Week 6

Four
Lenses
Stakeholder Value
for Requirements Outcomes Predicts

Analysis
Scorecard - Results

Requirements Run the Organization Creates

Systems - Products, Services, and Operations

Requirements Change the Organization Drives

Strategy

Latham, J. R. (2016) [Re]Create the Organization You Really Want! Leadership and
Organization Design for Sustainable Excellence. Colorado Springs: Organization
Design Studio, Ltd. p. 325
 High
Just Do It! Question ???
Prioritization 3
High + Low High + High

Matrix:
Impact on
Strategy
Impact vs. 2
Question ???
Med + Med
Cost
Question ??? Not Worth It?
1
Low + Low Low + High

Low 1 2 3 High
Cost (Time + $$$)
 Develop the Process Inventory
Processes:
• Currently pay role system is very manual and
employees are paid by physical cheque
• Time off requests are submitted via a hand
written paper to your manager
• A production line process assembles bicycles
in a series of 12 sequential steps
• Employees do not have regular reviews rather
are only spoken to when they are “in trouble”
Step Two: Establishing the
Foundation
 Step Two: Establishing the Foundation

Scope of Definition Document: guides you through the exercise of establishing the
foundation for a business process.

What does the Scope of Definition Document Create:

• The baseline information you need about the particular process

• Serves the same purpose as a contract because it establishes boundaries
• Prevents Scope Creep ( veering away from the original purpose of the work.)

Eight Sections of a Scope of Definition Document

1. Process name
2. Process Owner
3. Description
4. Scope
5. Process Responsibilities
6. Client and Client needs
7. Key Stake Holders and Interest
8. Measurement of Sucess
 Step Two: Establishing the Foundation

Process name: This is simply the name of the process being fixed

Process Owner: This is the person responsible for the process and has authority

Description: This is the definition of the process. When writing you must define any
Unusual or Technical terms.

Description (Purpose):

To develop and manage compensation budget, which is based on the fiscal year (July through June).
This process covers the funding and ongoing spending of the following compensation programs:
• Executive compensation
•Manager and professional compensation
•Office Hourly compensation
•Variable pay rewards
•Open positions

Hourly compensation for plant workers is specifically excluded from the budget process
 Step Two: Establishing the Foundation

Description (Purpose):

To develop and manage compensation budget, which is based on the fiscal year (July through June). This process covers the funding
and ongoing spending of the following compensation programs:
• Executive compensation
•Manager and professional compensation
•Office Hourly compensation
•Variable pay rewards
•Open positions

Hourly compensation for plant workers is specifically excluded from the budget process

This Process Covers:

Planned Development promotions *
Unplanned salary adjustments based on client request**

*Development promotions are movements within a job family. There are typically two or more levels of the same type of job in a
job family, with each level having an increasing scope and responsibilities. Examples include:
Financial Analysts
Human Resource Managers
Engineers Scenario 1: unusual
Programmers
and Technical terms
** Client Request, in this context include only the following situations: retention adjustments, counteroffers, and unplanned
projects
 Step Two: Establishing the Foundation

Description (Purpose):
This process determines the rate of pay for an individual to fill a US based vacant position.

This process covers the following types of employees:

•Managerial and professional
Scenario 2: Areas Out •Office Hourly
of Scope
This process does not cover the following types of employees:
•Executives
•International Local hires
•Downgrades
•Employees on an employment contract

This process is an ongoing cash reward program to recognize outstanding contributions beyond eligible* employees regular
responsibilities.
Scenario 3P: Providing
*Eligible employees include
Examples
•All managerial and professional employees not eligible for any other bonus program
•All office hourly employees
 Step Two: Establishing the Foundation

Scope: is the breadth or area covered by a process. It establishes the boundaries

within which you will perform your work.

