Table Of Contents
What are business processes and why should I describe them?............................................................... 7
The Business Case to Describe Business Processes .................................................................................. 8
Reasons to use Business Graphics to Describe your Business Processes ................................................. 10
Business Graphics and “IDOC”.............................................................................................................. 11
What are the key business processes by major functional area? ........................................................... 12
Key Functional Areas ........................................................................................................................... 12
Planning .............................................................................................................................................. 13
Planning-related Business Processes ................................................................................................. 13
Process Details ................................................................................................................................. 14
Human Resources ................................................................................................................................ 15
HR Related Business Processes ......................................................................................................... 15
Process descriptions ......................................................................................................................... 16
Facilities Management ........................................................................................................................ 20
Related Business Processes............................................................................................................... 20
Process Details ................................................................................................................................. 21
Finance & Accounting .......................................................................................................................... 23
Related Business Processes............................................................................................................... 23
Sample Processes ............................................................................................................................. 24
Quality Assurance and Process Improvement ....................................................................................... 30
Related Business Processes............................................................................................................... 30
Sample Processes ............................................................................................................................. 31
Sales & Marketing ............................................................................................................................... 35
Related Business Processes............................................................................................................... 35
Process Details ................................................................................................................................. 36
Information Technology ....................................................................................................................... 45
Related Business Processes............................................................................................................... 45
Process Details ................................................................................................................................. 46
Customer Care ..................................................................................................................................... 51
Related Business Processes............................................................................................................... 51
Process Details ................................................................................................................................. 52
Operations .......................................................................................................................................... 55
Related Business Processes............................................................................................................... 55
Process Details ................................................................................................................................. 55
Manufacturing .................................................................................................................................... 59
Related Business Processes............................................................................................................... 59
Process Details ................................................................................................................................. 59
Product Development .......................................................................................................................... 61
Related Business Processes............................................................................................................... 61
Sound familiar? Maybe you just take stuff down to FedEx/Kinko’s and let them deal with it, or
maybe you hand things off to a shipping department who handles the rest. Those are processes
as well, and they lead to other processes for those people you’re handing things off too. We are
surrounded by processes.
But why describe business processes? Isn’t that just a lot of extra work?
If you are the only person involved, it is easy to follow your habits and never write anything down.
Add 3-4 employees and now any change to your normal process can cause real headaches. You
ask an employee to do something, and they do it “their way” and upset a customer, that you then
have to deal with. You will effectively double your work, and maybe lose a customer. What about
a change in processes? Processes change all the time, perhaps because of a change in the
business or other circumstances like the supplier you use going out of business. Let’s go back to
our example of shipping. You might need to ship a package overnight by 10:30 am, and there is
only one carrier with this service in your area. The process might then look like this:
When you contact the courier they tell you the cut off time has passed for that type of service.
Now what do you do? Call another courier, contact the recipient, or maybe ship it anyway with a
different service. In a situation like this, the need for documenting business processes becomes
apparent. If you had known the cut off time, you could have told the customer up front and found
an agreeable compromise. Having a back-up plan reduces the time needed to figure out a
solution as well. By thinking through various scenarios and documenting how they should be
handled you accomplish 5 main things:
This may all sound to abstract to you, or it may just sound like too much work. But documenting
processes has become vital to the survival and growth of your business. Today, companies are
reexamining their business processes in search of more efficient ways to run their business.
Some are looking to automation, or even outsourcing. The concept of business process
management (BPM) has become the norm in large companies and enterprises. BPM is nothing
more than the practice of continually optimizing business processes through analysis, modeling
and monitoring. It is a systematic approach for solving business problems and helping them meet
their financial goals.
"Companies are realizing that a good, solid understanding of their processes is essential to
achieving any of their performance objectives," says Roger Burlton, founder of consultancy
Process Renewal Group. "Most organizations, if they're not already doing something [with BPM],
are starting to get into it."
• Efficiency. Make the most of what you have, and minimize waste.
In the information and internet era, business innovation is the name of the game if you want to
stay ahead of your global competition. The internet allows potential customers to access 10 or 20
other business that do exactly what you do. But creating new customer experiences, inventing
new paths to agility and re-thinking the way you create value is no easy task. It requires you to
change and continually improve your processes. It requires a new attitude about technology and
culture. To be a market leader you must:
• Align. Keep every employee on the same page. Everyone needs to understand (not just
know about) the company goals and objectives.
• Innovate. Document what you are doing, and be creative about changing it. These are
the first steps to innovation.
• Build. Once an idea is generated, and it is aligned with the businesses goals, you have
to build it.
To do this you need to develop a company-wide habit of documenting every process, and sharing
it with other stakeholders so they can take action. This will also enable stakeholders to better
create their own process flows and rules, because they will better understand how other systems
and processes work throughout the company. Once you have established the company wide
practice of documenting processes, they can then be better understood first, and then
modified/optimized as appropriate second.
Before you can every think about optimizing a process, you need to establish a baseline.
Documenting your processes provides this critical necessary baseline and allows you to
understand the current state of your processes. When a business first begins documenting their
processes, they often find that some are broken, or incomplete, causing a loss of revenue.
Without documentation, a broken process would continue to occur unchecked.
