ITOM 6218 – Business Process Consulting
Semester: Fall 2008- Module B
Classroom: 195 Crow
Wednesday 6:30-9:20pm
Professor: Ulrike Schultze
378 Crow
Tel: (214) 768-4265
Fax: (214) 768-4099
Email: uschultz@smu.edu
Office Hours:
By appointment
Course Web Site:
http://faculty.smu.edu/uschultz/itom6218 (under construction)
Course Overview
The objective of this course is to enable students to learn how to model, analyze (for
effectiveness, efficiency and internal controls), and redesign business processes. The
course will also address the change management issues associated with implementing
new business processes. A business process is a collection of activities -- connected by
flows of goods and information -- that create value by transforming inputs into (more
valuable) outputs through the use of capital and labor. As such, business processes are
the key drivers of organizational value creation, financial performance and competitive
advantage.
Who should take this Course?
This course is designed for graduate business students (MBA and MSA) who want to
learn how to understand, document, analyze and improve business processes with the
objective of auditing them for regulatory compliance (e.g., with the Sarbanes Oxley Act),
re-designing them for outsourcing (Business Process Outsourcing), and/or enhancing
them through effective use of IT.
Recommended Book:
“Workflow Modeling: Tools for Process Improvement and Application Development,”
Sharp & McDermott, Artech House, 2001.
Additional Book Recommendations:
“The Problem Solving Memory Jogger: Seven Steps to Improved Processes,”
GOAL/QPC.
“Supply Chain Excellence: A Handbook for Dramatic Improvement Using the SCOR
Model,” Bolstorff and Rosenbaum, AMACOM, 2003.
“Manager's Guide to the Sarbanes-Oxley Act: Improving Internal Controls to Prevent
Fraud,” Green, Wiley, 2004.
“Business Process Improvement Toolbox,” by B. Andersen, ASQ Quality Press, 1999.
“Improving Performance: How to Manage the White Space on the Organization Chart,”
Rummler & Brache, Josey-Bass, 1995.
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Additional Online Resources:
Business Process Management Initiative: www. bpmi.org
Business Process Management Notation: www.bpmn.org
Readings:
A set of readings is assigned to each class sessions. These readings are available from
SMU’s online databases, and are hyperlinked from this syllabus (Ctrl-click on the 
symbol) and from the course website. If you are attaching to the online databases from
off-campus, you will need to log in by entering your last name and the 14-digit barcode
on your student ID card. Your library barcode is a 14 digit number that begins with
"22177".
Cases:
We will be using Harvard Business School cases and notes. You will be able to purchase
these from Study.Net (www.study.net).
Grading:
Class Participation
Group Project
Deliverable #1
15%
Deliverable #2
15%
Deliverable #3
15%
Executive Summary 10%
Presentation
5%
Individual Case Write-Ups (2@10%)
Total
20%
60%
20%
------100%
====
Class Participation
Considering the interactive nature of the class sessions, class participation is an important
part of the learning experience in this course. Please make every effort to attend class
and to contribute to the discussion. Prepare for each class by reading the assigned
material and answering the discussion questions.
I take the following into account in grading class participation:
- Attendance: If you are not there, you cannot participate. However, to earn partial
credit for a class that you cannot attend you may answer the discussion questions
in writing. However, a case write-up will only count towards either class
participation or homework. This write-up will have to be emailed to me before
the class session for which it is due.
- In-Class Participation: The following are some guidelines that I use to grade
class participation. If you almost never speak up in class or miss several classes,
you will receive a participation grade of no higher than a C. If you contribute
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occasionally but rarely say anything insightful, your participation grade will be
some sort of a B. The path to an A participation grade involves things like:
integrating conceptual materials from the readings and applying them to a case or
real-life situation, doing a bit of outside reading/research and applying it to the
class discussion, integrating comments made by fellow-students earlier in the
discussion, taking substantive issue with a class-mate’s analysis, and generally
demonstrating that you have understood the readings.
Group Project
In groups consisting of 3-5 members, students will complete a process analysis and
improvement project for a ‘real’ organization. This mod, Scottish Rite Hospital will be
our project sponsors. They have identified the following business process improvement
projects:
1. Accounts Payable Management (Business Office)
2. Contract Evaluation (General Counsel Dept)
3. Direct Mailing (Public Relations)
4. Purchasing (Purchasing)
Each group will choose one business process to work on. Groups wishing to work on
business processes in organizations other than our sponsors are free to do so. Examples
of business processes are budgeting, financial reporting, information systems
development, R&D, order fulfillment, customer relationship management, service
delivery, etc.