Scope (boundaries):

Start: Creating the business case for the annual budget

End : Year-end summary to corporate headquarters
 Step Two: Establishing the Foundation

Process Responsibilities: Is a list of the major task that the business process
must deliver, and it constitutes another opportunity to validate the scope of the
process

Process Responsibilities:

1. Develop the business case for the annual budget

2. Allocate the funds for each of the individual compensation
programs
3. Manage the budget balances
4. Report ongoing spending to executives
5. Ensure data integrity
 Step Two: Establishing the Foundation

Clients and Client Needs: These sections indentify the recipients of the outcome
of the business process and what is important to them from the process

Client: President’s Direct Reports

Client Needs:

1. On-demand status of the budget balances (including amounts

spent, planned, and remaining)
2. Ability to plan additional compensation in order to support pay-
related needs throughout the year
 Step Two: Establishing the Foundation

Key Stakeholders and Interest: refers to other areas or departments of a

company that can affect a business process or receive the downstream affect of a
business process.

Key Stakeholders and Interest:

Corporate Headquarters Accurate record of spending:

compelling business case for
spending
Other Executives (beyond presidents Appropriate salary increases for
reports) their employees
 Step Two: Establishing the Foundation

Measurement of Success: helps the project team indentify what the business
should measure. This measurement should reflect what is important to the
client/customer and stakeholders

Measurement of Success:

1. On demand knowledge for the presidents direct reports of

their budget balances ( the right information at the right
time)
2. A process viewed as a reliable tool for use in employee
related activities like planning promotions and developing
succession plans
3. Accurate tracking of spending
4. The ability to make better decisions on allocating funds
 Develop the Process Inventory
Processes:
• Currently pay role system is very manual and
employees are paid by physical cheque
• Time off requests are submitted via a hand
written paper to your manager
• A production line process assembles bicycles
in a series of 12 sequential steps
• Employees do not have regular reviews rather
are only spoken to when they are “in trouble”
 Step Two: Establishing the Foundation

Measurement of Success:

1. On demand knowledge for the presidents direct reports of

their budget balances ( the right information at the right
time)
2. A process viewed as a reliable tool for use in employee
related activities like planning promotions and developing
succession plans
3. Accurate tracking of spending
4. The ability to make better decisions on allocating funds
 Step 3 – Creating the Process Map

What is a Process Map?

It is one of the best ways to help people understand any business process.

Process Map- is a visual representation of a series of connected activities

that, when strung together, deliver a meaningful outcome to the
client/customer.
 Symbols

Process Alternate Process Decision

Data Document
Multiple Documents

Terminator
Manual Input
 Each activity in the process chart should start with an action verb. An
action verb demonstrates performing or doing something

DEVELOP the business case

APPROVE an expense report
UPDATE the forecast
RUN a report
COMMUNICATE the status

Activity 1 Activity 2 Activity 3 Activity 4 End

Arrows between activities are known as inputs and outputs

Whatever you write on the arrow must result from the actions taken in the
activity, and the output must be used by the next activity to accomplish its task.

EG.
What's the definition of a process?

This is an example of a high-level process map. It doesn't show much detail

We could have included many more activities if we wanted to develop a
detailed process map to show the parent’s entire morning process. You have to
decide on the level of detail required to achieve your goals. If you cannot
decide how detailed a process map to draw, use the criteria below to help with
your decision to draw a process map at a high level, detailed level, or
somewhere in between.
Where to start?

Use the scope definition document created in step 2, and reference the
boundaries defined at that time. Look at where you said the process begins
and ends, and use that information as the starting point.
The diagram shows what the process map looks like at the entry point. The
next step is to decide what to write inside the first box on the process map.
Box 2
For the next box in the recognition bonus award process, we
need to understand what happens to the form.
In our scenario, let us suppose that after some discussion, it
becomes obvious that in activity 2 another manager either
approves or rejects the request. The next figure shows the
continuation of the process map. As the figure shows, the
second step in the process include s the next-level manager
(manager 2) either approving or rejecting the request to give the
employee a recognition award.
Documenting the process:

Why?
• Provides a narrative description ( new employees may not understand just the
process map)
• Crates a business tool that organizations can use as a operating procedure
document
REVIEW ASSIGNMENT 2