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{{DISPLAYTITLE: Process Governance}}
== Process Governance - The why, what and how ==
Companies create value for customers and shareholders (value streams) via the effectiveness and efficiency of activities which flow across organization boundaries – often referred to as the firm’s cross-functional business concepts. Process Governance spans both the business and technology and provides a layer of visibility and control over the processes. In order to optimize and sustain business process improvements it’s essential to overlay some form of governance that creates the right structures, metrics, roles and responsibilities to measure, improve and manage the performance of a firm’s end-to-end business processes.

In this chapter we will therefore center on the concepts of Process Governance, both from the angle of what it is, why it is needed, where it can be applied, and the benefits of applying it. We believe that the principles of Process Governance are essential to any organization. This chapter is intended to Executives, Project Leaders, and methodology experts, governance responsible and business owners who are responsible for daily operations and are interested in Process Governance.

=== Why is Process Governance important? ===
Most business processes happen through serendipitous need. Action is needed, someone does something that works, and the organization accepts this as the way things should be done going forward. As such, many organizations do not fully understand how things happen nor have they considered alternative ways to improve their processes, especially in relation to their content and how it moves through the organization. In order to truly understand organizational processes and the impact they have with content or content with the process, you need to map the process and document the interaction with content.

BPM, Business Architecture, Finance, Production etc., should be management practices that provides for governance of the business environment toward the goal of improving agility and operational performance. Process Governance is a structured approach employing methods, policies, metrics, management practices, and software tools to manage and continuously optimize an organization's activities and processes. This means Process Governance goes to the root of organizational structures, methods and operations, and it is important to ensure that the changes it initiates are the right ones.

Besides the ability to govern the processes, provide governance methods, policies, and metrics to ensure Process Governance, Process Governance is required in order to link the daily process governance to corporate governance, value governance, performance governance as well as IT governance. As illustrated in figure 1, Process Governance provides the connection to the other governance disciplines within an organization. It governs performance and conformance at an operational level and on the strategic level focuses on value identification, planning and creation. IT related activities of Process Governance focus cost reduction; while corporate aspects of Process Governance focus on activities to ensure revenue generation.

[[File:Process Governance - Figure 1.png|thumb|400px|left|alt=Figure 1: How Process Governance connects to other governance disciplines, and the revenue and cost associated with them.|Figure 1: How Process Governance connects to other governance disciplines, and the revenue and cost associated with them.]]

=== What is Process Governance? ===
A business process is a continuous series of enterprise tasks, undertaken for the purpose of creating output. Business processes enable the value chain of the enterprise, as well as focusing on the customer when the output is created. The purpose is to make the business process as significant as possible and to link it to multiple functions. All companies have business processes, regardless of size or industry. When maintained and optimized, they will ensure competitiveness and survival in the marketplace.

Business processes have to be managed within an organization to enable and support a long-term business success. This means the continuous reassessment, realignment and adaptation of business processes that enable strategic objectives to be implemented consistently and translated into everyday operational activity. It also means realignment and continuous adaptation of the related organizational and IT structures to meet the requirements of the market. Based on process analysis it is possible to make the right decisions, significantly improve product and service quality, boost efficiency, and cut costs.

Business Process Management is a management discipline that provides governance in a business environment, with the goal of improving agility and operational performance. It is a structured approach employing methods, policies, metrics, management practices, and software tools to coordinate and continuously optimize an organization’s activities and business processes. Its objective is to control and improve an organization’s business through active, coordinated governance of all aspects of the specification, design, implementation, operation, measurement, analysis, and optimization of business processes in order to effectively and efficiently deliver business objectives.

=== Business Modelling Center of Excellence & Governance ===
Process Governance supports the establishment of enterprise-wide concepts such as processes, services, rules, methodologies, guidelines, tools, measures and roles for business management. For the most Process Governance is ether found within the Business Modelling Center of Excellence such as BPM CoE or Transformation CoE or its concepts is applied within to oversee and manage projects throughout the entire LifeCycle. Ensuring the operation is consistent across the enterprise, reusable, and efficient. The development and maintenance of policy, conventions, and standards for an enterprise-wide Business Modelling approach are main tasks of such CoE.

Below in Figure 2 is an example of a BPM Center of Excellence which is executed through Process Governance.

[[File:Process Governance - Figure 2.png|thumb|800px|left|alt=Figure 2: Process Governance applied throughout the BPM LifeCycle and done by the BPM CoE.|Figure 2: Process Governance applied throughout the BPM LifeCycle and done by the BPM CoE.]]

Process Governance consists of the set of guidelines and resources that an organization uses to facilitate collaboration and communication when it undertakes enterprise process initiatives, such as implementing a new contracts administration process or a new budgeting system. In this context, there are five basic steps for effective process governance:

*'''Establish standards''' for implementing new projects. Examples of enterprise standards include:
**Implementation Methodology: Organizations should subscribe to a specific set of their implementation methodologies.
**Modeling Notation: When modeling processes, services, value or even case’s, it is important to standardize how different activities and events should be graphically represented.
**Development Platform: Implementing enterprise-wide project initiatives require organizations to standardize on a set of development concepts and tools.
**Integration Protocols: Enterprise-wide modelling governance typically require tight integration with back-end data and other enterprise systems. It is important to decide early on which integration standards will be used to connect for example processes and services with other internal and external systems.

