Chapter 2 – Process Identification

Process Selection

CSIS3101 -BUSINESS UTAS-Muscat

PROCESS MANAGEMENT
LEARNING OUTCOMES
1. Apply APQC-PCF.
2. Enumerate the context of Process Identification.
3. Discuss the additional points in the balanced
scorecard by Kaplan and Norton.
4. Define process selection.
5. Explain the criteria suitable for assessing
business processes performance.
SOURCE: M. DUMAS, M. LA ROSA, J. MENDLING AND H. REIJERS, FUNDAMENTALS OF BUSINESS
Saturday, February 25, 2023
PROCESS MANAGEMENT, 2ND EDITION, SPRINGER, 2018
 APQC - PROCESS
CLASSIFICATION FRAMEWORK
• Which APQC categories on Level 1 are relevant for a construction
company like BuildIT?

SOURCE: M. DUMAS, M. LA ROSA, J. MENDLING AND H. REIJERS, FUNDAMENTALS OF BUSINESS

Saturday, February 25, 2023
PROCESS MANAGEMENT, 2ND EDITION, SPRINGER, 2018
 MORE ON THE CONTEXT OF
PROCESS IDENTIFICATION
 Do organization’s BMP projects consider all business processes?

 Are all processes of strategic importance to an organization’s survival?

 Business strategy is an organizational perspective on setting and

meeting business goals. (Mintzberg)

 Business model / strategy map?

SOURCE: M. DUMAS, M. LA ROSA, J. MENDLING AND H. REIJERS, FUNDAMENTALS OF BUSINESS PROCESS

Saturday, February 25, 2023 MANAGEMENT, 2ND EDITION, SPRINGER, 2018
 ADDITIONAL POINTS IN THE
BALANCED SCORECARD
Emphasizes the causal relationship between different goals of an organization.
The Balanced Scorecard can help in identifying how a business process is/can influence
business strategies by relating its performance (+ or -) and outcome(s) to the
following perspective(s):

1. How do customers see us? (customer perspective)

2. What must we excel at? (internal perspective)

3. Can we continue to improve and create value? (innovation and learning perspective)

4. How do we look to shareholders? (financial perspective)

• Checkout this link: https://www.youtube.com/watch?v=aLo80wLjQHc

SOURCE: M. DUMAS, M. LA ROSA, J. MENDLING AND H. REIJERS, FUNDAMENTALS OF BUSINESS
Saturday, February 25, 2023
PROCESS MANAGEMENT, 2ND EDITION, SPRINGER, 2018
 ADDITIONAL POINTS IN THE
BALANCED SCORECARD
Consider the business process of the construction company BuildIT and
answer the following:

1. To which category in the internal perspective does this process belong?

2. How does it influence different aspects of the customer perspective?

3. How is it shaped by aspects of the learning and growth perspective?

SOURCE: M. DUMAS, M. LA ROSA, J. MENDLING AND H. REIJERS, FUNDAMENTALS OF BUSINESS PROCESS

Saturday, February 25, 2023 MANAGEMENT, 2ND EDITION, SPRINGER, 2018
 PROCESS SELECTION

“The aim of process selection is to

define the criteria for assessing
the performance of the identified
business processes.”
Source: www.freepik.com

SOURCE: M. DUMAS, M. LA ROSA, J. MENDLING AND H. REIJERS, FUNDAMENTALS OF BUSINESS PROCESS

Saturday, February 25, 2023 MANAGEMENT, 2ND EDITION, SPRINGER, 2018
 SELECTION CRITERIA
Used to identify processes that create loss or
risk so they can be considered for
consolidation, decommissioning, or outright
elimination.

