3 / 10082) ...................................................... 24 3.0 Budget to Plan (PCF 4.1 / 10215) ............................................................................................. 25 3.1 Budget to Forecast ............................................................................................................... 25 3.1.1 Develop sales forecast (PCF 3.3.1 / 10129)................................................................... 25 3.1.2 Develop capacity forecast (PCF 4.1.2 / 10222) ............................................................. 25 3.1.3 Develop tiered supply forecast (PCF 4.2.1 / 10277) ..................................................... 25 Revision: v1.05 Page: 3 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 3.1.4 Develop financial forecast (PCF 8.1.1.3 / 10773) .......................................................... 25 3.2 Forecast to Constrain ........................................................................................................... 26 3.2.1 Conduct sales / key account plan reviews .................................................................... 26 3.2.2 Establish demand consensus and communicate agreed demand profile .................... 26 3.2.3 Establish supply chain capacity / constraints (e.g. manufacturing, logistics and procurement) and communicate required supply profile............................................... 26 3.2.4 Hold S&OP meeting and publish agreed S&OP............................................................. 26 3.3 Constrain to Plan .................................................................................................................. 27 3.3.1 Create inbound materials plan (PCF 4.1.3 / 10223) ...................................................... 27 3.3.2 Create and manage master production schedule [MPS] (PCF 4.1.4 / 10224) .............. 27 3.3.3 Plan distribution requirements (PCF 4.1.5 / 10225) ..................................................... 27 4 .0 Opportunity to Order (PCF 3.0 / 10004) ................................................................................. 28 4.1 Opportunity to Offering (PCF 3.1 / 10101) .......................................................................... 28 4.1.1 Perform end customer / channel and market intelligence analysis (PCF 3.1.1 / 10106).............................................................................................................................. 28 4.1.2 Evaluate and prioritise market opportunities (PCF 3.1.2 / 10107) ............................... 28 4.1.3 Develop marketing strategy (PCF 3.2 / 10102) ............................................................. 28 4.2 Offering to Target (PCF 3.4 / 10104) .................................................................................... 28 4.2.1 Establish goals, objectives and metrics for products / services by end customer / channel / segment (PCF 3.4.1 / 10148) ........................................................................... 29 4.2.2 Establish presence in emerging markets ...................................................................... 29 4.2.3 Develop message and manage media (PCF 3.4.3 / 10150)........................................... 29 4.2.4 Develop and manage pricing (PCF 3.4.4 / 10151) ......................................................... 29 4.2.5 Develop and manage advertising and promotional activities 4.2.6 Track end customer / channel partner management measures (PCF 3.4.5 / 10152) . 29 (PCF 3.4.6 / 10153) ......................................................................................................................................... 29 4.2.7 Develop and manage packaging / bundling strategy (PCF 3.4.7 / 10154) .................... 30 Revision: v1.05 Page: 4 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 4.3 Target to Dialog (PCF 3.5 / 10105) ....................................................................................... 30 4.3.1 Manage sales force (PCF 3.5.5 / 10186) ....................................................................... 30 4.3.2 Generate end customer / channel partner leads (PCF 3.5.1 / 10182) .......................... 30 4.3.3 Respond to end customer and/or channel partner enquiries ...................................... 31 4.3.4 Sell to end customers and/or channel partners (PCF 3.5.3 / 10184)............................ 32 4.4 Dialog to Order (PCF 3.5.4 / 10184) ..................................................................................... 33 4.4.1 Accept and validate sales orders / bid awards (PCF 3.5.4.1 / 10194)........................... 34 4.4.2 Collect and maintain end customer / channel partner account information (PCF 3.5.4.2 / 10195) ............................................................................................................... 34 4.4.3 Determine product / service availability [i.e. allocate ATP] (PCF 3.5.4.3 / 10196) . 34 4.4.4 Determine logistics and transportation options (PCF 3.5.4.4 / 10197) ........................ 35 4.4.5 Enter orders into system and identify / perform cross-sell / up-sell activity (PCF 3.5.4.5 / 10198) ............................................................................................................... 35 4.4.6 Process back orders and updates (PCF 3.5.4.6 / 10199)............................................... 36 4.4.7 Handle post-order enquiries including post-order fulfillment transactions (PCF 3.5.4.7 / 10200) ............................................................................................................... 36 5.0 Order to Cash – Products ......................................................................................................... 37 5.1 Order to Purchase (PCF 4.2 / 10216) ................................................................................... 37 5.1.1 Process customer credit (PCF 8.2.1 / 10742) ................................................................ 37 5.1.2 Purchase materials, supplies and services (PCF 4.2.3 / 10279) .................................... 38 5.2 Purchase to Pay .................................................................................................................... 39 5.2.1 Plan inbound material flow logistics (PCF 4.5.2 / 10339) ............................................. 39 5.2.2 Manage / Operate inbound warehousing (PCF 4.5.3 / 10340) ..................................... 40 5.2.3 Manage payments to suppliers..................................................................................... 41 5.2.4 Manage supplier returns and reverse logistics (PCF 4.5.5 / 10342) ............................. 41 5.2.5 Monitor environmental, health and safety (EH&S) performance ................................ 42 5.3 Pay to Produce (PCF 4.3. / 10217) ....................................................................................... 42 Revision: v1.05 Page: 5 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 5.3.1 Schedule production (PCF 4.3.1 / 10303) ..................................................................... 42 5.3.2 Make and package product (PCF 4.3.2 / 10304) ........................................................... 43 5.3.3 Perform post-production random quality testing (PCF 4.3.4 / 10369) ......................... 44 5.3.4 Maintain production records and manage lot & batch / run traceability (PCF 4.3.5 / 10370).............................................................................................................................. 44 5.3.5 Manage fixed assets ...................................................................................................... 44 5.3.6 Schedule and perform maintenance (PCF 4.3.3 / 10305) ............................................. 44 5.3.7 Monitor environmental, health and safety (EH&S) performance ................................ 44 5.4 Produce to Cash (PCF 4.5 / 10219) ...................................................................................... 44 5.4.1 Manage / Operate outbound warehousing (PCF 4.5.3 / 10340) .................................. 45 5.4.2 Manage / Operate outbound transportation (PCF 4.5.4 / 10341)................................ 46 5.4.3 Invoice the end customer / channel partner (PCF 8.2.2 / 10743) ................................ 46 5.4.4 Manage customer returns and reverse logistics (PCF 4.5.5 / 10342) ........................... 47 5.4.5 Monitor environmental, health and safety (EH&S) performance ................................ 48 5s.0 Order to Cash – Services (PCF 4.0 / 10005) ............................................................................ 49 5s.1 Order to Purchase (PCF 4.2 / 10216) .................................................................................. 49 5s.1.1 Process customer credit (PCF 8.2.1 / 10742) .............................................................. 49 5s.1.2 Purchase materials and supplies (PCF 4.2.3 / 10279) ................................................. 49 5s.2 Purchase to Pay .................................................................................................................. 49 5s.2.1 Plan inbound material flow (PCF 4.5.2 / 10339) ......................................................... 50 5s.2.2 Manage / Operate warehousing (PCF 4.5.3 / 10340).................................................. 50 5s.2.3 Manage payments to suppliers ................................................................................... 50 5s.2.4 Manage supplier returns and reverse logistics (PCF 4.5.5 / 10342)............................ 50 5s.2.5 Monitor environmental, health and safety (EH&S) performance ............................... 50 5s.3 Pay to Service (PCF 4.3 / 10217)......................................................................................... 50 5s.3.1 Schedule service delivery (PCF 4.3.1 / 10303)............................................................. 51 5s.3.2 Deliver service (PCF 4.3.2 / 10304).............................................................................. 51 Revision: v1.05 Page: 6 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 5s.3.3 Perform post-service random quality testing (PCF 4.3.4 / 10369) .............................. 51 5s.3.4 Maintain service records and manage materials traceability (PCF 4.3.5 / 10370) 51 5s.3.5 Monitor environmental, health and safety (EH&S) performance ............................... 51 5s.4 Service to Cash (PCF 4.5 / 10219) ....................................................................................... 51 5s.4.1 Invoice the end customer / channel partner (PCF 8.2.2 / 10743) ............................... 52 5s.4.2 Manage customer returns and reverse logistics (PCF 4.5.5 / 10342) ......................... 52 5s.4.3 Monitor environmental, health and safety (EH&S) performance ............................... 52 6.0 Cash to Dispose (PCF 5.0 / 10006) ....................................................................................... 53 6.1 Cash to Care (PCF 5.2 & 5.3 / 10379 & 10380) .................................................................... 53 6.1.1 Plan and manage customer service work force (PCF 5.2.1 / 10387) ............................ 53 6.1.2 Manage customer service requests / enquiries (PCF 5.2.2 / 10388) ............................ 53 6.1.3 Manage end customer / channel complaints (PCF 5.2.3 / 10389) ............................... 54 6.1.4 Measure end customer / channel satisfaction on customer service requests / enquiries handling (PCF 5.3.1 / 10401) ........................................................................... 54 6.1.5 Measure end customer / channel satisfaction on customer service complaint handling and resolution (PCF 5.3.2 / 10402) ................................................................... 54 6.1.6 Measure end customer / channel satisfaction with products and services (PCF 5.3.3 / 10403) ........................................................................................................................... 55 6.1.7 Monitor environmental, health and safety (EH&S) performance ................................ 55 6.2 Care to Repair (PCF 4.4 / 10218).......................................................................................... 55 6.2.1 Confirm specific service requirements for individual end customers / channel partners (PCF 4.4.1 / 10320) ........................................................................................... 55 6.2.2 Identify, allocate and schedule resources to meet service requirements (PCF 4.4.2 / 10321).............................................................................................................................. 56 6.2.3 Provide the service to specific end customers / channel partners (PCF 4.4.3 / 10322) ......................................................................................................................................... 56 6.2.4 Ensure quality of service (PCF 4.4.4 / 10323) ............................................................... 56 Revision: v1.05 Page: 7 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 6.2.5 Update end customer / channel partner profiles & service records and analyse performance / trends ...................................................................................................... 56 6.2.6 Monitor environmental, health and safety (EH&S) performance ................................ 56 6.3 Repair to Dispose ................................................................................................................. 56 6.3.1 Confirm specific disposal service requirements for individual end customers / channel partners (PCF 4.4.1 / 10320) .............................................................................. 57 6.3.2 Identify, allocate and schedule resources to meet disposal service requirements (PCF 4.4.2 / 10321) .......................................................................................................... 57 6.3.3 Provide disposal service to specific end customers / channel partners (PCF 4.4.3 / 10322).............................................................................................................................. 57 6.3.4 Manage returns and reverse logistics (PCF 4.5.5 / 10342) ........................................... 57 6.3.5 Manage dispositioning and safe disposal / scrappage ................................................. 57 6.3.6 Ensure quality of service (PCF 4.4.4 / 10323) ............................................................... 57 6.3.7 Update end customer / channel partner profiles & disposal records and analyse performance / trends ...................................................................................................... 58 6.3.8 Monitor environmental, health and safety (EH&S) performance ................................ 58 7.0 Woo to Renew......................................................................................................................... 59 7.1 Supply to Review .................................................................................................................. 59 7.1.1 Select tiered suppliers and develop/maintain contracts (PCF 4.2.2 / 10278) .............. 59 7.1.2 Appraise and develop tiered suppliers (PCF 4.2.4 / 10280).......................................... 59 7.2 Collaborate to Refresh ......................................................................................................... 59 7.2.1 Manage distribution relationships ................................................................................ 59 7.2.2 Manage IT relationships ................................................................................................ 60 7.2.3 Manage physical facilities (e.g. premises) relationships (PCF 9.0 / 10010) .................. 60 7.3 Service to Retain .................................................................................................................. 60 7.3.1 Confirm channel strategy (PCF3.2.3 / 10122) ............................................................... 60 7.3.2 Develop channel partner relationships (PCF 3.3.2 / 10130) ......................................... 60 7.3.3 Manage channel partners (PCF 3.5.6 / 10187) ............................................................. 61 Revision: v1.05 Page: 8 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 7.3.4 Manage end customer key accounts (PCF 3.5.2 / 10183) ............................................ 61 7.4 Invest to Comply (PCF 11.0 / 10012).................................................................................... 61 7.4.1 Build and manage lender and analyst relationships (PCF 11.1.1 & 11.1.2 / 11035 & 11036).............................................................................................................................. 61 7.4.2 Communicate [incl. corporate performance] with shareholders / stakeholders (PCF 11.1 & 11.1.3 / 11010 & 11037) ...................................................................................... 61 7.4.3 Manage government and industry relations (PCF 11.2 / 11011).................................. 61 7.4.4 Manage relations with board of directors (PCF 11.3 / 11012) ..................................... 62 7.4.5 Manage legal and ethical issues (PCF 11.4 / 11013) ..................................................... 62 7.4.6 Manage public relations programme (PCF 11.5 / 11014) ............................................. 62 7.4.7 Manage compliance ...................................................................................................... 