*'''Prioritize enterprise-wide projects''' so that you work on the most achievable ones first.
**Level of Complexity: How complex is the proposed project or process? At the beginning of your initiative it is important to establish quick wins. If possible, avoid implementing complex processes first.
**Reach and Impact: How many people will the project or process impact and how much pain is caused by the current process? Initially, priority should be given to project that represent the greatest impact to a small group of users.
**Executive Support: Is the process currently a hot topic in the executive board room? It is important to decide how priority will be given to processes that are widely supported by the executive team.
**Subject Matter Expertise: How well documented is the area of interest; on paper and in carbon life forms? Priority should be given to processes that are well documented. You should also consider accessibility to subject matter experts.
**Process selection guidelines should list and weight each criterion. This will create some level of transparency around how processes are selected for implementation. It is important to gain consensus throughout the organization on the slate of process selection criteria.

*'''Clearly define the roles''' and responsibilities of everyone involved in the BPM project. At a minimum, responsibilities should be defined for the following roles:
**Executive Sponsor: As outlined in the previous section, the executive sponsor provides high level visibility for the process initiative.
**Process Steward: The process steward provides guidance and direction for a particular process. This is typically the business unit manager or director that realizes a direct benefit or pain as a result of the process.
**Process Manager: The process manager is the person charged with leading the implementation of a particular business process. This individual is held accountable for the success or failure of deploying the business process.
**Functional Lead: This individual is responsible for leading process analysis and requirements gathering. Functional leads oversee process discovery sessions with end users and managers, in addition to modeling the process and business rules.
**Technical Lead: The technical lead oversees implementation of technical components of the process. This includes system installation and configuration, application and forms development, and back-end integration.

*'''Put someone in charge''' with authority to enforce Process Governance rules.
**Executive sponsorship is the single most important ingredient required for successful process governance. Without executive sponsorship, most enterprise-wide process initiatives lack a decisive voice capable of resolving process-related conflicts that arise during implementation. Within some organizations, the executive sponsor is a full-time vice president or manager that is accountable to the CEO. However, in most cases the executive sponsor plays a part-time role in addition to his or her regular full-time job duties. With either scenario, the executive sponsor must be empowered to enforce agreed upon governance rules and should have budget authority for process initiatives.

*'''Establish a BPM Center of Excellence''' to ensure that steps 1-4 are followed on every initiative. These Centers of Excellence serve as internal practices that support deployment of enterprise-wide business processes. BPM Centers of Excellence are usually chartered to accomplish the following objectives:
**Prioritize and Implement Processes: The Center of Excellence works with the executive sponsor and business managers to identify and prioritize process projects. Process selection guidelines should be developed to help the BPM Center of Excellence rank the processes to be implemented. After processes have been prioritized, the Center of Excellence can focus on its primary objective: developing and deploying processes.
**Maintain the Process Portfolios: This consists of maintaining knowledge and documentation captured for each process. This knowledge is often contained in process requirements documents, training manuals, and project plans. The Center of Excellence is tasked with maintaining these artifacts in a physical library or within a virtual knowledgebase.
**Establish Process Practices: Upon completion of each deployment, the BPM Center of Excellence conducts post-project reviews and identifies lessons learned. These reviews are used to establish leading, or at the very least, best practices that can be applied to future process implementations.
**Evaluate Process Performance: Working with the process steward and executive sponsor, the Center of Excellence periodically evaluates the effectiveness of deployed processes. Process effectiveness is evaluated based on key performance metrics established prior to process deployment.

BPM Centers of Excellence are growing in popularity as many organizations begin to expand departmental BPM initiatives to encompass the enterprise. Centers of Excellence are most appropriate for organizations looking to deploy three or more processes that will need to interact with multiple departments. Working closely with the executive sponsor, the BPM Center of Excellence should be assigned responsibility for defining and enforcing process governance rules. Once process governance rules have been established, these rules should be institutionalized and automated by the Center of Excellence.

'''Document''': [[Media:Process Governance - The why, what and how.pdf|Download the Process Governance - The why, what and how document]]

[[Category: Processes for SAP]]

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-{{DISPLAYTITLE: Process Governance}}
+{{DISPLAYTITLE: SAP Process Governance}}
 == Process Governance - The why, what and how ==
 Companies create value for customers and shareholders (value streams) via the effectiveness and efficiency of activities which flow across organization boundaries – often referred to as the firm’s cross-functional business concepts. Process Governance spans both the business and technology and provides a layer of visibility and control over the processes.  In order to optimize and sustain business process improvements it’s essential to overlay some form of governance that creates the right structures, metrics, roles and responsibilities to measure, improve and manage the performance of a firm’s end-to-end business processes.
-In this chapter we will therefore center on the concepts of Process Governance, both from the angle of what it is, why it is needed, where it can be applied, and the benefits of applying it. We believe that the principles of Process Governance are essential to any organization. This chapter is intended to Executives, Project Leaders, and methodology experts, governance responsible and business owners who are responsible for daily operations and are interested in Process Governance.
+We will therefore center on the concepts of Process Governance, both from the angle of what it is, why it is needed, where it can be applied, and the benefits of applying it. We believe that the principles of Process Governance are essential to any organization. This chapter is intended to Executives, Project Leaders, and methodology experts, governance responsible and business owners who are responsible for daily operations and are interested in Process Governance.
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 BPM Centers of Excellence are growing in popularity as many organizations begin to expand departmental BPM initiatives to encompass the enterprise. Centers of Excellence are most appropriate for organizations looking to deploy three or more processes that will need to interact with multiple departments. Working closely with the executive sponsor, the BPM Center of Excellence should be assigned responsibility for defining and enforcing process governance rules. Once process governance rules have been established, these rules should be institutionalized and automated by the Center of Excellence.
 [[Category: Processes for SAP]]

LEAD Reference Content:SAP Process Governance - Revision history

Admin at 09:46, 19 September 2018

Admin: Created page with "{{DISPLAYTITLE: Process Governance}} == Process Governance - The why, what and how == Companies create value for customers and shareholders (value streams) via the effectivene..."