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Effective Scoping and Execution of Business Process Efforts in Major System Implementations

Presented by: Mark Buchynski

TABLE OF CONTENTS

2

+ APQC’s Process Classification Framework

+ Start with a Process Inventory

+ Degree of Process Work Desired or Required

+ Level of Effort Estimation Framework

+ Start with VendorApplication Flows

+ Be Aware of and Work Within System Constraints

+ CollaborativelyDefine the “To-Be” Wrapper Process

+ Ensure to Build-In Improvements Over Current State

+ Identify Required Effort Up-Front

+ Develop Common Understanding of Detailed Future State Process

+ Provide a Foundation for Training

+ Enable Standardization and Adoption

+ Background for our Story

+ Trouble with Mixed Expectations

+ Painful Forecasting Implications

Importance of BP Scoping

Tools to Aid in Scoping

BP for Systems

DeliveringResults

01 02 03 04INTRO

Pages 24–26Pages 19–23Pages 11–18Pages 6–10Pages 3–5

WHO WE AREWe’re a business consulting and technology solutions company that’s been around for more than 15 years and we’re building a company that will be here for 100 more.

3

”99: Year

Founded

750+

Consultants

13 Locations 32+ Practice Areas

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to span

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Change

WHAT WE DO We are passionate about the intersection of business and technology. A blend of skills that result in solid execution and a partner with a wide range of capabilities.

4

INDUSTRY EXPERTISE

Energy and Utilities

Financial Services

Government

Healthcare

Insurance

Logistics /Supply Chain

Manufacturing/Products

Retail

Travel

Improve Performance via

Process Excellence

Digital Technologies

Specialized Expertise

DIGITAL

BUSINESS

CONSULTING

TECHNOLOGY

SOLUTIONS

Tools & TechnologiesTransform & Grow

Your Business

Interactive

Digital Strategy

Importance of BP ScopingWhy scoping of business process efforts in system implementations should be important to you

BACKGROUND STORY

Our Client’s original level of

effort and budget estimate for

Business Process support

related to their Policy Admin

System (PAS) Implementation

was off by 8.5+ times.

Due to solid results in streamlining the

Client Onboarding process within a sister

division within our client, the EPMO

Director and the Division Business

Process lead engaged Centric to support

the PAS implementation.

Client was engaged in a multi-year, multi-

million dollar implementation spanning

most core functional areas.

Centric quickly focused our efforts on a

scoping and estimation exercise which

yielded some shocking realities.

Though our analysis pointed to needing

more resources, our Client was relatively

slow to take action and add more

resources and adjust the project plan.

In Jan of ‘14

brought in to

provide 1 FTE

(Katie) for 6

months to define

all future state

processes

Created process

inventory,

determined degree

of process work

required and

estimated level of

effort to deliver.

Have provided up

to 3 business

process support

resources over 3+

years.

1 2 3Evolution of our Business

Process Journey with our

voluntary benefits insurance

provider Client :

6

CLIENT’S INITIAL VIEW

Initial High-Level Process Inventory

Initial estimation efforts were very high-level, with limited estimation experience

7

● High-level assessment of

process areas impacted by

system implementation

completed

● High-level top-down estimate of

business process design effort

compiled with limited experience

● Drill down into level of process

design required at the sub-

process and work-flow levels not

initially completed

● Work effort estimation was a

swag at best

Scoping Approach

Client identified 5 processes heavily

impacted along with 3 areas

impacted to a smaller degree

CENTRIC ASSESSMENT

Centric Inventory & Estimation

Detailed process inventory and work-effort estimation yielded a bit of a shock!

8

● Created a process inventory and drilled into an

additional 3 levels of detail:

o Level 2: Process group

o Level 3: Process

o Level 4: Activity

● Focused on processes (L3) and activities (L4)

that would be most significantly impacted by

PAS implementation

● Validated level of detail required to drive training

and procedure documentation of new standard

processes – e.g., Level 4 (activity) & 5 (task)

process documentation

● Conducted bottom-up estimate of level of effort

required by process (L3)

Scoping Approach

20 sub-processes with 80 Activities to be

redesigned: Initial Estimates > 4K-5K hours

WHERE ARE WE TODAY?Process design has taken significantly longer and required more effort than planned

9

●Cost – the Program Team originally

planned for $200K in business

process design work. Through mid

2017 the revised plan is > $1.5M!!

●Team – plan was to utilize one full

time Business Process consultant.

