“Process is viewed as dull, but profitable process is anything but dull”

Lumos uses business modelling as a key part of its consulting approach, and it is one element in our overall skillset.  It is particularly valuable in the early stage of a consulting assignment, where a business case needs to be drawn out and tangible benefits – both financial and efficiency-related – need to be defined, measured and assessed.

Business (Process) Modelling itself  is a dark-art requiring creativity, attention to detail and strong communication skills along with an ability to align processes with goals, risks, controls, IT systems, technologies etc.  It's a discipline based on experience and therefore industry independent.

The diagrams and reports developed during a process analysis, documentation and improvement programme provide a common means of communication - a graphical 'language' enabling understanding, agreement and collaboration.

There are five Business Process Management components...

1. Design

Identify existing processes and design future processes using a representation (text and diagram) of domain structure, processes, process flow, actors, events, deliverables, equipment, systems and locations.

2. Modelling

Modelling uses the design combined with cost and time properties, e.g. changes in the cost of materials, to produce simulated process data.

3. Execution

Usually achieved with a combination of automated systems and humans, requiring thorough documentation to explain the man/machine interface.

4. Monitoring

Track individual processes, gathering information on their state and producing statistics on the performance.

5. Optimisation

Use process performance information from the modelling or monitoring phase, identify the potential or actual bottlenecks and the potential opportunities for cost savings or other improvements, and apply those enhancements in the design of the process. 

Whilst Lumos invariably participate in step 3 in an advisory capacity, we concentrate on the planning, documentation, simulation, monitoring and optimisation aspects in steps 1, 2, 4 and 5.

The approach usually taken on a business modelling programme is to gain a high-level holistic understanding of an organisation's structure, its domains and its processes, and to then identify and fully explore those processes that require documenting (say, for compliance purposes) and/or those that would benefit from being fully analysed and improved. From this point it is possible to model, plan, 'prove' and implement the improved processes, supporting systems and training programmes.

Of course, soft-skills play a big part here. It is important not only to work towards the high-level goals of management but also to appreciate the practical requirements of staff. For a modelling and improvement programme to succeed requires agreement at all levels, otherwise there is the risk of only lip-service being paid to the new processes.

Our modus operandi is...

• Model the entire organisation As-is state at a high level to identify all business domains and constituent business processes.

• Work with senior management to determine the top half-dozen or so processes in need of full documentation and/or improvement.

• Identify one or two of these processes as 'low-hanging fruit' on which to cut our teeth. Having achieved early success and established modelling standards, agreed with staff and management, we move on to model the remaining selected As-is processes.

• Simulate the As-is processes using Monte Carlo or Discrete Event techniques to gain an understanding of current workflow, systems, resource utilization, timings and costs. Agree As-is models with staff and management.

• Model the To-be states of the selected processes and simulate them to 'prove' the improvements. Develop use-case (work instruction) diagrams with links to existing documentation. Agree To-be models with staff and management.

• Design and implement a programme to train management and staff in the implementation and execution of the new processes, having agreed changes with both. This may include such things as facility (e.g. office building) rationalisation.

• Follow-up to ensure new skills and practices have been properly employed and embedded. Consult with staff and management on progress with Kaizen continuous improvement.

• Ensure client's objectives and expectations have been met. 

Employing state-of-the-art modelling tools and the latest modelling techniques, it is possible to complete a process improvement and transition project quickly and consistently with minimal resource costs and minimal disruption to our customers' day-to-day operations.