The project will consist of (1) documenting the current business process (AS-IS), (2)
analyzing it for effectiveness, efficiency and internal controls, (3) redesigning it in a way
that meets the organization’s improvement objectives, (4) developing an implementation
plan, and (5) assessing the new process’ ROI. The project will be completed in phases
that will require the preparation of 4 deliverables outlined below (check course outline
for due dates). After taking the professor’s (and client’s) feedback into consideration, the
updated versions of each deliverable will be compiled into a project binder that will
ultimately be deliver to the client.
Also, mid-way through the module, each group will give a 10 minute presentation about
their project. The purpose of this session is to spend time on each project as a class,
sharing ideas and collectively solving problems.
Please Note: Each deliverable should be prepared with the utmost professionalism.
Each deliverable should have a title page, table of contents, proper headings, page
numbers, etc. However, it is not required that the deliverables be bound. Also, all
deliverables must include an appendix consisting of (i) completed peer evaluation form
and (ii) a group process statement. You will be able to download the peer evaluation
form from the course website. The group process statement is a one-page reflection on
the team’s work as a group, e.g., description of how the deliverable was approached as a
group, victories and challenges experienced, and ideas on how to replicate the victories
and minimize the challenges in the preparation of the next project deliverable.
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Deliverable 0: Short Project Description
Project Overview
- Company name
- Company contact: name, email, telephone #
- Brief description of company, e.g., type of business it is in, examples of
products/services, size
- Completed Business-Process Scope Framework (covered in first class session)
o Start and end of business process
o Major steps
o Business case for change
o Vision for process improvement
o Actors
o Enabling mechanisms
o Key metrics
Project Team
- Names of team members
- Brief description of team members’ experience with (i) the company, (ii) the
business process, and (iii) business process consulting
Deliverable 1: AS-IS Documentation and Assessment
AS-IS Workflow Diagrams
- Hand-off Diagram (level 1)
- Milestone Diagram (level 2)
- If additional detail requires it: Task Diagram (level 3)
- In either the Milestone or the Task Diagram, include metrics (e.g., how long a
step takes, how many people it involves, how much it costs, how many defects it
experiences, etc) and internal controls (e.g., segregation of duties, authorization,
etc); consider using comments for this or references linking to an appendix
Process Analysis: Performance against goals
- Process efficiency assessment: objectives and current performance wrt speed,
cost, resource use, etc; try to quantify both objectives and current performance
- Process effectiveness assessment: objectives and current performance wrt
product/service quality, customer satisfaction, competitive distinction, etc; try to
quantify both objectives and current performance
- Process control assessment: objectives and current performance wrt risk,
compliance with legislation, etc; try to quantify both objectives and current
performance
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Deliverable 2: Benchmarking and Control Matrix
Benchmarking
- Rely on internal, functional and/or competitive benchmarks to assess how well the
AS-IS process is performing; try to quantify the benchmarking information that
you gather from other departments in the organization, as well as competing and
non-competing firms; alternatively, rely on practice benchmarks to make an
assessment of the AS-IS
- Based on your benchmarking results, make recommendations for improvement
Control Matrix of AS-IS
- Prepare a control matrix of the AS-IS process; this matrix should include both
present and missing controls; the missing controls should provide some insight
into the kinds of improvements you will pursue in the TO-BE process design; also
make sure that your control matrix is accompanied by
o The AS-IS Milestone or Task Diagram (level 2 or 3) on which each
control is referenced
o A narrative description of each control
Deliverable 3: TO-BE and Implementation Plan
Summary of AS-IS Problems, Change Objectives and TO-BE solutions
- Either in tabular or narrative form, present the AS-IS process’ problems wrt
efficiency, effectiveness and controls
- For each of these problems present the change objectives (e.g., from benchmarks)
- For each of these problems present the solution included in the TO-BE process
TO-BE Workflow Diagrams
- Hand-off Diagram (level 1)
- Milestone Diagram (level 2)
- If additional detail requires it: Task Diagram (level 3)
- In either the Milestone or the Task Diagram, include metrics (e.g., how long a
step takes) and internal controls (e.g., segregation of duties); you may want to use
comments for this or references linking to an appendix
Control Matrix of TO-BE
- Prepare a control matrix of the TO-BE process; make sure you reference each
control on the TO-BE Milestone or Task Diagram (level 2 or 3) and that you
include a narrative description of each control
Implementation Plan
- Prepare a stakeholder analysis for implanting the improved process
- Taking the findings of the stakeholder analysis into account, prepare a GANTT
chart of the steps needed to implement the TO-BE process
Deliverable 4: Executive Summary [1 page of text with 3-4 exhibits as appendix]
Business case for process improvement
Recommended improvement
Duration of improvement project
Cost and payback/ROI of project
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[Final] Presentation:
Your group will be asked to prepare a 10 minute presentation of your project. This
presentation should be targeted at your clients and (roughly) cover the following:
- Brief overview of the company
- Business case for process improvement, i.e., problems with the AS-IS process and
the goals for and expectations of a process change
- Benchmarks and the alternative ideas for process improvement
- Improvements reflected in the TO-BE process
- Implementation challenges and how your implementation plan addresses them
Not all group members have to actively present; however, all are expected to stand up
front and participate in Q&A.