62 8.0 Record to Review ..................................................................................................................... 63 8.1 Manage financial resources ................................................................................................. 63 8.1.1 Manage cash flow ......................................................................................................... 63 8.1.2 Manage financial risk .................................................................................................... 64 8.2 Process finance and accounting transactions ...................................................................... 64 8.2.1 Process accounts payable [A/P] (PCF 8.6 & 8.6.1 / 10733 & 10756) ............................ 64 8.2.2 Process payroll .............................................................................................................. 65 8.2.3 Process accounts receivable, credit and collections (PCF 8.2 / 10729) ........................ 66 8.2.4 Manage fixed asset project accounting (PCF 8.4 / 10731) ........................................... 68 8.2.5 Perform general accounting and reporting (PCF 8.3 / 10730)...................................... 68 8.2.6 Close the books ............................................................................................................. 69 8.2.7 Manage business expenses (PCF 8.6.2 / 10757) ........................................................... 70 8.2.8 Implement a transfer pricing policy .............................................................................. 70 8.3 Report information .............................................................................................................. 70 8.3.1 Provide external financial information ......................................................................... 71 8.3.2 Provide internal financial information (PCF 8.1 / 10728) ............................................. 71 Revision: v1.05 Page: 9 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 8.3.3 Manage integrity risk .................................................................................................... 71 8.4 Conduct internal audits (PCF 8.8 / 10735) ........................................................................... 71 8.4.1 Establish internal controls, policies and procedures (PCF 8.8.1 / 10762) .................... 71 8.4.2 Operate controls & monitor compliance with internal policies and procedures (PCF 8.8.2 / 10763) .......................................................................................................... 71 8.4.3 Manage fraud ................................................................................................................ 73 8.4.4 Report on internal controls compliance (PCF 8.8.3 / 10764)........................................ 73 8.5 Manage the tax function ...................................................................................................... 73 8.5.1 Manage tax compliance ................................................................................................ 73 8.5.2 Manage tax controversies............................................................................................. 73 9.0 Recruit to Retain (PCF 6.0 / 10007).......................................................................................... 75 9.1 Develop and manage human resources (HR) plans and policies (PCF 6.1 / 10409) ........... 75 9.1.1 Develop and implement human resources plans (PCF 6.1.2 / 10416) ......................... 75 9.1.2 Monitor and update plans (PCF 6.1.3 / 10417)............................................................. 75 9.2 Manage deployment of personnel ...................................................................................... 75 9.2.1 Forecast and plan workforce requirements ................................................................. 75 9.2.2 Recruit, select and hire employees (PCF 6.2 / 10410) .................................................. 76 9.2.3 Develop succession and career plans ........................................................................... 76 9.2.4 Manage international assignments .............................................................................. 76 9.2.5 Create and deploy teams .............................................................................................. 76 9.3 Develop and train employees (PCF 6.3 / 10411) ................................................................. 76 9.3.1 Manage employee orientation and deployment (PCF 6.3.1 / 10469) .......................... 76 9.3.2 Manage employee performance (PCF 6.3.2 / 10470) ................................................... 76 9.3.3 Manage employee relations (PCF 6.3.3 / 10471).......................................................... 77 9.3.4 Manage employee development (PCF 6.3.4 / 10472) .................................................. 77 9.3.5 Develop and train employees (PCF 6.3.5 / 10473) ....................................................... 77 9.4 Motivate and retain employees (PCF 6.4 / 10412) .............................................................. 77 Revision: v1.05 Page: 10 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 9.4.1 Develop and manage reward, recognition, and motivation programmes (PCF 6.4.1 / 10494) ........................................................................................................................... 77 9.4.2 Ensure employee involvement ..................................................................................... 77 9.4.3 Manage and administer benefits (PCF 6.4.2 / 10495) .................................................. 78 9.4.4 Manage employee work-life assistance and retention programmes (PCF 6.4.3 / 10496).............................................................................................................................. 78 9.4.5 Administer payroll (PCF 6.4.4 / 10497) ......................................................................... 78 9.4.6 Manage workforce diversity ......................................................................................... 78 9.4.7 Manage labour-management relationships ................................................................. 78 9.4.8 Manage changes in employment status (PCF 6.5 / 10413) .......................................... 78 9.4.9 Manage employee information (PCF 6.6 / 10414)........................................................ 79 10.0 Encode to Enlighten (PCF 7.0 / 10008) .................................................................................. 80 10.1 Manage information resources ......................................................................................... 80 10.1.1 Manage records and information (PCF 7.4 / 10565) .................................................. 80 10.1.2 Leverage data and information (PCF 7.8 / 10569) ...................................................... 80 10.1.3 Leverage organisational knowledge ........................................................................... 80 10.2 Manage information technology ....................................................................................... 80 10.2.1 Develop frameworks to align business and technology (PCF 7.1 / 10563) ................ 80 10.2.2 Develop and manage IT customer relationships (PCF 7.2 / 10564) ............................ 81 10.2.3 Identify / Develop, implement and manage technology solutions (PCF 7.5 & 7.6 / 10566 & 10567)............................................................................................................. 81 10.2.4 Support end users (PCF 7.7 / 10568) .......................................................................... 81 10.2.5 Manage technical environment (PCF 7.1.6 / 10575) .................................................. 81 10.2.6 Manage security (PCF 7.3.4 / 11220) .......................................................................... 81 10.2.7 Ensure continuity of systems (PCF 7.3 / 11216) ......................................................... 81 11.0 Assess to Assure (PCF 10.0 / 11179) ...................................................................................... 83 11.1 Manage Environment, Health & Safety (EH&S) Policy & Practice ..................................... 83 Revision: v1.05 Page: 11 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 11.1.1 Determine environmental, health and safety (EH&S) impact (PCF 10.1 / 11180) ......................................................................................................................................... 83 11.1.2 Develop and execute EH&S programme (PCF 10.2 / 11181) ...................................... 83 11.1.3 Communicate EH&S issues to stakeholders ............................................................... 83 11.1.4 Manage EH&S remediation efforts (PCF 10.6 / 11185) .............................................. 83 11.2 Manage physical risk (PCF 9.5 / 11207) ............................................................................. 83 11.3 Manage business continuity .............................................................................................. 84 12.0 Inform to Improve (PCF 12.0 / 10013) ................................................................................... 85 12.1 Confirm and apply top level KPIs and targets to organisational performance strategy development & management ............................................................................................. 85 12.1.1 Create and manage organisational performance strategy (PCF 12.1 / 11071) ... 85 12.1.2 Develop product / service / production process physical quality procedures & conduct quality assessments standards / (PCF 4.1.9 / 10368) ............................ 85 12.1.3 Benchmark performance (PCF 12.2 / 11072) ............................................................. 85 12.2 Apply good practice and manage change (PCF 12.4 / 11074) ........................................... 85 12.2.1 Plan for the change (PCF 12.4.1 / 11134) ................................................................... 86 12.2.2 Re-engineer business processes and systems ............................................................ 86 12.2.3 Implement and sustain continuous process improvement ........................................ 86 12.2.4 Develop enterprise-wide knowledge management [KM] capability (PCF 12.3 / 11073).............................................................................................................................. 86 Revision: v1.05 Page: 12 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide Business Process Model Revision: v1.05 Page: 13 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 1.0 Context to Capability (PCF 1.0 / 10002) The process of understanding the external environment in which an organisation functions, envisaging how the organisation can be successful in that context and the development of the strategic structures, plans and resources needed to achieve the necessary operational capabilities to realise that success. 1.1 Context to Vision (PCF 1.1 / 10014) Definition The process of preparing for future success with a largely externally oriented strategic vision that considers both short-term and long-term business objectives. 1.1.1 Assess the external environment (PCF 1.1.1 / 10017) Definition The process of acquiring, analysing and disseminating relevant external information to respond to and capitalise on competitive and marketplace opportunities. 1.1.2 Determine end customer and channel needs and wants (PCF 1.1.2 / 10018) Definition The process of identifying end customer and channel partner segments, critical contact incidents and needs / wants to be able to meet their legitimate and reasonable demands. 1.1.3 Perform internal analysis (PCF 1.1.3 / 10019) Definition The process of gathering, analysing and understanding the current organisational baseline, across a number of performance dimensions (e.g. finances, processes, systems), in terms of identifying both strengths on which to build and weaknesses which may require remedial action. 1.1.4 Establish strategic vision (PCF 1.1.4 / 10020) Definition The process of collaboratively fashioning a coherent strategic vision statement from the information gathered in the internal, external and end customer / channel partner analysis Revision: v1.05 Page: 14 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide work and communicating it back to the stakeholder community to gain their feedback and buy-in. 1.2 Vision to Strategy (PCF 1.2 / 10015) Definition The process of developing a strategic plan that typically answers some of the following fundamental questions about the organisation and its purpose, e.g.: Who are we? What needs do we intend to meet? Whose need is it? How do we intend to do to meet the needs, i.e. what products / services do we intend to provide and to whom? What are our central values (e.g. what do we believe in, what are we committed to, what is our philosophy/ideology)? 1.2.1 Develop mission statement (PCF 1.2.1 / 10037) Definition The process of developing a clear and compelling goal(s) that serves to unify an organisation's effort. An effective mission statement must stretch and challenge the organisation, yet be achievable. 1.2.2 Evaluate strategic options for achieving objectives (PCF 1.2.2 / 10038) Definition The process of developing a small number of strategic scenario options for achieving the mission statement and assessing the implications and impacts of each in achieving the organisation’s goals. 1.2.3 Select optimal business strategy (PCF 1.2.3 / 10039) Definition The process of selecting the optimal business strategy for achieving the goals set forth in an organisation’s mission statement from amongst the scenario model options explored and assessed. Revision: v1.05 Page: 15 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 1.2.4 Align functional & process strategies via business architecting (PCF 1.2.4 / 10040) Definition The process of gathering up, aligning and integrating the various functional and process strategies and goals into a cogent and coherent whole that can serve as the definitive communications and change roadmap for the disparate parts of an organisation such that they can coordinate and deliver their portion of any required/desired business change in an effective and efficient manner. 1.2.5 Create top-level organisational design (PCF 1.2.5 / 10041) Definition The process of developing an effective top-level design that will provide incentives for value generation and determine an efficient power distribution within the organisation. 1.2.6 Develop and set KPIs and targets mapped to top-level organisation (PCF 1.2.6 / 10042) Definition The process of developing and setting the key financial and non-financial measures used to help an organisation define and evaluate how successful it is, typically in terms of making progress towards its long-term organisational goals. KPIs can often be specified by answering the question "What is really important to our different stakeholders”? 1.2.7 Formulate business unit strategies (PCF 1.2.7 / 10043) Definition The process of developing strategy for distinct business units to focus activities and optimise resources. 1.3 Strategy to Capability (PCF 1.3 / 10016) Definition The process of mobilising business strategy to harness available resources for achieving stated goals in a manner which also allows for flexibility, speed and tolerance of risk. 1.3.1 Review and implement capital structure Definition Revision: v1.05 Page: 16 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide The process of determining and achieving the optimum mix of debt and equity funding to sustain operations and fuel growth. 1.3.2 Extend refine and agree business architecture Definition The process of designing, extending and refining the underlying strategic, legal, organisational, process, informational and physical structure of a business. 1.3.3 Develop business plan and set budget goals Definition The process of developing the business plan and identifying performance goals and operational benchmarks around available resources and capital, market position, general business prospects and value creation potential. Revision: v1.05 Page: 17 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 2.0 Concept to Catalogue (PCF 2.0 / 10003) The process of identifying and selecting key technologies and ideas for competitive products and/or services , seeing them through the design and development stages onto their successful launch into the marketplace and proactively managing them throughout their lifecycles. 2.1 Concept to Competence (PCF 2.1.3 / 10065) Definition The process of identifying whether ideas are commercially viable, developing those ideas into fundable concepts with an associated ROI and then protecting that IPR from being exploited by competitors. 2.1.1 Maintain ideas bank Definition The process of establishing a systematic approach to capitalise on the creativity of employee's, customers, business partners and other stakeholder groups. 