A current state assessment and benchmarking the process

Current State Assessment 

Process Benchmarking according to APQC Business Process Framework (APQC-BPF)

Originally APQC was published with Business Process 1-5 as shown with Offers translated from Goods and Services to the word Offer.  

Irrespective of the way an organization, agency or business runs their operations each has common requirements; 

Rates of Speed or Segregate to Avoid Outages caused by Change

During run time we have three different business operating paths with workers of different types best associated with these outcomes.  

Slow Lane - The workers are performing Innovation and Transformation as we commonly invest in long term planning.  Far less people with greater skills and returns are limited or often realized over time.

Middle Lane - The workers are advanced enough to manage other workers, understand changes to business and their performance requires changes to show up in the people they are managing. Fewer People than Basic but more than Experts.  

Fast Lane - The workers are generalist and work is well defined without disruptions caused by change or proven before reaching the Fast Lane.  Most of the workers are moving at the highest speeds to produce offers with the highest quality.

Manage Resource Requirements 

Understanding the resource skills against a common return or where to get the value from experts and when the experts will fail or not be managed to produce desired results must be un-biased or fair.   

Far too often a low level manager will not have the skills to manage an expert and these are the first to be pushed out of the organization.  Let's see the real cost or what it really cost for each resource type.  

We don't have a capability for each type of model

• Each will require a phase where they define or design new offers associated with long term investments 
• Each will require a phase where they define or develop based on changes with one time cost associated with the changes and ongoing cost to operate with the changes.  
• Each will require a phase where they operate and run an organization or agency

Effort and Complexity Monitoring and Measurements

Patterns exist across every stakeholder group

Healthy Living Organizations or Agencies 

Healthy living organizations measure effectiveness without bias or beyond the managers opinions,   Workers have clear performance criteria based on industry accepted results.

Viable System Models or Cybernetics Applied 

a) if you do not prescribe to an operational use of Viable System Models - See Javier Livas an expert on the subject
b) a minimum viable system model best describes the following diagram which applies the concepts about management versus transaction capabilities and focuses on process assuming we transform to services.

Going back to Process which translates to Services using APQC

Each has a phase where "we design the strategy and vision"An output of the strategy and annual planning or budget processes which each manager must submit to retain their current workforce and submit any would be to create and update any identity attributes often associated with the management of an organizations or agencies identity by segregation of duties (Sarbanes Oxley Act 2002) amongst the resources who create the identity and master records used by transaction systems to operate the business.  

The annual investment budgets are most often setup in ERP systems at the close of the planning work.

Expense and Revenue Transaction Capabilities

Every financial transaction has a set of financial codes, an offer type and party identified-each must be set up and managed by a controlled user group avoiding variances associated with pricing, tax or cost.  

• Financial Management Capability
• Offer Management Capability
• Party Management Capability

The users who create transactions of either type must not have the ability to influence pricing, tax or other financial variables in the transactions without validation performed by an authorized management capability user.  

A sales user can request a new customer must the customer must be authorized by a group of workers in other roles who validate the organization meets the criteria for a legal entity.  The management capability user must create and validate before the sales user can submit orders for their customer.  

A sales user cannot sell an offer without a valid item or group of items defined in the design phase with the work to make the offer performed by others in the"develop the offers" phase.

Sustainable Development and Reduction of Risk would manage these Five capabilities carefully and as prescribed as the design systematically governs as the law intends and establishes the segregation of duties amongs the workers.  

Resiliency and Risk associated with Party Management Capabilities (create, change or archive) must meet the zero data loss criteria AND Sarbanes Oxley Act of 2002 requires validations and monitoring of all new, updates or changes.  Never delete only archive these records.  

• Design and strategy serve as the implicate order which requires a different level of skill
• Create, Design and Define based on knowing more than most
• Develop offers through to managing offers are the transaction during run time for explicate order

If I took APQC as it was in 2016, it had been changed dramatically.  