Individual Case Write-Ups
Discussion questions are outlined for every class session. For your case write-ups, you
will be required to answer in writing the discussion questions assigned for the class
session on which a case write-up is due. Check the “due date” column in the syllabus to
find the discussion questions that you are required to write up. For the most part, the
discussion questions are designed to make you integrate course material (e.g., readings)
with the cases. Try to apply the concepts, theories and frameworks from the readings to
your answers. Furthermore, to deepen your knowledge on the topic, you may want to
read the recommended material in addition to the required readings.
In your write-ups, please just reference the question you are answering and answer it as
clearly and succinctly as possible. Do not write a nicely-flowing essay that somehow
incorporates the answers to the discussion questions.
The case write-ups must be handed in at the beginning of the class for which they are
assigned. They should be no longer than 2 double-spaced pages of text; however, you
may add an unlimited number of exhibits in an appendix. Such exhibits might include a
financial analysis or the application of a framework such a Porter’s Value Chain. Please
bear two guidelines in mind when using exhibits:
 They should not be generic but specifically applied to the case: don’t present Porter’s
Five Forces model unless you populate it with information specific to the case that
you are analyzing.
 You need to demonstrate their relevance to your argument: reference your exhibits in
your write-up.
The case write-ups are graded as individual work and you are expected to complete them
independently, without help from your class mates or others.
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Policies
Use of Laptops in Class
Students are permitted to use laptops during the class sessions to:
1) take notes, and
2) do online research immediately relevant to the discussion going on during the
class session.
I consider it inappropriate for students to email, instant message, surf the web or do
homework during class sessions. Since the class is largely based on case discussions, I
expect students to minimize the distractions caused by using a laptop. Furthermore,
when we have guest speakers, students should limit their use of laptops to note taking.
Academic Honesty
There are three areas of academic honesty that I would like to stress with regard to this
course. These are individual work, group work and plagiarism.
 Individual Work: your case write-ups will be graded as your independent, individual
work. It is to be written up by each student independently and without any assistance.

Group Work: for the group project (i.e., all deliverables and presentations) it is
expected that all students in the group contribute equally. On group work it is
assumed that each group member understands, agrees with and is responsible for all
group products. This means that you need to avoid too much of a divide and conquer
approach. Breaking the group project into a set of individual work products is a
breach of academic honesty, just as it is a breach of academic honesty for one group
member to do the entire group project.

Plagiarism: In any assignment, if parts of the submitted work rely on other people’s
work, this has to be stated clearly. I expect students to reference their work (through
footnotes, for instance) to identify the source of ideas, concepts and theories.
Religious Holidays
I expect students who will miss class due to religious holidays that they wish to observe
to inform me of the classes they will be missing. I request that I be made aware of them
at the beginning of the course.
Disability Accommodation
If you need academic accommodations for a disability, you must first contact Ms.
Rebecca Marin, Coordinator, Services for Students with Disabilities (214-768-4563) to
verify the disability and establish eligibility for accommodations. Then you should
schedule an appointment with the professor to make appropriate arrangements.
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Course Outline (subject to change)
#
Date
Topic
1
10/15 Introduction to Business Processes
Guest Speaker: Ashley Sadlon, The Scottish Rite
Hospital, to introduce the business process
improvement projects
Readings:
“Service Comes First: An Interview with USAA’s
Robert F. McDermott,” Harvard Business Review,
Sept-Oct 1991 (required) 
“Want to Perfect your Company’s Service? Use
Behavioral Science,” by Chase & Dasu, Harvard
Business Review, June 2001. (highly
recommended) 
Text:
Sharp & McDermott, Ch 2 (recommended)
Case:
USAA: Business Process Review for the Great
Lakes Region (required)
Discussion Questions:
1) Identify 5 business processes that, during his
interview with Teal, McDermott said were
improved during his tenure as CEO. Name
each of these processes, briefly describe it
(i.e., key activities), and explain how it was
improved.
2) Draw a process map of USAA’s claims
process from the customer’s perspective, and
comment on how you believe a USAA
customer will evaluate it. (You may use any
type of diagram; just make sure that it
highlights the customer’s view – or experience
– of the process).
3) Propose at least 3 changes to the AS-IS claims
process. Highlight what impact these changes
will have on the overall cost, time, and service
level of the claims process.
4) What ideas from the Chase and Dasu reading
would you recommend USAA consider for
improving its claims process?