2.1.1.1 Collect new or improved product / service / production process ideas from ALL internal and external stakeholders and sources 2.1.1.2 Collect positive and negative feedback about current products / services / production processes from ALL internal and external stakeholders and sources 2.1.1.3 Run new or improved product / service / production process brainstorming workshops, surveys and competitions 2.1.1.4 Analyse external media sources for new or improved product / service / production process market and/or competitive trends 2.1.1.5 Review ideas collected and categorise and rate them for possible business priority, quick win potential, likely difficulty & risk and relevant business owners 2.1.1.6 Distribute highest rated ideas to potential business owners to review for possible immediate action 2.1.1.7 Store and maintain ideas in ideas database 2.1.2 Identify promising new technologies and trends (PCF 2.1.3.1 / 10070) Definition The process of collecting information about selected target technology areas and attempting to spot useful trend patterns in that data that may prove of commercial or other interest to the organisation as a basis for the future development of new products, services or production processes. Revision: v1.05 Page: 18 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide Typical Sub-Processes 2.1.2.1 Conduct secondary market research scanning on technologies and trend areas of interest 2.1.2.2 Conduct analysis of secondary market research data and assemble into relevant facts, opinions and supporting rationales relevant to each area of interest 2.1.2.3 Assemble expert panel to review, integrate and synthesise all of the collected and collated facts, opinions and supporting rationales on each area of interest 2.1.2.4 Aggregate integrated and synthesized information into forecasts for each area of interest and store in forecast database 2.1.2.5 Distribute forecast results to distribution list of interested parties 2.1.2.6 Iterate, refine, and update forecast for each area of interest and maintain forecast database 2.1.3 Incubate and develop new technologies (PCF 2.1.3.2 / 10071) Definition The process of providing an environment designed to accelerate the successful development of entrepreneurial, and usually commercially interesting, technologies through an array of business support resources and services. The purpose is to maximise the relevance and competitiveness of the technology and thereby its chances of successful adoption into new generations of products, services and production processes. Typical Sub-Processes 2.1.3.1 Develop / refresh technology incubation objectives, strategy, policy and high-level selection and assessment criteria 2.1.3.2 Ensure incubation facilities are adequately resourced 2.1.3.3 Assemble unconstrained list of all technology incubation candidates, with supporting rationale, and conduct screen-out review based on individual contribution of candidates 2.1.3.4 Conduct screen-in assessment of long-list, based on joint individual and portfolio contribution of candidates, to generate priority and resource ranked short-list of incubator portfolio candidates 2.1.3.5 Assign resources to technologies admitted to portfolio and agree detailed incubation objectives and plans 2.1.3.6 Execute technology incubation plans 2.1.3.7 Review status and validate continued relevance of technologies being incubated versus plans 2.1.3.8 Communicate and roadshow more mature technology incubation projects to stakeholders responsible for adoption of new technologies into new or improved products / services / production processes 2.1.3.9 Close incubation projects taken on by mainstream product / service / production process development areas 2.2.3.10 Manage pending incubator portfolio candidates Revision: v1.05 Page: 19 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 2.1.4 Assess integrating new technology into products / services / production processes (PCF 2.1.3.3 / 10072) Definition The process of selecting the right technologies at the right time to make them available for incorporation into new and upgraded products / services / production processes. It must recognise that while newer and more advanced technologies may offer improved performance, they also make the development process more risky, challenging and unpredictable. Typical Sub-Processes 2.1.4.1 Define commercial, functional and technical requirements for proposed new or improved product / service / production process candidates 2.1.4.2 Identify all new technology candidate alternatives from both internal (e.g. incubation) and external sources 2.1.4.3 Assess new technology candidates against commercial, functional and technical criteria for each related product / service / production process candidate 2.1.4.4 Conduct negotiations for new technologies, as/if appropriate, for use in development of related new or improved products / services / production processes 2.1.4.5 Incorporate selected new technologies into new or improved product / service / production process development plans 2.1.5 Document and protect intellectual property Definition The process of protecting assets from infringement by others through strategic use of copyrights, patents and trademarks. Typical Sub-Processes 2.1.5.1 Apply for and manage patents 2.1.5.2 Secure copyright and trademark protection 2.1.5.3 Protect trade secrets 2.2 Competence to Confidence (PCF 2.1 / 10061) Definition The process, also known as portfolio management, that allows organisations to clearly articulate their strategic business direction and leverage this strategy through a rigorously managed product / service / production process pipeline. Portfolio management enables Revision: v1.05 Page: 20 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide decision makers to make the right innovation investment and drive the operational execution of their NPD projects. 2.2.1 Evaluate market performance of existing products / services / production processes (PCF 2.1.1 / 10063) Definition The process of understanding the differences between each individual existing product / service / production process in terms of it’s customer need satisfaction features and it’s contribution to the profit picture. Typical Sub-Processes 2.2.1.1 Conduct primary and secondary market research on product / service / production process performance 2.2.1.2 Compare product / service / production process actual performance against targeted performance 2.2.1.3 Sort products / services / production processes into ranked performance framework 2.2.2 Define desired product / service / production process development requirements (PCF 2.1.2 / 10064) Definition The process of packaging up proposals for new products / services / production processes, or improvement specifications for existing products / services / production processes, into a business case style format for submission into a portfolio management process. Typical Sub-Processes 2.2.2.1 Identify potential improvements to existing products / services / production processes (PCF 2.1.2.1 / 10068) 2.2.2.2 Identify potential new products / services / production processes (PCF 2.1.2.2 / 10069) 2.2.3 Confirm product / service / production process concepts align with business goals (PCF 2.1.4 / 10066) Definition The process of operating a cross-functional decision-making committee that assesses the merits of new or upgraded product / service / production process proposals based on how well they support the strategic intent and profit / performance objectives of the organisation. Typical Sub-Processes Revision: v1.05 Page: 21 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 2.2.3.1 Develop or refresh product / service / production process portfolio objectives, strategy, policy and high-level selection and assessment criteria, including cost and quality targets (PCF 2.1.4.1 / 10073) 2.2.3.2 Develop business cases in support of product /service / production process portfolio submissions 2.1.3.3 Assemble unconstrained list of all product / service / production process, with supporting rationale, and conduct screen-out review based on individual contribution of candidates 2.1.3.4 Conduct screen-in assessment of long-list, based on joint individual and portfolio contribution of candidates, to generate priority and resource ranked short-list of portfolio candidates (PCF 2.1.4.2 / 10074) 2.2.3.5 Plan for existing portfolio product / service / production process offering modifications (PCF 2.1.4.4 / 10076) 2.1.3.6 Assign resources to products / services / production processes admitted to portfolio and agree detailed objectives, plans, development timings & budgets against business cases (PCF 2.1.4.3 / 10075) 2.1.3.7 Execute portfolio plans 2.1.3.8 Review status and validate continued relevance of products / services / production processes being developed versus plans and business cases 2.2.3.9 Manage pending product / service / production process portfolio candidates 2.2.4 Manage product, service and production process lifecycle (PCF 2.1.5 / 10067) Definition The process of managing the full lifecycle of competitive products, services and production processes from development and growth to maturity and decline. Typical Sub-Processes 2.2.4.1 Introduce and manage new/improved products / services / production processes (PCF 2.1.5.1 / 10077) 2.2.4.2 Retire outdated products / services / production processes (PCF 2.1.5.2 / 10078) 2.2.4.3 Identify / Review and refine performance indicators (PCF 2.1.5.3 / 10079) 2.3 Confidence to Catalogue (PCF 2.2 / 10062) Definition The process of designing, developing and delivering competitive products, services and production processes to the marketplace and proactively managing them throughout their lifecycle. Revision: v1.05 Page: 22 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 2.3.1 Create an innovation and development framework Definition The process of creating distinctive products, services, production processes and methods of working. Typical Sub-Processes 2.3.1.1 Implement concurrent engineering 2.3.1.2 Implement value engineering 2.3.1.3 Implement ‘design for X’ environment 2.3.1.4 Implement project management 2.3.1.5 Identify design and development performance indicators (PCF 2.2.1.9 / 10091) 2.3.2 Design, build, and evaluate products, services and processes (PCF 2.2.1 / 10080) Definition The process of exploring, developing, testing and launching new products / services / production processes, and reshaping existing ones to create new markets and growth opportunities. Typical Sub-Processes 2.3.2.1 Assign resources to product / service / process projects (PCF 2.2.1.1 / 10083) 2.3.2.2 Refine / Detail plans and business cases, including performing technical assessment (PCF 2.2.1.2 / 10084) 2.3.2.3 Develop customer led new product / service / process design specifications (PCF 2.2.1.3 / 10085) 2.3.2.4 Refine existing product / service / process design specifications as per customer led improvement reviews 2.3.2.5 Document design specifications (PCF 2.2.1.4 / 10086) 2.3.2.6 Conduct mandatory and elective external reviews; e.g. regulatory (PCF 2.2.1.5 / 10087) 2.3.2.7 Build prototypes (PCF 2.2.1.6 / 10088) 2.3.2.8 Eliminate quality and reliability problems (PCF 2.2.1.7 / 10089) 2.3.2.9 Conduct in-house product / service / process testing & feasibility evaluation (PCF 2.2.1.8 / 10090) Revision: v1.05 Page: 23 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 2.3.2.10 Collaborate on design and development with suppliers and strategic alliance partners (PCF 2.2.1.10 / 10092) 2.3.3 Test market for new or revised products / services / production processes (PCF 2.2.2 / 10081) Definition The process of conducting a single, time-limited evaluation of new or upgraded products / services / production processes prior to their general market launch such that any necessary or desirable changes to the item or its launch process can be identified and rectified. Typical Sub-Processes 2.3.3.1 Prepare detailed market study (PCF 2.2.2.1 / 10093) 2.3.3.2 Conduct end customer / channel partner tests and interviews (PCF 2.2.2.2 / 10094) 2.3.3.3 Participate in end customer / channel partner tests and interviews 2.3.3.4 Analyse results and finalise product / service / production process features and functional characteristics and business cases (PCF 2.2.2.3 / 10095) 2.3.3.5 Finalise technical requirements (PCF 2.2.2.4 / 10096) 2.3.3.6 Identify requirements for changes to production / delivery processes (PCF 2.2.2.5 / 10097) 2.3.3.7 Launch product / service 2.3.4 Prepare for production launch (PCF 2.2.3 / 10082) Definition The process of integrating production activities with other functional areas in an effort to meet marketplace demands for speed, quality and cost control when launching a new product, service or production process. Typical Sub-Processes 2.3.4.1 Develop & test prototype product / service delivery process (PCF 2.2.3.1 / 10098) 2.3.4.2 Design and obtain necessary materials and equipment (PCF 2.2.3.2 / 10099) 2.3.4.3 Install and validate production process or methodology (PCF 2.2.3.3 / 10100) 2.3.4.4 Enter Product / Service data (e.g. Description, Pricing, BOM, Routing) into relevant IT systems and maintain data 2.3.4.5 Accomplish production handover Revision: v1.05 Page: 24 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 3.0 Budget to Plan (PCF 4.1 / 10215) The process of turning unconstrained future projections about marketplace sales opportunities and knowledge of available business budgets into constrained, balanced, measurable, actionable and agreed plans for coordinated execution by all parts of the organisation. 3.1 Budget to Forecast Definition The process by which organisations ponder and prepare for the future is called forecasting. It involves predicting the future outcome of various business decisions e.g. the future of an existing or proposed product or service line. 3.1.1 Develop sales forecast (PCF 3.3.1 / 10129) Definition The process of projecting future sales demand based on historical data and intelligence information about likely changes in future market conditions (e.g. end customer / channel partner sentiment). 3.1.2 Develop capacity forecast (PCF 4.1.2 / 10222) Definition The process of determining the necessary resources to meet the production objectives. 3.1.3 Develop tiered supply forecast (PCF 4.2.1 / 10277) Definition The process of identifying, communicating and securing the supply of raw materials projected as needed to meet the forecast production and service delivery demands of the organisation. 3.1.4 Develop financial forecast (PCF 8.1.1.3 / 10773) Definition The process of estimating the future financial outcomes of an organisation. Revision: v1.05 Page: 25 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 3.2 Forecast to Constrain Definition The process, commonly referred to as Sales & Operations Planning (S&OP), leading to one common, achievable execution plan for the business. It takes into account demand, the supply of available capacity and other key business constraints. 3.2.1 Conduct sales / key account plan reviews Definition The process of establishing, by sales region / area, whether and how actual / probable sales to regular or key account customers will differ from those predicted in the most recent sales forecast, typically with a particular focus on the next 1-3 months which are of particular importance to accurate S&OP planning and its subsequent execution. 3.2.2 Establish demand consensus and communicate agreed demand profile Definition The process of agreeing a definitive version of a single ‘demand plan’ for the ‘global’ organisation from a combination of sales forecasts, sales team feedback and market intelligence from all sales regions / areas and then communicating it through-out the ‘global’ organisation. 3.2.3 Establish supply chain capacity / constraints (e.g. manufacturing, logistics and procurement) and communicate required supply profile Definition The process of establishing the available ‘global’ supply chain capacity for the period covered by the demand plan, and it’s constraints, such that decisions can be taken regarding how and when to allocate resources to making different products / services and selling them to different customers. 3.2.4 Hold S&OP meeting and publish agreed S&OP Definition The process of setting the overall, ‘global’ level of production output and other activities to best satisfy the current planned levels of ‘global’ sales (i.e. as expressed in the demand plan) while meeting general business objectives of profitability, productivity, competitive customer lead times, etc as expressed in the overall business plan. Revision: v1.05 Page: 26 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 3.3 Constrain to Plan Definition The process for individual business units / sites of planning the optimal movements of raw materials through the production process and then as finished products or services to be transported to the end customer or channel partner by promoting efficiency, reducing waste, executing speedy and accurate delivery and managing as for a total supply chain. 3.3.1 Create inbound materials plan (PCF 4.1.3 / 10223) Definition The process of managing the planning and control of all inbound materials (i.e. including finished goods and raw materials / component parts) into individual business unit / site organisations. 3.3.2 Create and manage master production schedule [MPS] (PCF 4.1.4 / 10224) Definition The process that translates the agreed S&OP plan into a dynamic and comprehensive product production / service delivery schedule envelope for each individual business unit / site organisation. This will be consumed by ATP order promising / confirmation activities in response to end customer / channel partner orders as they are received and/or by meeting stock replenishment objectives. 