1. Certified Business Process Professional (CBPP®)
Study Session
Part 3
Sept. 1, 2010
The BPM CBOK® is the “WHAT” of BPM, not the “HOW” or methodology. Before anyone can embark on BPM, they must first know the WHAT, then they will need to learn the HOW of BPM. There are many vendors and consultants out there who can show you HOW to do BPM, but until now, no organization or individual has established the knowledge foundation for the skills and competencies of BPM until ABPMP’s BPM CBOK® Without the WHAT, it is difficult for people to understand the HOW (methodology) of putting it all together into a comprehensive, sustainable whole.

2. Part 3 of Certification Overview
Process Performance Management
Tony Benedict
President ABPMP
Process Improvement Methodologies
Gabrielle Field
VP Certification, ABPMP
Today’s session will cover your questions on the key concepts for these topics
We will review sample questions to prepare for the exam format

3. House Keeping
Only the “call in option” is available today to increase the recording quality of the webinar
An On Demand version of this will be available through the ABPMP website
A PDF of the slides will also be available for this webcast with the On Demand version

4. BPM CBOK® Knowledge Areas
Enterprise Process Management
Process Management Organization
Business Process Management
Business Process Management Technologies
Process
Modeling
Analysis
Design
Transform
Perform
Mgt

5. 5.0 Process Performance Management
14 Questions 10% of the Exam
5.0 Effective Process Measures
Understand the role and objectives of measurements and metrics in the Process Performance Management
Describe fundamental metrics dimensions and characteristics of effective metrics
Describe the concept of "value added" versus "non-value added" measurement approaches
5.1 Importance and benefits of (cross-functional) performance management
Understand the benefits of cross-functional process improvement efforts versus isolated functional area improvements
Understand the reasons for continues process monitoring and control 5

6. 5.0 Process Performance Management
14 Questions 10% of the Exam
5.2 Alignment of business process and enterprise performance
Understand the difference between functional and cross-functional (enterprise level) metrics
Understand the difference between the key approaches to process improvement methods; explain the key differences in the tools used by each
Decision support for process owners and managers
Describe the reasons for planning for monitoring and controlling of business processes
Describe the role of business intelligence in decision support for process owners and managers 6

7. Importance of Performance Measurement
Aligning process performance to organizational goals is primary reason for process management
“If you can’t measure it, you can’t manage it”
Focusing on process & associated process performance metrics vs. just financial metrics yields greater overall performance improvements

8. Key Process Performance Definitions
Time – measurement of process duration
Cycle time – time it takes from start of process to completion
Cost – measurement of monetary value
Resource cost – monetary value of resources (human or non-human) required to complete process
Opportunity cost – value lost from process by not getting the resultant output of the process
Capacity – amount or volume of a feasible output
Usually includes associated revenue
Can also include throughput

9. Key Process Performance Definitions
Quality – usually expressed as percentage of actual to optimal/maximum in process terms
Satisfaction – measurement of customer satisfaction
Variation – measurement of the amount, extent, rate or degree of change; usually expressed as the difference between the actual & target/expected result
Value Added – required to generate the output required by the customer or when the customer is willing to pay for the process that generates the output; or to maintain quality & consistency, continuity or transport

10. What to Measure First understand the desired result
Quality information comes from inputs/outputs & entire process
Cost information comes from resources needed to perform the process & outputs
Capacity information comes from outputs
Time information comes from entire process (supplier to customer)
Can be broken down between supplier & input & output & customer

11. Audience Survey Sample Question #1
Process modeling:
What is the purpose of “as is” process modeling?
                             A)           To support audit requirements
                        B)            To define the current activities and rules
                                C)            To compare against a "to be" model
                                D)           To identify poor performance
                                               
      

12. Audience Survey Correct Response #1
Process modeling:
What is the purpose of “as is” process modeling?
                          
                        B)            To define the current activities and rules
                                                                             
      

13. Audience Survey Sample Question #2
Process modeling:
What does a process model depict?
A)           Sequence of process activities using standard and custom symbols
B)            Job procedures of people involved in an activity for process costing
 C)            Legacy application interfaces that capture activities
D)           Workflow standards to track the volume of handoffs
                                               

14. Audience Survey Correct Response #2
Process modeling:
What does a process model depict?
The sequence of process activities using standard and custom symbols

15. Audience Survey Sample Question #3
Process measurement:
Which of the following is a process improvement methodology characterized by statistical process control techniques to reduce variation?
A) Six Sigma
B) Lean
C) Activity Based Costing (ABC)
D) Total Quality Management (TQM)

16. Audience Survey Questions Correct Response #3
Process measures:
Which of the following is a process improvement methodology characterized by statistical process control techniques to reduce variation?
Six Sigma

17. 5.0 Process Performance Management
14 Questions 10% of the Exam
5.2 Alignment of business process and enterprise performance
Understand the difference between functional and cross-functional (enterprise level) metrics
Understand the difference between the key approaches to process improvement methods; explain the key differences in the tools used by each.
Decision support for process owners and managers
Describe the reasons for planning for monitoring and controlling of business processes
Describe the role of business intelligence in decision support for process owners and managers 17

18. Activity-Based Costing
Accounting methodology that assigns costs to activities rather than products/services
Provides data about how costs are actually consumed in a process
Used to discover opportunities for cost/efficiency improvement
Focuses on overhead, traces rather than allocates each expense to a particular cost object
Makes indirect expenses direct
Use when overhead/cost of errors is high, inefficiency is identified or competition is stiff

19. Wastes Identified in Lean Value Stream Mapping

20. Statistical Methods – Six Sigma
Science of collecting, analyzing, presenting & interpreting data
Used to understand & reduce or eliminate variability in processes for improvement
Focuses on data (inputs that drive the outputs) and processes primarily responsible for driving inputs
Use when error rate is high or outputs are inconsistent

21. Critical Success Factors
Focus on people as much as the process
Education – make sure everyone knows the entire process & not just their part
Everyone has same understanding of the “process”
Everyone understands why process is important – tie to operational performance metrics for the company & tie compensation to the improvements
Engage those who design and approve process activities as well as those who perform the work
Attempt to “over communicate” the goals & objectives (performance metrics) of the process

22. The Process Organization 7.0 Enterprise Process Management 8.0
Next Steps:
Review Chapters 8 and 9 of the BPM CBOK®
Next Webinar Topic:
The Process Organization 7.0
Enterprise Process Management 8.0
September 15, 2010
Jon Strickler, ABPMP
Denver Chapter