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The Better Business Analysis 
Institute Presence the Better 

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Business Analysis Podcast with 
Hindwin Walsh Today on the 

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Better Business Analysis podcast
we are going to be talking about

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one of the bread and butter. 
In this case, the bread site of 

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business analysis is one of the 
two main fundamental tools and 

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techniques that I think 
distinguish you between whether 

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or not you're a BA or whether or
not you might be in another 

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field. 
In that area is process 

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modeling. 
Now, process modeling can be a 

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boring topic for a lot of 
people. 

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I hope to make it exciting or as
educational and informative as I

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can, and we'll start there by 
talking about what is, what is a

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process and I I This is a 
constant conversation I always 

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have with BA teams who may get a
little bit confused about what 

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is processed. 
And I think it would be good for

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us to just start not look at a 
definition but just think about 

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the world and the fact that we 
are performing tasks and 

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activities every day, right? 
Everything we do in action, we 

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do even you know the the actions
that are natural in terms of 

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physics, they're all processes. 
So all the things we do at the 

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general sense and how we 
interact with things and how we 

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think. 
I want you to take that broad 

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view in terms of in terms of 
process and specifically as 

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business analysts with we're 
looking at business processes, 

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we're looking at the processes 
within the organization. 

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We're looking at processes in 
terms of interactions with 

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systems and and other 
technology. 

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We're looking at processes in 
terms of those which are at the 

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top end of the business, the 
business model, the 

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organizational capabilities that
are required for the business. 

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And we're looking at what you 
might standardly think of when 

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when I say process, the business
process, the both the model and 

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you know and the maps there. 
And finally, there's of course 

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one of the most important 
processes which aren't discussed

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much when we talk about process 
modeling internally at a 

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business, which is the customer 
journey, the process in which 

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the customer, our end customer 
go through. 

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So when I talk about processes 
here, I'm talking about all of 

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those aspects. 
And so if you think about the 

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customer journey and you think 
of the process between that in 

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terms of the organization 
fulfilling a service, the 

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service design process and then 
the business model required to 

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support that. 
Then the highest level 

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capabilities required to support
the business model. 

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Then the processes within each 
area of the business and then 

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the tasks required to execute on
that process. 

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And then there's system 
processes of course and then 

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there's data probably under 
that. 

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That's a lot of different 
layers. 

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And what we use to describe 
those layers is a hierarchy. 

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Because there is a hierarchy, 
there's usually a lot less at 

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the top and there's usually a 
lot more exponential kind of 

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growth down below. 
And you can and you can 

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visualize that like a triangle. 
OK. 

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And when you talk about business
hierarchy, various different 

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organizations have divided up 
the hierarchy into different 

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sections. 
And we usually refer to those 

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sections as levels. 
And they're usually given a 

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number from zero, you know, down
to four or five or six. 

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And you depending on where you 
go, If you go to, say, some of 

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the organizations that are 
closely along with BPMM, there 

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will be a process model. 
In education learning, you learn

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around process models. 
And also there's a great website

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which we'll talk about more of 
throughout the episode, which is

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called the APQC model, which 
also has its own definition of 

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what these levels are. 
And I don't want you to get too 

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too caught up on these levels. 
All I'll say is that there's 

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slight differences in terms of 
where they draw the line or how 

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many levels they are, but 
they've really divided this 

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pyramid up in terms of talking 
about the information you need 

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and the level of level of 
abstraction in which that level 

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talks about. 
OK and and and I'm going to just

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talk about four levels today 
because this is the model that I

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subscribe to and that means that
I would choose the right 

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definition of those levels for 
the organization or come along 

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with one. 
So as Bas don't please don't get

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into debates necessarily on 
different views of that as long 

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as you know the logic of the the
competing model makes sense. 

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What we'll we'll start with is 
what is level 0 and and this is 

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where the numbering can can 
change depending on which which 

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definition you look at. 
So #0 process 0 should be the 

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highest level process in which 
your business, your organization

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operates in. 
And you could argue that that is

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the business model itself. 
So it is taking inputs, which is

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usually investment time. 
For example, it is doing 

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something and it's outputting 
something. 