3.3.3 Plan distribution requirements (PCF 4.1.5 / 10225) Definition The process of planning logistics activities associated with outbound transportation, warehousing, inventory levels, materials handling, order administration, and any industrial packaging needed to support outbound distribution operations. Revision: v1.05 Page: 27 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 4 .0 Opportunity to Order (PCF 3.0 / 10004) The process of developing strategies and procedures to position products and services in the marketplace and achieve high levels of market share, revenue and profit margin. 4.1 Opportunity to Offering (PCF 3.1 / 10101) Definition The process of analysing market and end customer / channel partner information to create and maintain a competitive business position. 4.1.1 Perform end customer / channel and market intelligence analysis (PCF 3.1.1 / 10106) Definition The process for discovering what end customers / channel partners want, need or believe. It can also involve discovering how they act. Once that research is completed, it can be used to determine how to market a product or service. 4.1.2 Evaluate and prioritise market opportunities (PCF 3.1.2 / 10107) Definition The process of giving a sales and marketing team actionable intelligence on what products and services are of most interest to potential end customers / channel partners. 4.1.3 Develop marketing strategy (PCF 3.2 / 10102) Definition The process of enabling an organisation to concentrate its limited resources on the greatest opportunities to increase sales & profits and achieve a sustainable competitive advantage. A marketing strategy should be centred around the key concept that customer satisfaction is the main goal. 4.2 Offering to Target (PCF 3.4 / 10104) Definition The process of translating marketplace changes into specific ideas for targeted business opportunities and sales campaigns / programmes to take advantage of them. Revision: v1.05 Page: 28 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 4.2.1 Establish goals, objectives and metrics for products / services by end customer / channel / segment (PCF 3.4.1 / 10148) Definition The process of developing a marketing plan that contains the set of specific actions and measures required to successfully implement the marketing strategy. Most commonly a marketing plan is a written document detailing the necessary actions to achieve one or more marketing strategy objectives. 4.2.2 Establish presence in emerging markets Definition The process of identifying opportunity, and expanding into new markets with strong sales potential, to increase global market share. 4.2.3 Develop message and manage media (PCF 3.4.3 / 10150) Definition The process of designing the strategies to be adopted for influencing the buying public / end customer in their uptake of a product or service, and deciding on the aspect to be advertised and which channel(s) to employ, based on the desired image of the organisation and its present marketing objectives. 4.2.4 Develop and manage pricing (PCF 3.4.4 / 10151) Definition The process of developing approaches to pricing designed to sustainably capture the maximum revenue and profit potential from an organisation’s end customers / channel partners. 4.2.5 Develop and manage advertising and promotional activities (PCF 3.4.5 / 10152) Definition The process of reaching target audiences with focused messages about the benefits of products and services to encourage purchasing behaviours. 4.2.6 Track end customer / channel partner management measures (PCF 3.4.6 / 10153) Definition Revision: v1.05 Page: 29 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide The process of measuring, managing and improving customer performance and focus to determine whether an organisation is achieving an adequate return by customer from its marketing investments in its selected target markets. 4.2.7 Develop and manage packaging / bundling strategy (PCF 3.4.7 / 10154) Definition The process of developing a strategy for enclosing or protecting products for marketing, distribution, storage, information transmission, sale and use purposes. By extension ‘bundling’, which is the addition of further items into the purchase transaction related to an otherwise ‘stand-alone’ product or service, usually for promotional reasons, is the process of combining multiple normally separate items together into a single saleable unit. 4.3 Target to Dialog (PCF 3.5 / 10105) Definition The process of building market share capture opportunities by converting prospective end customer and/or channel partner discussion of ‘ideas’ for doing business together to ‘engagement’ in a serious sales proposition dialog (e.g. bid request or formal enquiry) as relates to those ideas. 4.3.1 Manage sales force (PCF 3.5.5 / 10186) Definition The process of attaining an organisation's sales goals in an effective & efficient manner through planning, staffing, training, leading and controlling organisational resources. 4.3.2 Generate end customer / channel partner leads (PCF 3.5.1 / 10182) Definition The process of generating prospective end customer / channel partner interest or enquiry into an organisation’s products or services. Typical Sub-Processes 4.3.2.1 Identify potential new end customer / channel partner prospects (PCF 3.5.1.1 / 10188) 4.3.2.1.1 Develop or refine target end customer / channel partner profiles 4.3.2.1.2 Research and develop long-list of organisations matching target profiles 4.3.2.1.3 Filter long-list to develop short-list of organisations most likely to soon be Revision: v1.05 Page: 30 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide interested in products/services on offer 4.3.2.1.4 Source contact information for short-listed organisations 4.3.2.2 Mine existing end customer / channel partner customer database 4.3.2.2.1 Develop or refine criteria for identifying current customers likely to repurchase soon 4.3.2.2.2 Search database of current customers against criteria to develop list of matches 4.3.2.2.3 Review histories of match list organisations for further information relevant to sales 4.3.2.2.4 Compile brief dossier of match list organisations for sales use, including contact information 4.3.2.3 Identify and qualify leads (i.e. new prospect AND existing customer) (PCF 3.5.1.2 / 10189) 4.3.2.3.1 Identify value proposition(s) most likely to succeed with the target organisations 4.3.2.3.2 Review prospect / customer expressions of interest or enquiries recorded in database for relevant queries 4.3.2.3.3 Contact target organisations and probe interest in value proposition(s) 4.3.2.3.4 Indicate likely level of interest in value proposition(s) put forward (if any) 4.3.2.3.5 Indicate (if possible) specific products/services of particular relevance 4.3.2.3.6 Indicate (if appropriate) budget, timeline and other high-level purchasing criteria 4.3.2.3.7 Record target organisation responses for analysis 4.3.2.3.8 Analyse target organisation responses to identify/confirm, qualify and prioritise leads 4.3.2.4 Enter qualified prospect and any additional existing customer data into customer database. Enter ALL qualified leads into sales pipeline tracker 4.3.2.5 Maintain data in sales pipeline tracker 4.3.3 Respond to end customer and/or channel partner enquiries Definition The process of receiving, processing and responding to end customer and/or channel partner enquiries quickly and efficiently. Typical Sub-Processes 4.3.3.1 Respond to information requests 4.3.3.1.1 Prepare RFI (Request For Information) 4.3.3.1.2 Send RFI (Request For Information) 4.3.3.1.3 Receive RFI (Request For Information) Revision: v1.05 Page: 31 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 4.3.3.1.4 Record / Confirm Enquirer Details and Prepare information 4.3.3.1.5 Send information and update sales pipeline tracker 4.3.3.1.6 Receive information 4.3.3.1.7 Review information 4.3.4 Sell to end customers and/or channel partners (PCF 3.5.3 / 10184) Definition The process of taking a specific sales proposition……comprising features, benefits, availability and commercial terms……and making it available to an end customer and/or channel partner for purchase via a bidding process or order placement. Typical Sub-Processes 4.3.4.1 Perform sales calls (PCF 3.5.3.1 / 10190) 4.3.4.1.0 Identify product or service candidates (i.e. end customer or channel partner initiated sales call) 4.3.4.1.1 Sell through a field sales force 4.3.4.1.2 Sell through retail channel partners 4.3.4.1.3 Sell through the Internet 4.3.4.1.3.1 Populate website with online product / service offerings catalogue 4.3.4.1.3.2 Maintain website product / service offerings catalogue 4.3.4.1.3.3 Select products / services and terms required from online catalogue 4.3.4.1.3.4 Log-in and confirm product / service selections 4.3.4.1.3.5 Select payment method and transport mode, then checkout or cancel 4.3.4.1.3.6 Submit order and payment details 4.3.4.1.3.7 Receive order and payment details 4.3.4.1.3.8 Transmit payment and order details to seller. Copy information to buyer email 4.3.4.1.3.9 Receive payment and order details 4.3.4.1.3.10 Send payment declined message 4.3.4.1.3.11 Receive payment declined message 4.3.4.1.3.12 Send online order. Copy information to buyer email 4.3.4.1.3.13 Send offline payment 4.3.4.1.3.14 Receive online order 4.3.4.1.3.15 Hold online order(s) pending payment confirmation 4.3.4.1.3.16 Enter user contact & delivery details / preferences and register 4.3.4.1.3.17 Give registered user(s) access to online ‘customer only’ environment(s) 4.3.4.1.3.18 Send registered user ‘customer only’ access details 4.3.4.1.3.19 Receive registered user ‘customer only’ access details Revision: v1.05 Page: 32 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 4.3.4.1.4 Sell through telesales (a.k.a make sales calls) 4.3.4.1.4.1 Select qualified leads from sales pipeline tracker 4.3.4.1.4.2 Contact lead to confirm or establish product / service match to customer requirements and co-develop next steps 4.3.4.1.4.3 Receive contact from seller to confirm or establish product / service match to requirements and co-develop next steps 4.3.4.1.4.4 Agree next steps 4.3.4.1.4.5 Action next steps 4.3.4.1.4.6 Update sales pipeline tracker 4.3.4.1.5 Sell through direct marketing 4.3.4.1.6 Sell through wholesaler and distributor channel partners 4.3.4.2 Perform pre-sales activities [including bid responses] (PCF 3.5.3.2 / 10191) 4.3.4.2.1 Send RFQ (Request For Quotation) 4.3.4.2.2 Receive RFQ (Request For Quotation) 4.3.4.2.3 Qualify RFQ (Request For Quotation) 4.3.4.2.4 Assess risk 4.3.4.2.5 Prepare quote 4.3.4.2.6 Manage and approve quote 4.3.4.2.7 Send quote 4.3.4.2.8 Receive quote 4.3.4.2.9 Analyse quote 4.3.4.2.10 Send quote acceptance 4.3.4.2.11 Manage quote 4.3.4.2.12 Send quote rejection 4.3.4.2.13 Receive quote rejection 4.3.4.2.14 Send RFQ (Request For Quotation) rejection 4.3.4.2.15 Receive RFQ (Request For Quotation) rejection 4.3.4.2.16 Receive quote acceptance 4.3.4.3 Close the sale (PCF 3.5.3.3 / 10192) 4.3.4.3.1 Prepare sales order request 4.3.4.3.2 Send sales order request 4.3.4.4 Record outcome of sales process (PCF 3.5.3.4 / 10193) 4.4 Dialog to Order (PCF 3.5.4 / 10184) Definition Revision: v1.05 Page: 33 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide The process of meeting end customer and/or channel partner needs and expectations throughout all stages of the order management process (i.e. order placement or bid award). 4.4.1 Accept and validate sales orders / bid awards (PCF 3.5.4.1 / 10194) Definition The process of evaluating and approving all sales orders / bid awards before they are entered into the organisations formal accounting & operations system(s) which has the objective of reducing potential problems and ensuring the highest level of customer service / satisfaction. Typical Sub-Processes 4.4.1.1 Receive and manage sales order form and update customer database 4.4.1.3 Manage pending quotes 4.4.1.4 Validate sales order (incl. holding non-credit offline orders pending payment confirmation) 4.4.1.5 Send invalid sales order notice 4.4.1.6 Receive invalid sales order notice 4.4.2 Collect and maintain end customer / channel partner account information (PCF 3.5.4.2 / 10195) Definition The process of gathering, creating, updating and maintaining key information about the end customers / channel partners who buy an organisations products and services. Typical Sub-Processes 4.4.2.1 Enter or update all additional end customer / channel partner data emerging from prospect or customer enquiries and customer sales orders into customer database 4.4.2.2 Enter or update all salient end customer / channel partner data emerging from other prospect or customer contact (e.g. sales force visit notes, customer feedback and complaints, marketing campaign responses, blue-bird expressions of interest, etc) into customer database 4.4.2.3 Maintain end customer / channel partner contact information and enquiry / sales order history in customer database 4.4.3 Determine product / service availability [i.e. allocate ATP] (PCF 3.5.4.3 / 10196) Definition Revision: v1.05 Page: 34 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide The process of providing a response to customer order enquiries based on resource availability. It generates available (i.e. stock) or predicted (i.e. planned) quantities of the requested product / service, and the associated anticipated delivery dates. Typical Sub-Processes 4.4.3.1 Create sales order (including shipping mode if applicable) 4.4.4 Determine logistics and transportation options (PCF 3.5.4.4 / 10197) Definition The process of establishing the options available for the selection, transport and if necessary further storage of products and/or service related items (e.g. as for an installation) from the end of the production line or finished goods warehouse to the end customer / channel partner. 4.4.5 Enter orders into system and identify / perform cross-sell / up-sell activity (PCF 3.5.4.5 / 10198) Definition The process of entering validated / accepted end customer or channel partner orders (i.e. finalised orders) in the selling organisation’s order book (or computer system that provides the same function) and then cross-correlating that order with supplementary, enhancement or add-on products or services that might be of interest to the customer for communication back to the salesperson(s). This process also includes the ongoing management of those finalised orders to ensure successful, accurate and timely delivery to end customers or channel partners. Typical Sub-Processes 4.4.5.1 Confirm sales order 4.4.5.2 Send sales order confirmation 4.4.5.3 Receive sales order confirmation 4.4.5.4 Manage confirmed sales orders 4.4.5.5 Create registered user(s) and send ‘customer only’ online access details 4.4.5.6 Receive ‘customer only’ online access details Revision: v1.05 Page: 35 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 4.4.6 Process back orders and updates (PCF 3.5.4.6 / 10199) Definition The process of the further processing of a sales order / bid award, that was not completed (e.g. not finalised due to lack of material, resources, etc) at the time it was originally placed and hence was never confirmed in full to the customer for delivery at a certain date, at a time when it can be completed. Typical Sub-Processes 4.4.6.1 Manage pending sales order backlog 4.4.6.2 Send backorder status note 4.4.6.3 Receive backorder status note 4.4.7 Handle post-order enquiries including post-order fulfillment transactions (PCF 3.5.4.7 / 10200) Definition The process of customer service management and reply to end customer / channel partner supplementary enquires after order placement and/or order fill completion. Revision: v1.05 Page: 36 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 5.0 Order to Cash – Products (PCF 4.0 / 10005) The process of managing the production process from resource and project management, to materials handling and production, to inventory and warehousing, to delivery and hand-over to service support. 5.1 Order to Purchase (PCF 4.2 / 10216) Definition The process of taking a confirmed end customer or channel partner order and doing final checks on customer credit and also of planning for and acquiring the necessary resources to ensure that the company has the capacity and materials / services availability needed to produce its products. 