The Institute of Internal Auditors
Detroit Chapter
Developing World Class Process Maps
May 22, 2013
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A)
B)
C)
D)
E)
Member Detroit Chapter
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Bios
Adam Golden
Keith Fournier, MA, MBA, PMP
Co-Founder and Principal of Major
Oak Consulting, a boutique
Management Consulting firm
Former Internal Auditor at D&B
20+ years Process Excellence
CFO Magazine winner of “REACH”
award for Outstanding
Reengineering Achievement
Co-Chair of the APA’s Strategic
Payroll Leadership Task Force
(SPLTF) Best Practices
Subcommittee
Senior Management Consultant –
CIO Advisory Services
Former “Transformation” CIO
Managed tens of millions of
dollars of technology projects
Received National Recognitions
for ERP, Document Management
and Geographic Information
Systems implementations
20+ years (10 years consulting)
Specialize in IT strategy, planning,
acquisition, and implementation
Process Geek
Project Management Geek
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Agenda
Process Mapping – Background
Enterprise Mapping
Current State Mapping and Analysis
Capability Requirements
Future State Process Mapping
Best Practices / Wrap-up
Q&A
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What is a Business Process?
Definition: A process is a series of steps or actions
performed to achieve a specific purpose
Processes are the foundation of all businesses, yet
nearly all processes within organizations are
undocumented
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Customers Experience a Company’s Processes, Not its
Functions
Processes are what happen when functions come together to perform a task
It’s normally poorly designed and executed processes that cause inefficiency
and ineffectiveness in organizations, not functions
Note: If the name doesn’t
include a verb, it’s
probably not a process
FUNCTIONS
Customer
Service Dept
Sales /
Marketing
Accounts /
Credit Dept
Production /
Service Delivery
PROCESSES
“Receive & Process
Account Application”
“Onboard New
Customer”
“Bill & Collect From
Customers”
“Handle Customer
Complaint”
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So when do you map your business processes?
Organizations map their process for specific “events” such as:
Reengineering / Improvement programs
– Reduce costs, remove waste, increase quality, increase efficiency, improve
employee satisfaction, improve customer satisfaction, etc.
Systems implementations
Merger & Acquisition (M&A) integrations
Sarbanes-Oxley / Compliance / internal controls awareness
However, almost anytime is the right time to map your business processes.
Process mapping is a useful tool to develop a shared understanding of
issues/problems, build teams, produce brilliant ideas and unlock the potential
in your business.
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Polling Question #1
Are you are involved in projects outside of internal
audit reviews?
A)
B)
C)
D)
E)
Yes, Reengineering/Improvement programs
Yes, Systems implementations
Yes, Merger & Acquisition (M&A) integrations
Yes, Sarbanes-Oxley/Compliance/internal controls awareness
No
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Why map your business processes?
Mapping processes enables organizations to:
Understand what the process really is…
− Detailed information of what is currently happening, who does it, predictability
− Determine “real process” vs “perceived process”
Measure the effectiveness and efficiency of the process
Ensure the proper controls are in place
Understand where waste and inefficiency exist
− Delays, unnecessary handoffs, duplication of effort, etc
− Impact on the customer or partners
Develop new improved processes
− Reduce or eliminate inefficiency
− Improve the customer experience
− Clarify roles and responsibilities
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There are many ways to document a process
It seems there are endless ways map a process. The Major Oak methodology
for process mapping is thorough, complete and valuable to uncover current
state issues and define future state opportunities.
Process Mapping Examples
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Process mapping involves a series of steps, from
confirming process scope to future state design
Before beginning the process mapping journey, it is important not to
immediately rush into the detail of process maps. Process mapping
typically takes place across four phases.
Phase 1
Phase 2
Phase 3
Phase 4
Enterprise
Overview
Current State
Mapping
Capability
Requirements
Future State
Design
Enterprise Process
Map
Current State
Process
Future Directions
Future State
Process
Data Analysis
Capability
Requirements
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An Enterprise Process Map provides context and scope
for your processes
An Enterprise Process Map critically provides context (i.e. interfaces with
other processes), as well as scope for processes (i.e. where the processes
start and end)
Note: Boxes inside
the shaded box
represent internal
processes and boxes
outside represent
external parties.
Enterprise Process Map (example only)
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Polling Question #2
What tool do you use to map processes?
A) Visio
B) PowerPoint
C) iGrafix
D) Other
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Each box on the Enterprise Process Map represents an
individual process
A process map presents the detailed activities of an individual process,
who performs them, how they interact and which systems are used
Enterprise Process Map
Process Map
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Polling Question #3
Have you ever built an enterprise map before?
