Your First BPM Process PDF

WHITEPAPER
Your first BPM processquick, measurable and

contagious.
Selecting the right first process for
fast returns
Copyright 2002-2014 Bizagi. All rights reserved.
Your first BPM process
Executive Summary
BPM programs live or die on the success of the pilot project, which in turn
depends on choosing the right first process. Since BPM initiatives involve
deep cultural changes, the pilot project has to deliver results that are:
Quick: to gain management approval for wider rollout

Measurable: to justify further investments
Contagious: to trigger widespread user adoption
to enable the benefits to be felt across teams,
Extensible:
departments and processes.
This whitepaper provides guidance on selecting the optimal business
process (or group of processes) for a BPM pilot project. By taking this
approach, project owners can be confident of a low-risk BPM initiative
that generates sufficient momentum to kick off a successful companywide BPM program.
Contents
Start Small. Think Big. Scale Fast.
The 1 Big Misconception of BPM
The 2 Key Audiences of BPM
The 3 Evolution Stages of BPM
The 4 Governance Quadrants of BPM
10
Ready, Steady, Go!
13
Checklist: how to select the right first process
14
Your first BPM process - The 1 Big Misconception of BPM

Start at the right place
This much-favored entrepreneurs mantra applies
equally well to BPM (Business Process Management)
since it is proven to deliver results. Productivity, control,
competitiveness all these can be achieved through BPM
with relatively low investment and short adoption
timelines. However even BPM projects that do follow this
motto will succeed or fail depending on the choice of
their starting place the first process.
BPM is not about technology.

BPM is about culture.
Its about getting people to think
about their work differently.
Your BPM pilot project is the initial proof point for the
entire BPM initiative. If you pick the wrong process for your
first project, you will set yourself up for disappointment.
The following key points will help you identify and gain
consensus on the first process (or set of processes) that
will minimize the risk of failure.
The 1 Big Misconception of BPM
Its not about technology

In terms of demonstrating the potential of the bigger
picture, all pilot projects have a mountain to climb.
However, BPM pilots face some particularly tough
conceptual challenges. Despite many BPM success
stories in the two decades since the term Business
Process Management was coined, confusion and doubt
continue to surround the discipline.
So where do these misconceptions stem from? One
explanation is that BPM is still seen as a technology tool.
In reality, BPM is about culture. Its about getting people
to think about their work differently. Its about instilling a
culture into an organization that values constant
improvement and monitoring; that makes people more
efficient than they are; that encourages them to make
things simpler, faster and better. Its about truly changing
an organizations way of working.
Establishing the beachhead of BPM culture is the crucial

short-term objective of the first BPM project. Therefore it
has to be designed to break the three common barriers
that can block the downstream projects:
Short attention span of sceptical stakeholders

Lack of further sponsorship beyond the pilot
Insufficient user adoption of the first process
The first step to overcoming those barriers is to
understand your audience: the judges; the people who
upon completion of your BPM pilot will point their
thumbs up or down.
Your first BPM process - The 2 Key Audiences of BPM
Dont get seduced too easily by processes

that focus only on hard cash savings. Newbie
BPM sponsors have a very short attention span.
Steer away from processes that require
cumbersome organizational changes.
The 2 Key Audiences of BPM

It cant be rolled out
Employees
The success of an enterprise-wide BPM initiative is about

more than impressing its sponsors. Its just as important
to convince two equally important audiences: senior
management and employees.
The value of employee buy-in is not that obvious andis

frequently overlooked. Yet BPM is not something that
senior management can simply roll out. BPMrepresents
a culture change: it must be adopted, and cannot be
enforced. Did anyone roll out iPhones or Facebook?
Improving a business process must bringto all its actors
so many benefits, so quickly and sosimply, that it catches
on and becomes somethingpeople want to be part of.
Senior Management
The importance of gaining approval from the
upperechelons of management is obvious like in any
other project, they will either fund the future stages of
the program, or they will stop it dead. Because of this,
a highly visible pilot process with a good set of
clearly defined KPIs (Key Performance Indicators) will
have a better chance of success than a process that is
below the top managers radar or that cannot be
easilymeasured and quantified.
From this angle, an ideal candidate might be a
process that, from the outside at least, promises to
deliver large operational cost savings. A process, for
example, where ROI (Return on Investment) can be
demonstratedeasily. But dont get seduced by processes
that focus only on direct cost savings they may
require cumbersome organizational changes. Newbie
BPMsponsors tend to have a very short attention span
andyour pilot project may miss the opportunity window.
Therefore, when selecting your first process, youshould
also consider other KPIs beyond hard cash savings.
Consider those that improve cash flow (e.g. via faster
payables collection or reduction of capital frozen in
stocks) or those that improve soft measures (e.g.
complaint resolution time or customer satisfaction),
which will translate indirectly intoincreased revenues or
reduced costs.
A BPM solution that is not used by its people has