We have had up to 3 full time

process consultants during peak

demand.

●Duration – Original plan was to

complete process work in 6 to 9

months; Per the revised plan

business process design support will

be required for 3+ years

Forecasting Overrun

Top-down “swags” on the front-end

of significant system

implementations can cause painful

true-ups over the life of a program!

HOWEVER…The organization is driving standardization and adoption of a major transformation

10

●Engagement & Buy-in

– Involving the impacted parties and

collaborating on the detail future state

process design enhances ability to

standardize

Standards Adoption

●Foundation for Training

– Doing the required detailed

business process design was

leveraged to accelerate the creation of

standard operating procedures and

training material

Tools to Aid in ScopingHow APQC’s Process Classification Framework (PCF) can aid your business process scoping efforts

SCOPING PROCESS OVERVIEWInventory relevant processes and estimate required effort to define future state design

●PCF – Leverage a framework such as

APQC’s process classification framework

to establish a common syntax for defining

or indexing enterprise processes

● Catalog – List processes impacted and

degree of impact

Process Inventory

●Required Detail – Determine level of

process design required across inventory

●Define Approach – Adapt process

design approach for your environment

●Estimate Effort – Estimate hours of

process design support anticipated

To-Be Design Estimation

12

APQC’s PCF – WHAT IS IT? American Productivity and Quality Center – Standards Body for Enterprise Processes

Process Classification Framework (PCF)

Benefits of Framework

●Provides a standard model of business

and organization that supports process

analysis and design activities

●Ensures we have properly defined

borders (scope) of process-based

initiatives

●Helps drive a common process

language

●Ensures we have worked through

complete business process (internal

and customer)

●Allows us to better understand the level

of detail required for process analysis

and development

13

APQC’s PCF – DETAIL LEVELS Provides guidance and standards on differing levels of detail. Helps companies contemplate what level is needed for what purpose.

14

APQC’s PCF – CLOSER LOOK Inventory relevant processes and estimate required effort to define future state design

15

PROCESS INVENTORYStep 1: Translating from the high-level process areas to a detail list based on the PCF

Step 2: Summarize # of process areas impacted, complexity of processes and level of process impact

16

EFFORT ESTIMATIONStep 3: Define required activities (approach) for process redesign and estimate effort per business process at the activity level

17

CAPACITY PLANNING

18

0

200

400

600

800

1000

1200

1400

1600

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17

Tota

l Ho

urs

Process Lead Process Rsrc 1 Process Rsrc 2

Quarterly Process Team Hours

28

12

24

15

142

57

96

64

0 20 40 60 80 100 120 140 160 180

Track 4

Track 3

Track 2

Common + Track 1

Total Processes Total Activities

Processes + Activities by Track

BP For SystemsHow business process work in the context of systems implementations is different

APPROACH OVERVIEWBusiness process design work for system implementations needs to factor in the constraints or guard-rails of the technical solution

BUSINESS

PROCESS

DESIGN

Start With System Work-Flows

Understand the typical human system

interactions for the system as a starting

point. Need to work with your solution

vendor to obtain system documentation

on work-flows as configured for your

business.

Translate BP into SOP’s and Training Materials

Identify business processes that will be

impacted most by the new system

solution and detail the to-be design

down to the task level (L5). Detailed

process documentation serves as an

accelerator for SOP’s and training

content.

Understand Current State

Seek to quickly document the current

state as it pertains to the existing

technology solution along with the

complementary business process.

Understand key pain-points and

opportunities for improvement.

Define To-Be “Wrapper” Process

Collaboratively engage with the

business/users to envision and iterate

on the optimal new business process

that surrounds the core system work-

flows resulting from the solution

configuration.

20

APPLICATION FLOWSSystem work flows serve as the guard rails and starting point

Availability, and relevance of system work-

flow documentation needs to be factored

into your overall process re-design plans.

Missing this puzzle piece can delay your

ability to start on redesigning a business

process.

Considerations●Validate documentation - ensure that

adequate system or application work-flow

documentation exists and is available when

you start your design work

o Engage vendors early on about availability

of this documentation

● If documentation does not exist you may

need to plan for alternate means of defining

these critical work-flows

●Avoid customizations - to systems flows;

work to adapt to “out-of-the box”

configurations

●Don’t lose sight of the broader process -

applications flows are only a part of the

overall business process

21

BROADER BUSINESS PROCESSDefine the business process that surrounds the applications flows – ensure that it is optimized for the new environment

Considerations●Avoid Paving the Cow Path – Understand

current pain points and inefficiencies and

seek to design-in process improvements

●Collaborate and Iterate – Engage with

impacted parties and collaborate with them

on the future design to drive buy-in. Plan

for multiple iterations to challenge and

optimize the status quo.

o Ensure you plan for process re-factoring

with future system releases

Challenge the status quo, but be aware of

working within the constraints of your

system work-flows – maintain the

balancing act.