Documenting business process just works. Gartner indicates that 78% of projects see an internal
rate of return (IRR) of greater than 15% when properly documenting from conception to
completion. The same report indicates that these projects were deployed quickly (67% in less
than six months, 50% in less than four months). So companies are realizing significant value with
rapid returns by driving process improvement. (Justifying BPM Projects, Gartner, 2004).
Put simply, a business graphic is an image used to communicate information about a process.
Business graphics have many benefits:
• Flowcharts, swim lane diagrams, and decision trees each have particular uses/purposes
that can help to describe information in a highly effective manner.
• They are of higher professional quality, therefore, more presentable and more effective at
clearly and correctly describing and communicating a process.
• With business graphics you can make changes quickly, and can respond to competitive
factors fast and efficiently. This is particularly relevant, for example, with quality
assurance where it’s important to be able to quickly document (and improve) processes.
Remember these 4 steps and you are well on your way improving the way you do business, and
making all employees more effective. The rest of this white paper will focus on who should take
responsibility for a process, and how they might go about documenting it.
Planning
• Most companies will develop, modify and implement strategic and operational
plans on an annual (or more frequent) basis.
• As part of this process, companies will develop and clarify mission and
positioning statements, identify key strategic initiatives (and related goals and
objectives), develop supporting tactics with associated milestones, and assign
responsibility to those individuals and teams accountable for achieving the
results.
• The planning process typically involves tactics such as brainstorming, creating
mind maps, defining project plans, and developing calendars.
• Describing the specific planning (and related) processes for your organization
is critical to ensuring all stakeholders and employees understand the process
and that they are committed to completing and executing on the process.
Process Details
Planning Process
Description of the Business Process
• The planning business process describes the overall strategic and operational planning
process for your organization, including roles, responsibilities and approvals.
• An effective planning process is critical to the success for any business, and
documenting the process helps ensure organizational alignment and commitment to
executing the process.
Typical Owner(s) of the Business Process
• Chief Financial Officer, Chief Executive Office, Chief Operating Officer, and/or head of
the planning committee
Other Stakeholders of the Business Process
• Management and other individuals directly involved in the planning process
• All employees
Type of Business Graphic Typically Used to Describe the Business Process
• Flowchart
Human Resources
Process descriptions
Hiring
Description of the Business Process
• One of the key steps for any company is the practice of adding new employees to fulfill
needs, or replacing employees that have left the company.
• The Hiring business process includes steps like employee screening, recruitment and
interviewing.
Typical Owner(s) of the Business Process
• Human resources administrator, department head, manager
Other Stakeholders of the Business Process
• C-level and other top tier associates
Type of Business Graphic Typically Used to Describe the Business Process
• Flowchart
Pre-Employment Testing
Description of the Business Process
• Key to maximizing hiring efforts, pre-employment testing helps ensure the candidates
are compatible with your company’s culture and vision.
• The use of pre-employment testing also uncovers possible clashes of personality that
may occur, especially when hiring management.
Typical Owner(s) of the Business Process
• Human Resources administrators.
Other Stakeholders of the Business Process
• Consultants and testing service providers.
Type of Business Graphic Typically Used to Describe the Business Process
• Venn diagrams and matrixes.
Payroll
Description of the Business Process
• Filling taxes, completing paychecks, calculating personal time accrued and used, as well
as compensation adjustments are all part of the payroll business process.
• Using business graphics to document payroll will make it easier to train new and current
staff on accounting practices. It will also smooth the process of an audit and process
improvements.
Typical Owner(s) of the Business Process
• Human resource administrators, payroll officer, accountants
Other Stakeholders of the Business Process
• CFO, Accounting service.
Type of Business Graphic Typically Used to Describe the Business Process
• Flowchart, Gantt Chart
Holiday Scheduling
Description of the Business Process
• Giving employees holiday and personal time has become common practice for
employers.
• It is essential to document both how to request a personal day and the schedule of
when employee’s are out of the office. Conflicting or poorly communicated scheduling
will result in reduced productivity and improper staffing.
Typical Owner(s) of the Business Process
• Human Resources, Department head
Other Stakeholders of the Business Process
• Team members, and interdependent departments
Type of Business Graphic Typically Used to Describe the Business Process
• Flowchart, Gantt chart, Matrix
Recruitment
Description of the Business Process
• Recruitment is the process finding job candidates, and finding prospects that will add
needed expertise to the company.
• Recruiting can be costly and time consuming, wasting valuable company resources.
Documenting and optimizing this practice will maximize the return on investment.
Typical Owner(s) of the Business Process
• Human resources
Other Stakeholders of the Business Process
• Team leaders, Department heads
Type of Business Graphic Typically Used to Describe the Business Process
• Flowchart
Event Planning
Description of the Business Process
• Companies increasingly understand the value of special events. Trade Shows,
banquets and company picnics all require planning and communication.
• Careful use of business graphics will ensure maximum ROI for any special event.
Typical Owner(s) of the Business Process
• Human resources, event planner
Other Stakeholders of the Business Process
• Event planning service
Type of Business Graphic Typically Used to Describe the Business Process
• Flowchart, Gantt chart, calendar
Grievances
Description of the Business Process
• Employee filed grievances are a fact of life for businesses. Providing a clear and
understandable process for dealing with a grievance will minimize negative effects.
Typical Owner(s) of the Business Process
• Human Resources
Other Stakeholders of the Business Process
• Department heads and team leaders.
