Business Process Analysis: Complete Guide [Benefits, Methods, Tools]

  • How do small companies transform into corporations?
  • How do international companies successfully deliver services and products all over the globe?
  • How do multinational businesses manage employees from different countries?

Everything you should know about Business Process Analysis‍

  • Business process analysis and Business analysis — the difference
  • Benefits business process analysis brings
  • How to choose the process for analysis
  • Key business processes

What is Business Process Analysis

Business Process Analysis and Business Analysis — 2 key differences

Benefits of business process analysis

How to choose the process for analysis‍

Companies with a big number of employees and offices around the world have numerous business processes. Even small companies can count dozens of processes with only 10–20 employees on board. Here the question comes: how to pick exactly one process to analyze? You likely don’t want to spend several thousands of dollars and hundreds of hours of your life to hold an analysis that makes the process of coffee making ideal in your company.

What are 5 core business processes‍

There are 5 main processes for small businesses (with less than 100 employees), while these 5 processes are split into separate processes for medium and big businesses. That happens because of the widening and deepening of every core process which leads to the necessity to split them into smaller sub-processes to simplify the process management and analysis. The core business processes and their sub-processes are:

Process analysis methodology [5 core steps]

Steps for process business analysis is not a secret. If we decompose the most complicated process analysis approach into its main steps we get the next scheme:

Organizing a team and defining the scope of work‍

Everything starts with a team since team members are stakeholders of the analysis process. The number of roles in the team can vary depending on many factors, but usually, its number doesn’t exceed 4.

  • Project manager — who is responsible for the organization of the analysis process. Project managers also provide constant support to team members at all stages.
  • Analyst — whose set of responsibilities includes: research of the process, information gathering, process analysis, documentation, and the development of recommendations for an improvement plan.
  • Business domain experts — are employees involved in the business process flow. They can provide relevant knowledge, help an analyst in gathering information about the process, and provide feedback about the current state of affairs.
  • third parties like customers, suppliers, intermediaries that are involved in the processes
  • goals of BPA — the expected effects of analysis: you have an issue and want to find a solution for it or your delivery is always not in time.
  • general KPIs and benchmarks so you will be able to evaluate whether you achieve the initial goal or not.
  • a document with a defined scope of work and metrics to measure the success of the analysis.
  • the scope of work should not be too broad or vague. If there is any uncertainty on what goals and metrics should be set, split the big goal into several smaller ones.
  • Stay precise about the results of business process analysis.‍

Define, examine, describe, visualize the process

  • the sufficient and necessary information for the process to be finished successfully
  • what triggers the start of the process
  • the point at which the process is considered finished
  • what the result of the process is
  • resources that are utilized during the process
  • information about experts activity: what they do, the frequency of the process, what software and instruments they use
  • you may ask a question to domain experts about what they would implement to improve the process.

Process analysis‍

Finally, analysis comes into play.

Business process analysis methods:

  • Gap method- it compares the “gap” that compares the target performance metrics and the current ones. A gap is a potential improvement, while the solution for achieving it is still to be found.
  • Value-added method — reveals the value every step in the process brings to the business. There are three categories of value: real value-added (RVA) — value for customers. Business value-added — value for businesses. Non-value-added that don’t meet customer or business needs and presents no value.
  • Root cause method — is implemented when some issues need to be solved or when a project sponsor considers that the process results are poor. The root analysis is conducted by asking “why” questions at every step of the process, looking for the core issues that lead to poor outcomes.
  • Do you see the most time and cost consuming stages?
  • Do domain experts have the necessary resources to perform their tasks effectively?
  • Is there any redundant or nouse information?
  • What is the value of key performance indicators like average time for completion?
  • Are there any best practices and standards implemented?
  • Can work be shifted from paper to computer? Would it be effective?

Development of an improvement plan

Implement the improvement plan‍

Finally, when everything is ready, capture the value of key metrics at the moment and start improving a process through incremental changes. The team should control the implementation of their new instructions across different units and domain experts, and whether they get the desired results or not.

  • Do we achieve our goals by implementing altered processes?

Business Process Analysis tools‍

Another issue worth considering is tools and software that may facilitate the business process analysis. The most useful tool is the Unified Modeling Language (UML) that provides a standard way to visualize the processes in the business. Use Cases and workflow diagrams can be easily made by using that modeling language.

Final words from the SumatoSoft team‍

Business Process Analysis is an action that may seem unnecessary, but it may help businesses to achieve new standards, produce better products, provide better services, and increase employee satisfaction.

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