little value, which is why the first business process
should cement strong user adoption. And the best way
to achieve this daunting goal? By addressing a
process that a large number of employees find a
challenge.Find processes that address their well-known
pain points or make them faster or more productive
and they will love BPM back. The satisfaction
and enthusiasm of these early adopters will convert
them into advocates of the further projects and
springboardthe wider BPM initiative.
Senior management cant

roll out BPM. Did anyone roll out
iPhones or Facebook? BPM culture
has to be adopted. Address a
process that a large number of
employees find a challenge.
Your first BPM process - The 2 Key Audiences of BPM
External parties
Apart from the two core audiences covered above,
yourfirst process may also be visible to external parties,
like customers or providers. Their involvement in a
BPM project can significantly increase the impact and
the benefits of the project but may come at a
price: additional decision-makers, additional users to
educate and, potentially, additional contractual
obligations all add complexity to the project. Such extra
burden defiesthe core purpose of the pilot to demonstrate
quick results which is why we recommend that you
avoid external audiences in your first BPM project
andinstead focus on an internal process.
Isnt this a missed opportunity? Is the acceptance
and satisfaction of customers and providers
not important? Yes - but not at this early stage.
What keeps BPM programs moving is ongoing
managementsupport and increased staff adoption. This
will provide the spark you need to kick-off your
BPM project and light the fire for the longer-term
successof your BPM program. Just two of the areas to
benefit later on would be senior management (e.g.
via increased sales or reduced procurement costs)
and employees (e.g. via reduced pain with
customercomplaints or supplier litigations).
External parties may slow

down decision-making. Start
with an internal process.
Customers and providers will keep
you going in the long term.
Summary of the key audiences needs

The BPM pilot process should be:
Quick to implement
Measurable via clear KPIs
Highly visible to management and staff
Solving your employees pain points
Focused on the internal audiences
With a good understanding of the BPM pilot audiences,

the next step is to divide the process areas into categories
and focus on those that offer higher chances of success.
Your first BPM process - The 3 Evolution Stages of BPM
The 3 Evolution Stages of BPM

If it aint broke, dont fix it
Even in companies without a central BPM strategy,most
business processes eventually evolve naturally. All
processes when introduced for the first time have a
common starting point. But as time goes by,each evolves
along its own path, which can lead to diametrically
different destinations. Independentlyof the wide variety
of factors that influence such evolution e.g.
organizational
restructures,
working discipline,
underlying technologies all businessprocesses can be
associated with one of the threemain stages of evolution:
Young & Growing

Strong & Stable
Sick & Painful
A well-executed BPM initiative can bring benefits
for processes belonging to any of these three
groups.However when kicking off your first BPM project
not all of these groups offer equally good candidatesfor
a pilot, and the choice of the right group willdepend also
on the mid-term objectives of your overallBPM program.
Strong & Stable

Can be improved but
leave for later phases
70%
rigid and repeatable process

integrated with core systems
mission critical
e.g. standard production, services
10%
Sick & Painful
Young & Growing
Great starter for savings;

look for quick wins here
Good starter for agility

but beware of fuzziness
frequent and easy process modifications
manual, custom apps or not yet fully
integrated to core systems
innovation, creation of USPs
e.g. product launches, new markets
Young & Growing processes

eventually either mature into
Strong & Stable or degenerate into
Sick and Painful
20%
Over time Strong & Stable

processes may degenerate into
Sick & Painful if there is no
proper BPM culture
everybody complains about them

manual, paper based, heavy use of phone,
email, spreadsheets
non-critical business enablers
e.g. approvals, on-boarding, invoicing,
inquiries / claims, accounts payable
Sick & Painful can be healed into

