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Analyzing your Business Processes andDocumenting Procedures

Business Manager CurriculumFebruary 2014

Facilitators:Greg VerretPhil Maher

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Agenda

• Module 1: Process Analysis

• Module 2: Process Documentation (a.k.a.– “Procedures”)

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Module 1:

Process Analysis

Understanding and Defining Your Business

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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

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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?

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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.

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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”.

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Business Process Breakdown (continued)

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Business Process Breakdown Example

• This is the “50,000-foot” view• Each green box represents a process function, with sub-processes listed underneath

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Business Process Breakdown Example (continued)

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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

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Module 2:

Process Documentation Basics

Best Practices on How to Develop and Maintain Procedure Documentation

What’s a Process Function?

A group of related activities that accomplish a specific objective, process functions have:

o A goalo Clearly defined boundaries (beginning and end)o Use resourceso Are consistently executedo Produce consistent resultso Adds value without including unnecessary activitieso Can be internal (support) or external (primary)o Cross functional areas

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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

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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.

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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

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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

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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

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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

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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

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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?

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Now what do I do?

• Plan• Analyze• Research• Prewrite• Draft• Format• Review• Edit• Approval

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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• Process Document Example

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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

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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

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How do I know if I got it right?

Test it!!!!!!

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Questions?

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