Management Activities – Measure Performance

Management Activities

All management activities must consider the people component of the process; which decisions people make and the outcome of their decisions. People are managed by managers who have the accountability for their people and they way their effort impacts the companies overall performance.

Business Process Activity

The objective in this section of this article tells us the people to process activity that insights should be derived from. A business process decision.

A business process step or square box equals a person, action or cost for effort and a dependency with another functional group in cases of decisions.

Truth Statement

A”truth statement” about the performance measures across two organizations in the business process model.

The following diagram highlights the connections across two functions; in an expense transaction capability we begin with an investment planned or sale that must be fulfilled for a customer. Our purchasing department enables the request by accepting the request “as is”.

1. If not accepted, the process returns to the requester for re-work.

If accepted, the purchase order would be created and transmitted to the supplier. Another cross functional activity with an external stakeholder, another point of measurement. Did our supplier perform as expected based on the predefined process?

Level 2 Expense Transaction Capability

Performance Measurement

Any cross functional hand-off must be measured by input and output with the diamond representing a management activity that an employee would be measured for outcomes of their decision.

An example;

1. How many times can purchasing accept the purchase request “as is”?
2. Does this return to requester task reduce the purchasing departments effectiveness?

For this reason, any enterprise insight or management report must include the steps saved in the delivery of such insights. What am I saying? The great results from insights often becomes realized in the form of a report.

Two different data sources may be connected in ways that the process remains and people effort may appear to be corrected when in fact only the report was changed.

This seems like a great opportunity to me as a Lean and Design for Six Sigma minded person. I love to re-engineer business processes. People love to perform work that adds value.

Otherwise you are presenting half the picture, you haven’t factored the cost nor reduced the effort people are performing for no reason. This has been the single biggest failure in the world of reporting without any visibility into the operational performance.

If you are reporting outside the applications people use to perform the activity in a process, you are introducing lower value for the audience that should be measured for severity by the number of rows in a table.

Multiply by a person and assume the savings for the person to stop performing low value work if the information meets the business management reports by omission of information or connecting places that weren’t connected earlier.

Whenever you see a diamond you should assume capture of an input concludes with a decision. Report or BI=each column in a process performance measure would be captured and retained for electronic record purposes.

A person inputs a decision; diamond decision in a workflow to output a column in a table or schema by the number of rows

• Each Row in a performance report; ie…the values in the rows column=equals an output from a person acquire person effort time
• In my opinion, a process = a series of steps that must be sequenced to input a desired output.
• I cannot think of a single example where the process isn’t sequenced; one assumes the process sequence in every organization may be named and slightly differ by industry.
• Maturity in Business Process would assume every maturity has no opportunity to break this business expectation.

By design the current challenge we face, seems to be helping raise the vital impact to the bottom line with these types of nuances being mis-applied via technology forums.

 

Stakeholder Dilemma

The stakeholder dilemma

a great article written by Jim Harris

Enterprise Wide initiatives and barriers to success will be highlighted by his article, which allows the consultant and sponsor to level set on in scope and nice to have with strong change management and management directives.

Stakeholders by Process

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Expense Transaction Capability

Business Process model

Performance measure for business and quality management

Supplies the impact and dependency reference relationships across functional boundaries.  Ideally the service management and change management reference architecture.

Establishes the operational architecture within the transaction systems.

We must assume there are no application dependencies; therefore services or integration (extract, transform and read).

 

 

Process and People

Highlights the business service based on trends and design pattern identification.

Measures the transition from one function as an output, which will be an input to the next functional stakeholder audience.

Drills into a sub-process 1

• Stakeholders Engineering
• Expense Transaction Capability
• Notice the bold line introduces the cross-departmental reviewer

Remaining at the 5 capabilities; the following process flow infers that the manager approved the spend in the amount allocated in the investment;

QUESTION:

My question for the auditor (s) would be that it seems we have inserted an additional transaction wait which will impact the suppliers or at worst the customers experience.

Response:

The annual planning process and transition to the people manager; has an assigned budget allocation manager. This is a documented process with a systemic approval logged at the budget transition to the manager who’s been authorized to spend the line on the annual investment plan we would have met the manager approval.  The supporting approver in finance and procurement supplies the additional approvers.