Type of Business Graphic Typically Used to Describe the Business Process
• Flowchart
Workplace conduct
Description of the Business Process
• Workplace conduct is an often ignored business practice. Defining and communicating
a common workplace conduct will benefit a company’s bottom line.
• Workplace conduct can include safety, work schedule, and computer usage policies.
Typical Owner(s) of the Business Process
• Human Resources, C-Level executives, and Department heads
Other Stakeholders of the Business Process
• IT and Finance
Type of Business Graphic Typically Used to Describe the Business Process
• Flowchart
Training
Description of the Business Process
• Every objective set out in a company requires some form of training. Whether training
a new employee on the vision of the company, or implementing the last six sigma
initiative, business graphics get employees up to speed much faster than boring text
documents.
• A single page process Flowchart can convey as much information as 5 pages of plain
text.
Typical Owner(s) of the Business Process
• Trainers, department heads, team leaders
Other Stakeholders of the Business Process
• Human resources
Type of Business Graphic Typically Used to Describe the Business Process
• Flowchart
Facilities Management
• Every day a variety of processes are executed to maintain and improve the
operations of a facility. Everything from lighting and temperature to the fire
escape plan is the responsibility of the facility management team.
• Energy is the largest single cost for any facility. Establishing clear energy
saving practices can have as much as a 20% reduction in operating cost
annually.
• Recent studies show that proper climate control and lighting can increase
productivity 6%-16%.
Process Details
Work Place Safety
Description of the Business Process
• With OSHA and ANSI standards to comply to, keeping employees up to speed is a key
business issue. While there are government supplied documents, a well designed
Flowchart explains and provides quick reference to ensure compliance.
• A business graphic like a flowchart will increase productivity by reducing the amount of
time needed training.
Typical Owner(s) of the Business Process
• Facility manager, office manager, shift supervisors
Other Stakeholders of the Business Process
• Controller and human resources
Type of Business Graphic Typically Used to Describe the Business Process
• Flowchart
Maintenance Requests
Description of the Business Process
• Employees not involved in maintenance may not know how to word a request for
service. Missing information require additional communications between maintenance
workers and requestors.
• Creating and documenting a process for requesting maintenance will reduce the back
and forth communication time, and allow service people to respond quickly and
effectively to requests.
Typical Owner(s) of the Business Process
• Facility Manager
Other Stakeholders of the Business Process
• Service providers, repair staff
Type of Business Graphic Typically Used to Describe the Business Process
• Flowchart
Space Planning
Description of the Business Process
• The proper use of space in an office building is key to productivity.
• Establishing common practices for the allocation of space helps personal understand
where they can find what they need. Training of new employees is also made more
efficient by the use of business graphics in space planning.
Typical Owner(s) of the Business Process
• Office and Facility managers
Other Stakeholders of the Business Process
• Human resources
Type of Business Graphic Typically Used to Describe the Business Process
• Flowchart
Preventative Maintenance
Description of the Business Process
• Preventative maintenance can save a company thousands of dollars. A key to the
success of a preventative initiative is proper decision making and ROI analysis.
• A simple cause and effect diagram can quickly and easily help any manager make the
right call on spending department funds.
Typical Owner(s) of the Business Process
• Facility manager
Other Stakeholders of the Business Process
• Office manager and human resources
Type of Business Graphic Typically Used to Describe the Business Process
• Cause & Effect diagram, flowcharts
Environmental Control
Description of the Business Process
• Temperature and air quality has a documented effect on the productivity of personal.
Keeping an office too hot or cold reduces the ability to concentrate and poor air quality
increases the chance of personal becoming ill.
• A business graphic like a matrix can communicate proper temperatures and acceptable
air quality data.
Typical Owner(s) of the Business Process
• HVAC operators and facility managers
Other Stakeholders of the Business Process
• Office manager and human resources
Type of Business Graphic Typically Used to Describe the Business Process
• Matrix and Flowchart
• Every year, at every company, goals are set and the task of allocating money to
achieve these goals falls on CFO’s and finance departments.
• Companies spend months perfecting their financial processes. The use of a
simple flowchart will ensure new hires (and those in need of a refresher) are up
to speed on the company’s objectives.
• Shareholders, investors and employees all need to be well informed about the
company’s financial status. Easily understandable charts and graphs are an
indispensible tool for delivering the information they need.
• Detailed flowcharts help clearly communicate the information locked away in
complex spreadsheets. This gives decision makers the power to successfully
plan for the coming year.
Sample Processes
Budget
Description of the Business Process
• Budgeting is a key business process effecting every department. While CFO’s and
accountants have powerful forecasting and analytical tools, they often lack a means of
communicating their data with company personnel.
• The use of Gantt charts to associate objectives with a budget is preferred, for its ability
to show the relationship clearly. Each department can be handed a Gantt chart with
the relevant information, keeping all personnel on target.
Typical Owner(s) of the Business Process
• CFO and Controller
Other Stakeholders of the Business Process
• Office Manager, department heads and team leaders
Type of Business Graphic Typically Used to Describe the Business Process
• Gantt chart
General Ledger
Description of the Business Process
• In organizations where more than one person handles the general ledger, it is vital to
document the process of updating and checking the general ledger. Inconsistencies in
handling the ledger will cost a company in time and money, and can result in legal
activity if not corrected.
