TechTalk: Introduction to process governance
Process governance is a crucial aspect of business operations, ensuring that organizational processes are designed, executed, and monitored effectively. In this segment of the series about the business process catalog, we delve into the principles and practices of process governance. We give you a framework that can be vital for organizations, especially when they implement technology solutions like Dynamics 365.
We based this article on a TechTalk that you can find online in the Dynamics 365 channel on YouTube.
The following image is a screenshot of the business process management (BPM) framework that the TechTalk presents. It emphasizes that BPM is about aligning business processes with the strategy to drive business results and create customer value. And it integrates aspects such as definition management and improvement of processes.
Understanding process governance
Process governance involves establishing policies, procedures, and controls to ensure that business processes are not only efficient but also compliant with industry standards and organizational goals. A robust process governance framework typically comprises three main components: policies, procedures, and controls.
Policies provide clear guidelines and rules for process design and execution.
Procedures are the defined steps and actions that need to be followed within each process.
Controls are mechanisms that help organizations monitor, evaluate, and enforce compliance with these policies and procedures.
This framework is important in technology implementations, where the impact on an organization can be significant. By standardizing processes and eliminating redundancies, process governance helps streamline operations, improve productivity, and ensure compliance with regulatory requirements.
Establish a framework for process governance
Setting up a process governance framework involves several critical steps, starting with understanding the organization's current state and defining a roadmap for improvement. The Business Process Management (BPM) framework offers a methodology for defining, managing, and improving a company's end-to-end business processes. It's an essential part of establishing a process governance framework to have clearly defined end-to-end business processes.
The image outlines a five step process to implement process governance:
- Gain leadership support
- Engaging stakeholders
- Customize the governance framework
- Communicating effectively
- Continuously monitor and adapt
The BPM framework typically includes six stages: Discover, Assess, Model, Analyze, Design, and Manage. Each stage builds on the previous one, creating a continuous cycle of improvement that helps organizations refine their processes over time.
Discover phase
In this phase, organizations gather detailed information about their processes, interviewing stakeholders at different levels to understand the inputs, outputs, key activities, and roles involved.
Assess phase
Here, organizations analyze the state of their processes, identifying goals, constraints, and alignment with company objectives. This phase helps organizations understand how well their processes are performing and where there is room for improvement.
Model phase
This phase involves creating visual representations of processes, often using tools such as Microsoft Visio and BPMN 2.0 notation. Standardization in modeling is crucial for comprehension and ensuring that everyone in the organization understands how processes function.
Analyze phase
During analysis, organizations identify issues and opportunities for improvement. They can focus on areas such as outdated policies, ineffective controls, workflow barriers, and low customer satisfaction.
Design phase
This phase is where improvements, redesigns, or complete re-engineering of processes occur. The outputs could include new process models, business cases for changes, and simulations to test the impact of these changes.
Manage phase
The final phase involves managing process performance and setting the stage for continuous improvement. It includes monitoring performance, using tools like balanced scorecards, and ensuring alignment with organizational goals.
Tips for successful implementation
Implementing a process governance framework requires careful planning and execution. Here are some strategies to consider:
Gain leadership support
Securing buy-in from senior leadership is critical. Present a compelling business case that highlights the benefits of process governance and engages executives in the development of the framework to foster ownership and alignment with organizational goals.
Engage stakeholders
Identify and involve key stakeholders from across the organization, including process owners, subject matter experts, and end-users. Foster open communication and collaboration to gather insights, address concerns, and align expectations.
Customize the framework
Tailor the governance framework to your organization's specific needs by considering industry regulations, company size, and maturity level. Strike a balance between standardization and adaptability to ensure the framework is sustainable and scalable.
Effective communication and training
Communicate the purpose, goals, and benefits of process governance clearly across the organization. Offer comprehensive training programs to educate stakeholders on their roles and responsibilities within the framework.
Monitor and adapt
Establish key performance indicators (KPIs) to track the effectiveness of the governance framework. Regularly monitor these KPIs, encourage continuous improvement, and adapt the framework as the organization evolves.
The following image illustrates a maturity model:
The sample model has five stages:
- Initial
- Coordinated
- Managed
- Goal-driven
- Optimizing
Each stage represents the evolution of processes in an organization, from manual and undefined at the Initial stage to fully optimized and embedded in company culture at the Optimizing stage, across the categories governance, competencies, methodologies, technology, and performance metrics.
The role of process governance in change management
Process governance plays a vital role in organizational change management, particularly when implementing new technology solutions like Dynamics 365. It ensures that changes align with organizational goals, facilitates strategic alignment, and fosters stakeholder involvement and accountability.
Managing the transition to new processes involves addressing resistance, providing resources and training, and sustaining momentum. It's important to remember that process governance is not a one-time task but an ongoing effort that requires continuous improvement and adaptation.
Conclusion
Process governance is a critical component of successful business operations, providing the structure needed to ensure processes are efficient, compliant, and aligned with organizational goals. By establishing a robust governance framework, organizations can improve process quality, enhance decision-making, and foster a culture of accountability and continuous improvement.
For more detailed guidance on implementing process governance and to explore the tools and resources available, you can visit the Microsoft Business Process TechTalks community and explore the extensive documentation and catalogues provided.
Related resources
You can use the following resources to learn more about Dynamics 365.