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And so if you think of that as 
just one rectangle box with a 

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couple of arrows in, a couple of
arrows out and your business 

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model being the middle part, the
black box, which we'll talk 

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about a lot today, then that is 
the highest level process. 

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And that can be depicted as a 
simple box or as a business 

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model canvas for example, or as 
a lean canvas depending on kind 

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of where you've started your 
business and how mature it is. 

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And so that defines the highest 
level reason for existence. 

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Below that you then get into 
what can be referred to as 

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capabilities. 
So level one being the 

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capabilities needed to support 
your business or your type of 

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business. 
Your business will have some 

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unique attributes which we talk 
about as UVP, unique value 

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proposition and it will have 
some attributes that are 

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requires but aren't necessarily 
unique to your business and more

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of the generic business type 
processes. 

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So you have a series of those. 
The APQC model defines templated

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capability levels which it 
suggests are common across 

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business or at least very 
similar across industries 

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depending on what you do. 
And you know these are things 

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like managing financial 
resources and so that is there 

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everything to do with accounts 
payable, receivable accounts. 

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I always use accounts as an 
example because people generally

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understand that and it really 
says that it provides a series 

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of of of processes and lower 
level tasks which need to be 

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completed within that area and 
they're generic and they say 

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that you know every business 
will do a variation of these 

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things. 
We'll go into deep about how 

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that can be useful for us as Bas
in a minute, but let's just say 

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that's the highest level kind of
organizational capability boxes 

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we might have. 
And so you'd look tend to have a

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tendency to have maybe somewhere
between 5 and 15, not too many 

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of these boxes. 
If we take an example of a 

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cupcake store, it will have 
processes around marketing, it 

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will have process around sales. 
It will have processing around 

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producing the physical good. 
The manufacturing side will have

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processes around our financial 
side, HR, strategic planning for

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example. 
And there will, you'll find 

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there will probably be around 10
to 13 of those processes. 

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And when you think about selling
cupcakes through a shop, I guess

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the shop, the cupcake, the 
customer experience and the 

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serving of the customer are 
three really important elements 

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that you would most likely be 
unique to you and not 

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necessarily replicated by every 
other cupcake store unless you 

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are a franchise restaurant. 
So those processes there we've 

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just talked about maybe critical
processes for you. 

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So at the highest level, we may 
have a cupcake cafe, if you 

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like, which has got some inputs,
investment people, resources. 

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We produce cupcakes and we sell 
them and maybe coffee and tea 

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and then the output is ideally 
profit. 

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And that's our business model. 
Below that we have these 

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processes or organizational 
capabilities we talked about, 

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which are effectively groups of 
processes if you're looking at 

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from the bottom up. 
So that's level one and then we 

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get to level 2 and it's usually 
at this level. 

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And this is again where the 
different definitions come into 

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play. 
But I like to think about this 

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as the we're starting to 
actually look at a flow here. 

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We're starting to look at a 
process flow that may happen 

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within one of those 
capabilities. 

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Obviously they join together but
you're adding sequence at this 

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point and still this might be 
there may need to be this is a 

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level 2 and you may need to do a
Level 3 version of this process 

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to get down to the task level 
however or activity level. 

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But at this point we're really 
talking about doing a series of 

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flows and so. 
So one approach could be just a 

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very straight line process for 
how we, for example, we were 

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looking at the delivery of 
physical goods, in this case the

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cupcakes and manufacturing 
cupcakes would be another way of

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saying that. 
Then it could be, you know the 

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beginning of the process could 
be we've taken an order and then

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it could be all the steps for 
making maybe you've already done

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some prep. 
So it might be take cupcake, 

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apply icing, apply design, 
provide that back to the server 

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to deliver to the customer and 
that's really very, very high 

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level. 
And then you then would go down 

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to another level of abstraction 
and that was just a straight 

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flow where you might go into a 
bit more of what we would 

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consider process. 
The word we use business process

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is really this level where we 
say you know the fundamental, 

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what steps in terms of 
manufacturing cupcake which 

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would be a lower level sub 
process. 