Solution:

All request must be sent to the managers work file to allow intervention in the fewer exception scenarios.  REVERSE ENGINEER address the 20% or less focus on manager accountability to act.

When a cross-function approval is going to verify the expense allocation approved by the two senior managers in annual planning.  Visibility for the manager in their dashboard would suffice to intervene in cases of potential fraud.

Note:

The next approval would be appropriately require the manager approver or signatory authorized to pay the expense higher in the same organization hierarchy.

Each year the values may change in a new strategy; the framework for delivery MUST be static.  Only major shifts in the industry would promote a change to the framework.

 

 

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A highway analogy for universal standards in global business models

Purpose:

To aid any industry and any person charged with enabling strategy for an organization to effectively meet agility, sustainability and global standards for the various Business and Quality management systems basics for Real World (outside in) and simplify the technology.

Business Value Presentation

Business Service Model Audience

Private Clouds for Enterprise Size Globals and multi-multi-national companies with the following;

• International
• Regional

Public Clouds for small and medium size companies

An analogy

An analogy of a 3 lane highway anywhere in the world, we are not going to discuss the highway location, nor the travelers.

Entry and Exit

We will explain the points of entry and exit, the speed in which we would expect in each lane and how the two directions on any highway tell us whether to reduce our expense or increase our revenue.

South

We can assume that our suppliers travel in one direction for the purpose of this analogy we will assume they are in our southbound direction on any of the three lanes.

North
We can assume travelers Northbound on the highway are customers with the revenue outcome measured in any entering traveler.  We can assume the revenue was recognized at the exit of the traveler when exiting the highway.

Three lanes
In either direction we can assume the traveler enters the highway in some motor vehicle.  We are not concerned about the make, model or color and even less concerned about the driver.

In this analogy we simply know these details exist, which may influence the rate of speed the traveler moves in either North or South directions.

As with any highway, we have a slow lane that all travelers enter the highway by merging into the slow lane.  As the traveler accelerates they may move into the middle lane and eventually the farthest lane to the left.

Performance Measures
The performance of an organization can be derived by the number of travelers entering in one direction and how quickly they begin to measure the make and models entering in the North direction after exiting from the South bound direction.  We are assuming that south bound relates our suppliers with the build of an offer, exiting implies a customer can pick up the vehicle and travel North as they purchase the vehicle.

Design Strategy

Design Patterns for Real World as an Operational Business Service Guide

The slow lane – Emerging Offers – Deferred New Business Models the competitive advantage and innovation model
Any entrance and exit isn’t restricted by the design, we are predicting the rate of speed the new business models will be traveling slower in the first lane before they are allowed to merge on to the middle or farthest left lane.  We suspect they will exit and enter frequently, therefore they will be best suited to travel in the first slow lane.

The middle lane – Advanced Offers – Risk According to the Security Exchange Commission
The middle lane travelers who first enter, then accelerate and merge to the middle lane.  They may merge further left to the fast lane with the assumption that they will not impede the faster travelers.
Assume this behavior or design pattern speaks to the way these offers ramp up and come back to get re-aligned several times before making it to the fast lane.

The fast lane-Build Order Transfer models Your Channel Led Model
In some cases the commuter lane, where the distribution model works with a partner to allow the fully sustained model.

Capabilities

Your 5 capability model summarizes and converges the financial, business and quality management systems into your ERP system as the primary and single version of truth.  Your MDM systems enable ERP master records and collect the transaction relationships for your 360 degree view of each of the MDM or management capabilities that your transaction capabilities must use in to enable the reference architecture views.  The application of the reference information captures the point in time views.

Your management capabilities and transaction capabilities are designed for the best and known design patterns.  Your organization should be measuring the performance against these criteria for external stakeholders.  In doing so you continue with your liberal approach to decision making.

You quickly can recover in cases where you have over-corrected.  You are on your way to cloud services in this basic design and ready for new strategies every time.  No longer should you have to re-visit the enterprise or business architecture, rather the color, make and model investments are the scope of your future investments.

