Process management helps to provide a line of sight from strategy through execution of organizational initiatives. Akin to the business analysis (BA) requirements discipline, this traceability enables performance maturity, better communication, clearer roles and responsibilities, and good governance. Clarification of problems or opportunities for improvement is integral to business analysis and process management. In each, you must elicit and clearly state a specific problem that quantifiably affects business/operation and that ultimately matters to your customers. Process management is • an integral part of business analysis, implementation, improvement, and sustainability • solves problems • expedites risk identification, mitigation, and impact In this webinar I will explain how to: • tie process management to organizational strategy • use process management as a foundation of good decision making, change management, and governance • increase efficiency and value optimization throughout the organization.

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Confidential and Proprietary © 2014 Robbins-Gioia, LLC
Overcome Risk Using Process Management
and Process Improvement

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Goal
 Understand how strong Process Management &
Process Improvement disciplines can be leveraged to
overcome Risk Management challenges
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Overview
 Establish definitions – Risk, Risk Management,
Process, Process Management and Process
Improvement
 StrategyTraceability
 A Portfolio Perspective
 Overcoming Risk via Process Management and
Improvement
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Dictionary definition:
 (Exposure to) the possibility of loss, injury, or other adverse or unwelcome
circumstance; a chance or situation involving such a possibility.
The ISO definition:
 the 'effect of uncertainty on objectives'
Risk is related to probability and severity:
 “The probable frequency and probable magnitude of future loss”
A Threat is a risk with potential negative outcomes
An Opportunity is a risk with potential positive outcomes
What is Risk?
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 Economic risk
 Business & Operational risk
 Financial risk
 Health, Safety & Environment (HSE) risk
 Information technology & security risk
 Examples
Types of Risk
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Perceiving Risk
Perceived
through
science
Virtual
Directly
Perceived

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Issue Management
Active Risk ManagementActive Risk Gathering
Identify and
Assess Risks
Triage Risks
Need
Mitigation /
Contingency
Plan
No Mitigation /
Contingency
Plan Needed
Develop and
Manage
Mitigation /
Contingency Plans
Program Start
(Stage 0)
Assess New
Risk
During life of
program
Risk Becomes
an Issue
Execute
Contingency
Plan
V
Take Steps to
Mitigate Risks
Formal Risk
Assessment
(Stage 1)
New Risk
Identified
For Each Risk
OR VOR
Revise or Add
Mitigation
Plans
Close /
Downgrade
Risk
Monitor Risks
& Reevaluate
as Needed
• Identify and Rate
Risks
• Create Risk
Management Plans
• Monitor Risks
• Identify and Rate New
Risks
• Execute Contingency
Plans for Risks that
have become Issues
End-to-End Risk Management

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Common Risk Management Strategies
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Risk
Management
Strategies

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Process is…
 A process is a series of steps and decisions that
transform inputs into outputs in order to deliver a product
or service of value to customers while meeting the
business objectives of the organization
 Inputs can be material or information or both
 The fundamental expectation is to produce good results
for customers and the organization while managing
problems or unforeseeable events.
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In our definition, Process includes what we traditionally think
of as ‘process,’ along with its enablers: People and Technology

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Process Management is…
 Process management is the ensemble of activities of
planning, monitoring and controlling process
performance.
 Planning: defining, designing, building, testing, deploying
and measurement planning
 Monitoring: measuring, tracking & trending, analyzing and
interpreting
 Controlling: taking actions within the current-state process
to maintain process outcomes within the desired ranges
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Process Management is…
…Complex
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http://www.braincourt.de/Business-Process-Management.96.0.html

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Process Improvement is…
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“Not with inventions, but with improvements you create fortune.”
Henry Fordx
 Process Improvement is a series of actions taken to
define, analyze and improve existing processes within an
organization to meet goals and objectives.
 Adoption is necessary to realize the potential benefits.
 Sustainability is required for benefits to be ongoing.

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Succeeding at Process Improvement
• The most successful process improvement effort is
one that concentrates on:
• Increasing value to the Customer
• Creating effective processes
• Reducing resource consumption by improving
process efficiency
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Manage
Processes
Improve
Processes
Two Sides of the Same Process ‘Coin’…
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Opportunities &
Threats
Changes to Process
& Measurements
There must be a balance between continual improvement
and ongoing management of processes

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 Business Processes are the means by which
organizations achieve those aspects of their Strategy
that are realized through Operational Execution.
 Clarification of problems and opportunities for
improvement is integral to business analysis and process
management.
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Guiding Principles – Strategy Realization

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Traceability to Strategy

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 Customers do not experience processes, they experience
a series of “moments of truth.”
 Process management oversees multiple improvements,
larger-scale transformations, and/or automation efforts
to manage overall performance within and across
processes.
 A strategic focus on process clarifies the underlying risk
management strategy for the whole organization.
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The End-to-End, Portfolio Nature of PM & PI

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Managing Uncertainty to Improve Outcomes
Hypothetical Example: Uncertainty about Likelihood of Success
versus Typical Program Spending Profile
Relative Uncertainty about
Success
Spending
Profile
Low
High
Gate 0
Program Start
Gate 1 Gate 2 Gate 3 Gate 4 Gate 5
Launch
0%
100%
RelativeUncertainty
%ofProgramSpend
fromGates0-5
50%

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 This perspective increases understanding of
processes from a constricted efficiency focus, to a
more robust insight into risk mitigation and
opportunity realization.
 Maintaining a balanced focus on managing and
improving processes helps organizations address risk
in a structured manner
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Where we are…

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 This two-fold, balanced approach helps the
organization enhance its success by:
• Proactively addressing performance issues with
timely and informed decision making based on
business process data analysis
• Systematically managing a disciplined approach to
evaluate/improve effective control and governance
processes
• Maintaining a continual focus on risk within and
across all processes and change initiatives
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Contributing to success

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The Point of AllThis
 Risk Management is NOT separate from Process
Management
 Reframe Opportunities andThreats as upside and
downside Risks
 Not all types of risk may be in the scope of Process
Management & Process Improvement
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Communication
“The two words ‘information’ and ‘communication’
are often used interchangeably, but they signify
quite different things. Information is giving out;
communication is getting through.”
- Sydney Harris
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One of the biggest risks any organization faces is not
lack of information, it is lack of communication

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In Conclusion
 Do not think about Risk Management as separate
and distinct from Process Management & PI
 Process Management provides an ongoing means
for identifying and managing risks
 Risk Management activities feed the Process
Improvement pipeline
 Create a culture of constant awareness of risk
 What’s changed about current risks? What new risks are there?
 What can we do about it? What will we do about it?
 Communicate with clarity and verify understanding
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Questions?
Answers

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 Contact Information:
Mark Barnett
mark.barnett@robbinsgioia.com
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