5.1.1 Process customer credit (PCF 8.2.1 / 10742) Definition The process that enables a vendor of goods or services to validate to a reasonable degree of probability that an end customer / channel partner placing an order with them is in a position to make timely payment(s) for the ordered item(s) and is also likely to do so. Typical Sub-Processes 5.1.1.1 Establish credit policies (PCF 8.2.1.1 / 10789) 5.1.1.2 Analyse / Approve new account applications (PCF 8.2.1.2 / 10790) 5.1.1.3 Review existing accounts (PCF 8.2.1.3 / 10791) 5.1.1.4 Produce credit / collection reports (PCF 8.2.1.4 / 10792) 5.1.1.5 Reinstate or suspend accounts based on credit policies and checks (PCF 8.2.1.5 / 10793) 5.1.1.5.1 Update customer account credit status 5.1.1.6 Release or suspend orders based on account status 5.1.1.6.1 Check customer credit status 5.1.1.6.2 Place order(s) on credit hold 5.1.1.6.3 Send credit hold status 5.1.1.6.4 Receive credit hold status 5.1.1.6.5 Update customer order credit hold status Revision: v1.05 Page: 37 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 5.1.2 Purchase materials, supplies and services (PCF 4.2.3 / 10279) Definition The process of purchasing materials and supplies comprises procedures and activities to acquire goods and services for the company of optimum quality, in the correct quantity, in a timely manner, and at the lowest total cost. Typical Sub-Processes 5.1.2.0 Raise and manage purchase requisitions 5.1.2.0.1 Create purchase requisition(s) 5.1.2.0.2 Submit purchase requisition(s) 5.1.2.0.3 Receive purchase order 5.1.2.0.4 Receive purchase request rejection 5.1.2.0.5 Receive quote rejection note 5.1.2.1 Review and process requisitions (PCF 4.2.3.1 / 10292) 5.1.2.1.1 Receive purchase requisition(s) 5.1.2.1.2 Review purchase requisition(s) 5.1.2.2 Approve requisitions (PCF 4.2.3.2 / 10293) 5.1.2.2.1 Send purchase requisition rejection(s) 5.1.2.3 Solicit and track vendor quotes (PCF 4.2.3.3 / 10294) 5.1.2.3.1 Prepare RFQ (Request For Quotation) 5.1.2.3.2 Manage RFQs (Requests For Quotations) 5.1.2.3.3 Send RFQ (Request For Quotation) 5.1.2.3.4 Receive RFQ (Request For Quotation) 5.1.2.3.5 Review RFQ (Request For Quotation) 5.1.2.3.6 Prepare quote 5.1.2.3.7 Send quote 5.1.2.3.8 Receive quote 5.1.2.3.9 Analyse quote Revision: v1.05 Page: 38 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 5.1.2.3.10 Send quote rejection note 5.1.2.3.11 Receive quote rejection note 5.1.2.3.12 Send RFQ (Request For Quotation) rejection 5.1.2.3.13 Receive RFQ (Request For Quotation) rejection 5.1.2.3.14 Add supplier to approved database 5.1.2.4 Place and distribute purchase orders (PCF 4.2.3.4 / 10295) 5.1.2.4.1 Create purchase order (including shipping mode if applicable) 5.1.2.4.2 Send offline purchase order 5.1.2.4.3 Receive offline purchase order 5.1.2.4.4 Submit online purchase order 5.1.2.4.5 Receive online purchase order 5.1.2.5 Expedite orders and satisfy inquiries (PCF 4.2.3.5 / 10296) 5.1.2.5.1 Manage purchase orders 5.1.2.6 Record receipt of goods (PCF 4.2.3.6 / 10297) 5.1.2.6.1 Receive item(s) 5.1.2.7 Investigate and resolve exceptions (PCF 4.2.3.7 / 10298) 5.1.2.8 Enter supplier data into relevant IT systems and maintain data 5.2 Purchase to Pay Definition The process that covers the activities of receiving, inspecting, storing, paying for, accounting for and managing inventories of goods and services purchased by the organisation. 5.2.1 Plan inbound material flow logistics (PCF 4.5.2 / 10339) Definition The process of planning and managing the logistical flow of raw materials, components, subassemblies, services and information into the enterprise…… commonly termed ‘inbound materials management’. Typical Sub-Processes Revision: v1.05 Page: 39 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 5.2.1.1 Plan inbound material receipts (PCF 4.5.2.1 / 10349) 5.2.1.2 Manage inbound material flow (PCF 4.5.2.2 / 10350) 5.2.1.2.1 Load, send and track item(s) 5.2.1.3 Monitor inbound delivery performance (PCF 4.5.2.3 / 10351) 5.2.1.4 Manage flow of returned and/or rejected items (PCF 4.5.2.4 / 10352) 5.2.2 Manage / Operate inbound warehousing (PCF 4.5.3 / 10340) Definition The process of warehousing or storing items begins when the warehouse receives the raw materials and ends when goods are moved into the production area for use in scheduled production operations……at the lowest cost consistent with operational requirements and expectations. Typical Sub-Processes 5.2.2.1 Track inbound inventory deployment (PCF 4.5.3.1 / 10353) 5.2.2.2 Receive, inspect, and store inbound deliveries (PCF 4.5.3.3 / 10354) 5.2.2.2.1 Inspect item(s) 5.2.2.2.2 Generate GRN (Goods Received Note) 5.2.2.2.3 Place item(s) in inventory 5.2.2.2.4 Send item collection note 5.2.2.2.5 Receive item collection note 5.2.2.3 Track raw materials & spares availability and inventory accuracy (PCF 4.5.3.5 / 10357) 5.2.2.3.1 Update inventory records 5.2.2.3.2 Send inventory update note 5.2.2.3.3 Receive inventory update note 5.2.2.4 Track 3PL / VMI shipping and storage performance (PCF 4.5.3.6 / 10358) 5.2.2.5 Manage physical raw materials& spares inventory (PCF 4.5.3.7 / 10359) 5.2.2.5.1 Move materials to storage area 5.2.2.5.2 Return materials to storage 5.2.2.5.3 Update materials inventory Revision: v1.05 Page: 40 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 5.2.2.5.4 Disposition materials 5.2.3 Manage payments to suppliers Definition The process of ensuring that authorisation is given for payments to suppliers for products and services provided such that they will be paid in line with existing T&Cs. Typical Sub-Processes 5.2.3.1 Verify accounts payables [A/P] pay file with PO vendor master file (PCF 8.6.1.1 / 10869) 5.2.3.2 Maintain / manage electronic commerce (PCF 8.6.1.2 / 10870) 5.2.3.3 Audit invoices and key data [e.g. 3-way match] in A/P system (PCF 8.6.1.3 / 10871) 5.2.3.4 Approve payments (PCF 8.6.1.4 / 10872) 5.2.4 Manage supplier returns and reverse logistics (PCF 4.5.5 / 10342) Definition The process of planning, implementing and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods, reusable packaging and/or related information from the point of consumption back to the point of origin for the purpose of maintenance / repair, recapturing value or proper disposal. Typical Sub-Processes 5.2.4.1 Identify, authorise and process returns (PCF 4.5.5.1 / 10364) 5.2.4.1.1 Prepare RMA (Returned Material Authorisation) request 5.2.4.1.2 Send RMA (Returned Material Authorisation) request 5.2.4.1.3 Receive RMA (Returned Material Authorisation) request 5.2.4.1.4 Send RMA (Returned Material Authorisation) authorization 5.2.4.1.5 Send RMA (Returned Material Authorisation) rejection 5.2.4.2 Perform reverse logistics (PCF 4.5.5.2 / 10365) 5.2.4.2.1 Load, return and track item(s) 5.2.4.2.2 Receive returned item(s) Revision: v1.05 Page: 41 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 5.2.4.2.3 Load, send and track replacement item(s) 5.2.4.2.4 Send returns rejection 5.2.4.2.5 Raise and send credit note(s) 5.2.4.3 Manage and process warranties and claims (PCF 4.5.5.4 / 10367) 5.2.4.3.1 Manage returned items 5.2.4.4 Track and analyse return categories [e.g. DOAs] for improvement opportunities 5.2.5 Monitor environmental, health and safety (EH&S) performance Definition The process of recording, measuring and reporting the effect of production operations on employee health, safety and the environment. 5.3 Pay to Produce (PCF 4.3. / 10217) Definition The process of converting resources or inputs into products is about mining, managing and leveraging the expertise of employees and appropriate production technologies / techniques in a manufacturing environment to gain the highest possible levels of efficiency and productivity as relates to product output. 5.3.1 Schedule production (PCF 4.3.1 / 10303) Definition The process of determining the sequence of activities for a smooth and efficient flow of product through the manufacturing process while balancing resources, eliminating bottlenecks and keeping output matched to customer demand. Typical Sub-Processes 5.3.1.1 Generate line level plan (PCF 4.3.1.1 / 10306) 5.3.1.1.1 Manage product fill request(s) 5.3.1.1.2 Request material(s) 5.3.1.2 Generate detailed run / batch schedule (PCF 4.3.1.2 / 10307) 5.3.1.3 Schedule production orders and create raw material lots / kits (PCF 4.3.1.3 / 10308) Revision: v1.05 Page: 42 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 5.3.1.3.1 Schedule production 5.3.1.3.2 Submit materials call-off request 5.3.1.3.3 Receive materials call-off request 5.3.1.3.4 Create materials kitting list 5.3.1.3.5 Kit materials 5.3.1.4 Release production orders and release raw material lots / kits (PCF 4.3.1.4 / 10309) 5.3.1.4.1 Raise, release and manage production orders 5.3.2 Make and package product (PCF 4.3.2 / 10304) Definition The process of utilising raw materials, subassemblies, parts, and services to create a company's products and packaging them for distribution to end customers and channel partners. Typical Sub-Processes 5.3.2.1 Manage and move raw material inventory to production area (PCF 4.3.2.1 / 10310) 5.3.2.1.1 Release materials and move to production area 5.3.2.2 Execute detailed line run / batch schedule (PCF 4.3.2.2 / 10311) 5.3.2.2.1 Access materials 5.3.2.2.2 Execute production 5.3.2.2.3 Update production order(s) 5.3.2.2.4 Close production order(s) 5.3.2.3 Perform in-line quality testing (PCF 4.3.4 / 10369) 5.3.2.3.1 Perform testing using the standard testing procedure (PCF 4.3.4.1 / 10374) a.k.a. Inspect / Test item(s) 5.3.2.3.2 Record test results (PCF 4.3.4.2 / 10375) 5.3.2.4 Package and move finished goods to storage area 5.3.2.4.1 Package item(s) as finished goods 5.3.2.4.2 Move item(s) to finished goods storage 5.3.2.5 Rerun / Rework / Scrap defective items (PCF 4.3.2.3 / 10313) Revision: v1.05 Page: 43 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 5.3.2.6 Assess production performance (PCF 4.3.2.4 / 10314) 5.3.3 Perform post-production random quality testing (PCF 4.3.4 / 10369) Definition The process of assuring product quality entails ensuring that a company's products (whether goods or services) conform to end customer and channel partner requirements and are fit for end customer use. 5.3.4 Maintain production records and manage lot & batch / run traceability (PCF 4.3.5 / 10370) Definition The process of maintaining production records for the purposes of accounting, business management, product recall / traceability, statutory tax and regulatory compliance reasons. 5.3.5 Manage fixed assets Definition The process of maximising financial return on investments in long-lived, tangible assets such as plant, property and equipment. 5.3.6 Schedule and perform maintenance (PCF 4.3.3 / 10305) Definition The process of monitoring the performance of production equipment, machines and tools; determining optimum maintenance intervals; and acquiring services, replacement parts and supplies as necessary for effective maintenance and operational safety / reliability. 5.3.7 Monitor environmental, health and safety (EH&S) performance Definition The process of recording, measuring and reporting the effect of production operations on employee health, safety and the environment. 5.4 Produce to Cash (PCF 4.5 / 10219) Definition Revision: v1.05 Page: 44 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide The process of creating and implementing efficient, accurate and cost-effective delivery of goods to end customers and channel partners and where appropriate providing reverse logistics operations. 5.4.1 Manage / Operate outbound warehousing (PCF 4.5.3 / 10340) Definition The process of warehousing or storing products begins when the warehouse receives the finished product and ends when goods are loaded onto a vehicle for delivery or received by a carrier……at the lowest cost consistent with end customer / channel partner requirements and expectations. Typical Sub-Processes 5.4.1.1 Track outbound inventory deployment (PCF 4.5.3.1 / 10353) 5.4.1.1.1 Select confirmed orders to fill 5.4.1.2 Receive and store finished goods (PCF 4.5.3.2 / 10354) 5.4.1.2.1 Store finished goods 5.4.1.2.2 Update finished goods inventory 5.4.1.3 Track product availability and inventory accuracy (PCF 4.5.3.3 & 4.5.3.5 / 10355 & 10357) 5.4.1.3.1 Request product(s) 5.4.1.4 Pick, pack, and ship product for delivery to end customers / channel partners (PCF 4.5.3.4 / 10356) 5.4.1.4.1 Create pick list(s) 5.4.1.4.2 Pick item(s) 5.4.1.4.3 Inspect and pack item(s) 5.4.1.4.4 Create delivery note 5.4.1.4.5 Load, send and track OR provision item(s) 5.4.1.4.6 Send despatch advice 5.4.1.4.7 ID and disposition faulty item(s) 5.4.1.4.8 Receive despatch advice 5.4.1.4.9 Receive and inspect item(s) 5.4.1.5 Track 3PL / VMI shipping and storage performance (PCF 4.5.3.6 / 10358) 5.4.1.6 Manage physical finished goods inventory (PCF 4.5.3.7 / 10359) Revision: v1.05 Page: 45 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 5.4.2 Manage / Operate outbound transportation (PCF 4.5.4 / 10341) Definition The process of deploying, maintaining, protecting, tracking and disposing of transportation vehicles and other mechanised / mobile equipment used in the outbound distribution of goods and services to customers. Typical Sub-Processes 5.4.2.1 Plan, transport, and deliver outbound product to end customers / channel partners (PCF 4.5.4.1 / 10360) 5.4.2.2 Track carrier delivery performance (PCF 4.5.4.2 / 10361) 5.4.2.3 Manage (own) transportation fleet (PCF 4.5.4.3 / 10362) 5.4.2.4 Review and audit carrier invoices and documents (PCF 4.5.4.4 / 10363) 5.4.3 Invoice the end customer / channel partner (PCF 8.2.2 / 10743) Definition The process of invoicing end customers and channel partners for products and services. Typical Sub-Processes 5.4.3.1 Maintain end customer / channel partner and product master files (PCF 8.2.2.1 / 10794) 5.4.3.2 Generate customer invoicing data (PCF 8.2.2.2 / 10795) 5.4.3.2.1 Prepare invoice(s), including periodic auto-repeaters 5.4.3.3 Transmit invoicing data to end customers / channel partners (PCF 8.2.2.3 / 10796) 5.4.3.3.1 Send invoice(s) 5.4.3.3.2 Receive invoice(s) / credit note(s) 5.4.3.4 Post receivable entries (PCF 8.2.2.4 / 10797) 5.4.3.4.1 Pay invoice(s) 5.4.3.4.2 Receive payment(s) 5.4.3.5 Respond / Resolve end customer / channel partner billing enquires (PCF 8.2.2.5 / 10798) 5.4.3.5.1 Send invoice(s) / credit note(s) query 5.4.3.5.2 Receive invoice / credit note queries 5.4.3.5.3 Make invoice / credit note adjustments Revision: v1.05 Page: 46 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 5.4.3.5.4 Advise NO adjustments 5.4.3.5.5 Send adjusted invoice(s) / credit note(s) / advice 5.4.3.5.6 Raise credit note(s) 5.4.3.5.7 Send credit note(s) 5.4.4 Manage customer returns and reverse logistics (PCF 4.5.5 / 10342) Definition The process of planning, implementing and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods, reusable packaging and/or related information from the point of consumption back to the point of origin for the purpose of maintenance / repair, recapturing value or proper disposal. Typical Sub-Processes 5.4.4.1 Authorise and process returns (PCF 4.5.5.1 / 10364) 5.4.4.1.1 Request RMA (Returned Material Authorisation) 5.4.4.1.2 Receive RMA (Returned Material Authorisation) request 5.4.4.1.3 Send RMA (Returned Material Authorisation) authorization 5.4.4.1.4 Receive RMA (Returned Material Authorisation) authorization 5.4.4.1.5 Send RMA (Returned Material Authorisation) rejection 5.4.4.1.6 Receive RMA (Returned Material Authorisation) rejection 5.4.4.2 Perform reverse logistics (PCF 4.5.5.2 / 10365) 5.4.4.2.1 Load, return and track item(s) 5.4.4.2.2 Receive returned item(s) 5.4.4.2.3 Load, send and track replacement item(s) 5.4.4.2.4 Send returns rejection 5.4.4.2.5 Receive returns rejection 5.4.4.3 Perform salvage activities (PCF 4.5.5.3 / 10366) 5.4.4.4 Manage and process warranties and claims (PCF 4.5.5.4 / 10367) 5.4.4.5 Track and analyse return categories [e.g. DOAs] for improvement opportunities Revision: v1.05 Page: 47 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 5.4.5 Monitor environmental, health and safety (EH&S) performance Definition The process of recording, measuring and reporting the effect of delivery operations on employee health, safety and the environment. Revision: v1.05 Page: 48 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 5s.0 Order to Cash – Services (PCF 4.0 / 10005) The process of managing the service delivery process from resource and project management, to employee support and end customer / channel relations, to service delivery and quality assurance. 5s.1 Order to Purchase (PCF 4.2 / 10216) Definition The process of taking a confirmed end customer or channel partner order and doing final checks on customer credit and also of planning for and acquiring the necessary resources to ensure that the company has the capacity and materials availability needed to deliver its services. 5s.1.1 Process customer credit (PCF 8.2.1 / 10742) Definition The process that enables a vendor of goods or services to validate to a reasonable degree of probability that an end customer / channel partner placing an order with them is in a position to make timely payment(s) for the ordered item(s) and is also likely to do so. 5s.1.2 Purchase materials and supplies (PCF 4.2.3 / 10279) Definition The process of planning for and acquiring the necessary resources to ensure that the company has the capacity and materials needed to deliver its services at the required level of performance. This includes the requirement to purchase materials and supplies for the company of optimum quality, in the correct quantity, in a timely manner, and at the lowest total cost. 5s.2 Purchase to Pay Definition The process that covers the activities of receiving, inspecting, storing, paying for, accounting for and managing inventories of goods and services purchased by the organisation. Revision: v1.05 Page: 49 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 5s.2.1 Plan inbound material flow (PCF 4.5.2 / 10339) Definition The process of planning and managing the logistical flow of raw materials, components, subassemblies, services and information into the enterprise…… commonly termed ‘inbound materials management’. 5s.2.2 Manage / Operate warehousing (PCF 4.5.3 / 10340) Definition The process of warehousing or storing / forwarding items begins when the warehouse receives the materials and ends when goods are moved into the despatch area for use in scheduled service delivery operations……at the lowest cost consistent with operational requirements and expectations. 