• Documenting each step in an easy to read, graphical manner will ensure every
employee working with the ledger makes all necessary steps.
Typical Owner(s) of the Business Process
• Finance, CFO, Human resources
Other Stakeholders of the Business Process
• C-level executives
Type of Business Graphic Typically Used to Describe the Business Process
• Flowchart
Contracts
Description of the Business Process
• Contracts involve countless negotiations, submissions and counter submissions.
When more than one person is involved with drafting the contract, documenting what
has been done, and decisions that have been made will ensure the contract covers all
areas desired.
• Cause and effect diagrams are also used to aid in deciding what should be written into
the contract.[changed font size to 10 point]
Typical Owner(s) of the Business Process
• CFO
Other Stakeholders of the Business Process
• Marketing, IT, Human resources
Type of Business Graphic Typically Used to Describe the Business Process
• Flowchart, cause and effect diagram
Accounts Payable
Description of the Business Process
• Accounts payable involves several business processes such as reconciliation, expense
administration, and internal controls. Accounts payable is highly susceptible to abuse
such as embezzlement.
• Complete documentation of accounts payable processes will aid in the elimination of
abuse, by creating a Flowchart explain all steps taken during paying vendors, auditing
the process is a fast and effective procedure.
Typical Owner(s) of the Business Process
• Accounting
Other Stakeholders of the Business Process
• Human Resources
Type of Business Graphic Typically Used to Describe the Business Process
• Flowchart
Accounts Receivable
Description of the Business Process
• The process of billing customers that owe business money is normally handled by a
different individual than accounts payable. Requesting payment on a service rendered
or product delivered should be considered part of the customer care experience.
• Creating a business graphic for accounts receivable will increase the efficiency of this
process by visually showing where you can save time.
Typical Owner(s) of the Business Process
• Accounts Receivable, Accounting
Other Stakeholders of the Business Process
• CFO
Type of Business Graphic Typically Used to Describe the Business Process
• Flowchart
Auditing/Controls
Description of the Business Process
• The review of internal processes is rarely seen as a function needing process
improvement. However, documenting the steps in an audit will both increase the
accuracy of the audit as well as reduce the time needed to perform the audit.
• Auditing should be documented as a series of steps in a Flowchart, allowing anyone to
easily understand what is involved in the audit.
Typical Owner(s) of the Business Process
• CFO, External Auditing Service
Other Stakeholders of the Business Process
• C-Level executives
Type of Business Graphic Typically Used to Describe the Business Process
• Flowchart
Inventory Management
Description of the Business Process
• Inventory is the process of counting and documenting the assets and commodities a
company has on hand. Accuracy is paramount when performing an inventory.
• Improperly performed inventories can result in out of stocks, delivery delays, and poor
customer care. Producing a clearly defined process using a Flowchart and matrix will
help ensure accurate counts and dissemination of inventory information.
Typical Owner(s) of the Business Process
• Shipping manager, Office manager
Other Stakeholders of the Business Process
• CFO, Facility manager
Type of Business Graphic Typically Used to Describe the Business Process
• Flowchart, matrix,
Cost Accounting
Description of the Business Process
• Cost accounting follows the guidelines set out in GAAP. It involves the tracking,
recording and analyzing the cost of operating a business.
• Poor cost accounting practices will cost a business thousands by making poor use of
available data, or not producing the data needed to make sound financial decisions.
Typical Owner(s) of the Business Process
• CFO, Accounting
Other Stakeholders of the Business Process
• Office Manager, Marketing and IT
Type of Business Graphic Typically Used to Describe the Business Process
• Flowchart
Payroll
Description of the Business Process
• Payroll is the process of producing paychecks for employees which include tax
deductions, bonuses, and regular wages.
• With the high cost of mistakes during an audit, documenting the payroll process will
both improve the efficiency of the process and reduce the number of mistakes.
Training of new finance personal is made smoother by clear documentation of
company practices.
Typical Owner(s) of the Business Process
• Accounting
Other Stakeholders of the Business Process
• Human Resources
Type of Business Graphic Typically Used to Describe the Business Process
• Flowchart
Records Management
Description of the Business Process
• In the age of information, records management has become an increasingly important
business process. Archiving, storing, and retrieving company and employee records
fall under the umbrella of records management.
• Documenting the process of records management is the first step in improving on the
process. The more efficiently a company is able to archive, store and retrieve, the
more efficiently the personal depending on the records can function.
Typical Owner(s) of the Business Process
• Office Manager, Controller
Other Stakeholders of the Business Process
• Human resources, IT
Type of Business Graphic Typically Used to Describe the Business Process
• Flowchart, matrix
Invoicing
Description of the Business Process
• Invoicing is the process of sending out invoices to customers who have purchases or
intend to purchase goods or services from a business.
• Poor invoicing processes will leave a company unpaid for goods delivered or a service
rendered. By effectively invoicing, businesses will get paid sooner, reducing the need
for a collections action.
Typical Owner(s) of the Business Process
• Accounts Receivable
Other Stakeholders of the Business Process
• Accounting, CFO
Type of Business Graphic Typically Used to Describe the Business Process
• Flowchart
Sample Processes
PDCA/DMAIC
Description of the Business Process
• PDCA and DMAIC are the fundamental cycles in quality control. PDCA stands for
Plan, Do, Check, Act, and in Six Sigma this cycle is known as DMAIC; Define,
Measure, Analyze, Improve, Control.
