{"id":47,"date":"2023-01-30T18:28:53","date_gmt":"2023-01-30T18:28:53","guid":{"rendered":"https:\/\/leverage.mobi\/blog\/?p=47"},"modified":"2023-01-30T18:30:21","modified_gmt":"2023-01-30T18:30:21","slug":"business-processes-vs-business-models","status":"publish","type":"post","link":"https:\/\/leverage.mobi\/blog\/2023\/01\/30\/business-processes-vs-business-models\/","title":{"rendered":"Business Processes vs Business Models"},"content":{"rendered":"\n<p>You&#8217;ve probably been there on an HCM project or within your business environment.<\/p>\n\n\n\n<p>&#8220;What&#8217;s the business process?&#8221;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"226\" src=\"https:\/\/leverage.mobi\/blog\/wp-content\/uploads\/2023\/01\/Swimlane-1024x226.jpg\" alt=\"\" class=\"wp-image-48\" srcset=\"https:\/\/leverage.mobi\/blog\/wp-content\/uploads\/2023\/01\/Swimlane-1024x226.jpg 1024w, https:\/\/leverage.mobi\/blog\/wp-content\/uploads\/2023\/01\/Swimlane-300x66.jpg 300w, https:\/\/leverage.mobi\/blog\/wp-content\/uploads\/2023\/01\/Swimlane-768x169.jpg 768w, https:\/\/leverage.mobi\/blog\/wp-content\/uploads\/2023\/01\/Swimlane.jpg 1361w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>And somebody will pull out a hard-to-read diagram &#8211; with lots of arrows pointing to small blocks, a bunch of triangles with abstract decision points, and shout triumphantly &#8220;here it is&#8221;.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">If this is you&#8230; I recommend a rusty razor blade and starting to write a note to your loved ones, asking to remembered fondly&#8230;<\/h3>\n\n\n\n<p>Here is why I suggest the above path of action:<\/p>\n\n\n\n<ul>\n<li>30 seconds after go-live, no user will ever read the process above. Business processes aren&#8217;t worth the paper they aren&#8217;t printed on.<\/li>\n\n\n\n<li>A business process is useful, but only if all the actors have bought into the process and the role they need to fulfill.<\/li>\n\n\n\n<li>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.<\/li>\n\n\n\n<li>In fact, the business process should be embedded into any decent software&#8230; but that&#8217;s a topic for another day.  There really shouldn&#8217;t be a need for a user to ever read a swimlane&#8230;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">So&#8230; what should we focus on?<\/h3>\n\n\n\n<p>I&#8217;ve called it a business model &#8211; and it&#8217;s not in a true sense&#8230;  But what should be focused on in any business &#8211; much more than the process &#8211; is the actors in the business &#8211; what they do and what value they add.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">&#8220;Huh?  I&#8217;m not following&#8230;&#8221;<\/h3>\n\n\n\n<p>At a recent client, there were a number of different parties \/ groups of people.  Let&#8217;s keep this high level to protect the innocent, but we&#8217;ll list a few of them:<\/p>\n\n\n\n<ul>\n<li>Employees<\/li>\n\n\n\n<li>Line Managers<\/li>\n\n\n\n<li>HR Business Partners<\/li>\n\n\n\n<li>Payroll<\/li>\n\n\n\n<li>Master Data<\/li>\n<\/ul>\n\n\n\n<p>These were known \/ existing groups of people.  So with this in mind, the process engineers built some very cool swimlanes, which nobody read.<\/p>\n\n\n\n<p class=\"has-vivid-red-color has-text-color\">And&#8230; when we went live, because nobody had read \/ understood the business processes, there was CHAOS&#8230;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">A New Approach.<\/h3>\n\n\n\n<p>Forget complex swimlanes.  Start the project with:<\/p>\n\n\n\n<ul>\n<li>An understanding of your current capabilities \/ groups (&#8220;we have an HR function; and a Payroll Function&#8221;)<\/li>\n\n\n\n<li>Understand their incentives.  What drives their behavior?  (Sample:  &#8220;Our Payroll Team are responsible for the correct payment of people &#8211; but rely on HR to type in everything except for monetary amounts&#8230;&#8221;<\/li>\n\n\n\n<li>Then&#8230; with this in mind&#8230; investigate the software capabilities and focus on what skills are needed; what governance is required; what segregation of duties is mandatory &#8211; and build a simple capability-based business model.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Worked Example:<\/h3>\n\n\n\n<p>Let&#8217;s use the Recruitment process here.  We&#8217;ll go simple, because you&#8217;re already doing well to still be reading (thanks, by the way!).<\/p>\n\n\n\n<p>In the Recruitment value chain, your company has:<\/p>\n\n\n\n<ul>\n<li>Recruiters<\/li>\n\n\n\n<li>HR people<\/li>\n\n\n\n<li>Applicants.  That&#8217;s it&#8230; simple business model.<\/li>\n<\/ul>\n\n\n\n<p>In the software, based on standard capabilities, we see some new roles that could be in play:<\/p>\n\n\n\n<ul>\n<li>Line Managers &#8211; who can create a requisition themselves &#8211; with approval<\/li>\n\n\n\n<li>OD people, who need to create jobs \/ positions at some points<\/li>\n\n\n\n<li>Recruiters<\/li>\n\n\n\n<li>Compensation experts &#8211; responsible for offers<\/li>\n\n\n\n<li>Support experts &#8211; for when things go wrong \/ we want new features.<\/li>\n<\/ul>\n\n\n\n<h5 class=\"wp-block-heading\">Which begs the most important questions:<\/h5>\n\n\n\n<ol>\n<li>Do the new groups above have the skills to deliver what they need to?<\/li>\n\n\n\n<li>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.?<\/li>\n\n\n\n<li>What are the Critical Success Factors in their role?<\/li>\n\n\n\n<li>Can they describe the high-level process in it&#8217;s entirety?  <\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\">Right now, you&#8217;re thinking &#8220;that&#8217;s a swimlane!&#8221;<\/h3>\n\n\n\n<p>And you&#8217;d be correct.  But by taking a step back &#8211; getting agreement on the roles \/ CSF&#8217;s; ensuring you have the right people with the right skills &#8211; suddenly a complex swimlane isn&#8217;t important any more.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">And the summary<\/h2>\n\n\n\n<p>It&#8217;s a mistake to dive into detail with a business process.  People get lost in detail, and the swimlane is an abstract concept.<\/p>\n\n\n\n<p>Make it real.  Talk about people&#8217;s roles; educate them on the process in general; give them the tools to self-organise&#8230; and the swimlane will sort itself out&#8230;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">  <\/h3>\n","protected":false},"excerpt":{"rendered":"<p>If your users can&#8217;t see the wood for the trees, it&#8217;s likely that they don&#8217;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.<\/p>\n","protected":false},"author":1,"featured_media":93,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[24,4,25],"tags":[27,28,29,26],"_links":{"self":[{"href":"https:\/\/leverage.mobi\/blog\/wp-json\/wp\/v2\/posts\/47"}],"collection":[{"href":"https:\/\/leverage.mobi\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/leverage.mobi\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/leverage.mobi\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/leverage.mobi\/blog\/wp-json\/wp\/v2\/comments?post=47"}],"version-history":[{"count":4,"href":"https:\/\/leverage.mobi\/blog\/wp-json\/wp\/v2\/posts\/47\/revisions"}],"predecessor-version":[{"id":52,"href":"https:\/\/leverage.mobi\/blog\/wp-json\/wp\/v2\/posts\/47\/revisions\/52"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/leverage.mobi\/blog\/wp-json\/wp\/v2\/media\/93"}],"wp:attachment":[{"href":"https:\/\/leverage.mobi\/blog\/wp-json\/wp\/v2\/media?parent=47"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/leverage.mobi\/blog\/wp-json\/wp\/v2\/categories?post=47"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/leverage.mobi\/blog\/wp-json\/wp\/v2\/tags?post=47"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}