5s.2.3 Manage payments to suppliers Definition The process of ensuring that authorisation is given for payments to suppliers for products and services provided such that they will be paid in line with existing T&Cs. 5s.2.4 Manage supplier returns and reverse logistics (PCF 4.5.5 / 10342) Definition The process of planning, implementing and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods, reusable packaging and/or related information from the point of consumption back to the point of origin for the purpose of maintenance / repair, recapturing value or proper disposal. 5s.2.5 Monitor environmental, health and safety (EH&S) performance Definition The process of recording, measuring and reporting the effect of production operations on employee health, safety and the environment. 5s.3 Pay to Service (PCF 4.3 / 10217) Definition Revision: v1.05 Page: 50 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide The process of successfully delivering services to the end customer / channel partner that meet their requirements and expectations. 5s.3.1 Schedule service delivery (PCF 4.3.1 / 10303) Definition The process of determining the sequence of activities for a smooth and efficient flow of service delivery while balancing resources, eliminating bottlenecks and keeping progress matched to customer requirements. 5s.3.2 Deliver service (PCF 4.3.2 / 10304) Definition The process of utilising materials, supplies and skilled staff to deliver a company's services to end customers and channel partners. 5s.3.3 Perform post-service random quality testing (PCF 4.3.4 / 10369) Definition The process of assuring service quality entails ensuring that a company's services conform to end customer and channel partner requirements and are fit for end customer use / operation. 5s.3.4 Maintain service records and manage materials traceability (PCF 4.3.5 / 10370) Definition The process of maintaining service records for the purposes of accounting, business management, part recall / traceability, statutory tax and regulatory compliance reasons. 5s.3.5 Monitor environmental, health and safety (EH&S) performance Definition The process of recording, measuring and reporting the effect of service delivery operations on employee health, safety and the environment. 5s.4 Service to Cash (PCF 4.5 / 10219) Definition Revision: v1.05 Page: 51 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide The process of operating invoicing processes and systems to expedite collection of revenue, provide superior customer service, and where appropriate offer reverse logistics services. 5s.4.1 Invoice the end customer / channel partner (PCF 8.2.2 / 10743) Definition The process of billing end customers and channel partners for services rendered. 5s.4.2 Manage customer returns and reverse logistics (PCF 4.5.5 / 10342) Definition The process of planning, implementing and controlling the efficient, cost effective flow of defective spares / support materials, defective / damaged or returned products, reusable packaging and/or related information from the point of consumption back to the point of origin for the purpose of maintenance / repair, recapturing value or proper disposal. 5s.4.3 Monitor environmental, health and safety (EH&S) performance Definition The process of recording, measuring and reporting the effect of service delivery operations on employee health, safety and the environment. Revision: v1.05 Page: 52 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 6.0 Cash to Dispose (PCF 5.0 / 10006) The process of providing after-sales support and problem resolution to retain end customers and channel partners and build their loyalty. 6.1 Cash to Care (PCF 5.2 & 5.3 / 10379 & 10380) Definition The process of ensuring end customer and/or channel partner satisfaction after the point-ofpurchase / delivery by solving problems, responding to enquiries and maintaining ongoing communication about activities and product / service offerings. 6.1.1 Plan and manage customer service work force (PCF 5.2.1 / 10387) Definition The process of achieving and maintaining an appropriately sized, productive, professional and motivated customer service workforce. 6.1.2 Manage customer service requests / enquiries (PCF 5.2.2 / 10388) Definition The process of enabling a customer service request to be reliably and efficiently submitted, routed, approved, monitored, delivered against and the outcome recorded. Typical Sub-Processes 6.1.2.1 Make customer service requests / enquiries 6.1.2.2 Receive and route customer service requests / enquiries (PCF 5.2.2.1 & PCF 5.2.2.2 / 10394 & 10395) 6.1.2.3 Send customer service rejection with rationale 6.1.2.4 Receive customer service rejection with rationale 6.1.2.5 Log and handle warranty, claims and refund requests 6.1.2.6 Notify customer of warranty, claims or refund dispositions and/or further actions they can / must take 6.1.2.7 Receive customer service notification 6.1.2.8 Open /Update support ticket. Analyse and resolve service request, together with customer as necessary (PCF 5.2.2.3 / 10396) 6.1.2.9 Notify customer of resolution and/or further actions they can / must take. Close / Update support ticket as appropriate 6.1.2.10 Prepare enquiry response and notify to customer 6.1.2.11 Notify customer of conditions applying and will terminate accordingly 6.1.2.12 Terminate product(s) / service(s) Revision: v1.05 Page: 53 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 6.1.2.13 Notify customer of termination 6.1.2.14 Delete ‘customer only’ online access as/if appropriate 6.1.2.15 Update customer profiles & service records and analyse performance / trends 6.1.3 Manage end customer / channel complaints (PCF 5.2.3 / 10389) Definition The process of ensuring end customer and/or channel partner problems are identified and resolved immediately and courteously so as to stem end customer and/or channel defection and maintain high integrity of products, services and reputation. Typical Sub-Processes 6.1.3.1 Make customer feedback / complaints 6.1.3.2 Receive and route customer feedback / complaints (PCF 5.2.3.1 & PCF 5.2.3.2 / 10397 & 10398) 6.1.3.3 Analyse feedback / complaints 6.1.3.4 Take actions as appropriate (PCF 5.2.3.3 / 10399) 6.1.3.5 Incorporate lessons as appropriate (PCF 5.2.3.3 / 10399) 6.1.3.6 Give feedback / response to customer (PCF 5.2.3.4 / 10400) 6.1.3.7 Receive feedback / response 6.1.2.8 Update customer profiles & records and analyse performance / trends 6.1.4 Measure end customer / channel satisfaction on customer service requests / enquiries handling (PCF 5.3.1 / 10401) Definition The process of systematically gathering data about customer satisfaction with the organisation’s handling of requests / enquiries, analysing the data, and using the information gleaned for making improvements to the customer service request / enquiry handing process. 6.1.5 Measure end customer / channel satisfaction on customer service complaint handling and resolution (PCF 5.3.2 / 10402) Definition The process of systematically gathering data about customer satisfaction with the organisation’s complaint handling, analysing the data, and using the information gleaned for making improvements to the customer service complaint handling handing process. Revision: v1.05 Page: 54 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 6.1.6 Measure end customer / channel satisfaction with products and services (PCF 5.3.3 / 10403) Definition The process of systematically gathering data about customer satisfaction with the organisation’s products and services, analysing the data, and using the information gleaned for making improvements to those products and services. 6.1.7 Monitor environmental, health and safety (EH&S) performance Definition The process of recording, measuring and reporting the effect of after-sales service operations on employee health, safety and the environment. 6.2 Care to Repair (PCF 4.4 / 10218) Definition The process of providing end customers and channel partners with wide ranging support in relation to goods and services to build satisfaction and loyalty as well as maintain competitive advantage. This can include the process of delivering products to end customers and ensuring a problem-free initial installation / commissioning according to customer and product requirements. Whether product installation / commissioning is required or not it will also include arranging a smooth hand-over to the customer service support team as well as the provision of any necessary orientation to safe and effective use of products. 6.2.1 Confirm specific service requirements for individual end customers / channel partners (PCF 4.4.1 / 10320) Definition The process of ensuring any applicable service support schemes and systems are properly initiated such that they are able to address and resolve any problems end customers and/or channel partners may encounter with products after the point-of-purchase and delivery. Further, to also seek to ensure that any product issues when communicated by those customers are correctly noted, diagnosed and understood……or, ideally, resolved……..to the greatest extent feasible before any service visit is undertaken. Revision: v1.05 Page: 55 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 6.2.2 Identify, allocate and schedule resources to meet service requirements (PCF 4.4.2 / 10321) Definition The process of determining the sequence of activities for a smooth and efficient flow of service delivery while balancing resources, eliminating bottlenecks and keeping progress matched to customer requirements. 6.2.3 Provide the service to specific end customers / channel partners (PCF 4.4.3 / 10322) Definition The process of utilising materials, supplies and skilled staff to deliver a company's services to end customers and channel partners. 6.2.4 Ensure quality of service (PCF 4.4.4 / 10323) Definition The process of assuring service quality entails ensuring that a company's services conform to end customer and channel partner requirements and are fit for end customer use / 6.2.5 Update end customer / channel partner profiles & service records and analyse performance / trends Definition The process of maintaining service records for the purposes of accounting, business management, part recall / traceability, statutory tax and regulatory compliance reasons. 6.2.6 Monitor environmental, health and safety (EH&S) performance Definition The process of recording, measuring and reporting the effect of after-sales service operations on employee health, safety and the environment. 6.3 Repair to Dispose Definition The process of decommissioning / uninstalling, making safe, removing / transporting and appropriately disposing of goods, plant and equipment which have reached the end of their economic life at which it is more cost effective to replace rather than repair or upgrade them. Revision: v1.05 Page: 56 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 6.3.1 Confirm specific disposal service requirements for individual end customers / channel partners (PCF 4.4.1 / 10320) Definition The process of ensuring that any product disposal service requirements communicated by customers are correctly noted and understood to the greatest extent feasible before any disposal service work is scheduled or undertaken. 6.3.2 Identify, allocate and schedule resources to meet disposal service requirements (PCF 4.4.2 / 10321) Definition The process of determining the sequence of activities for a smooth and efficient flow of disposal service delivery while balancing resources, eliminating bottlenecks and keeping progress matched to customer requirements. 6.3.3 Provide disposal service to specific end customers / channel partners (PCF 4.4.3 / 10322) Definition The process of utilising materials, equipment and skilled staff to deliver a company's disposal services to end customers and channel partners. 6.3.4 Manage returns and reverse logistics (PCF 4.5.5 / 10342) Definition The process of planning, implementing and controlling the safe, efficient, cost effective flow of disposed spares, products, reusable packaging and/or related information from the point of consumption back to the point of dispositioning for the purpose of recapturing value or proper disposal. 6.3.5 Manage dispositioning and safe disposal / scrappage Definition The process of deciding the ultimate disposal path and destination of defunct parts and equipment such that their disposal / scrappage is safe, compliant with EH&S and other regulation and maximises the recapture of value (e.g. reuse, refurbishment, recycling) where feasible. 6.3.6 Ensure quality of service (PCF 4.4.4 / 10323) Definition Revision: v1.05 Page: 57 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide The process of assuring disposal service quality entails ensuring that a company's disposal services conform to end customer / channel partner, applicable statutory / regulatory and other good practice requirements. 6.3.7 Update end customer / channel partner profiles & disposal records and analyse performance / trends Definition The process of maintaining disposal records for the purposes of accounting, business management, part recall / traceability, statutory tax and regulatory compliance reasons. 6.3.8 Monitor environmental, health and safety (EH&S) performance Definition The process of recording, measuring and reporting the effect of after-sales service disposal operations on employee health, safety and the environment. Revision: v1.05 Page: 58 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 7.0 Woo to Renew The process of proactively managing all stakeholder relationships throughout an organisation’s value chain from materials suppliers through to end customers and channel partners, inclusive of the wider investment, industry and regulatory communities. 7.1 Supply to Review Definition The process of overseeing, and looking for mutually beneficial opportunities to improve, supplier performance and quality in the fulfillment of contractual duties and obligations between buyer and seller. 7.1.1 Select tiered suppliers and develop/maintain contracts (PCF 4.2.2 / 10278) Definition The process of finding, and then managing the relationship with, upstream (i.e. relative to your own supply chain) vendors that can reliably and economically provide required raw materials, components, subassemblies, input products or services to your organisation. 7.1.2 Appraise and develop tiered suppliers (PCF 4.2.4 / 10280) Definition The process of helping and developing your tiered supplier base such that the upstream supply chain remains healthy and capable of good performance, as well as continuing to improve its overall capabilities and offerings to the mutual benefit of both supplier(s) and customer(s). 7.2 Collaborate to Refresh Definition The process of managing the organisational and contractual relationship between a customer who is outsourcing some or all of an internal business function and the supplier who has been selected to deliver that capability on the customer’s behalf. 7.2.1 Manage distribution relationships Definition Revision: v1.05 Page: 59 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide The process of managing the organisational and contractual relationship between a customer who is outsourcing some or all of their distribution logistics supply chain and the supplier (i.e. often a 3PL / 4PL) who has been selected to deliver that capability on the customer’s behalf. 7.2.2 Manage IT relationships Definition The process of managing the organisational and contractual relationship between a customer who is outsourcing some or all of their internal IT / MIS function and the supplier who has been selected to deliver that capability on the customer’s behalf. 7.2.3 Manage physical facilities (e.g. premises) relationships (PCF 9.0 / 10010) Definition The process of selecting/building, modifying, maintaining and protecting real estate, plants & offices and furnishings to preserve or enhance their value. 7.3 Service to Retain Definition The process of managing overall operations more effectively around end customer and/or channel partner behaviours to build long-term relationships that will optimise profitability and revenue. 7.3.1 Confirm channel strategy (PCF3.2.3 / 10122) Definition The process of determining the most effective method of selling and distributing products, and associated services, to end customers. 7.3.2 Develop channel partner relationships (PCF 3.3.2 / 10130) Definition The process of selecting and building a relationship with the channel, or combination of channels, that will most effectively and successfully sell and distribute the organisations products and services to end customers. Revision: v1.05 Page: 60 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 7.3.3 Manage channel partners (PCF 3.5.6 / 10187) Definition The process of organising the ways in which organisations reach and satisfy their end customers. Channel management involves more than just distribution, and has been described as management of how and where a product is used and of how the end customer and the product interact. 7.3.4 Manage end customer key accounts (PCF 3.5.2 / 10183) Definition The process of managing those end customer and/or channel partner relationships that are most important to an organisation. Key accounts are those end customers / channel partners who produce most profit for an organisation, have the potential to do so, or are those who are of strategic importance. 7.4 Invest to Comply (PCF 11.0 / 10012) Definition The process of ensuring the support and loyalty of key stakeholders through effective relationship management. 7.4.1 Build and manage lender and analyst relationships (PCF 11.1.1 & 11.1.2 / 11035 & 11036) Definition The process of building strong relationships with banks and other financial institutions to ensure access to low cost financing when needed. 