Business Processes vs Business Models
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Business Processes vs Business Models
If your users can't see the wood for the trees, it's likely that they don't understand their role in the value chain. This article is about taking a step back and understanding a business model within your business, to support your business.

You've probably been there on an HCM project or within your business environment.

"What's the business process?"

And somebody will pull out a hard-to-read diagram - with lots of arrows pointing to small blocks, a bunch of triangles with abstract decision points, and shout triumphantly "here it is".

If this is you... I recommend a rusty razor blade and starting to write a note to your loved ones, asking to remembered fondly...

Here is why I suggest the above path of action:

  • 30 seconds after go-live, no user will ever read the process above. Business processes aren't worth the paper they aren't printed on.
  • A business process is useful, but only if all the actors have bought into the process and the role they need to fulfill.
  • Complex business processes ignore the fact that people tend to become self-sufficient and self-organising and will work out the process. But people are bad at becoming self-sufficient in a poorly organised business model.
  • In fact, the business process should be embedded into any decent software... but that's a topic for another day. There really shouldn't be a need for a user to ever read a swimlane...

So... what should we focus on?

I've called it a business model - and it's not in a true sense... But what should be focused on in any business - much more than the process - is the actors in the business - what they do and what value they add.

"Huh? I'm not following..."

At a recent client, there were a number of different parties / groups of people. Let's keep this high level to protect the innocent, but we'll list a few of them:

  • Employees
  • Line Managers
  • HR Business Partners
  • Payroll
  • Master Data

These were known / existing groups of people. So with this in mind, the process engineers built some very cool swimlanes, which nobody read.

And... when we went live, because nobody had read / understood the business processes, there was CHAOS...

A New Approach.

Forget complex swimlanes. Start the project with:

  • An understanding of your current capabilities / groups ("we have an HR function; and a Payroll Function")
  • Understand their incentives. What drives their behavior? (Sample: "Our Payroll Team are responsible for the correct payment of people - but rely on HR to type in everything except for monetary amounts..."
  • Then... with this in mind... investigate the software capabilities and focus on what skills are needed; what governance is required; what segregation of duties is mandatory - and build a simple capability-based business model.

Worked Example:

Let's use the Recruitment process here. We'll go simple, because you're already doing well to still be reading (thanks, by the way!).

In the Recruitment value chain, your company has:

  • Recruiters
  • HR people
  • Applicants. That's it... simple business model.

In the software, based on standard capabilities, we see some new roles that could be in play:

  • Line Managers - who can create a requisition themselves - with approval
  • OD people, who need to create jobs / positions at some points
  • Recruiters
  • Compensation experts - responsible for offers
  • Support experts - for when things go wrong / we want new features.
Which begs the most important questions:
  1. Do the new groups above have the skills to deliver what they need to?
  2. Do they understand where they fit into the process? What is their role; what is the time urgency; who do they take instruction from; how do they communicate when done etc.?
  3. What are the Critical Success Factors in their role?
  4. Can they describe the high-level process in it's entirety?

Right now, you're thinking "that's a swimlane!"

And you'd be correct. But by taking a step back - getting agreement on the roles / CSF's; ensuring you have the right people with the right skills - suddenly a complex swimlane isn't important any more.

And the summary

It's a mistake to dive into detail with a business process. People get lost in detail, and the swimlane is an abstract concept.

Make it real. Talk about people's roles; educate them on the process in general; give them the tools to self-organise... and the swimlane will sort itself out...

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