A) Yes
B) No
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Process mapping involves a series of steps, from
confirming process scope to future state design
Before beginning your process mapping journey, it is important not to
immediately rush into the detail of process maps. Process mapping typically
takes place across four phases.
Phase 1
Phase 2
Phase 3
Phase 4
Enterprise
Overview
Current State
Mapping
Capability
Requirements
Future State
Design
Enterprise Process Map
Current State Process
Future Directions
Future State Process
Data Analysis
Capability Requirements
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How do you begin mapping the current state?
A current state map focuses on what ACTUALLY happens in a process. Process
mapping starts with an understanding of the process details by asking the
following questions:
Current State Process Mapping
1.
What transactions are part of the process?
2.
What are the specific tasks?
3.
Who performs each task?
4.
Who is the customer(s)?
5.
Are there other stakeholders?
6.
What are the decision points?
7.
What systems are used?
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There are many ways to gather data for the current
state process map
Tools to capture process information and gain an
understanding of the current state include:
Tip: Use a mixture of
these techniques
Existing documentation: always leverage any process
documentation that already exists
Interviews: one-on-one interviews with individuals who
are managing, as well as performing the process
Observations / Walkthroughs: watching a process or
individual in action – can be transaction specific
Workshops: targeted working sessions with a group of
people involved in performing the process
Conduct Interviews /
Observe Processes
DILOs (“Day In The Life Of”): shadowing individuals for a
full day to experience first had how they handle the
process
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The process mapping workshop should be a fun and
interactive experience
Goal: To attain a clear, agreed upon depiction of the current state process
Duration: Depends on the complexity of the process, but typically
schedule a half day if under 8 attendees and full day if 8 or more
attendees
Attendees: Include anyone that touches the process in the workshop
Inputters to the process
– Process stakeholders – at least one person per stakeholder group
– Individuals managing and performing the detailed process
– Receivers of the output of the process (internal customers)
Facilitator: The primary role of the facilitator is to engage the attendees to
ensure everyone is involved. The facilitator should be a skilled facilitator
with process mapping experience
– It’s best when the facilitator is not connected to the process being mapped –
so they remain unbiased by the discussion
In our experience, there is always healthy discussion about
what really happens in the current state
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Workshops: Process Mapping is a science, but don’t
forget about the art
Process mapping is both a science and an art. The science is knowing the
make-up of a process and being able to distill down to each specific task and
decision point. The art is the creative process of how to draw the process on
paper to make it come to life.
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Key Workshop Activities / Post Workshop Activities
Workshop Activities
Have participants describe the process steps
Ask the group for clarifications or comments
Highlight areas of discussion
Ask about the volumes / significance
Tip: Write on Post-its or
brown paper:
 BU differences
 Process exceptions
 Manual steps
 Re-work
 Where errors occur
 Materiality
Wrap up and Post Workshop Activities
Thank everyone
Roll up your draft map (brown “butcher” paper)
Capture key takeaways or parking lot items
Start drafting your current state process map
The true goal of the
workshop is to identify
all of the process steps –
you’ll have time for
validation and
quantification later
Follow up on any open items or questions
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A process map without swim lanes is like a bike
without pedals
It is extremely difficult, maybe impossible, to improve a process if you don’t
know who is responsible for performing the activity. The benefits of swim
lanes are:
Tip: Setup a
You know who is responsible for each step in the process
swimlane for
every process
You can see how many people actually touch the process
participant
You can see back and forths between the same people
You can see the hand-off points and where things could fall through the cracks
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Key elements of your process map should include:
Activities
Roles
Call client and
schedule kick off
meeting
(within 24 hours)
Customer Service
Team
Sub-Processes
highlighted
Tip: Don’t cross
connector lines
that link process
steps
Tip: Include multiple
views of timeline /
cycle time
Timeframes
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Permanent
Key Notes
Temporary
25
A current state map is the basis for uncovering process
issues and opportunities for improvement
Once the current state has been mapped, it’s time to validate, analyze and
add supporting detail to the map. Examples of current state analysis include:
Tip: Review the draft
Validate the map with the core functional team
Identify manual tasks that can be automated
map with core team to
validate you got it right
Identify any task that can be eliminated (non-value added)
Quantification of activities, tasks and transactions
–
–
–
–
–
–
–
–
Cycle times
Volumes
Defects
Handoffs
Wait times
Costs
Timeframes
Process loops / rework
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Process Analysis can take numerous forms. Here’s a
few examples: Activity analysis
Activities
Email request in inbox
Prepare quote request
Send to manager for review
Review quote for errors
Take paper back to originator
Prepare paperwork for client
Follow up client
Submit order
Await confirmation of order
File confirmation
No. of tasks
Cycle time (hrs)
Time
(hrs)
4
2
0.5
1
1
2
4
0.5
1
0.5
10
16.5
% 100%
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Check
Transport
Operation
Wait
Storage




67% of time spent
on NVA activities





1
1
2
1.5
3
4.5
3
9

1
0.5
6%
9%
27%
55%
3%
27
Process Analysis Example: Resource variation
Open/View
Verification
Process
Activity End
Variance due to:
System navigation &
processing techniques
Associate 1
Associate 2
Associate 3
Associate 4
Associate 5
00:00:00
00:02:53
00:05:46
00:08:38
00:11:31
Duration (hh:mm:ss)
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Now annotate the map, highlighting issues,
opportunities, best practices and potential projects
Improvement Projects
Key Volumes
Advanced Technique:
Color code activity boxes
to highlight activity subcharacteristics (manual,
fax, regulatory, etc.)