7.4.2 Communicate [incl. corporate performance] with shareholders / stakeholders (PCF 11.1 & 11.1.3 / 11010 & 11037) Definition The process of providing the investment community with thorough, accurate and timely information on business activities and finances and ensuring high levels of transparency in corporate reporting to meet the information needs of key stakeholders and be seen as ethically responsible. 7.4.3 Manage government and industry relations (PCF 11.2 / 11011) Definition Revision: v1.05 Page: 61 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide The process of building strategic partnerships to exert influence into the legislative, regulatory, political and industrial environments. 7.4.4 Manage relations with board of directors (PCF 11.3 / 11012) Definition The process of ensuring senior management and board members maintain open and dynamic communication to guarantee knowledgeable and vigilant oversight of activities. 7.4.5 Manage legal and ethical issues (PCF 11.4 / 11013) Definition The process of managing legal and ethical issues through leadership example, sound policies, strong internal communication and deep knowledge of business laws and regulations to build a reputation for integrity, trust and good corporate citizenship. 7.4.6 Manage public relations programme (PCF 11.5 / 11014) Definition The process of using publicity, special events, public service and other brand enhancing communications to create a positive public image that will protect and enhance the company’s reputation. 7.4.7 Manage compliance Definition The process of ensuring government rules and regulations are followed in a timely and responsible manner. Revision: v1.05 Page: 62 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 8.0 Record to Review The process of defining, measuring, reporting, managing and protecting the performance of financial resources and compliance obligations fundamental to the viability of the business. 8.1 Manage financial resources Definition The process of establishing policies and procedures to control spending, predict cash flow and profit, maximise funding resources and minimise exposure to financial risks. 8.1.1 Manage cash flow Definition The process of mobilising funds, collecting payments, controlling disbursements, covering shortfalls, forecasting cash needs, investing idle funds and compensating the banks that support these actions. Typical Sub-Processes 8.1.1.1 Manage treasury and working capital 8.1.1.1.1 Manage treasury policies and procedures (PCF 8.7.1 / 10758) 8.1.1.1.2 Manage cash (PCF 8.7.2 / 10759) 8.1.1.1.2.1 Manage and reconcile cash positions (PCF 8.7.2.1 / 10893) 8.1.1.1.2.1.1 Receive bank account statements 8.1.1.1.2.1.2 Compare bank statement line items with internal records 8.1.1.1.2.1.3 Annotate cash account(s) as reconciled 8.1.1.1.2.1.4 Investigate discrepancy(s) 8.1.1.1.2.1.5 Adjust errant account(s) 8.1.1.1.2.1.6 Make statement(s) query 8.1.1.1.2.1.7 Receive statement(s) query 8.1.1.1.2.1.8 Send adjusted statement(s) 8.1.1.1.2.1.9 Receive adjusted statement(s) 8.1.1.1.2.1.10 Send NO error advice 8.1.1.1.2.1.11 Receive NO error advice 8.1.1.1.2.1.12 Conduct further investigations to resolve error 8.1.1.1.2.2 Manage international funds / consolidation (PCF 8.10 / 10737) 8.1.1.1.2.3 Manage cash equivalents (PCF 8.7.2.2 / 10894) Revision: v1.05 Page: 63 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 8.1.1.1.2.4 Process and oversee electronic fund transfers [EFTs] (PCF 8.7.2.3 / 10895) 8.1.1.1.2.5 Develop cash flow forecasts (PCF 8.7.2.4 / 10896) 8.1.1.1.2.6 Manage cash flows (PCF 8.7.2.5 / 10897) 8.1.1.1.2.7 Produce cash management accounting transactions and reports (PCF 8.7.2.6 / 10898) 8.1.1.1.2.8 Manage and oversee banking relationships (PCF 8.7.2.7 / 10899) 8.1.1.1.2.9 Analyse, negotiate, resolve and confirm bank fees (PCF 8.7.2.8 / 10900) 8.1.1.1.3 Manage in-house bank accounts (PCF 8.7.3 / 10760) 8.1.1.1.4 Manage debt and investment (PCF 8.7.4 / 10761) 8.1.2 Manage financial risk Definition The process of applying strategies and approaches to minimise exposure to financial risks. 8.2 Process finance and accounting transactions Definition The process of maintaining and analysing accurate financial performance data to support strategic, tactical and operational decision making. 8.2.1 Process accounts payable [A/P] (PCF 8.6 & 8.6.1 / 10733 & 10756) Definition The process of paying bills on time and to optimise cash flow. Typical Sub-Processes 8.2.1.1 Process financial accruals and reversals (PCF 8.6.1.5 / 10873) 8.2.1.2 Process taxes (PCF 8.6.1.6 / 10874) 8.2.1.3 Research / resolve exceptions (PCF 8.6.1.7 / 10875) 8.2.1.4 Process / Make payments (PCF 8.6.1.8 / 10876) 8.2.1.4.1 Send despatch advice note 8.2.1.4.2 Send invoice(s) 8.2.1.4.3 Receive invoice(s) Revision: v1.05 Page: 64 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 8.2.1.4.4 Receive GRN(s) (Goods Received Note) 8.2.1.4.5 Receive purchase order(s) 8.2.1.4.6 Enter invoice(s) 8.2.1.4.7 Manage pending supplier invoice(s) 8.2.1.4.8 Pay supplier(s) 8.2.1.4.9 Receive payment(s) 8.2.1.4.10 Receive credit note(s) 8.2.1.4.11 Enter credit note(s) 8.2.1.4.12 Send credit note(s) query 8.2.1.4.13 Receive credit note(s) query 8.2.1.5 Respond to A/P inquires (PCF 8.6.1.9 / 10877) 8.2.1.5.1 Query payment(s) 8.2.1.5.2 Receive payment(s) query 8.2.1.5.3 Check query 8.2.1.5.4 Send payment(s) confirmation 8.2.1.5.5 Receive payment(s) confirmation 8.2.1.5.6 Amend invoice(s) payment details 8.2.1.6 Retain records (PCF 8.6.1.10 / 10878) 8.2.1.7 Adjust accounting records (PCF 8.6.1.11 / 10879) 8.2.2 Process payroll Definition The process of paying employee salaries, wages and other compensation in accordance with company policies and government regulations. Typical Sub-Processes 8.2.2.1 Report time (PCF 8.5.1 / 10753) 8.2.2.1.1 Establish policies and procedures (PCF 8.5.1.1 / 10853) 8.2.2.1.2 Collect and record employee / contractor time worked (PCF 8.5.1.2 / 10854) 8.2.2.1.2.1 Complete timesheet form and attach supporting documentation 8.2.2.1.2.2 Submit completed timesheet form for approval 8.2.2.1.2.3 Review employee / contractor timesheet submission(s) 8.2.2.1.2.4 Notify employee / contractor of rejection and reasons 8.2.2.1.2.5 Submit timesheets for payments processing Revision: v1.05 Page: 65 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 8.2.2.1.2.6 Receive salary / wages payment(s) 8.2.2.1.3 Analyse and report paid and unpaid leave (PCF 8.5.1.3 / 10855) 8.2.2.1.4 Monitor regular, overtime and other hours (PCF 8.5.1.4 / 10856) 8.2.2.1.5 Analyse and report employee / contractor utilisation (PCF 8.5.1.5 / 10857) 8.2.2.2 Manage pay (PCF 8.5.2 / 10754) 8.2.2.2.1 Enter employee / contractor time worked into payroll system (PCF 8.5.2.1 / 10858) 8.2.2.2.2 Maintain and administer employee / contractor earnings information (PCF 8.5.2.2 / 10859) 8.2.2.2.3 Maintain and administer applicable deductions (PCF 8.5.2.3 / 10860) 8.2.2.2.4 Monitor changes in tax status of employees / contractors (PCF 8.5.2.4 / 10861) 8.2.2.2.5 Process and distribute payments (PCF 8.5.2.5 / 10862) 8.2.2.2.6 Process and distribute manual cheques (PCF 8.5.2.6 / 10863) 8.2.2.2.7 Process period end adjustments (PCF 8.5.2.7 / 10864) 8.2.2.2.8 Respond to employee / contractor payroll enquires (PCF 8.5.2.8 / 10865) 8.2.2.3 Process payroll taxes (PCF 8.5.3 / 10755) 8.2.2.3.1 Calculate and pay applicable payroll taxes (PCF 8.5.3.1 / 10866) 8.2.2.3.2 Produce and distribute employee / contractor annual tax statements (PCF 8.5.3.2 / 10867) 8.2.2.3.3 File regulatory payroll tax forms (PCF 8.5.3.3 / 10868) 8.2.3 Process accounts receivable, credit and collections (PCF 8.2 / 10729) Definition The process of collecting payment from customers for products delivered or services rendered. Typical Sub-Processes 8.2.3.1 Process accounts receivable [A/R] (PCF 8.2.3 / 10744) 8.2.3.1.1 Establish A/R policies (PCF 8.2.3.1 / 10799) 8.2.3.1.2 Receive / Deposit customer payments (PCF 8.2.3.2 / 10800) 8.2.3.1.2.1 Manage pending customer invoices Revision: v1.05 Page: 66 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 8.2.3.1.2.2 Match payment(s) 8.2.3.1.2.3 Deposit payments 8.2.3.1.2.4 Send remittance advice / receipt 8.2.3.1.2.5 Review remittance advice / receipt 8.2.3.1.3 Apply cash remittances (PCF 8.2.3.3 / 10801) 8.2.3.1.4 Prepare A/R reports (PCF 8.2.3.4 / 10802) 8.2.3.1.5 Post A/R activity to the general ledger [G/L] (PCF 8.2.3.5 / 10803) 8.2.3.1.5.1 Post receivables entry 8.2.3.2 Manage and process collections (PCF 8.2.4 / 10745) 8.2.3.2.1 Establish policies for delinquent accounts (PCF 8.2.4.1 / 10804) 8.2.3.2.2 Analyse delinquent account balances (PCF 8.2.4.2 / 10805) 8.2.3.2.2.1 Review invoice aging 8.2.3.2.2.2 Identify delinquencies 8.2.3.2.3 Correspond / Negotiate with delinquent accounts (PCF 8.2.4.3 / 10806) 8.2.3.2.3.1 Take collection actions 8.2.3.2.4 Discuss account resolution with internal parties (PCF 8.2.4.4 / 10807) 8.2.3.2.5 Process adjustments / write-off balances (PCF 8.2.4.5 / 10808) 8.2.3.2.5.1 Secure payments 8.2.3.2.5.2 Reclassify & write off 8.2.3.2.5.3 Adjust accounts receivable entry(s) 8.2.3.3 Manage and process adjustments / deductions (PCF 8.2.5 / 10746) 8.2.3.3.1 Establish policies / procedures for adjustments (PCF 8.2.5.1 / 10809) 8.2.3.3.2 Analyse adjustments (PCF 8.2.5.2 / 10810) 8.2.3.3.3 Correspond / Negotiate with customers (PCF 8.2.5.3 / 10811) 8.2.3.3.3.1 Send payment(s) query 8.2.3.3.3.2 Receive payment(s) query Revision: v1.05 Page: 67 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 8.2.3.3.3.3 Make payment(s) adjustment(s) 8.2.3.3.3.4 Advise NO adjustments 8.2.3.3.3.5 Send payment(s) advice response 8.2.3.3.3.6 Raise payment(s) dispute 8.2.3.3.3.7 Review payment(s) dispute 8.2.3.3.4 Discuss resolution with internal parties (PCF 8.2.5.4 / 10812) 8.2.3.3.5 Prepare chargeback invoices (PCF 8.2.5.5 / 10813) 8.2.3.3.6 Process-related entries (PCF 8.2.5.6 / 10814) 8.2.4 Manage fixed asset project accounting (PCF 8.4 / 10731) Definition The process of accounting for new fixed assets that are procured & commissioned, or existing fixed assets that are materially improved & upgraded, as part of a project delivery process. This is done for purposes of financial accounting, preventive maintenance, theft deterrence and other business reasons. 8.2.5 Perform general accounting and reporting (PCF 8.3 / 10730) Definition The process of analysing, interpreting and reporting on records in general areas of accounting such as accounts payable, accounts receivable, inventory, reconciliations, payroll and procurement. Typical Sub-Processes 8.2.5.1 Manage policies and procedures (PCF 8.3.1 / 10747) 8.2.5.2 Perform general accounting (PCF 8.3.2 / 10748) 8.2.5.3 Perform fixed asset accounting (PCF 8.3.3 / 10749) 8.2.5.3.1 Establish fixed asset policies and procedures (PCF 8.3.3.1 / 10828) 8.2.5.3.2 Maintain fixed asset master data files (PCF 8.3.3.2 / 10829) 8.2.5.3.3 Track fixed asset additions and retires (PCF 8.3.3.3 / 10830) 8.2.5.3.3.1 Register asset 8.2.5.3.3.2 Send asset registration details Revision: v1.05 Page: 68 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 8.2.5.3.3.3 Receive asset registration details 8.2.5.3.4 Track fixed asset adjustments, enhancements, revaluations and transfers (PCF 8.3.3.4 / 10831) 8.2.5.3.5 Track fixed asset maintenance and repair expenses (PCF 8.3.3.5 / 10832) 8.2.5.3.6 Calculate and record depreciation expense (PCF 8.3.3.6 / 10833) 8.2.5.3.7 Reconcile fixed asset ledger (PCF 8.3.3.7 / 10834) 8.2.5.3.8 Track fixed assets including physical inventory (PCF 8.3.3.8 / 10835) 8.2.5.3.9 Provide fixed asset data to support tax, statutory and regulatory reporting (PCF 8.3.3.9 / 10836) 8.2.5.4 Perform financial reporting (PCF 8.3.4 / 10750) 8.2.6 Close the books Definition The process of reconciling, consolidating and reporting financial information on a periodic basis. Typical Sub-Processes 8.2.6.1 Ensure all journal entries relating to the period's transactions have been posted 8.2.6.2 Review all journals and registers looking for any other entries still unposted. If any are found post them to the General Ledger 8.2.6.3 Run a Trial Balance of all General Ledger accounts 8.2.6.4 Make adjusting entries as required to apportion the period's share of any unallocated revenue or expenses (e.g. prepaid expenses, revenue collected prior to the work being performed, unpaid expenses, uncollected revenue, depreciation on Fixed Assets, income tax expense, etc). 8.2.6.5 Post the adjusting entries to relevant General Ledger accounts 8.2.6.6 Locate and correct any errors and re-run the Trial Balance. Repeat until all General Ledger accounts balance 8.2.6.7 Make closing entries required to "close out" the accounts on the Income Statement (i.e. dividends paid, owner's draws, owner's capital contributions, and/or public issues or sales of treasury stock to retained earnings if sole proprietorship or partnership, or shareholder's equity if a corporation) Revision: v1.05 Page: 69 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 8.2.6.8 Post the closing entries to relevant General Ledger accounts 8.2.6.9 Run Trial Balance to verify closing entries posted correctly 8.2.6.10 Locate and correct any errors. Re-run Trial Balance. Repeat until all General Ledger accounts balance 8.2.6.11 Run Financial Statements 8.2.7 Manage business expenses (PCF 8.6.2 / 10757) Definition The process of controlling business costs related to travel, accommodation, meals, entertainment, etc. Typical Sub-Processes 8.2.7.1 Establish and communicate business expense reimbursement policies and approval limits (PCF 8.6.2.1 / 10880) 8.2.7.2 Capture and report relevant tax data (PCF 8.6.2.2 / 10881) 8.2.7.3 Approve reimbursements and advances (PCF 8.6.2.3 / 10882) 8.2.7.3.1 Complete expenses form and attach supporting receipts / documentation 8.2.7.3.2 Submit completed expenses form for approval 8.2.7.3.3 Review employee expenses form(s) 8.2.7.3.4 Notify employee of rejection and reasons 8.2.7.3.5 Submit expenses for payments processing 8.2.7.3.6 Receive expenses payment(s) 8.2.7.4 Process reimbursements and advances (PCF 8.6.2.4 / 10883) 8.2.7.5 Manage personal accounts (PCF 8.6.2.5 / 10884) 8.2.8 Implement a transfer pricing policy Definition The process of arranging prices within an organisation, or between organisations belonging to the same corporate group, to minimise business costs between different jurisdictions. 8.3 Report information Definition The process of conveying relevant historical and forward-looking company data to key stakeholders. Revision: v1.05 Page: 70 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 8.3.1 Provide external financial information Definition The process of reporting past and expected financial performance to key stakeholders in accordance with accounting principles and regulatory guidelines. 8.3.2 Provide internal financial information (PCF 8.1 / 10728) Definition Providing internal financial information is the process of disseminating specific financial metrics to executives, managers and employees to facilitate and support operational and strategic decision making. 8.3.3 Manage integrity risk Definition The process of ensuring financial information provided to internal and external stakeholders is both accurate and reliable. 8.4 Conduct internal audits (PCF 8.8 / 10735) Definition The process of examining and critiquing internal controls, operations and corporate governance by an independent third-party to uncover inefficiencies and risk as well as improvement opportunities. 8.4.1 Establish internal controls, policies and procedures (PCF 8.8.1 / 10762) Definition The process of establishing internal controls is defined as developing a governance mechanism effected by an organisation's structure, work and authority flows, people and management information systems, designed to help the organisation accomplish specific goals or objectives. 8.4.2 Operate controls & monitor compliance with internal policies and procedures (PCF 8.8.2 / 10763) Definition The process of operating internal controls is defined as using a governance mechanism effected by an organisation's structure, work and authority flows, people and management Revision: v1.05 Page: 71 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide information systems, conducted to help the organisation accomplish specific goals or objectives. Typical Sub-Processes 8.4.2.1 Design and implement control activities (PCF 8.8.2.1 / 10917) 8.4.2.2 Monitor control effectiveness (PCF 8.8.2.2 / 10918) 8.4.2.3 Remediate control deficiencies (PCF 8.8.2.3 / 10919) 8.4.2.4 Create compliance function (PCF 8.8.2.4 / 10920) 8.4.2.5 Operate compliance function (PCF 8.8.2.5 / 10921) 8.4.2.5.1 Operate stock take 8.4.2.5.1.1 Clearly identify what stock is owned by the organisation and where it is (i.e. separate stock that has been invoiced to a customer, but is still in the warehouse. Likewise, stock received, but not yet recorded in the books should be distinguished. Ensure stock held at different locations or on a consignment basis is accounted for). If feasible reduce or eliminate any related WIP before beginning the stock take process 8.4.2.5.1.2 Ensure the stock storage area is clean and tidy, the inventory items are clearly identifiable, and the counting procedure is well understood (i.e. give the stock counters guidance in the way they should count, e.g. start at the top shelf and work down, while moving from left to right) 8.4.2.5.1.3 Prepare and have on hand tools for the stock take (e.g. clipboards; stock sheets - do not include current inventory levels; if inventory is barcoded ensure barcodes are on stock sheets; writeoff sheets – for recording the condition of inventory; pens - the audit trail can be easily followed if the first counter uses a blue pen, second counter uses a red pen, and the sheets are submitted to the stock take coordinator who uses a purple pen; calculators; and held scanners for bar-coded inventory) 8.4.2.5.1.4 Prohibit radios, personal electronic devices and idle chatter (i.e. distractions can easily lead to errors) 8.4.2.5.1.5 Count every item of relevant inventory. DON’T estimate or guess 8.4.2.5.1.6 Check the physical count against accounting records and recheck discrepancies. Make a note about variances and follow up where necessary 8.4.2.5.1.7 Where necessary gain input on the disposition and treatment of damaged or degraded stock items Revision: v1.05 Page: 72 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 8.4.2.5.1.8 When the stock take has been finalised, report the results and, once approved, update the master inventory records 8.4.2.5.1.9 Ensure that damaged or degraded stock items have been removed and treated as agreed 8.4.2.6 Implement and maintain controls related enabling technologies and tools (PCF 8.8.2.6 / 10922) 8.4.3 Manage fraud Definition The process of fostering a healthy culture through education, awareness, judicious controls and a top-down commitment to integrity such that the financial and reputation risks associated with fraud are mitigated and minimised. 