• Documenting your QA process feels automatic, but documenting your QA process in
such a way that anyone in your company can understand and utilize the process
requires special tools. A business graphic like a Flowchart is perfect for documenting
the PDCA and DMAIC processes.
Typical Owner(s) of the Business Process
• QA
Other Stakeholders of the Business Process
• Department heads
Type of Business Graphic Typically Used to Describe the Business Process
• Process flow diagram
Failure Testing
Description of the Business Process
• The testing of a product to establish points of failure.
• A crucial step in any quality assurance cycle, improper failure testing can cost a
company hundreds of thousands if a product fails in the hands of consumer. Lengthy
lawsuits ending in settlements both cost the company monetarily and can ruin their
reputation with consumers.
Typical Owner(s) of the Business Process
• QA
Other Stakeholders of the Business Process
• Tech Support
Type of Business Graphic Typically Used to Describe the Business Process
• Process flow diagram
TQC\TQM
Description of the Business Process
• TQM (total quality management) is an operational value that an entire company
adheres to. It is defined by having a central business value of quality, and making
decisions based on the desire for quality.
• While a company-wide commitment may require spending up front, the payoff over
time will be increased productivity, brand awareness, reduced waste, and the ability to
charge more for a high quality product.
Typical Owner(s) of the Business Process
• QA
Other Stakeholders of the Business Process
• Department heads
Type of Business Graphic Typically Used to Describe the Business Process
• Process flow diagram, work flow diagram
Six Sigma
Description of the Business Process
• One of the most respected business process improvement methodologies, Six Sigma
is based on 2 cycles, DMAIC and DMADV
• Six Sigma aims to reduce defects, and to maximize the efficiency of a process.
Recently it has also been applied to product design.
Typical Owner(s) of the Business Process
• QA, Department heads
Other Stakeholders of the Business Process
• Managers
Type of Business Graphic Typically Used to Describe the Business Process
• Work flow diagram, process flow diagram, entity relationship diagrams
Customer Survey
Description of the Business Process
• Contacting customers with questions about their satisfaction with a product and
requesting any information about problems or issues is customer surveying.
• Even the very best QA teams cannot test every possible aspect of a product or service.
Surveying just 5 customers will uncover issues and design flaws that can then be
improved upon. Surveying customers also provides valuable feedback on a
customer’s experience.
Typical Owner(s) of the Business Process
• QA, Product development
Other Stakeholders of the Business Process
• Department heads
Type of Business Graphic Typically Used to Describe the Business Process
• Cause and effect diagram, Matrix
Workflow
Description of the Business Process
• Workflow is the structure of business processes, and who performs them.
• Without documentation of workflow, processes can be skipped, and a company
becomes very reliable on the expertise of individuals. Posting a workflow graphic
increases the efficiency by spreading the expertise of one employee to many or all
employees in a company.
Typical Owner(s) of the Business Process
• Managers
Other Stakeholders of the Business Process
• QA
Type of Business Graphic Typically Used to Describe the Business Process
• Work flow diagram
Project Plan
Description of the Business Process
• Administering tasks, tracking activities and establishing milestones is all part of project
planning.
• The modern business climate is one that requires constant collaboration between
departments to meet business objectives. Proper documentation of a project plan is key
to efficiently keeping employees in on track with an initiative that involve several
departments.
Typical Owner(s) of the Business Process
• Managers
Other Stakeholders of the Business Process
• Department heads
Type of Business Graphic Typically Used to Describe the Business Process
• Gantt chart
Peer Review
Description of the Business Process
• Allowing experts not involved in an activity to review the activity is the process of peer
review.
• It is impossible for those directly involved in an activity to catch every mistake. Allowing
for peer review is the most cost effective way to ensure high quality work, and adds the
perceived value peer reviewing offers.
Typical Owner(s) of the Business Process
• Activity Owner
Other Stakeholders of the Business Process
• QA
Type of Business Graphic Typically Used to Describe the Business Process
• SWOT diagram
• Pay-Per-Click
• Mission Statement and Positioning Statement
• Marketing Objectives and Tactics
• Brand Value
• Marketing and Sales Collateral
• Conference and Tradeshow Selection Process
Process Details
Defining KPI
Description of the Business Process
• Key performance indicators (KPI) are the metrics a company establishes and track to
show the success of an initiative. Example KPIs are conversion rate, customer
acquisitions, and open rates.
• Without well defined KPI, a business has a difficult time establishing success.
Thousands of dollars are wasted on ineffective processes when no baseline of KPI is
defined.
Typical Owner(s) of the Business Process
• Department Heads, Team leaders
Other Stakeholders of the Business Process
• C-Level Executives
Type of Business Graphic Typically Used to Describe the Business Process
• Decision Tables, Matrix
Keyword Selection
Description of the Business Process
• The first step in paid search advertising is the selection of words to bid on.
• With the average click cost raising above $2 a click, picking keywords that will not
convert can cost a company thousands of dollars a month. Conversely, by optimizing
the keyword selection process a company can maximize ROI and be more agile to
changes in a market segment.