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So again that could be Baker 
takes cupcake, Baker applies, 

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looks at order, form takes icing
from the icing area applies 

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icing you know moves to tray and
so forth. 

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And so these are the kind of 
what activities and and there I 

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dipped into a little bit of a 
how and and that was probably 

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not 100% correct, but you're 
really getting to where you are 

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associating an actor or a person
or a stakeholder. 

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You know we are in the process, 
they are, they're a back office 

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person in this case. 
So we know that this is the 

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manufacturing side and it's 
where they are doing an 

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activity. 
So that's usually represented by

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a or should be represented by a 
BPMM process map model that 

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you're drawing and that's 
accurate and that can be read. 

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And this was cupcakes, but it 
was a computerized system. 

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It was very important that we 
use the notation language that's

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common. 
So another BA could pick it up 

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or a computer could read it. 
And so once you've got down to 

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the series of steps there, we 
really know now. 

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So if we look at our cupcake 
model, we know that we've got 

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this cupcake business at our 
level zero kind of process. 

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We know the kind of process 
groups. 

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We know the general sequence, 
then we know the process steps 

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involved and below that we get 
into the how we get into 

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procedure task level. 
So this is where you are 

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associating the activity, what 
you are doing with the tools in 

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which you use all the systems 
that you interface with. 

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And so that could be the oven in
this case, it could be the pulse

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system, it could literally be 
the tools we use. 

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And and the reason why that's 
different and also important is 

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that that level, that lower 
level procedure level which is 

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how level changes quite often. 
So that you usually find that 

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these this process level was the
most open to change and it will 

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evolve and it's usually where 
the interface was system changes

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evolve and this is how people 
experience kind of it at this 

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level and that changes often. 
But whereas the general ability 

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to manufacture and to bake and 
to design A cupcake doesn't 

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particularly change even if you 
get a new blender or you you 

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know get a new piping tool for 
icing. 

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So that's the distinction there.
The house step is the procedure 

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step. 
So that hierarchy we talked 

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about which is 0 down to four in
this example is pretty much it 

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in terms of the hierarchy that's
four levels. 

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Obviously we we start at 0, but 
but we've got those four levels 

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and so you've gone down from 
business model to organizational

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capability down to kind of 
process map to process model and

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then procedure in terms of the 
how. 

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So five, I guess if you talk 
about 0 as well. 

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Now what we have missed out 
there which is equally important

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is what I would refer to as 
process Step -1. 

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It's not the sexiest name but 
it's the customer journey. 

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So this is the process the 
customer goes through to 

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interact with us or from their 
it's always written from their 

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perspective. 
So it's their the customer's 

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journey to acquire a cupcake, 
for example, buy a cupcake and 

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enjoy it. 
So that could be, you know, 

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learning about us online, 
visiting the store, putting in 

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an order, waiting to receive an 
order, receiving the cupcake, 

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eating the cupcake, posting a 
review. 

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So that's now customer journey. 
And that customer journey 

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usually will have our 
corresponding element in terms 

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of obviously it connects with 
our business model. 

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And if it doesn't, they're not a
target customer. 

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We've got something 
fundamentally wrong there and it

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will have a relationship, a 
mapping relationship with our 

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capabilities about where they 
interact. 

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And so in this case, it would be
in terms of our managing 

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customer service, in terms of 
our marketing, our sales. 

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They don't really see the 
manufacturing side, which is why

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it's back office. 
But they do experience our 

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customer service and our post 
sales processes which could be 

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you know, following them up with
an e-mail or potentially the, 

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you know, the Baker coming out 
and asking them what they 

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thought of the cupcake. 
So that customer journey is 

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hugely important, very important
when you haven't even 

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established a business yet, it's
usually a place for opportunity 

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or for you to understand your 
customers and every VA needs to 

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understand service design and 
customer journey from the world 

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of you know design thinking of 
it something called a mystery as

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in they we it's new and then 
equally from more structured 

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service design if it's something
that you are changing a process 

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or making it better or it's much
more straightforward. 

