1. 1 Analyzing your Business Processes and Documenting Procedures Business Manager Curriculum February 2014 Facilitators: Greg Verret Phil Maher

2. 2 Agenda Module 1: Process Analysis Module 2: Process Documentation (a.k.a.– “Procedures”)

3. 3 Module 1: Process Analysis Understanding and Defining Your Business

4. 4 What is “Process Analysis”? Review of existing business functions, activities, and tasks that enable the execution of your department’s operations Identifies key inputs, outputs, dependencies and hand-offs Enables continuous improvement Not just process mapping Usually confused with procedures Often is missing

5. 5 Process vs. Procedure Process ≠ Procedure A process consists of the underlying functions, activities and tasks your organization must perform to fulfill its mission. What are you in the business of doing? A procedure refers to documented instructions used by your personnel to perform the actions required to operate your business processes. How do I do it?

6. 6 Terminology Process Function: A group of related activities or tasks that accomplish a specific objective. Activity: A component within a process function; usually represents a collection of related tasks. Task: A component within an activity; usually represents a specific action to be performed by a specific individual. Once we’ve defined our process…. Procedure: A documented set of instructions used to guide personnel in performing the related activities and tasks within a process.

7. 7 Business Process Breakdown These levels can be combined, depending on the complexity of the process. Procedural documentation should focus on describing the actions that occur at these levels. Adapted from the Business Process Management Institute, “Analyzing the ‘As-Is’ Process”.

8. 8 Business Process Breakdown (continued)

9. 9 Business Process Breakdown Example This is the “50,000-foot” view Each green box represents a process function, with sub-processes listed underneath

10. 10 Business Process Breakdown Example (continued)

11. 11 Key Points Process ≠ Procedures You must first define and organize your business into process functions (50,000- foot view) Then, drill-down into each process function and identify the underlying sub- processes/activities/tasks that occur (5,000 foot view and below). Meet in a room with a whiteboard and map it out (Microsoft Visio is also helpful) Try to keep it simple – only include as much detail as you need to identify the key actions/tasks

12. 12 Module 2: Process Documentation Basics Best Practices on How to Develop and Maintain Procedure Documentation

13. What’s a Process Function? A group of related activities that accomplish a specific objective, process functions have: o A goal o Clearly defined boundaries (beginning and end) o Use resources o Are consistently executed o Produce consistent results o Adds value without including unnecessary activities o Can be internal (support) or external (primary) o Cross functional areas 13

14. A Process function… Includes a set or series of related activities/tasks that accomplish a single purpose Provides for needs of internal or external customers May involve multiple skill groups, people, or departments 14

15. An Activity… Includes tasks that complete a single deliverable of a process function Starts or finishes when one of the following occurs: Objective or result changes Work is handed off to another unit A break occurs in the contiguous time it takes to complete the activity. 15

16. A Task is… A component within an activity; usually represents an action to be Performed by a specific individual Utilizes a single form of technology Occurs in the same contiguous time period All tasks must be completed in an activity to produce a meaningful deliverable 16

17. A Procedure is... A documented set of instructions used to guide personnel in performing the related activities and tasks within a process. The how to do it Process 17

18. Well-designed activities/tasks are typically … Measurable Repeatable Sustainable Have customers (internal or external) Produce an output of value to that customer Have definable boundaries (start and end points) Have an identifiable “owner” Have internal controls built into it 18

19. Why is documenting process functions, activities and tasks important? Reduces operational ambiguity Continuity of operations Useful as a training tool Auditors will ask and test Identifying what process functions, activities and tasks are Helps identify measurable results Knowing what you’re trying to accomplish/purpose Aligning processes with your units mission and goals Aligning processes with the University mission and goals You can’t improve your process if you don’t know what it is 19

20. Why is documenting process functions, activities and tasks important? Identifies value added and non value added tasks Identifies design inefficiencies/gaps Identifies internal controls Automation (evaluate and change your process before you automate) Gives a better understanding of how processes relate Helps identify strengths and weaknesses Reduces risk 20

21. Before you start-think about the following: What do your customers (internal or external) require (output) What do you require from your suppliers (input) Do you know of any gaps (expectations, performance or requirements that aren’t being met) Any current data What happens now? 21

22. Now what do I do? Plan Analyze Research Prewrite Draft Format Review Edit Approval 22

23. What should a procedure document look like? Title Goal and Objective How often is the activity performed? Who owns the activity? –Department –Office –Responsible person Dates Step by step (task) –Include links to documents, laws, policies, other documents How to do it = procedure Define your terms and acronyms Process Document Example 23

24. Writing the step by step activity Start with the end in mind –Who receives the result? No step is too small Use simple language Define your terms and acronyms Internal controls are important Can the results be measured? Showing an example of the completed process 24

25. Flowcharts A simpler way to document an activity (supplements procedure documents) A visual view or diagram Shows the tasks Swim lanes Identifies the participants Used for: –Design –Documentation –Management Flowchart - Payroll 25

26. How do I know if I got it right? Test it!!!!!! 26

27. Questions? 27