Typical Owner(s) of the Business Process
• Marketing
Other Stakeholders of the Business Process
• Finance
Type of Business Graphic Typically Used to Describe the Business Process
• Decision trees, decision flow diagram
Prioritizing Initiatives
Description of the Business Process
• Initiatives, or a series of actions a company wants to carry out, are assigned a factor of
importance. This factor is used to determine how resources will be allocated amongst
initiatives.
• Company resources seem to always be limited. Committing large amounts of money or
time to an initiative that is low priority or high risk is a costly mistake. With proper
documentation, a company can communicate its priorities to all personnel.
Typical Owner(s) of the Business Process
• Marketing
Other Stakeholders of the Business Process
• C-Level executives
Type of Business Graphic Typically Used to Describe the Business Process
• Hierarchy Diagram, Decision Tree
Campaign Management
Description of the Business Process
• Campaigns are one piece of an integrated marketing communication. Campaigns can
be a series or combination of ads, emails, white papers, and blog postings with a
common message.
• Poor campaign management reduces the effectiveness of marketing efforts, and wastes
the budget defined in a marketing plan. Creating a single document with the steps to
creating a campaign, the KPI, and the theme of the campaign will align all personnel
involved with the goal of the campaign.
Typical Owner(s) of the Business Process
• Marketing
Other Stakeholders of the Business Process
• External Advertising agency
Type of Business Graphic Typically Used to Describe the Business Process
• Process flow diagram, Decision Tree
Closing a Sale
Description of the Business Process
• Closing a sale is moving a lead from prospect to customer by completing a transaction
where they purchase the company’s product or service.
• Seems obvious, but a company must close a sale to collect money for its products. The
more effectively a company can close a sale, the better ROI for its marketing efforts.
Documenting and improving this process is much easier with a business graphics like a
process Flowchart.
Typical Owner(s) of the Business Process
• Sales, Business Development
Other Stakeholders of the Business Process
• Marketing, Customer Support
Type of Business Graphic Typically Used to Describe the Business Process
• Process flow diagram
Lead Management
Description of the Business Process
• A lead can be defined by a name, email, phone number, or address that can be used to
close a sale. Leads can be purchased or collected by a company.
• Leads are so valuable to a company, mishandling them will incur major costs.
Documenting the steps of lead management (generation, grading, distribution, retention,
nurturing) keeps a sales team on point and aligned with company goals.
Typical Owner(s) of the Business Process
• Business Development
Other Stakeholders of the Business Process
• Marketing
Type of Business Graphic Typically Used to Describe the Business Process
SWOT Analysis
Description of the Business Process
• A tool for analyzing the strengths, weaknesses, opportunities and threats in business
initiatives.
• SWOT analysis is a simple diagram that allows decision makers to visualize important
data before moving forward with an initiative.
Typical Owner(s) of the Business Process
• Marketing, Business Development
Other Stakeholders of the Business Process
• Product Development
Type of Business Graphic Typically Used to Describe the Business Process
• SWOT Diagram
Direct Marketing
Description of the Business Process
• Marketing efforts that involve contacting a customer or lead directly with targeted
marketing materials.
• Because direct marketing requires contacting customers, customizing the experience for
them is key. The more personalized marketing is, the more loyal a customer will
become, ultimately becoming an evangelist for the company.
Typical Owner(s) of the Business Process
• Marketing
Other Stakeholders of the Business Process
• Business Development, Sales
Type of Business Graphic Typically Used to Describe the Business Process
• Process flow diagram
Print Advertising
Description of the Business Process
• Print Advertising is any ad printed in a magazine, book, newspaper or journal.
• Because of the nature of print ads, making informed decisions on ad placement is
essential to getting any ROI. Establishing a set of guidelines to help marketers to
decide what publications ads should be placed in.
Typical Owner(s) of the Business Process
• Marketing
Other Stakeholders of the Business Process
• Business Development
Type of Business Graphic Typically Used to Describe the Business Process
• Decision tree
Product Pricing
Description of the Business Process
• Researching and establishing the price point for a product. Involves market research,
analysis of competing products and demand forecasting.
• Improper pricing will do 2 things; price product out of market and/or reduce the
perceived value of a product. By creating a series of business graphics a company can
ensure market research, company objectives, and competitive analyses are in
alignment.
• This same series of graphics can also be used to keep personnel informed.
Typical Owner(s) of the Business Process
• Product Development, Business Development
Other Stakeholders of the Business Process
• Marketing
Type of Business Graphic Typically Used to Describe the Business Process
• Process flow diagram, Venn Diagram
Competitive Analysis
Description of the Business Process
• Analyzing any products or services that occupy the target market for feature
comparisons, strengths, and deficiencies.
• Correctly defining the competition for a product or service allows marketing to better
position it, product development to better differentiate, and sales to better sell to the
market.
Typical Owner(s) of the Business Process
• Business Development
Other Stakeholders of the Business Process
• Marketing, Product development, Sales
Type of Business Graphic Typically Used to Describe the Business Process
• SWOT, Cause & Effect, Matrix
Pay-Per-Click
Description of the Business Process
• Process for bidding on key terms, for maximizing profitability and visibility on search
engines like Google, Yahoo and MSN.
• While organic search is largely uncontrollable, paid search can be optimized
consistently. Because paid search offers such a high level of control it is important to
document the entire paid search process. Not documenting, and optimizing, the
process a company will over spend on keywords, and not place ads that have a proper
call to action.