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And so that process is that -1 
as I've talked about, but it 

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should always be there. 
And so then you can clearly see 

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from the top of the pyramid this
kind of line above the pyramid 

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and then the process model from 
that from zero down to the 

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procedures and that that is your
hierarchy and and here and you 

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will not necessarily especially 
if it's a company bigger than a 

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cupcake cafe, the idea of 
modeling all that stuff is too 

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much and would be wasteful. 
So what we need to do is first 

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understand where we are in a 
project or a change, what level 

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it's affecting and map that out.
Just with really simple, simple 

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boxes. 
You don't necessarily need to 

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know the process steps, you just
need to know the inputs and 

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outputs of these steps using 
techniques like an IDIF diagram.

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Look that up if you don't know 
what that is and we talk about 

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it on our website. 
So you're effectively when you 

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start a change you should 
understand the scope and when we

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have a process hierarchy or at 
least have an idea of what that 

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should be for our company, then 
we can start you know circling 

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where a change may be affected. 
And that could be driven from 

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the customer journey if it's 
customer driven or it could be 

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something internal or it could 
be both. 

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And if we did something internal
then we can see what effect that

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might have on the customer and 
it could actually have you know 

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cause and effect as with any 
change that we could model out. 

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So that's process hierarchy. 
When you RBA you generally are 

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playing in the middle, but where
you're modeling a process for a 

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00:18:53,580 --> 00:18:57,020
department or internally and 
you're you're finding out what 

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00:18:57,020 --> 00:18:59,620
the activities are, that'll be a
that, I'm sorry, your 

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00:18:59,620 --> 00:19:02,820
stakeholder is going through. 
And that's generally using you 

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00:19:02,820 --> 00:19:08,020
know tools like Visio, Mural 
where you are trying to map this

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00:19:08,020 --> 00:19:10,820
out and using post its is a 
great way of doing that and 

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00:19:10,820 --> 00:19:13,940
moving things around until you 
get to a position where you kind

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00:19:13,940 --> 00:19:17,040
of understand what's going on 
and you understand the rules 

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00:19:17,040 --> 00:19:19,840
that need to be applied 
throughout that process flow. 

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00:19:20,160 --> 00:19:22,880
And then jumping to something 
like Visio and playing that back

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00:19:23,640 --> 00:19:28,000
to customers to get that right 
is kind of what you experience 

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00:19:28,040 --> 00:19:32,760
and having a great template. 
Understanding the shapes of BPMM

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00:19:33,080 --> 00:19:38,080
is very important and we'll be 
putting out some free learning 

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00:19:38,080 --> 00:19:42,090
around that very shortly. 
That's the kind of area that you

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00:19:42,090 --> 00:19:46,610
will find that you might start 
with or you'll really experience

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00:19:46,810 --> 00:19:49,570
them. 
And when we talk about process 

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00:19:49,570 --> 00:19:53,490
improvement, we we're generally 
looking at that kind of level of

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00:19:53,490 --> 00:19:57,050
the hierarchy. 
However, those who are Better 

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00:19:57,050 --> 00:20:00,210
Business analysts understand 
where they play within the 

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00:20:00,210 --> 00:20:04,850
hierarchy tree and what the 
impact of that process has on 

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00:20:05,130 --> 00:20:09,090
both anything below IT systems 
and anything anything above IT. 

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00:20:10,380 --> 00:20:13,220
So that's this episode I've just
talked about the process 

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00:20:13,220 --> 00:20:16,020
hierarchy. 
We will have a specific episode 

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00:20:16,060 --> 00:20:20,940
on BPM Process modeling and 
maybe a little bit more on IDIF 

299
00:20:20,980 --> 00:20:23,740
in the future, but hopefully 
that gives you an idea about 

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00:20:23,740 --> 00:20:27,580
what process is. 
Every business is basically for 

301
00:20:28,060 --> 00:20:32,180
the the purpose that exists for 
as its business model, which is 

302
00:20:32,180 --> 00:20:35,700
a process in itself made-up of 
all these other connected 

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00:20:35,740 --> 00:20:39,830
processes. 
So yeah, I hope you learned 

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00:20:39,830 --> 00:20:42,470
something today and I'll see you
in the next episode.