Issues / Opportunities
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Best Practices
29
Sample Completed Process Map
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Sample Process Map
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Sample Process Map
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Current State Mapping – Using the Output
Finalize the map
Tip: Use the final current
state map as a training tool
for new employees
Identify improvement projects
Discuss opportunities with team and management
Prioritize improvement projects and kickoff next steps
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Phase 1
Phase 3
Enterprise
Overview
Phase 2
Current State
Mapping
Enterprise Process
Map
Current State
Process
Future Directions
Data Analysis
Capability
Requirements
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Capability
Requirements
Phase 4
Future State
Design
Future State
Process
34
Capability Requirements must be determined before
mapping your Future State Processes
Before mapping future state processes, it is important to understand the
future direction of the business and obtain consensus from the Management
Team regarding their expectations and business capabilities required to
support the business in the future.
Key Questions:
What capabilities do they have today?
What capabilities do they need for the future state?
What process, people and technologies are needed?
What are the customer expectations at each key point of interaction with
the business?
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Determine expectations at each customer interaction
point and the capabilities required to meet them
Customer Contact /
Key Interaction Points
1.
2.
3.
4.
5.
6.
n.
Process A
Process B
Process C
Process D
...
…
Process ‘n’
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Customer
Expectations
Operational
Capability
Requirements
Organization’s
Expectations
36
Phase 1
Enterprise
Overview
Phase 2
Current State
Mapping
Phase 3
Capability
Requirements
Enterprise Process
Map
Current State
Process
Future Directions
Data Analysis
Capability
Requirements
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Phase 4
Future State
Design
Future State
Process
37
Future state mapping transforms from what actually
happens to what should happen
A future state map focuses on what SHOULD happen in a process by
asking the following questions:
Future State Process Mapping
1. Who should perform each task?
2. What should be the specific tasks?
3. What should be the decision points?
4. Who is the customer(s)?
5. Who are the stakeholders?
6. How should we resolve the issues with the
current process?
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Future state maps typically begin with the current
state, but starting with a blank page can be powerful
Start your ‘ideal’ state process map with one or all of the following
techniques:
Use your current state process maps and analysis to identify non-value
add steps
Re-sequence / amend the existing activities to streamline the process
– Consolidate activities to one role where possible to minimize hand-offs
Brainstorm fresh ideas from scratch (sticky notes!)
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Identifying non-value add steps in the current state
should involve all the relevant parties
Remove non-value
add steps
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Ultimately, you’ll have a future state process map
Current State
Future State
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Key Differences:
 Removed non value-add
(NVA) activities
 Automated steps
 Consolidated activities
 Work moved to the
appropriate role
41
Wrap Up / Best Practices
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Keep these Best Practices in mind when mapping
within your organization
1. The people doing the work are the best source of realistic data
– They are the ‘factual’ authorities on that work – treat them with respect
– To get the ‘real story’, remove “bosses” from room during process mapping
2. Generalities are the enemy of good process maps - push for specifics
3. Gather data with multiple approaches - explanation and demonstration
4. Quantify as much as possible – quantification = relevance
5. Validate the process map – multiple times if necessary
6. Swim lanes make the map much more relevant
7. Capture process exceptions, but don’t map them
8. Real test is if the process map is vouched for by those doing the work
9. Break the process down into sub-processes wherever possible
10.The timeline tells a whole story in itself
11.Use flags, notes, colors and other visuals in your process maps
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Speaker Information
Thank You!
Adam Golden
Principal
Major Oak Consulting, LLC
agolden@majoroakconsulting.com
973.701.0872
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Keith Fournier
Senior Management Consultant
Major Oak Consulting, LLC
kfournier@majoroakconsulting.com
419.344.6504
46