Typical Owner(s) of the Business Process
• Marketing
Other Stakeholders of the Business Process
• Finance
Type of Business Graphic Typically Used to Describe the Business Process
• Process Flow Diagram, Decision Tree
Brand Values
Description of the Business Process
• The process for determining and documenting brand values for a company.
• Customers and employees feel more connected to a company when they understand
the company’s values. Customers who agree with your company or brands values will
be far more loyal, and more likely to evangelize about the company to others.
• Google and Apple Inc. are example companies that have succeeded in establishing a
strong brand value.
Typical Owner(s) of the Business Process
• Marketing
Other Stakeholders of the Business Process
• C-Level executives
Type of Business Graphic Typically Used to Describe the Business Process
• Decision Tree, Process Flow Diagram
Information Technology
Process Details
Deployment of New Software
Description of the Business Process
• The process of making software available for use in a network environment.
• In complex corporate network environments, following recommended procedures before
and during deployment of software reduces downtime and system malfunctions.
• A network administrator can spend an entire day just bringing employees back online
after a system change. Documenting and communicating with all staff will minimize
downtime.
Typical Owner(s) of the Business Process
• IT
Other Stakeholders of the Business Process
• Department heads
Type of Business Graphic Typically Used to Describe the Business Process
• Process flow diagram
Request Management
Description of the Business Process
• The process of collecting, organizing, prioritizing and assigning IT service requests.
• Without an efficient request management process, a companies IT department will be
buried under low priority request.
• By documenting and communicating to all personnel the process of placing a request,
and establishing a decision matrix to prioritize what requests are handled first, an IT
department can operate at maximum efficiency.
Typical Owner(s) of the Business Process
• IT
Other Stakeholders of the Business Process
• Human Resources
Type of Business Graphic Typically Used to Describe the Business Process
• Process flow diagram, Decision tables
Server Back-up
Description of the Business Process
• The copying and archiving of information produced by a server.
• Backing up a server often requires downtime or reduced performance of the server,
creating the need for proper timing and support before a back up is started.
• Producing a document outlining the steps involved in a back-up will educated all
personnel on when a server will not be available, and why it will not be available,
reducing complications of improperly saved data.
Typical Owner(s) of the Business Process
• IT
Other Stakeholders of the Business Process
• Department heads
Type of Business Graphic Typically Used to Describe the Business Process
• Work Flow Diagram
Server Maintenance
Description of the Business Process
• The process of taking a server off-line to apply software patches or hardware changes.
• Because most employees depend heavily on servers, especially exchange and file
servers, it is important to properly inform all employees of when maintenance will occur,
and what to expect to expect during that time.
• A process flow diagram including dates and times will effectively keep all employees
aware of IT activities.
Typical Owner(s) of the Business Process
• IT
Other Stakeholders of the Business Process
• Human Resources
Type of Business Graphic Typically Used to Describe the Business Process
• Process Flow Diagram
Solution Implementation
Description of the Business Process
• The deployment, integration and training for employees of a new software package.
• Documenting the process of new solution implementation using best practices like
ITIL® will reduce redundancy and speed the entire process.
• Documenting the implementation process will also ease proving compliance with
SARBOX and PCI when needed.
Typical Owner(s) of the Business Process
• IT
Other Stakeholders of the Business Process
• Client System User
Type of Business Graphic Typically Used to Describe the Business Process
• Process Flow Diagram
System Design
Description of the Business Process
• Once the decision to create a new custom system has been made, the process of
architecture and specification takes place.
• Documenting the process of system design is beneficial for later communicating why a
system was designed the way it was. It can also speed future designs tasks by
providing a common groundwork a company can use.
Typical Owner(s) of the Business Process
• IT
Other Stakeholders of the Business Process
• System Requestor
Type of Business Graphic Typically Used to Describe the Business Process
• Process Flow Diagram, Decision Tree
Employee Training
Description of the Business Process
• The process of teaching employees about new or updated software as well as
requested functionality.
• Documenting the process of training will ensure each employee trained receives the
proper skills, and reduces the need for retraining and ongoing support.
• Once the documentation has been optimized and proven effective, IT can then
leverage the documentation as a training tool, instead of valuable man hours.
Typical Owner(s) of the Business Process
• IT
Other Stakeholders of the Business Process
• Support
Type of Business Graphic Typically Used to Describe the Business Process
• Process Flow Diagram, Data Structure Diagram
Project Evaluation
Description of the Business Process
• The defining and prioritizing of a project to determine what resources should be
committed to it.
• Documenting the project evaluation process allows non-IT personnel to understand
how IT resources are allocated. As the process is improved, the type of request
becomes easier to evaluate, and the evaluation occurs faster.
Typical Owner(s) of the Business Process
• IT
Other Stakeholders of the Business Process
• Department Heads
Type of Business Graphic Typically Used to Describe the Business Process
• Process Flow Diagram
Disaster Recovery
Description of the Business Process
• The process of bringing systems back online and recovering data after a disaster.
• When a disaster occurs, a company is already reeling. Having a well documented
process for getting back online will reduce loss of revenue due to downtime, and stress
on a company’s infrastructure.