Avoid the illusion of “blue-sky”

transformation

22

FOUNDATION FOR TRAININGDetailed process flows and SIPOC diagrams capture future-state details at a level appropriate to drive standard operating procedures and training

Considerations●Process Flow Diagrams – overall business

processes need to be documented as a

sufficient level of detail (L4/L5) to define

standard work-flows to the stakeholders

involved

●S.I.P.O.C. Diagrams – these artifacts

capture critical details about the process

that cannot be effectively depicted in the

process documents

o Actors involved in the process

o Key inputs/outputs: tools, artifacts required

4.3 Adjudicate Claims – Accident

Cla

ims

Ad

min

Syst

em

4.3.3 Process intake of claims

4.3.3.1a Enter claim into claims system

4.3.3.6 Assign claim ID

4.3.3.5b Create claims

record within claims

system

4.3.5.4 Notify claimant of insufficient

proofs

4.3.3.7b Route claim for processing

Inputs:

· Notice of loss from

claimant (via phone,

mail, fax or email)

· Email from Claims Rep

handling a claim on a

different policy that an

additional claim should

be registered

4.3.3.1.6

Select insured

person

4.3.3.1.1

Receive

notification of

claim

4.3.3.1.2

Look up policy in

Claim Registration

screen

4.3.3.1.4

Can a

previously

opened claim

on the same

policy be used?

4.3.3.1.5

Complete Claim

Details section

4.3.3.1.8

Access the prior

claim

Yes

May search by

SSN, policy #, or

name

No

4.3.3.1.9

Any portion of

claim proof(s)

received?

4.3.3.1.10

Change claim

status to P01

status (Pending

Claim status)

4.3.3.1.11

Update claim

incurred date, if

known

Yes

4.3.3.6.1

InsPro

assigns claim

number

Covered

Person

Records from

InsPro Admin

4.3.3.1.7

Process

registration In

InsPro

InsPro

populates

Registration

screen with

insured/policy

details

Policy Details:

Insured(s)

Status

Insureds

Coverages

4.3.3.5b.1

InsPro builds

claim abstract

(P02 status)

Any portion of

claim proof(s)

received?

END

4.3.5.4.1

Select

acknowledgement

letter and Initial

Claim Form (ICF)

4.3.5.4.2

Change claim

status to Closed

No

4.3.3.7b.2

Assign claim to

Claim Rep

4.3.2.4b

Determine

eligibility

· Available coverages

and required proofs

populated as abstract

is built

· P02 status = Pending

initial notification

4.3.3.1.3

Check for any prior

claims

Check “# of health

claims” field

4.3.3.7b.1

Access pending

claim queue

Yes

No

Select “OK &

Open Claim”

Includes:

· Health Claim Type

· Claim received

date

· Claim incurred

date (if available)

L3

L4

L5

There is work needed to take these documents and

make them digestible as SOP’s and training content

23

Delivering ResultsWhat an effective business process scoping and execution effort can deliver for your organization

VALUE OF APPROACH

25

Up Front Estimation

Avoid painful budgetary and or

schedule surprises for your

implementation program. Understand

what you are getting into before you

start.

Alignment on Future State

Engage with key stakeholders

throughout the future-state design

process to generate ownership and

buy-in to future direction. Leverage

the solution’s existing workflows.

Foundation for Training

Accelerate development of standard

operating procedures and training

content by capturing details early in

design effort.

TAKE-AWAYS

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●Plan for Multiple Iterations – Factor

in multiple iterations of process design

work depending on where the project is

regarding design and testing

●Consider Testing – Consider and plan

for how to test the processes in

conjunction with the system

● Process Governance – Develop and

implement a practical and sustainable

process governance/maintenance plan;

you've made a significant investment,

now preserve it!

QUESTIONS?Contact Centric

27

To learn more about Centric Consulting Solutions:

CentricConsulting.com

Mark Buchynski – Director Business Consulting Services

Email: mark.buchynski@centricconsulting.om

Phone: 847.867.8454