Process Impact Analysis

Description:

• Process Impact Analysis helps to determine which areas/processes of the organisation should be targeted for design.  This technique systematically assesses the impact redesigning candidate processes will have in terms of the Critical Success Factors, Key Performance Indicators and/or Shared Values and Guiding Principles.

When to Use

• Process Impact Analysis is a technique to assist in the selection of initial Focus Areas for the BPI initiative. Subsequent, more detailed “As-Is” assessments are conducted as part of the Focus phase.

Approach

Process Impact Analysis draws upon the organisation’s Holistic Business Model, (Confirmed) Business Vision, Critical Success Factors, Key Performance Indicators and Shared Values and Guiding Principles. Depending on the client environment, the level of scrutiny of analysis will range from a subjective, qualitative assessment to a rigorous, quantitative approach. This choice is influenced by the number of processes being evaluated, knowledge of where problems lie within the processes, need for consensus and buy-in from management/employees and the relative sophistication of the organisation.

1. Identify processes to be analyzed
2. Develop process impact analysis framework

• Determine areas most pertinent to process impact (e.g. Critical Success Factors, Key Performance Indicators and Shared Values and Guiding Principles)
• Determine scoring/evaluation mechanism.  Possible presentation options include:
• High/medium/low impact ranking of each area (H/M/L)
• Shaded circles: filling in quarters of circle—empty equals no impact; full equals maximum impact
• Quantitative scoring:  rating impact on a scale of one through ten
• Allotted “money”: asking participants where they would spend a fictional, “X”
• Number of dollars if they unexpectedly received a windfall
• Weighted scores: ranking Critical Success Factors from most to least important, then scoring  each process (e.g. 1-10) to determine the average contribution to Critical Success Factors.
• Complete the framework
• Using the consensus, scoring system or other approach, finalise the opinions and decisions on the impact each process makes on the comparison information

Guidelines

Problems/Solutions

• Scoring and ranking algorithms tend to be overly-complicated and often not easily understood.  It is more important that the client understands how the scores were derived than for the scores to be exceptionally precise or complex.

Tactics/Helpful Hints

• Determine the scoring or other approach as part of work sessions with the client.  This allows the client to retain control over and take ownership of the selection of Focus Areas.

Example of a Quantitative Approach to Analysing the Impact of Business Processes on Critical Success Factors SOURCE: biz-performance