Don’t misunderstand, every road needs to be re-surfaced and new exit and entrances will be required.  However, the timelines of acquiring this activity no longer hinders your new business model.  Technology can be aligned to this model for faster and better services without customizations every time.

1. Public Sector Hierarchy for a highway model
2. Modeling Approaches

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Series In Draft

• Part I-the analogy
• Part II-The industry defined in a way to translate into the terminology used by the audience-Public Sector and Non-Profit
• Part III-Integration of Master Data, Business Process and the various “ilities’ Recoverability, Resiliency etc.
• Part IV-Operational Reference Architecture L2-3 in your capability model
• Part V-The design for systems in the converged modeling the new Quality Definition – Quality Architecture
• Part VI-Sub-Process Levels 1-6 the stakeholder conversations getting in to the for purpose audience

5 Capabilities for Enterprise and Business Architecture

 

 

 

 

 

 

 

 (5) capabilities in Enterprise and Business Architecture

The people, process and technology relationships before the design of any actual solution in technology.

Management Capabilities

Board of Directors and C-Level Strategies

• 5 Capabilities for Enterprise and Business Architecture

• Offer Management 
• Party Management 
  • 
• Financial Management

• Strategy Post Execution with Innovationand Service Management
  • Expense Transaction
  • Revenue Transaction

This series focuses on the out of the box solutions for generic technology features based on the business need.  In this case; both real world and fit for purpose are highlighted.

When to apply; real world will always be my focus.

When I refer to Fit to Purpose; it is to provide the knowledge for common barriers in most companies and industry forums.

The executives and board of directors are the masters of their domains.

 

Process

Sub-Process Level 1 working with Level 2-The Volume and Big Data stakeholders those who are the political giants in almost every company.

Technology

Event driven architecture for known transitions between functions-System thinking in the natural flow of people, process and ideally technology.

People

Assume you have a planned and the strategy supports your offer; you are a member of engineering charged with design and development of the companies offers.  Today you are working in the product item or service item assigned and grouping by product families.  Everything you do must get into the weeds and therefore it’s grown and keeps growing.

Who?

A person in an assigned business group(1:Many)

A person in the partnership with a business group to package and identify your Total Addressable Market and your public presence for your offer you are a marketing specialist in the same business group.

A consumer of your offer who has a relationship with or can purchase from a retail partner.

Why?

Strategy

There’s a value to an identified target audience; if you build the offer; You have a competitive advantage.

Resilience

The critical need if you think globally and think minimal criteria to run the task your organization MUST meet. Assume you must be prepared for a natural disaster; your offer and the ability to manage and enrich the offer are your primary concern.

Business Process

To ensure you are secure and running without data loss in the right sequence.

 Security

Having secure business services; ensures your ideas are protected. You are the master of your specialty in your offer.

Quality

Assume this represents the accountability you have as an engineer resource in the first sub-process level 1.

How?

This business architecture introduces a real use case to distinguish between inputs “big data” versus the operational zero data loss and business services that are going to allow you to recover or turn the switch from an alternate data center.

What?

Using a system approach with your Business Process Framework in a visual top down using the event driven architecture as the re-use and critical recovery sequence to test and ensure zero data loss.

Notice the bars above and below the offer between each bar-assume a vertical flow in the middle over time; Top Down across Business Process Phases

When?

The two user groups who are most likely to retain a quantifiable measurement system are the first two process groups.

• Sub-process levels 1 & 2 have a fit for purpose requirement – Total Addressable Market
  • A corporate performance measurement supplies a quality indicator for effective investment planning (management activities) and investment realization.
  • A nice value add for these stakeholders-a published widget or breadcrumb in a portal supplied as a BI service.
  • TAM penetration planned to actual based on your intellectual property and highly restricted details in the records sourced from actual sales revenue.
    • Real World Feature optional to compare against the Fit for Purpose-A management guide.
  • In fact; you can supply a master booking to revenue dashboard using the same model in this series by leveraging the data points from the process inputs as potential and upon validation from the inputs the information as content published for the actual success.
    • This supplies a single file used by many functions for fact based and real world measurement systems the enterprise insights.

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Business Service to BPM to Reference Architecture with Value Statements

Business Service to Business Process Level 2

The Create > Enrich or Re-use information flows from right to left>>———–>

Generic Business Services

How do you get your IT delivery services structured to deliver business value?