1. Strategic Importance

2. Health

3. Feasibility
Source: www.freepik.com

Saturday, February 25, 2023 SOURCE: M. DUMAS, M. LA ROSA, J. MENDLING AND H. REIJERS, FUNDAMENTALS OF BUSINESS PROCESS
 STRATEGIC IMPORTANCE
Strategic importance (major or secondary):
 Find out which processes have the
greatest impact on the strategic goals of
an organization, for example considering
profitability, uniqueness, or contribution to
competitive advantages.
 Select processes that are most directly
relate to the strategic goals of an
organization.
 Processes concerning customers vs
processes concerning employees
(internal customers). Source: www.tycoonstory.com

SOURCE: M. DUMAS, M. LA ROSA, J. MENDLING AND H. REIJERS, FUNDAMENTALS OF BUSINESS PROCESS MANAGEMENT,
2ND EDITION, SPRINGER, 2018
Saturday, February 25, 2023
HEALTH
Health (healthy, medium, unhealthy): Source: www.forbes.com

1. Determine which processes are in the deepest trouble.

2. How?

2.1 Qualitative performance measures

2.2 Impressions from management or process participants about the

efficiency or effectiveness of a process

2.3 Customer evaluations such as surveys or complaints

SOURCE: M. DUMAS, M. LA ROSA, J. MENDLING AND H. REIJERS, FUNDAMENTALS OF BUSINESS PROCESS MANAGEMENT,
Saturday, February 25, 2023 2ND EDITION, SPRINGER, 2018
 FEASIBILITY
Feasibility (feasible, not feasible/difficult to change):
1. Determine how susceptible it is to BPM initiatives.
2. Is reasonable to achieve benefits
How?
2.1 Evaluate process’s culture and related politics
2.1.1 No of Process participants involved
2.1.2 Process participants attitudes towards
change Sources: www.cleverism.com
www.shutterstock.com

2.1.3 Regulations (national/international) www.rawpixel.com

SOURCE: M. DUMAS, M. LA ROSA, J. MENDLING AND H. REIJERS, FUNDAMENTALS OF BUSINESS

Saturday, February 25, 2023
PROCESS MANAGEMENT, 2ND EDITION, SPRINGER, 2018
 POINTS TO PONDER
Consider again the BuildIT given
previously.

Discuss the strategic importance, health,

and the feasibility of a potential
improvement to these processes.
Source: www.stock.adobe.com

SOURCE: M. DUMAS, M. LA ROSA, J. MENDLING AND H. REIJERS, FUNDAMENTALS OF BUSINESS

Saturday, February 25, 2023
PROCESS MANAGEMENT, 2ND EDITION, SPRINGER, 2018
 POINTS TO PONDER
You are a BPA (Business Process Analyst
recruited by UTAS. You are supposed to select
one of the two, either advising or registration
process to be improved (a BPM project).

How will you decide?

Source: www.stock.adobe.com

SOURCE: M. DUMAS, M. LA ROSA, J. MENDLING AND H. REIJERS, FUNDAMENTALS OF BUSINESS

Saturday, February 25, 2023
PROCESS MANAGEMENT, 2ND EDITION, SPRINGER, 2018
TRADE-OFFS
 A process that is strategically important and also is
expected to be the most difficult one to manage.
 A process of milder strategic importance but there is a
great desire to change.

Should all processes that are unhealthy, of strategic

importance, and feasible to manage be subjected to BPM?
Are there sufficient resources—people, funds, and time?

SOURCE: M. DUMAS, M. LA ROSA, J. MENDLING AND H. REIJERS, FUNDAMENTALS OF BUSINESS PROCESS

Saturday, February 25, 2023 MANAGEMENT, 2ND EDITION, SPRINGER, 2018
Chapter 2 – Process Identification
Process Selection
MEASUREMENT OF THE HEALTH
OF A BUSINESS PROCESS

CSIS3101 -BUSINESS UTAS-Muscat

PROCESS MANAGEMENT
 PROCESS PERFORMANCE
MEASURES

https://commons.wikimedia.org

Also called key performance indicators or KPIs.

They are specific, clear and measurable.
SOURCE: M. DUMAS, M. LA ROSA, J. MENDLING AND H. REIJERS, FUNDAMENTALS OF BUSINESS
Saturday, February 25, 2023
PROCESS MANAGEMENT, 2ND EDITION, SPRINGER, 2018
MEASURING BUSINESS PROCESS
PERFORMANCE USING SCORECARD
“Customer scorecard: Measures your customers’ satisfaction and their
performance requirements — for your organization and what it delivers,
whether it be products or services.”
“Financial scorecard: Tracks your financial requirements and performance.”
“Internal Business Process scorecard: Measures your critical-to customer
process requirements and measures.”
“Knowledge, Education, and Growth scorecard: Focuses on how you train
and educate your employees, gain and capture your knowledge, and how
you use it to maintain a competitive edge within your markets.”