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Due Date for
2
10/22
Individual: First
Case Write-Up
Process Modeling
Guest Speaker: Zain Ali, The Hackett Group
Reading:
“The Coming Commoditization of Processes,”
by Davenport, Harvard Business Review, June
2005. (recommended) 
“How to Prevent your Customers from Failing,”
Tax, Colgate & Bowen, Sloan Mgmt Review,
Spring 2006. (recommended) 
Group: Deliverable
0
Text:
Sharp & McDermott, Ch 3-6 (recommended)
Case:
Pharmacy Service Improvement at CVS (A)
(required)
3
10/29
Discussion Questions:
1) Draw a hand-off (level 1) workflow diagram
of CVS drug fulfillment process.
2) Based on the diagram and the metrics from
the case, identify the top three problems in
the fulfillment process and recommend
process improvements to address these.
(Consider incorporating insights from the
course readings, e.g., Chase & Dasu’s HBR
article, in formulating your answer. Ensure
that you cite your sources appropriately.)
Process Improvement: Benchmarking, Process
Frameworks and Metrics
Readings:
“The Balanced Scorecard—Measures that Drive
Performance,” by Kaplan & Norton, Harvard
Business Review, Jan-Feb 1992. (highly
recommended) 
“Six Sigma Pricing,” Sodhi & Sodhi, Harvard
Business Review, May 2005 (recommended) 
Text:
Sharp & McDermott, Ch 8-13 (recommended)
Case: Serono (required)
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Group: Deliverable
1
Discussion Questions:
1) What are the objectives of benchmarking?
What are the pros and cons?
2) What are the key conflicts that Iain faced wrt
the BSC system used at Serono?
3) What is your assessment of the NA
Commercial BSC (exhibit 3)?
4) How should Iain evaluate his department? In
other words, what are the key success factors
for Corporate Finance at Serono and what
measures would you use to assess
performance against them?
4
11/5
Process Auditing: Governance and Control
Individual: Second
Case Write-Up
Readings:
“Using Commitment to Manage Across Units,”
Sull, D.N., and Spinosa, C., Sloan Mgmt Review,
Fall 2005. (recommended) 
“The Unexpected Benefit of Sarbanes-Oxley,”
Wagner, S. and Dittmar, L., HBR, April 2006.
(recommended) 
Case:
Internal Governance and Control at Goldman
Sachs: Block Trading (required)
Discussion Questions:
1) Draw a level 1 workflow diagram of the
block trading processes used in the Goldman
Sachs during the BP block trade.
2) Identify the factors or aspects of the BP
block trade process that made this particular
transaction so successful.
5
11/12
Where Business Processes meets Work
Practices: Change Management
Guest Speaker: Frank Woosley, Deloitte
Consulting
Readings:
“The Hard Side of Change Management,”
Sirkin, Keenan & Jackson, Harvard Business
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Group: Deliverable
2
Review, Oct 2005 (highly recommended) 
“A Framework for Managing IT-Enabled
Change” by Benjamin & Levinson, Sloan
Management Review, Summer 1993
(recommended) 
“Fair Process: Managing in the Knowledge
Economy,” by Kim & Mauborge, Harvard
Business Review, January 2003. (recommended)

Case:
Rich-Con Steel (required)
Discussion Questions:
1) Assess how well the DICE framework
explains the problems Rich-Con Steel is
experiencing with its new information
system.
2) Prepare a stakeholder analysis of the RichCon information systems project (at the end
of the case).
3) Based on the insights generated from the
DICE and the stakeholder analysis, how
would recommend Marty Sawyer proceed?
Make sure that you prepare an action plan
that sequences (in order of priority) and
justifies the steps Marty should take.
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7
11/14
(Thanksgiving
make-up
session)
11/19
Process Auditing: Designing Internal Controls
Group: Mid-Mod
Presentation
Control Matrix
Mid-Mod Group Project Presentations
Process Improvement – Technology
Readings:
“Creating a Strategic IT Architecture
Competency: Learning in Stages,” Ross, J.,
MISQ Executive, March 2003, (2):1. (highly
recommended). 
Case: Otis Elevator: Accelerating Business
Transformation with IT (required)
Discussion Questions:
1) In which stage of Ross model would you
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Group: Deliverable
3 [extension to Nov
26]
locate Otis is in 2005? What implications
does this have for its goal to be the leading
service firm in the world?
2) How hard to you think it was to implement
Otisline in 1990? How does this compare to
implementing e*Logistics?
3) The IT tools used by Otis in 2004 were
relatively simple, e.g., workflow, email,
intra- and extranets. Yet, the benefits appear
to be extraordinary. How is this possible?
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12/3
Final Project Presentations – please invite your
customers!
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Group: Deliverable
4