Strong & Stable only through a
focused BPM effort
*Average number of processes that belong to each evolution stage in a typical company (based on customer study by Bizagi's global partner network)
Figure 1. The 3 Evolution Stages of BPM
The following list weighs up the benefits and pitfalls of

selecting a Young & Growing process for a pilot:
PROs:
Positively, Young & Growing processes:
Young & Growing

Are good but potentially risky candidates for
the first process since they can offer high
impact, high speed and high visibility.
Touch areas with new investment budgets, so are

These are the newly introduced processes. In startup situations, every single process falls into this
category. However, even large and long-established
corporationsusually have around 10% of their processes
in this space. Whenever you open a new line of
products, enter a new market or change your operating
model,new processes appear.
likely to get senior sponsorship

Are generally ad-hoc, simple and easy to modify
Grow in areas of innovation where its easy to find a
visionary leader to drive them
Involve heavy decision making, allowing BPM to
show off its value by delivering accurate contextual
information
Are not yet too tightly integrated with other corporate
systems - hence are not slowed down by cumbersome
modifications in core systems or restrictive change
release policies.
CONs:
On the flip side, Young & Growing processes:
May be very fresh and undefined, so designing them

Young & Growing processes have the following factors
in common:
Frequent fluctuation and change every instance of
the process is different as the business users

experiment with alternative approaches and tackle
unexplored case variations
Primarily manual or supported by non-standard IT
solutions either via custom-made applications or
through major enhancements to the core corporate
systems
Strong links to business objectives that relate to
innovation and creation of USPs (Unique Selling
Points) hence are often referred to as Differentiator
Processes.
Examples of such processes include:
Launch of a new service or product line
Opening of a new subsidiary, geography or sales
channel
Harmonization of prices across multiple
customers/channels
Post-merger interim operations
Integration of hybrid supply chains
properly may slow down the pilot project

Often touch many areas of your business making the
decision-making authority hard to identify agreeing
consensus with multiple stakeholders can knock the
project off track
Have an unknown level of integration with other
systems, making it easy to underestimate the effort
involved. May not have any historical data, making
benchmarking, KPIs and success difficult to measure.
NOTE: Lack of money-related historical KPIs should not
be a showstopper. New soft measures can also
demonstrate the outcome of a new process.
May represent a very experimental area of your
business, making its scope hard to lock down.
Young & Growing:

High-risk and high-reward option.
Start here for agility & innovation but
control the fuzziness with an iron hand.
In summary: Young & Growing processes are a

goodmid-term choice for organizations that wish to gain
acompetitive edge through business agility andinnovation.
Just make sure to lock down the processdefinition and its
corresponding KPIs first. Additional safety measures
include choosing a BPM suite thatoffers data virtualization
to tackle the integration issue, and finding a strong
decision maker to manageexpectations.

Manufacturing of standard products
Provisioning of standard services
Purchasing of standard materials
CONs:
Strong & Stable processes are:
Generally quite efficient, so any incremental
Strong & Stable

Are not good candidates for the first process.
While they offer significant scope for improvement, squeezing these benefits may take
significant time, effort and technique, so are
best suited to an advanced BPM program.
Youll recognize these processes: theyve been aroundfor
a while, they touch most people daily, and they ticklike a
Swiss watch. Typically they got where they arebecause:
either they have a low number of steps and variations,
which makes them easy to control; or because theyve
already been subject to a corporate initiative like Six
Sigma, Lean or ERP implementation. Strong & Stable
processes :
Rigidly follow standard corporate guidelines and are

hardly ever modified
Rely on a core corporate system (e.g. ERP, CRM)
likely with an embedded workflow solution and

have a relatively low number of integration points
with other systems
Support the core business activities and are mission
critical (In fact, if your mission critical processes are
not yet in this category then you desperately need a
strategic BPM program!)
Link to business objectives related to generation of
constant revenue streams (hence are sometimes
referred to as Commodity Processes).
improvement will require relatively high efforts and

advanced BPM techniques
Rigidly defined, meaning changes come with the
arduous task of modifying numerous corporate
policies
Embedded in your core systems hence any process
modifications result in intense enhancement of those
systems and high integration efforts
Likely to cover mission-critical activities where a
conservative stakeholder attitude may impede fast
progress
Perceived as low-risk, leading stakeholders to directly
discard the initiative as change for changes sake.
Strong & Stable:

