1. The Portfolio Manager Kit for Continuous Process Improvement & Management How to Use

2. The Portfolio Manager Kit

What is it?

• A Business Process

• Portfolio Management System

• • Microsoft Access database

What does it do?

• Manages processes as assets

• Classifies, inventories, evaluates, scorecards & documents business processes, rules & KPIs

• Tracks Process Improvement Projects

• Manages a Continuous Process Improvement Program

What problems does it solve?

• Ineffective or inefficient execution

• Substandard performance outcomes

• Miscommunication & misalignment among process owners & stakeholders

• Unstructured process management initiatives

• Wasteful IT spending

3. How to Use The Portfolio Manager Kit At-a-GlanceItalicized red text indicates a deliverable. Prepare for BPMusing The Strategy Guide 1 Document Processes usingProcess Detail Sheets 5 Document Policies, Rules & KPIs usingRules& KPI Detail Sheets 6 Learn How To Manage Processes usingThe Portfolio Guide 2 Classify, Inventory & Evaluate Processesusing The BP Inventory Worksheet 3 Create a Business Process Portfoliousing The BP Portfolio Manager 4 Manage Lifecycles & a Continuous Process Improvement ProgramusingThe BP Portfolio Manager 7 4.

Prepare for BPM

Learn strategy best practices

• How to compete

• Michael Porter

• How to focus on customer value

• • Michael Treacy & Fred Wiersema

• How to measure performance

• Robert Kaplan & David Norton

• How to adapt

• Stephan Haeckel

Learn execution best practices

• How to align people, process & technology (resources) to support strategy

• • Collaborative objectives

• • Control processes

• • Commitment management

• • Process-centric IT strategy & architecture

Strategy & resource alignment

• Use Derivative Analysis as a self-assessment technique

Based on established thought leaders

5. 2. Learn How To Manage Processes

How to classify & organize processes as assets

• How to use standardized process reference models

• How to create a proprietary reference model

• How to manage Core vs. Non-core processes

• How to create & use control processes

How to inventory & document processes

• Manage facilitated discussion & qualitative assessment

• How to capture process information in detail

How to create & manage a Business Process Portfolio

• How to manage a continuous improvement program

How to select processes for improvement

• Strategic vs. symptomatic process improvement

• How to manage complexity

How to measure performance

• Outcome measures vs. performance drivers

• Indentifies over 500 Key Performance Indicators (KPIs)

Based on established

thought leaders

6. 3. Classify, Inventory & Evaluate

Create a classification model

Conduct a Business Process Inventory

• To identify and value processes

Use The BP Inventory Worksheet

• Provides step-by-step instructions

• To evaluate process quality

• To inventory & prioritize (Core) processes for improvement and/or benchmarking

• To expose (Non-core) processes to be consolidated, streamlined, decommissionedor eliminated

• Pull down answer responses eliminates ambiguity & improve analysis & conclusions

• To begin development of a Business Process Portfolio

7. 4. Create a Business Process Portfolio

The BP Portfolio Manager*

• MS Access 2007 Database

• Import classification model and process evaluations fromThe BP Inventory Worksheet

• Supports most standardized process reference model such as the APQCs PCF SM

Process management using a database to capture process, rules & performance measure documentation

• Description, ownership

• Inputs, activities, tasks, outputs

• Key performance indicators (KPIs)

• Business policies & rules

• Related control processes, best practices

• Resource requirements, systems used

• Reference links, document attachments

Program management

• Manage lifecycles, projects, continuous improvement program using standard reports & custom queries

* Requires Microsoft Access 2007 (Not Included) Run-Time Version also available. 8. 5. Document Processes

Capture & manage details:

• Information & Contacts

• Evaluation Criteria & Comments

• Execution Steps (Activities)

• Associated Rules, Controls & Processes

• Associated Systems (IT)

• Collaborative Objectives

• Resources (workforce)

• Performance Measures / KPIs

• Risks

• Related Information & Documents

• Lifecycle Management

Process Detail Sheets 9.

Policy/Rule details:

• Information & Contacts

• Associations

• Rules/Decision Table

• Risks

• Lifecycle Management

KPI details:

• Measurement Perspectives

• • Customer, Finance, Internal Business Process, Learning & Growth

• Outcome measures, Performance Drivers

• Short- Long-Term Indicators

• Leading, Lagging Indicators

• Calculations & Data Sources

• Targets

6. Document Policies, Rules & KPIs Rules & KPI Detail Sheets 10. 7. Manage Lifecycles, Projects & Continuous Improvement

Track Processes Requiring Action

• Status

• Reprioritize as required

Core Processes Lifecycle Management

• Issues, changes and trends in the quality, effectiveness and efficiency of execution

• Workforce execution

• Information technology issues

• Opportunities for improvement and/or benchmarking

Non-Core Processes Lifecycle Management

• Performance

• Issues, changes and trends in the quality, effectiveness and efficiency of execution

• Workforce execution

• Information technology issues

• Opportunities to streamline, consolidate or eliminate

Business Rules Lifecycle Management

• Status and/or state of compliance of each policy & rule

• Activate new, decommission expired policies&rules

• Execute Communications Plan

Business Process Inventory

• Interpret the findings of the most recent exercise

• Identify Process Categories & Groups to be evaluated in the next exercise

Follow-up required

• Action items assigned to accountable & responsible parties for all of the above

Business Process Portfolio

• Update to track changes

• Keep current Process, Rules & KPI Details Sheets

11. Next Step:The PRACTICE Method TM