IT Governance and Service Excellence

Sub-Process Level 1

Engineering Stakeholders

Offer Management Capability create values in the structured data (documents) when the values are used in a transaction capability they are merely a point in time.

The record results from the validation of the process outcomes for retention purposes.

IT Governance

• Electronic Records and Impacts for SOX test strategy-can be identified in any project to these Level 2 business processes.
• IT Governance using links from your content or document management system to a shared reference architecture.

Project Artifacts

Your IT project inserts the link to your file as of the time the project artifact was captured and version control ensures your execution team will use your current standards.

The service model framework for impact and dependency governance in an operational architecture.

Semantic Reference

Structured Content on your website; in your applications

In an event driven architecture you would publish the header to each of the records listed in this diagram.

Sales Opportunity> forecast

Business Process Levels 1-5

1. Level 1 Engineering
2. Level 2 Marketing
3. Level 3 Sales
4. Level 4 Operations
5. Level 5 Deliver and Support

Hierarchy to Business Service

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Quality Reference Architure

Real World Perspectives

Business Stakeholder Hierarchy;

Agility by design

1. Board of Directors
   1. Executives
      1. Officers (C-Level Executives)
      1. Trustees (Policy and Procedure roles)
         1. Stewards (Management Capabilities)
            1. Custodians (IT)

Business and Enterprise Architecture Dependency

1. Event Driven Architecture – Physical Architecture

Leveraging a logical grouping through the transition from current state to future state works for this solution to be realized and adopted while proving the value to the business.  Your executive audience defined in the Real World perspective should be your primary audience for buy-in.

     2. Business Process Architecture Life Cycle

Business Process Life Cycle

Value

The ability to predict your impact on all projects; whether discreet or non-discreet introduces a concrete manner in which to base decisions.

The ability to reduce the unknowns by introducing known relationships in order to ensure interoperability and fewer issues caused by change.

    3. Document to Record Management

1. A document refers to the intent of planned activities.
2. A record provides the results of the planned activities in facts.

   4. Transactional Capabilities Dependency

Value

The ability to define both reference and tiered application, storage and security for different risk appetites.

The ability to re-use the first entries and publish the customer expectations as headers to each of the various documents to make sure threading of the records.

The ability to confine each stakeholder audience Fit for Purpose to ensure quality standards based on the purpose.

Systems Thinking

Threading the business process dependencies across two primary operational requirements your asking for capabilities that allow your functional groups to perform activities for any transaction types as follows;

1. Expense Transaction Capabilities
2. Revenue Transaction Capabilities

Each of these two transaction types are considered the Level 2 capability in a (5) capability modeled for the real world.  The Real World will summarize these event transactions that have changed between a document to a record in electronic form at the completion of each transaction.

Graphical Perspective of the Enterprise Business Data in the Real World Model

The above graphic supplies the Enterprise Architecture components for your primary Priority with zero data loss.

When you understand the way the functional support model is designed in a Real World scenario; you can look at the term and begin to take a defensive position or you can understand the term isn’t going to make a difference.  The “Stickiness” and the way it recovers and protects the companies executives “the get out of jail free card” isn’t something functional leaders are threatened with a jail term based on someones preference?

find predictive ways to execute for re-use and systemic impact and dependency governance by design of an event driven architecture.

An event driven architecture predicts the flow of information and records enriched by the first entries to build a system model versus quantified maturity systems.

Assume the graphical presentation above begins at the top of the photo; as you move down the page; you begin a vertical flow of your records that publish or can be acquired by your Data Warehouse.  The only condition; the record must remain without any backend modification to the transaction record.  Electronic records seem to have been misunderstood from an audit worthy record retention perspective.  The real world will restore this vital record retention requirement by promoting the use of canned reports in your applications for operational recovery time objectives and assurance of no data loss.

• New Risk Management Standard -ISO 30300 and 30301 November 12, 2011.
• Zero data loss – original records capturing the FACT‘s around any expense or revenue transaction inclusive of the related children to the two types of financial statement components.
• Sarbanes Oxley further details the granular dimensions in GAAP, to re-confirm the translation between accepted practices with real audit tracking of the dimensions that prove or disprove audit worthiness against the two financial requirements.