Can always be improved but their
effort-to-benefit ratio is high so its
better to leave them for later BPM
program phases when your
organizations BPM maturity is high.
To summarize: this area can always be improved(Havent

we said that BPM is about instilling a culture into an
organization that values constantimprovement?) but its
best left for your later BPM program. By then, the lowhanging fruit has been collected, the management and
the staff has gained deep trust in BPM, and the
organization has accumulated sufficient BPM expertise
to employadvanced BPM techniques. Then is the time to
tackle the Strong & Stable processes so the BPM
benefitsshine through.
Small changes in Sick & Painful

can save costs quickly on manual
work to reduce daily hassle and create
future BPM evangelists. But a BPM pilot
is not time for heroics so avoid
politically charged processes.
Sick & Painful

Are very good candidates for the first process.
Small changes can improve end-to-end control,
reduce chaos and increase speed. But beware
of political baggage from staff: these may be
politically charged.
Like Strong & Stable, these processes have beenaround
for a long time, but are cumbersome anddisliked. They
represent the true pain points of thebusiness. Typically
about 20% of processes in anyorganization end up in this
category, whether down tobad design, rigid and outdated
ways of working or, lastbut not least, due to a legacy of
corporate restructures, mergers, acquisitions and
divestitures. So apart from the fact that everyone
complains about them, how elsecan you spot a Sick &
Painful process?
Contract management, supplier on-boarding

Accounts Payable and purchase orders
Accounts Receivable and Invoicing
Client enquiries and complaints
Returns and claims
Service management
PROs:
Sick & Painful processes can:
Easily reduce huge manual efforts, freeing up your

staff to work on more value-added tasks
Save costs of printouts, DB storage and CPU power

(emails/spreadsheets) and phone bills
Allow clear mapping to easily define measurable KPIs

that affect your bottom line
Quickly reduce the day-to-day hassle for wide

All Sick & Painful processes:
Involve multiple manual activities and use a lot of

paper
Fail to follow standard guidelines and have many
variations
Generate huge volumes of emails, phone calls and
manually updated spreadsheets
Interact with multiple systems but are not tightly
integrated and require a lot of manual re-keying of
data (aka swivel-chair integration think of an
employee sitting on a swivel chair between two data
terminals, turning around to re-key data from one
terminal to the other)
Typically support non-critical, enabling processes,
that are indispensable for companys operation but
do not always have a clearly linked specific business
objective.
CAPEX approvals
Travel & expenses
Employee on/off-boarding, leave requests
numbers of stakeholders, which in turn will become

evangelists for the next phases of your BPM program.
CONs:
However, they may also:
Carry a history of long-lasting political blame games

with no clear decision makers. Some stakeholders
may even purposefully obstruct resolving the
problems, as the chaos hides their own inefficiency or
obscure business practices. The BPM pilot is not the
time for heroics so choose a process where a very
small group of stakeholders (like a single senior
manager or a small central department) can make
quick decisions and define the future state of the
process.
In summary: if the mid-term objective of your overall BPM
initiative is about saving time and money; if you are looking
to increase productivity and execution, then the Sick &
Painful processes are a great place to start.
10
Your first BPM process - The 4 Governance Quadrants of BPM
The 4 Governance Quadrants of BPM

Wolves in sheeps clothing
Apart from its evolution stage, a process can also be reviewed from its
existing governance. How well controlled is it? How complex is it? The
followingillustration will help you easily classify each process according to these
criteria and assign it to one of the four Business Process governance quadrants.
Thisrule is complementary to the concept of Evolution Stages and can be applied
todouble-check decisions based on the process evolution stage. The diagrambelow
explains the concept of BPM Governance Quadrants.
High Control
Compliant with standards, already partially
optimized, metrics and owners exist
BPM moves
processes to upper
quadrants
Ideal first candidate
Good first candidate