SOURCE: M. DUMAS, M. LA ROSA, J. MENDLING AND H. REIJERS, FUNDAMENTALS OF BUSINESS PROCESS

Saturday, February 25, 2023 MANAGEMENT, 2ND EDITION, SPRINGER, 2018
 Business Process
Saturday, February 25, 2023
SOURCE: M. DUMAS, M. LA ROSA, J. MENDLING AND H. REIJERS, FUNDAMENTALS OF BUSINESS PROCESS MANAGEMENT, 2ND EDITION, SPRINGER, 2018
 PROCESS PERFORMANCE
DIMENSIONS
1. Time: is it fast?
2. Cost: is it cheap?
3. Quality: internal and
external quality.
4. Flexibility: ability to react
to changes, e.g. natural
disaster, changes in the https://bluekwet.com

market requirements,
changing workloads,
changes in rules, etc… .
SOURCE: M. DUMAS, M. LA ROSA, J. MENDLING AND H. REIJERS, FUNDAMENTALS OF BUSINESS PROCESS
Saturday, February 25, 2023 MANAGEMENT, 2ND EDITION, SPRINGER, 2018
TIME MEASURES
Cycle time is the time that it takes to
handle one case from start to end.
CT = PT+WT

Processing time (also called service

time): the time that resources, such as
process participants or software
applications invoked by the process,
spend on actually handling the case.
Source: www.slideserve.com

SOURCE: M. DUMAS, M. LA ROSA, J. MENDLING AND H. REIJERS, FUNDAMENTALS OF BUSINESS PROCESS

Saturday, February 25, 2023 MANAGEMENT, 2ND EDITION, SPRINGER, 2018
 TIME MEASURES (CONT.)
Waiting time:
The time that a case spends in idle
mode. Waiting time includes queueing
time—waiting time due to the fact that
no resources are available to handle the
case—and other waiting time, for
example because synchronization must
take place with another process, with
other activities, or because an input is
expected from a customer or from
another external party.
As part of process improvement, what
would be the aims of time measurement? Source: www.slideserve.com

Saturday, February 25, 2023 SOURCE: M. DUMAS, M. LA ROSA, J. MENDLING AND H. REIJERS, FUNDAMENTALS OF BUSINESS PROCESS
MANAGEMENT, 2ND EDITION, SPRINGER, 2018
 COST MEASURES
Fixed vs Variable
Fixed costs are overhead costs which
are (nearly) not affected by the intensity
of processing.
e.g. “rent, buildings, machinery, etc.”
(Fundamental Finance, n.d.)
Variable costs are positively correlated
with some variable quantity
E.g. “wages, utilities, materials used in Source: www.fincash.com

production, etc.” (Fundamental Finance,

n.d.)
SOURCE: M. DUMAS, M. LA ROSA, J. MENDLING AND H. REIJERS, FUNDAMENTALS OF BUSINESS
Saturday, February 25, 2023
PROCESS MANAGEMENT, 2ND EDITION, SPRINGER, 2018
 COST MEASURES (CONT.)
Operational costs can be
directly related to the outputs
of a business process.
“Operating costs consist of a
mixture of fixed and variable
costs.” (Leonard, 2018)
As part of process
improvement, what would Source: www.fincash.com

be the aims of cost

measurement?
Saturday, February 25, 2023 SOURCE: M. DUMAS, M. LA ROSA, J. MENDLING AND H. REIJERS, FUNDAMENTALS OF
BUSINESS PROCESS MANAGEMENT, 2ND EDITION, SPRINGER, 2018
 QUALITY MEASURES

Source: www.SCREENish.com

External quality (client’s side)

Client’s satisfaction with either the product or the process
Internal quality (process participant’s)
1. The level that a process participant feels in control of the work
performed,
2. The level of variation experienced and
3. Whether working within the context of the business process is felt
as challenging.
Saturday, February 25, 2023 SOURCE: M. DUMAS, M. LA ROSA, J. MENDLING AND H. REIJERS, FUNDAMENTALS OF BUSINESS PROCESS
MANAGEMENT, 2ND EDITION, SPRINGER, 2018
 QUALITY MEASURES (CONT.)

