Processes as a value creation machine

We usually start a process project with a discovery phase. The aim is to gain a comprehensive understanding of the current situation, the requirements, the challenges, the objectives and the scope of the project. This initial phase lays the foundation for the success of the project by ensuring that the framework conditions as well as relevant information and affected stakeholders are taken into account. It is also clarified which processes should be the focus of the optimization measures. In most cases, these are the company’s core processes. If the core processes have not yet been defined, it is advisable to clarify them as part of a preliminary project. valantic offers standard process houses that contribute to a rapid solution.

Very often, we also carry out a process maturity analysis in this discovery phase in order to comprehensively record the central problem and action areas in process management.

During process analysis, existing business processes are examined in detail in order to identify weaknesses, bottlenecks and potential for improvement. We offer qualitative (dialog-based) and/or quantitative (data-based) approaches for this purpose.

For both approaches, we have extensive experience with the various process types (including Innovate2Launch, Hire2Retire, Order2Cash, Plan2Produce, …) as well as process mining methods and tools (Signavio, Celonis, Symbio), which greatly simplify and accelerate the process analysis and modeling of the current status. Our knowledge of SAP and Microsoft process models (standard process houses) makes process design even easier.

During this phase, information on the processes is collected (workflows, responsibilities, system usage, interfaces, data benefits, etc.). The actual processes are documented in detail and visualized to ensure a uniform understanding among those involved in the process.

Process analysis also includes process evaluation, i.e. the identification of weak points and problem areas and the development of suggestions for improvement, which generally relate to processes (manual activities), structures (bottlenecks), interfaces, data (inadequate data quality) and systems (lack of functionality). On the basis of this evaluation, the key areas for action in the processes can be identified and specific measures for optimization defined.

Ideally, process performance is also measured using process KPIs in order to evaluate the legitimacy of the process and measure the results of the optimizations. Typical process KPIs include throughput time, throughput, processing time, completion rate or – in development organizations – change failure rate and lead time for change. Process KPIs are crucial for understanding and improving the efficiency, quality and performance of business processes and must be defined for the target processes if they do not yet exist in the actual state. In most cases, process KPIs are only used company-wide from an advanced stage of process maturity.

The next step is to design the process into the new, desired target state, the target process. Target processes are the result of systematic process optimization. They represent the ideal state of the business processes, are geared towards the company’s strategic goals and are intended to improve the efficiency, effectiveness and quality of workflows. In the context of extensive software-driven transformations, the comparison with or use of “process best practices”, e.g. from the SAP process catalog, is helpful in defining the target processes.

The target processes must be documented and responsibilities, work instructions, applications and data must be recorded in detail. Ideally, BPM tools such as Signavio, Symbio and Celonis are used for this purpose. A combination with EAM tools that document the application landscape can also be useful.

During process implementation, the developed target processes are put into practice. This step is crucial to ensure that the process improvements actually lead to the desired results. Implementation includes introducing new workflows, training employees, adapting systems and tools, and monitoring and continuously optimizing processes.

In addition to the BPM tools mentioned above, process implementation can and should be supported with various tools, including project management tools (Jira, Asana, etc.), e-learning platforms, communication platforms (Teams, Slack, Confluence, intranet portals, etc.) and feedback tools.

In the process implementation phase, organizational changes are implemented that are often associated with fears, concerns and resistance. It is therefore crucial that a change management concept tailored to the needs of the organization begins to take effect in this phase at the latest, which includes appropriate training, education and communication measures.

The final stage of operational process management is process monitoring. This phase comprises the continuous monitoring and evaluation of process performance. By using suitable process KPIs, dashboards, BPM tools and methods, companies are able to identify problems at an early stage, initiate corrective measures and initiate continuous improvements in order to achieve their corporate goals in the long term.

Business process management should ideally be linked to the corporate strategy and process governance should be maintained by a central process manager. This manager ensures that changes to corporate objectives are incorporated into the company’s process house. For example, due to the greatly increased importance of sustainability measures in many processes, systems and master data areas, corresponding adjustments must be made that are associated with new roles, responsibilities and structures.

Process governance is primarily about defining framework conditions, guidelines, methods, training and responsibilities as part of holistic business process management. The aim is to ensure that processes are efficient, effective and legally compliant and are aligned with the strategic goals of the organization.

Experience has shown that the introduction of a process organization is necessary for most companies in order to ensure the long-term value creation of process management. A process organization ensures that the organization’s process model is continuously developed in line with the company’s goals and strategy.

A process organization structures the company organization according to business processes instead of function-related departments. Hybrid models, in which the functional organization is supplemented by the roles of the process organization, are usually very successful in practice. Typical roles in a process organization are the central process manager, the process owner, the key user and the product owner from the IT department. Ideally, process responsibility is also anchored in the management and the IT department is seamlessly integrated into the process organization.

The introduction of a process organization poses a challenge for many companies, as it results in an organizational change from functional “silo work” to a “horizontal” end2end process mindset and is also accompanied by changes in responsibilities and tasks. The introduction of a process organization should therefore be carefully planned and accompanied by a change concept in order to avoid irritations and inefficiencies in advance.

The concept of continuous improvement is ideally anchored in the company as an independent process (CIP).

In the context of process management, CIP means the continuous analysis, monitoring and improvement of processes with the involvement of all employees and using specific methods and tools. The aim is the continuous optimization of business processes to increase efficiency, quality and customer satisfaction. The implementation of regular reviews to evaluate process performance, the identification of new potential for improvement and the continuous adaptation and optimization of all processes play a key role here.

New digital solutions, e.g. in the form of new software (ERP, CRM, PIM, eCommerce) or new architectural approaches (cloud architectures), are fundamentally a dynamic driver for companies’ process models. New functions and process best practices or new processes through cloud architectures permanently influence the processes and structures of organizations. Business process management must therefore be closely interlinked with the IT strategy and also with the operational demand and delivery processes in order to ensure the desired increases in efficiency in the processes through the introduction of new technologies.

A further challenge for the optimization of processes arises from the increasing number of software and system solutions, which tend to make efficient and transparent process management more difficult. Technological solutions to this increasing challenge are EAM tools (such as LeanIX or LUY), which assign the systems to the individual process steps.