Status:
good governance
small impact
Implementation
low effort
low benefit
Status:
good governance
high impact
Implementation
low effort
high benefit
High
Complexity
Low
Complexity
ad-hoc, infrequent,
small number of steps,
data-intensive
BPM moves
processes to upper
quadrants
Not good candidate
Good first candidate
Status:
no governance
small impact
Implementation
high effort
low benefit
Status:
no governance
high impact
Implementation
high effort
high benefit
Low Control
Not documented,
participants unknown,
metrics do not exist
Figure 2. The 4 Governance Quadrants of BPM
multi-step, multi-branch
escalations, exceptions,
SLAs, human intensive
system
11
Low Complexity Low Control

Processes belonging to this quadrant are the least interesting candidates foryour
BPM pilot. Their low complexity means that they have little businessimpact because
they are either very infrequent or do not require intensivehuman effort. Few benefits
are gained by improving them. At the same time,their low level of control means
they would require heavy investment in processanalysis and KPI definition, making
them unlikely to pass the ROI businesscase.
In this quadrant, you will typically find either:
Emerging Young & Growing processes their impact

on the business is not yet significant and its not even
clear whether they will get incorporated permanently
into your business model or get abandoned after a few
experiments; or
Sick & Painful processes - that are such a minor
Low Complexity
and Low Control:
Skip and move on.
nuisance that people just learn to live with them. In

both cases just skip this quadrant, and move on.
High Complexity High Control

This is potentially your best hunting ground for the first process. High complexity
means high impact with lots of potential benefits to reap. Highcontrol means that
half the design is already complete. Yet remember that allthat glitters is not gold. If
the process is too complex (as a rule of thumb, more than 20 activities) the effort
required to implement it may still be very high, soavoid processes that are too far
right in the quadrant. If the process is too farup in the quadrant, there is little to
improve. The goal of any BPM initiative isto move your processes further up the chart.
In this quadrant you can find processes from any of the 3
BPM evolution stages.
They can be Strong & Stable they are complex but well
documented, work well, everybody is happy in this case,
its probably a good process to work on, but not during the
pilot project, where the benefits are minor.
Teenagers more mature Young & Growing processes
good candidates for your pilot since they have already
been well defined but have not yet been automated nor
rolled out.
High Complexity
and High Control:
Excellent candidates
but dont go too far right
- nor too far up.
12
Is there a perfect project?

Yes we call this the Wolf in sheeps clothing. Effectively,
it is a Sick & Painful process disguised as a Strong &
Stable one. It typically occurs in big and complex
corporations where the process is so well documented
(high control) that all the actors know how to do their
work and do not complain.
Look out for Sick & Painful

processes disguised as
Strong & Stable.
Such processes also have many participants (high

complexity) which means most of the stakeholders focus
only on their part of the process. So in fact, the overall
end-to-end process is very inefficient, but nobody in the
organization has the full visibility needed to spot its
inadequacies.
If you can spot such a process and find a strong leader to
demonstrate to all its audiences that this process is
indeed Sick & Painful, it will become an excellent
candidate for your BPM pilot with substantial quick wins.
Low Complexity and High Control:

Not an ideal area but
good for low budgets & a nice
candidate for going mobile.
Low Complexity High Control

In this quadrant youll find processes with relatively low
impact, making it difficult to deliver highly visible results.
Theyll also demonstrate high maturity leaving a very
small space for incremental improvement. The processes
youll find here will typically be some of the very basic
and routine Strong & Stable ones. Consequently, this
quadrant is not generally a good area for a BPM pilot.
However, there are a couple of exceptions to this rule:
If your organization does not have a top-down corporate

plan for a BPM initiative but you want to get the attention
of potential sponsors, this could be your BPM beachhead.
Low complexity and high control equal low investment,
allowing a small department to manage the pilot
themselves.
Alternatively, employee mobility could prove your sweet
spot. A simple and routine process (e.g. an approval
process with a simple linear flow) will not require high
investment in process analysis or redesign, so just
combine it with a BPM suite that easily integrates with
mobile devices and launch your pilot. If, on top of that,
this process touches a big number of your organizations
employees (like HR or purchasing) then you can
guarantee a fast growing population of BPM fans who will
advocate your next BPM project.
High Complexity Low Control