• Rather BP-1-5 we now have BP 1-12
• However, BP 6-12 are work we do in BP1 most often we design or define the work in BP-1 and these BP 6-12 processes are part of the administration or overhead associated with Planning.    
• The best way to help us understand one primary reason we fall short in realizing targets has far more to do with our inability to stay the course or deliver to the plan.  
• 30-Highly skilled persons - Experts are needed in the design work and these people become ineffective in operational roles.  
• 20-Advanced Skilled Persons - Have general knowledge and mastered the basics with another layer of experience.  
• 10-Basic or General Skilled Persons - Have entry level to mastery of a subject.
• The following graphic synthesized the entire file supplied with all levels applying the category of 10-20-30 based on the skills required to effectively deliver on the task.  

A list of the added processes which are not Level 2 Processes instead the shared services associated with administration and planning of three types of work;

• 30-Transformation or Invention for Innovation - long term planning 
• Experts support the work in design and define based on knowledge across offers and across the organizational process boundaries.
• 20-Change business change - short term projects 
• Managers and Leaders are best supporting and performance based on changes must be measured against the plans.  
• 10-Running and operating the business - operating cost
• All other workers are generalist or entry level in the operations where work is known

Cost or Expense Transaction Capabilities 

Every people manager and every project manager needs to manage the cost or expenses of resources as an operational cost associated with the department and/or to deliver on a project associated with change or transformation.  

To bring on a new person as a consultant we must require an expert skill type not employed within the organization.  Otherwise, the worker is going to supplement the work done by employees under ta temporary worker contract type.  

These are two distinct paths for a people manager.  Both paths are working with suppliers or vendors and a payment or purchase order must be issued in advance.  The supplier and vendor master record must be in the system of record (party management capability) before requisitions (expense transaction capability) or purchase orders issued.  

The consultant is typically going to require a statement of work to define the work and deliverable which will be defined in the SOW for accrual accounting and billing from the vendor for the contract work. Consultants are expected to bring their own tools like their own computers and communications devices.  The separation of duties is of great importance to any organization or agency considering the person can hold the company liable as an employee.  

The temporary worker is most often a work order issued to a preferred supplier who recruits and arranges interviews to fill a position for a known amount of time.  Not to exceed 15 months.

Therefore, the worker cost has the most use within any organization as one of the universal requirements for organizations or agencies and these cost are going to be charged to the cost of goods or applied to administration cost.   

Restoring original BP 1-5 Rationale

Each of the following capabilities can be described as shared services or used by all roles in an organization or agency.  

Each of the following are administrative cost and services supplied to each business unit within the organization not designed or developed constantly.  

• BP 6 Develop Human Capital is an HR function and always a cost associated with administration.

• BP 7 Manage Information Technology another cost associated with administration.  

• BP 8 Manage Financial Resources another cost associated with administration 

• BP 9 Acquire, Construct and Manage Assets another cost associated with administration and a sub-process to the manage financial resources process.

• BP 10 Manage enterprise risk, compliance, remediation and Resiliency are all cost associated with running the executive office and administration.

• BP 11 Manage external relationships often refers to the legal work done as a cost to administration.

• BP 12 Develop Business Capabilities is a cost associated with Administration 

Outcomes of BP 1 Design Strategy and Vision 

All work associated with developing the plans for transformation, changes and operating the business.

• All create of party, offer and financial segments associated with management capabilities.
• All budgets and allocations are entered and available to workers in ERP systems

If we assume the identity and planning associated with a viable system model we transition from management capabilities to transaction capabilities associated with BP 2 - 5 

No new offer can begin development until setup and financial account segments assigned in the system of record.  

System of Record

• All new items in an offer must be setup before we develop an item in an offer
• ERP enterprise resource planning applications are the best place for the management capabilities.  
• Master record setup requires a very well designed mapping between offers and cost accounts for the appropriate chart of accounts results.  
• Only a super user group has the authority to setup items, parties and/or general ledger account codes.
• The users in the super user group cannot have the authority to create a transaction
• The transaction user group cannot have the authority to create master records  
• Transaction records must be validated by an authorized person before reporting to outside regulatory authorities
• Setting up a party record may influence the customers discount on all transactions
• Setting up an item or offers may influence pricing on every transaction 

No two organizations or agencies are going to have the same current state (As Is).

• The strategy for Enterprise and Business Architecture would complement the foundation architecture work (Modeling); by learning the latest industry standards and using them as tools or a guide to apply in any environment.  
• Transform to a model which empowers people with an online global platform