How To Create A Framework For A Process

Back in 2014 when I wrote this article people were struggling to get started with Business Process Management, today things have come along was and BPM has much better visibility than in previous years. I have not changed the content of this post as what is in the post is as relevent today as it was back in 2014. However, the update is more about diagramming your business processes rather than the processes themselves.

Whilst getting a new post for publishing I came across Elements.cloud (https://elements.cloud/) which when you dive into the diagramming tool you will find that the AQPC Generic Process Framework is loaded and is free to copy and edit as you wish, as shown below.

When you click on the paperclip in any one of the PCF boxes, you are presented with detailed information of the PCF, for example, 8.Manage Information Technology (IT) shows all the elements contained within the particluar process, as shown below.

So there we have the update, you now have both the Business Process Framework and a BPM tool to produce your business processes in one space. This is definitely worth looking at if you are trying to get started in your Business Process Management Programme as it will give you a really good heads start in delivering your companies Business Processes in a diagrammatical format.

What follows is the original post from way back in 2014, happy reading.

Given the difficulties faced in many economies around the world, many businesses have turned to making do with the limited resources at their disposal. There are a number of ways of achieving this objective, such as:

• Investigating the use of new technologies to reduce costs;

• Simplifying business operations by reducing waste;

• Lowering production and administration costs; and

• Developing new approaches and products to provide a strategic advantage over their competitors.

Each of these scenarios requires your business or organisation to understand your processes in more detail than most organisations do now. It may seem daunting for many Small to Medium sized Business (SMB's) compared to larger businesses and corporations, but learning to document business process and the availability of simple tools to achieve it are well within the reach of all businesses and companies, regardless of size. Knowing how to get started, however, is often seen

as the hardest problem.

Process frameworks provide an excellent means of helping you scope

your business process initiatives, as they provide you with:

• The foundation structure for your business processes;

• A starting list of the processes to include; and

• A starting point for working out what to include and what is

important to you.

There are 4 reasonably well-known Process Frameworks out there today, These are APQC, SCOR,eTON and VRM. The following is a brief description of each of these process frameworks.

APQC-PCF:- The APQC Process Classification Framework (PCF) is arguably the most well-known and widely adopted process framework. The framework contains a generic cross industry framework and 11 industry specific frameworks. These include Petroleum Industry Upstream and Downstream, Utilities, Healthcare, Retail, Banking, Education to name but a few.

eTOM:- The Enhanced Telecommunications Operations Map (eTOM) is a framework for the analysis and improvement of telecommunications processes, with a focus on customer support and customer satisfaction.

SCOR:- Developed by the Supply Chain Council, the Supply Chain Operations Reference (SCOR) is used mostly for industries in supply chain management. The model is structured around five management processes: plan, source, make, deliver and return.

VRM :- Also developed using a supply chain approach, the Value Reference Model (VRM) is a very comprehensive model that can be adapted to any business.

So what is a Business Process Framework? And why use one?

The most common reason why people use Process frameworks is to help them classify processes into a classification structure in order to better understand how the processes relate to each other and how they are a part of getting things done.

A process framework provides:

• A checklist for identifying candidate processes undertaken within your business or organisation;

• A structure for classifying the processes you have identified into groups of related processes;

• A basis for determining how process ownership can be assigned;

• A foundation for structuring a process repository; and

• Visibility of processes to the wider

What is a Process Framework?

A Process Framework is a means of grouping processes into appropriately related categories. Most process frameworks use the concept of Value Chains as the basis of these categories.The concept of a Value Chain was originally defined in Michael Porter's well known book, "The Competitive Advantage: Creating and Sustaining Superior Performance", in which Michael Porter explains:

"Every firm is a collection of activities that are performed to design,

produce, market, deliver, and support its product. All these activities can

be presented using a value chain.." "A firm's value chain and the way it performs individual activities are a reflection of its history, its strategy, and its approach to implementing its strategy"

Knowing where to start and which one to use is the biggest issue that faces businesses today. Each of the process frameworks has its own strengths and weaknesses; the APQC's Process Classification Framework (PCF) is probably the best known as well as the most easily accessible process framework. APQC

provide open access to all versions of the PCF as well as information documents that describe each of the many Processes and Key Performance Indicators within the PCF.

It is important to select the right PCF for your organisation. The Cross-Industry model is the best one to use for most organisations, unless your industry has its own version, as it is the most up-to-date and complete.

The Institute of Manufacturing, part of the Department of Engineering at

Cambridge University further explains that Value Chains are:

"...based on a process view of organisations, i.e. the idea of seeing

a manufacturing (or service) organisation as a system, made up of

subsystems each with inputs, transformation processes and outputs.

Inputs, transformation processes, and outputs involve the acquisition

and consumption of resources - money, labour, materials, equipment,

buildings, land, administration and management. How value chain

activities are carried out determines costs and affects profits."

The category of Primary Processes (or Activities) forms the Value Chain of an Organisation and is where it derives revenue and incurs operating expenses,hence the term Value Chain, which defines the chain of processes from which value is derived for an organisation.

The category of Support Processes (or Activities) defines the indirect costs incurred when managing and supporting an Organisation. In more recent times, it is now more common to split Support Processes into Management Processes and Support Processes, to separate the development, implementation and management of an Organisation's strategy from the Processes related to the support of an Organisation, such as managing Finances, Human Resources, Infrastructure and Information Technology.

Most organisations are usually able to easily identify and define the processes that make up their Value Chain, (i.e. Operations Processes) however they often struggle to identify the Management and Support Processes (i.e. Processes within the other parts of their business). This is one area in which Process Frameworks can be very useful, as they provide a starting checklist to identify not only Operational Processes, but also Management and Supporting Processes.

The PCF is freely available on the APQC website as a download in either PDF or Microsoft Excel formats.The download consists of a set of 12 process categories, 5 covering operational areas and 7 covering support areas. Each category consists

of process groups that are further decomposed into individual processes.When considered as a whole, they collectively represent the operation of any business or organisation.

The PCF is structured into 4 Levels:

1. Category: The highest level of process in the enterprise, e.g. "Manage Supply Chain" or "Manage Customer Service".

2. Process Group: Indicates the next level of processes as a group of processes, e.g. "Perform After Sales Repairs" or "Develop Sales Strategy".

3. Process: A series of activities converting inputs into outcomes, e.g. "Develop sales forecast" or "Create materials plan".

4. Activity: Indicates key events performed when executing a process, e.g. "Receive Customer Requests" or Resolve Customer Complaints".

In addition to the PCF, the APQC has also begun publishing definitions and key measures for the processes.

The APQC has currently published 8 of the 12 process categories for:

• Product and Service Development Definitions and Key Measures;

• Marketing and Sales Definitions and Key Measures;

• Supply Chain Definitions and Key Measures;

• Customer Service Definitions and Key Measures;

• Human Capital Definitions and Key Measures;

• Information Technology Definitions and Key Measures;

• Financial Management Definitions and Key Measures; and

• Knowledge, Improvement, and Change Management Definitions and Key Measures.

However, these are in the core value chain and support areas, which are typically the source of unexpected costs within many organisations today.

PCF provides a useful starting point for many types of process related projects within your business, such as:

• Assisting you to scope the processes in your project;

• Helping you to identify and define the processes covered by your

project;

• Structuring the repository for your process documentation; and

• Benchmarking the performance of your processes inside and

outside your business.

So, if you're unsure where to start your process related project or

unfamiliar with documenting processes, then remember the APQC's PCF

is a great place to start!