Analyzing Your Business Processes and Documenting Procedures

1. Analyzing Your Business Processes and Documenting Procedures Greg Verret UNC Charlotte

2. Session Etiquette • Please turn off all cell phones. • Please keep side conversations to a minimum. • If you must leave during the presentation, please do so as quietly as possible. • Thank you for your cooperation!

3. Agenda • Process Analysis • Documentation (a.k.a – “procedures”) • Wrap-up

4. Module 1: Process Analysis Understanding and Defining Your Business

5. What is “Process Analysis”? • Review of the existing business functions, activities, and tasks that enable the execution of your department’s operations • Identifies key inputs, outputs, dependencies and hand-offs • Enables continuous improvement • Not just process mapping • Usually confused with procedures • Often is missing

6. Process vs. Procedure Process ≠ Procedure A procedure refers to documented instructions used by your personnel to perform the actions required to operate your business processes. How do I do it? A process consists of the underlying functions, activities and tasks your organization must perform to fulfill its mission. What are you in the business of doing?

7. Terminology • Process Function: A group of related activities or tasks that accomplish a specific objective. • Activity: A component within a process function; usually represents a collection of related tasks. • Task: A component within an activity; usually represents a specific action to be performed by a specific individual. Once we’ve defined our process…. • Procedure: A documented set of instructions used to guide personnel in performing the related activities and tasks within a process.

8. Business Process Breakdown Adapted from the Business Process Management Institute, “Analyzing the ‘As-Is’ Process”.

9. Business Process Breakdown(continued)

10. Business Process Breakdown Example • This is the “50,000-foot” view • Each green box represents a process function, with sub-processes listed below

11. Business Process Breakdown Example (continued)

12. Key Points • Process ≠ Procedures • You must first define and organize your business into process functions (“50,000-foot view”) • Then, drill-down into each process function and identify the underlying sub-processes/activities/tasks that occur (“5,000 foot view” and below). • Meet in a room with a whiteboard and map it out (Microsoft Visio is also helpful) • Try to keep it simple – only include as much detail as you need to identify the key actions/tasks

13. Module 2: Process Documentation Basics Suggestions on How to Develop and Maintain Procedure Documentation

14. Why document procedures? • Minimize operational ambiguity • Drive consistency and compliance • Help ensure continuity of operations • Serves as a training tool • Enables continuous improvement • Identifies value added and non-value added tasks • Identifies design inefficiencies/gaps • Identifies internal controls (auditors will ask and test) • Enables deeper understanding of how processes relate

15. What should “procedures” look like? • Title • Ownership of activity/task (e.g.--Department/Office) • Goal/objective of the activities and tasks described in the procedure • How often is the activity performed? • Step by step (task) • How to do it = procedure • Define your terms and acronyms • Include links to documents, laws, policies, other documents

16. Procedure Template

17. Maintain Procedures • Organize your procedures • Follow the same structure as process functions • Develop a basic index or outline • Store files centrally to ensure accessibility • Review and approve regularly • Implement periodic routines for the review, update and approval of procedure documentation (annually, quarterly, etc.) • Managers can delegate the task of updating procedures, but should not delegate approval • Senior management should emphasize importance

18. Index Example

19. How to get started

20. Questions?

21. Thank You! Greg Verret gverret@uncc.edu