In lay men terms any responsible employee at any company in any industry should aspire to have confidence in their performance contributing to the companies bottom line and whenever possible to contribute to top line revenue growth.

If you do not classify the operational architecture as your critical to recover and maintain zero downtime for these activities you will be at risk for losing your accuracy and therefore become questionable for your validity in reporting to your external regulatory and watch dog oversight stakeholders.

• What good would your resources be if they were unable to perform their duties?
  • You are losing money for every minute they are unable to perform their general responsibilities.
• What resources have the most to lose?
  • Those who interface with your customers
  • The same customers who will want to be assured and ready to test your ability to recover based on their activities with your company.
  • The resources who interface with your suppliers;
  • The supplier needs your payments for goods or services delivered and they will need assurance that you have the same amount on the books as they expect.
• The two stakeholders represented above are going to be the same audience for your expense and revenue transaction workflows.
  • Therefore this reference architecture focuses on the life cycle of both expense and revenue transactions in capabilities that are basic in the real world and become more functional in the Fit for Purpose layers below.
  • The real world must map the primary values that pertain to the published and validated audit reports going into ERP; based on the life cycle flow and header published to enable choices and limited responses from any business service that leads us into the way IT will supply capabilities in bundled solutions.

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Governance

The purpose of this series intends to increase knowledge from a business stakeholder to the IT leaders and project management resources who are accountable for the deliverable summarized in each of the following headings.

 

Purpose-Business Process Life Cycle

A reference architecture representing the companies transactional flow across the various stakeholder audiences in an event driven architecture you have a clear distinction between the people, process and technology.

Service Modeling

The method used by IT service providers in any Enterprise Architecture solution must differentiate between the impact to the following capabilities.

“the single most identifiable gap in any technology focused organization would prove to be the ability for the business to distinguish between management and transactional capability types.”

Event driven architecture

Using an event driven architecture to logically or physically group each processes stakeholders and services by the process at Level 2 enables a clear distinction between the impacts and dependencies.  This will enable the greatest value to the company and all future technology decisions.

Management Capabilities – Source for Applications

1. Financial Management Capabilities
2. Party Management Capabilities
3. Offer Management Capabilities

Real World Expectations

Stakeholders:

1. Board of Directors
2. Executives and their Officers

The assumption when working with these stakeholders will always assume the industry definition of each component;

1. Industry definitions are defined in your corporate policies.
2. Sarbanes Oxleyspecifically 404 Assurances Must be enabled by auditing the create, update, archive and control any changes to a person in the execution of their process.
   1. Refer to 1. which has an associated procedure that defines the task and activities.
   2. The legal and financial integrity of your company relies on strict adherence to the process; no back end solutions are authorized by any employee or officer of the company.
   3. All create, update and archive events must be audit worthy and original records retained to justify the create, change or update.
      1. There are ISO audit dependencies which may result in major, minor or certification suspensions in any deviation from this process.
      2. When the business requirement conflicts the decision MUST be real world over Fit for Purpose.

Fit for Purpose

1. Any business function
2. Any technical function or IT Service Provider

Transactional Capabilities – Referenced outcomes (values) from management capabilities

1. Expense Transaction Capabilities
2. Revenue Transaction Capabilities

Business Process Life Cycle

Includes the life cycle of various business process dependencies; the dependencies are hard with people, process and technology relationships.

• Process 1
• Process 2
• Process 3
• Process 4
• Process 5

 

Life cycle

1. The process used to re-use and integrate activities across functions to produce a guided input in a predefined process to enable an effective and measurable output.
2. The guide to audit worthy practices for GAAP.
3. The business policies decomposed to the systems they are designed to enable for corporate performance using fact based records.
4. The Business Requirements in the form of capabilities transformed into business services based on design patterns beyond perception.
5. The fact based decision making that the business needs IT to build to enable strategy faster.
6. The Criticality 1 and zero data loss scope”-Sizing the recovery strategy using an “operational architecture framework”.
7. The proven best practice to attain agility while introducing a discreet Real World view into the Fit for Purpose environments without much disruption.

 

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