8.4.4 Report on internal controls compliance (PCF 8.8.3 / 10764) Definition The process of reporting on internal controls compliance is defined as analysing the outcomes achieved through a governance mechanism effected by an organisation's structure, work and authority flows, people and management information systems, and generating documentary performance evidence to help the organisation accomplish specific goals or objectives. 8.5 Manage the tax function Definition The process of strategically managing tax rates by identifying the tax implications of all business decisions at the time those decisions are made to lower the company's tax burden while still complying with legal and regulatory requirements. 8.5.1 Manage tax compliance Definition The process of ensuring tax related disclosures, obligations and deadlines are met. 8.5.2 Manage tax controversies Definition Revision: v1.05 Page: 73 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide The process of developing internal and external strategies to manage government tax audits and other regulatory tax issues. Revision: v1.05 Page: 74 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 9.0 Recruit to Retain (PCF 6.0 / 10007) The process of planning and monitoring issues pertaining to the workforce, including recruitment, hiring, compensation, administration of benefits, training of employees and their retention planning. 9.1 Develop and manage human resources (HR) plans and policies (PCF 6.1 / 10409) Definition The process of creating detailed plans and policies for amassing a workforce that will carry out strategic activities to achieve business objectives. 9.1.1 Develop and implement human resources plans (PCF 6.1.2 / 10416) Definition The process of developing and implementing a plan which enables the organisation to align people resources to corporate and HR strategy. 9.1.2 Monitor and update plans (PCF 6.1.3 / 10417) Definition The process of monitoring and updating implementation plans which enable the organisation to align people resources to corporate and HR strategy. 9.2 Manage deployment of personnel Definition The process of planning, growing and monitoring the workforce to ensure employees are available to meet projected demand and assigned responsibilities in a way that supports strategic goals. 9.2.1 Forecast and plan workforce requirements Definition The process of determining future workforce requirements to maintain operational efficiency as well as to keep pace with marketplace changes and competitive challenges. Revision: v1.05 Page: 75 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 9.2.2 Recruit, select and hire employees (PCF 6.2 / 10410) Definition The process of finding employees with the skills and competencies that match operational and business demands. 9.2.3 Develop succession and career plans Definition The process of preparing employees for future leadership roles to ensure the smooth transition of responsibilities and the continuity of the business in the event key positions are vacated. 9.2.4 Manage international assignments Definition The process of developing policies and procedures to oversee and assist employees who are working in company operations outside their native countries. 9.2.5 Create and deploy teams Definition The process of identifying groups of employees with diverse skills and competencies to share responsibility for projects and activities to achieve quality and efficiency goals. 9.3 Develop and train employees (PCF 6.3 / 10411) Definition The process of identifying and creating learning opportunities that will advance employee's skills and competencies as well as job satisfaction. 9.3.1 Manage employee orientation and deployment (PCF 6.3.1 / 10469) Definition The process of indoctrinating new employees into their positions and responsibilities such that they can become an effective member of the organisation in a relatively short time. 9.3.2 Manage employee performance (PCF 6.3.2 / 10470) Definition Revision: v1.05 Page: 76 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide The process of setting employees tangible and intangible performance objectives and regularly checking progress toward achieving those goals. 9.3.3 Manage employee relations (PCF 6.3.3 / 10471) Definition The process concerned with maintaining employer-employee relationships that contribute to satisfactory productivity, motivation and morale. Essentially, employee relations are concerned with preventing and resolving problems involving individuals which arise out of or affect work situations. 9.3.4 Manage employee development (PCF 6.3.4 / 10472) Definition The process concerned with organisational activity aimed at bettering the performance of individuals and groups in organisational settings. 9.3.5 Develop and train employees (PCF 6.3.5 / 10473) Definition The process of employees acquiring knowledge, skills, and competencies as a result of the teaching of vocational or practical skills and knowledge that relate to specific competencies that will be useful to the successful functioning of the organisation. 9.4 Motivate and retain employees (PCF 6.4 / 10412) Definition The process of stimulating employee enthusiasm for work and dedication to excellence. 9.4.1 Develop and manage reward, recognition, and motivation programmes (PCF 6.4.1 / 10494) Definition The process of creating an equitable and competitive salary, wages and benefits plan that will attract, motivate and retain skilled workers. 9.4.2 Ensure employee involvement Definition Revision: v1.05 Page: 77 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide The process of engaging employees at all levels more fully in the business by empowering them to assume certain responsibilities and contribute to operational and product / service improvements. 9.4.3 Manage and administer benefits (PCF 6.4.2 / 10495) Definition The process of overseeing and directing cost-effective benefits that meet employee needs, reward service and support corporate strategies. 9.4.4 Manage employee work-life assistance and retention programmes (PCF 6.4.3 / 10496) Definition The process of enabling employees to balance career and personal / family obligations while still achieving the company's desired business goals. 9.4.5 Administer payroll (PCF 6.4.4 / 10497) Definition The process of managing all the tasks involved in paying an organisation’s employees. 9.4.6 Manage workforce diversity Definition The process of achieving and supporting a workforce representative of wide ranging demographics within the local population such as race, age, gender, religion, sexual orientation and abilities. 9.4.7 Manage labour-management relationships Definition The process of maintaining positive relations with union employees by forging and complying with contractual agreements that protect the interests of both the unions and the company. 9.4.8 Manage changes in employment status (PCF 6.5 / 10413) Definition Revision: v1.05 Page: 78 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide The process of ensuring obligations and legal requirements are met when employees depart, change work hours, assume new positions or otherwise change their relationship with the company. 9.4.9 Manage employee information (PCF 6.6 / 10414) Definition The process of managing all relevant employee documents and transactions through the employment lifecycle from ‘hire to retire’ including the necessary updates and maintenance to them along the way. Revision: v1.05 Page: 79 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 10.0 Encode to Enlighten (PCF 7.0 / 10008) The process of ensuring timely and affordable access to information resources, state-of-the art information tools and related technologies. 10.1 Manage information resources Definition The process of acknowledging, protecting and developing the financial value of intellectual assets and using them to create added value for end customers, channel partners and company stakeholders. 10.1.1 Manage records and information (PCF 7.4 / 10565) Definition The process of creating and maintaining records and documents from inception through permanent retention or destruction. 10.1.2 Leverage data and information (PCF 7.8 / 10569) Definition The process of gathering, analysing and transforming stakeholder data into action producing knowledge that will support strategic decision making. 10.1.3 Leverage organisational knowledge Definition The process of using the company's intellectual capital to strengthen competitive standing throughout all processes and relationships. 10.2 Manage information technology Definition The process of using electronic communication tools to achieve the organisation's business goals. 10.2.1 Develop frameworks to align business and technology (PCF 7.1 / 10563) Definition Revision: v1.05 Page: 80 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide The process of determining how IT can assist with implementing the organisation's business strategy by delivering technology improvements relating to revenue growth, profitability and cost effectiveness. 10.2.2 Develop and manage IT customer relationships (PCF 7.2 / 10564) Definition The process of ensuring that the key customers / stakeholders of the IT function’s strategy, plans and implementations are aware of and involved in those contributions, feel that they are aligned with the organisation’s performance goals, believe they are of practical & tangible value to the ongoing success of the organisation, and increasingly see them as a source of cohesion & sustainable competitive advantage for the business. 10.2.3 Identify / Develop, implement and manage technology solutions (PCF 7.5 & 7.6 / 10566 & 10567) Definition The process of selecting / developing and implementing software and hardware to support all functional areas. 10.2.4 Support end users (PCF 7.7 / 10568) Definition The process of providing employees with ongoing training as well as support services to maximise their use of technology. 10.2.5 Manage technical environment (PCF 7.1.6 / 10575) Definition The process of ensuring technology has the functionality and operational efficiency to connect and respond to the needs of all key stakeholders. 10.2.6 Manage security (PCF 7.3.4 / 11220) Definition The process of safeguarding technology to prevent internal malfunctions and also the malicious penetration and abuse by any unauthorised parties. 10.2.7 Ensure continuity of systems (PCF 7.3 / 11216) Definition Revision: v1.05 Page: 81 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide The process of ensuring uninterrupted access to technology that supports critical business processes and stakeholder needs. Revision: v1.05 Page: 82 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 11.0 Assess to Assure (PCF 10.0 / 11179) The process of fostering top-down, proactive Environmental, Health and Safety (EH&S) awareness and management to improve performance and achieve goodwill among key stakeholders. 11.1 Manage Environment, Health & Safety (EH&S) Policy & Practice Definition The process of managing responsibility for the leadership, planning, and coordination of various programmes which promote or maintain a reasonably safe and healthful working environment for all employees, contractors, customers, suppliers and visitors. 11.1.1 Determine environmental, health and safety (EH&S) impact (PCF 10.1 / 11180) Definition The process of analysing the ongoing EH&S impact of products, services or processes on key stakeholders and the environment. 11.1.2 Develop and execute EH&S programme (PCF 10.2 / 11181) Definition The process of implementing comprehensive EH&S strategies that involve the entire organisation as well as end customers, channel partners and suppliers. 11.1.3 Communicate EH&S issues to stakeholders Definition The process of establishing and maintaining an effective dialogue for EH&S issues with key stakeholders. 11.1.4 Manage EH&S remediation efforts (PCF 10.6 / 11185) Definition The process of providing an appropriate remedy to an EH&S related issue. 11.2 Manage physical risk (PCF 9.5 / 11207) Definition Revision: v1.05 Page: 83 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide The process of protecting properties, assets and people as well as recouping costs and minimising liability in the event of damage or loss. 11.3 Manage business continuity Definition The process of minimising disruptions to business operations in the event of natural or manmade disasters that threaten facilities, systems and people. Revision: v1.05 Page: 84 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide 12.0 Inform to Improve (PCF 12.0 / 10013) The process of ensuring that necessary changes in the work environment and business processes / systems are well understood and supported by solid transition plans such that they are built on a solid ‘learning’ foundation and are thus sustainable. 12.1 Confirm and apply top level KPIs and targets to organisational performance strategy development & management Definition The process of extending and deploying an organisation’s top level KPIs into an integrated and consistent performance management framework such that current performance can be systematically ‘rolled up’ and measured and future performance improvement targets set. 12.1.1 Create and manage organisational performance strategy (PCF 12.1 / 11071) Definition The process of creating, implementing and managing measurement systems to engineer genuine and lasting strategic change in the workplace. 12.1.2 Develop product / service / production process physical quality standards / procedures & conduct quality assessments (PCF 4.1.9 / 10368) Definition The process of developing physical quality standards / procedures and then assessing quality in the context of continuous quality improvement once a company defines its quality imperatives and develops specific goals for reaching them. 12.1.3 Benchmark performance (PCF 12.2 / 11072) Definition The process of comparing a company’s processes and performance in a specific area to that of others with a goal to improve operations by identifying relevant good practice approaches. 12.2 Apply good practice and manage change (PCF 12.4 / 11074) Definition Revision: v1.05 Page: 85 of 86 2011 Biz4ge® CC-BY-NC-SA www.biz4ge.net Business Process Reference Guide The process of identifying and adopting the optimum way to perform a business process, and manage the associated business change, in order to lower costs, reduce time-on-task and increase quality. 12.2.1 Plan for the change (PCF 12.4.1 / 11134) Definition The process of translating selected (i.e. prioritised) portions of the business architecture into a coherent, integrated and executable plan for business change that can be communicated as a participative ‘call to action’ to the change team as well as the wider stakeholder community. 12.2.2 Re-engineer business processes and systems Definition The process of managing and improving business process performance by identifying and aligning key stakeholder needs and developing and sustaining a disciplined approach that defines the business processes and their performance targets in clear terms. This infers the need to examine how business processes and systems are managed in order to achieve greater efficiencies in cost, quality and time. 12.2.3 Implement and sustain continuous process improvement (PCF 12.4.4 / 11137) Definition The process of creating a workplace environment and systems dedicated to sustaining existing improvements as well as implementing a continuous process improvement regime that advocates ongoing improvements to efficiencies in cost, quality and time. 12.2.4 Develop enterprise-wide knowledge management [KM] capability (PCF 12.3 / 11073) Definition The process of managing the range of practices used in an organisation to identify, create, represent, distribute, share and enable adoption of insights and experiences (e.g. lessons learned). Such insights and experiences comprise knowledge, either embodied in individuals or embedded in organisational processes or practice. Revision: v1.05 Page: 86 of 86