Source: www.SCREENish.com

1. “Defects per unit produced”

2. “How many defective parts per million”
Qualit
yr
3. “Defects per million opportunities” other d elates to
imensi
ons
4. “Scrap and rework costs”
5. “Warranty and sales returns”
SOURCE: M. DUMAS, M. LA ROSA, J. MENDLING AND H. REIJERS, FUNDAMENTALS OF BUSINESS PROCESS
Saturday, February 25, 2023
MANAGEMENT, 2ND EDITION, SPRINGER, 2018
 FLEXIBILITY MEASURES

Examples: Source: www.stock.adobe.com

1. The ability of resources to execute different tasks within a business process setting;
2. The ability of a business process as a whole to handle various cases and changing
workloads;
3. The ability of the management to change the structure and allocation rules;
4. The organization’s ability to change the structure and responsiveness of the business
process to wishes of the market and business partners.
5. Handling claims at an insurance company during normal time vs. during storms or
floods.
SOURCE: M. DUMAS, M. LA ROSA, J. MENDLING AND H. REIJERS, FUNDAMENTALS OF BUSINESS PROCESS
Saturday, February 25, 2023
MANAGEMENT, 2ND EDITION, SPRINGER, 2018
IMPORTANT NOTES

Process performance measures is tightly connected with

the definition of performance objectives.

SOURCE: M. DUMAS, M. LA ROSA, J. MENDLING AND H. REIJERS, FUNDAMENTALS OF BUSINESS PROCESS

MANAGEMENT, 2ND EDITION, SPRINGER, 2018
Saturday, February 25, 2023
THOUGHTS TO PONDER
You are a business process analyst
recruited by UTAS. You are supposed to
select one of the two, either advising or
registration process to be improved (BPM
project).

How will you decide?

Source: www.depositphotos.com

Saturday, February 25, 2023 SOURCE: M. DUMAS, M. LA ROSA, J. MENDLING AND H. REIJERS, FUNDAMENTALS OF BUSINESS PROCESS
MANAGEMENT, 2ND EDITION, SPRINGER, 2018
SUMMARY OF DISCUSSED TOPICS
1. Application of APQC-PCF
2. Additional points on process identification
3. Additional points on the balanced scorecard
4. Process selection
5. Criteria for evaluating process performance

SOURCE: M. DUMAS, M. LA ROSA, J. MENDLING AND H. REIJERS, FUNDAMENTALS OF BUSINESS

Saturday, February 25, 2023
PROCESS MANAGEMENT, 2ND EDITION, SPRINGER, 2018
ADDITIONAL REFERENCES
Fundamental Finance. (n.d.). Retrieved from Variable Costs and Fixed
Costs: http://economics.fundamentalfinance.com/micro_costs.php
Leonard, K. (2018). Chron. Retrieved from Examples of Operational Costs:
https://smallbusiness.chron.com/examples-operational-costs-24121.html

Saturday, February 25, 2023 SOURCE: M. DUMAS, M. LA ROSA, J. MENDLING AND H. REIJERS, FUNDAMENTALS OF BUSINESS PROCESS
MANAGEMENT, 2ND EDITION, SPRINGER, 2018
 TOPICS TO BE DISCUSSED
NEXT MEETING
1. Essential Process Modeling

2. BPM tool – creating a Signavio account:

https://academic.signavio.com/p/login

SOURCE: M. DUMAS, M. LA ROSA, J. MENDLING AND H. REIJERS, FUNDAMENTALS OF BUSINESS

Saturday, February 25, 2023
PROCESS MANAGEMENT, 2ND EDITION, SPRINGER, 2018
 Have a nice day!

SOURCE: M. DUMAS, M. LA ROSA, J. MENDLING AND H. REIJERS, FUNDAMENTALS OF BUSINESS

Saturday, February 25, 2023
PROCESS MANAGEMENT, 2ND EDITION, SPRINGER, 2018