This quadrant is the high-risk high-reward area. Youll find
here an equal amount of Young & Growing and Sick &
Painful processes. Potential for spectacular results is
very high but has to be balanced with the risk of getting
stuck re-designing low-maturity processes.
You will reap the biggest benefits by lifting processes
from this quadrant and they will be the major contributor
to your BPM program outcome. However, such heroic
actions require very strong leadership and a
knowledgeable and happy BPM project team. An external
team might bring the right skills to your organization but
internal stakeholders may not be mature enough, from a
BPM perspective, to handle such a big challenge. Unless
you have a burning business need related to a process in
this quadrant and a very strong leader to manage it,
processes from this quadrant are best avoided.
High Complexity
and Low Control:
the source of the BPM programs
benefits but too risky for a BPM pilot.
13
Ready, Steady, Go!

Dont reinvent the wheel
You already Think Big! You have understood the importance of your internal
audiences. You identified your BPM sponsors and know how to show them tangible
results. You propagated enthusiasm among masses of your future BPM evangelists.
You have evaluated candidates for the first process from the perspective of maturity,
complexity and control and picked one that can be delivered fast. You already have
your first quick, measurable and contagious process. You are ready to Start Small!
Now just dont forget that you want to Scale Fast. Your capabilities for handling
bigger processes are just starting to develop while you work on your first small
process. Even at this early stage you can and you should demand faster results.
Just dont reinvent the wheel.
Many others have done it before you, so why not leverage their achievements?
Reach out to partners who will help you define your process and benchmark your
KPIs. Look for a BPM tool that does not require deep techie knowledge, but one
that blurs the proverbial frontier between IT and the Business. Look for ready-made
process templates which you can adapt rather than build from scratch. Mitigate
your system integration risks by opting for data virtualization. Go mobile with reusable widgets.
Start Small, Scale Fast but never stop to Think Big. Make sure business value is
present throughout your entire BPM pilot project not just when making the initial
investment or after the project is done and transitioning into business-as-usual.
You now have the necessary evaluation criteria for the selection of your first BPM
process and the key recommendations to succeed. Just set your objectives,
understand what you can do now and define the roadmap for success.
14
Checklist: how to select the right first process

Look for processes that...
Give a compelling reason to start:
Linked to corporate objectives they will easily gain

sponsorship
Cause immediate pain in the business they will allow
to demonstrate a strong need to move quickly
Heavily manual - they will allow quick impro-vement
of productivity as well as tracking, forecasting and
control
clear indicator of heavily manual work
improvement of end-to-end control
Intensively use paper documents, email, phone,

spreadsheets they allow quick savings and are a
Inconsistent in work quality, inaccurate in forecasting
or difficult in providing status they enable fast
Allow you to scale fast:
Single Process Owner (or a small central team) they

can quickly make decisions on scope, budget and
delivery
systems, enabling quicker delivery
Ad-hoc processes easy to modify and improve

quickly
Non-standard and outside of the core systems (e.g.
ERP, CRM) they require less integration with existing
Have a mobile component users will love them and
adopt them with ease
Internal audiences only external stakeholders can
slow down the decision-making progress
Have multiple decision steps they can speed up work

and reduce mistakes by facilitating handoffs and
embedding instructions within work items
Avoid processes that...

Cannot demonstrate results:
Slow your project down:
No clear KPIs if you cant measure the BPM pilot you
cant justify the need for a BPM program
and clear decisions from one source will stall your
Politically charged or highly distributed obtaining
BPM pilot in endless multi-stakeholders debates
consensus of too many conflicting parties can be a
Completely undiscovered process you have 12 weeks
roadblock
Too simple the impact of improving them will not
generate sufficient momentum for the future stages
No defined owner for decision-making lack of quick
to deliver full results, not to elaborate an analysis

report
Too complex proof-of-concept stage is the wrong
Already rigidly defined hard to improve, low potential
time for heroics, so look for processes with 10-20
benefits
activities
Mission critical stakeholders will be reluctant to touch
Data intensive multiple integration points with
them with an unfamiliar methodology and, beyond all,
existing corporate systems may require extra efforts
disrupting them can be the first nail to your BPM projects
and timings are limited by strict change windows
coffin
Already supported by core systems (e.g. ERP, CRM) may
be already quite efficient so incremental improvements
cost-benefit ratio will not be favorable
Need advice on selecting your first process? Contact us at hello@bizagi.com

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