• The disaster recovery process should include information such as where data is
backed-up, how power can be delivered, and how to bring a system back online.
Typical Owner(s) of the Business Process
• IT
Other Stakeholders of the Business Process
• Facilities Management
Type of Business Graphic Typically Used to Describe the Business Process
• Process flow, work flow diagram
Reporting
Description of the Business Process
• The process of producing requested data for employees.
• Good documentation of the how IT reports data allows personnel requesting a report to
include all relevant details with the request. This ensures delivery of accurate reports,
and reduces the need to rerun a report.
• Productivity is increased by reducing the time needed to produce a single report.
Systems can be designed to provide common reports automatically, further reducing
man hours needed.
Typical Owner(s) of the Business Process
• IT
Other Stakeholders of the Business Process
• Human Resources
Type of Business Graphic Typically Used to Describe the Business Process
• Process Flow Diagram
Customer Care
• Customer facing activities are one of the most challenging and constantly
changing areas in business.
• Accurate documentation through the use of Flowcharts, cause and effect
diagrams and Gantt charts is crucial for consistent success with customer care.
• In this web 2.0 era, a single poorly handled customer could post a negative
comment on a blog read by 40,000 people a day. Conversely, properly
handling that customer could generate 40,000 new prospects for your
company.
• Accurate descriptions of customer care processes are fundamental in training
all customer facing staff, and maintain a consistent customer experience.
Process Details
Tech Support
Description of the Business Process
• Resolving problems customers are having with a product or service offered by a
company.
• Documenting how to resolve a problem presented by a customer will ensure
consistent, high quality service.
• When common problems surface, support can then feed both the problem, and the
document resolution to development, speeding the integration of fixes.
Typical Owner(s) of the Business Process
• Tech Support Agents
Other Stakeholders of the Business Process
• Customer Service Representatives, Human Resources
Type of Business Graphic Typically Used to Describe the Business Process
• Process Flow Diagrams
Customer Training
Description of the Business Process
• Teaching a customer how to use a product or service.
• Training without documents will take 4-5 times as long as training a customer with the
aid of clear, easily understandable documentation.
• A single business graphic showing how to use a company’s product is as effective as
10 pages of text while taking less time to read.
Typical Owner(s) of the Business Process
• Tech Support, Customer Service
Other Stakeholders of the Business Process
• Marketing
Type of Business Graphic Typically Used to Describe the Business Process
• Process Flow Diagram
Conflict Resolution
Description of the Business Process
• Resolving problems when normal customer service or tech support breaks down and escalates
to a conflict.
• When conflicts occur it becomes paramount to resolve the issue as quickly as possible.
• When a company has clearly documented the actions to take when a conflict arises, the time
needed to find a resolution is reduced because the next step is already defined for the
employee.
Typical Owner(s) of the Business Process
• Customer Service, Tech Support
Other Stakeholders of the Business Process
• Human Resources
Type of Business Graphic Typically Used to Describe the Business Process
• Process Flow Diagram
Product Repair
Description of the Business Process
• Applying repairs or replacing a product which is not functioning properly.
• Making timely and effective repairs to products that are malfunctioning is paramount for any
company. When repairs are not done improperly, or take much too long, the company will
develop a reputation of poor quality.
• Clear documentation of product repairs will ensure a quick turn around and proper repair,
keeping customers satisfied.
Typical Owner(s) of the Business Process
• Tech Support
Other Stakeholders of the Business Process
• Manufacturing
Type of Business Graphic Typically Used to Describe the Business Process
• Process Flow Diagram
Operations
Process Details
Copyright © 2007 SmartDraw.com | www.smartdraw.com | Phone: 1.800.768.3729 | 858.225.3300 Page 55
Best Practices in Business Graphics | A White Paper Series
Gain Competitive Advantage by Describing your Business Processes
Shipping
Description of the Business Process
• The process of moving goods from supplier to consumer.
• Documenting the process of shipping helps a company uncover inefficiencies in the process,
and moved forward with streamlining.
• A fast, effective shipping procedure will keep customers satisfied, and reduce service calls
regarding shipping.
Typical Owner(s) of the Business Process
• Shipping
Other Stakeholders of the Business Process
• Manufacturing
Type of Business Graphic Typically Used to Describe the Business Process
• Process Flow Diagram
Inventory
Description of the Business Process
• Inventory is the process of counting and documenting the assets and commodities a company
has on hand. Accuracy is paramount when performing an inventory.
• Improperly performed inventories can result in out of stocks, delivery delays, and poor customer
care. Producing a clearly defined process using a Flowchart and matrix will help ensure
accurate counts and dissemination of inventory information.
Typical Owner(s) of the Business Process
• Shipping manager, Office manager
Other Stakeholders of the Business Process
• CFO, Facility manager
Type of Business Graphic Typically Used to Describe the Business Process
• Flowchart, matrix
Staffing
Description of the Business Process
• The scheduling of employees and hiring additional employees to ensure a business operates
efficiently.
• When a company is improperly staffed, productivity is lost. On average companies experience a
drop of 8% in productivity for every understaffed day of operation.
• To prevent any loss of revenue or productivity, companies should document and share
employee schedules with a Gantt chart.
Typical Owner(s) of the Business Process
• Operations
Other Stakeholders of the Business Process
• Human Resources
Type of Business Graphic Typically Used to Describe the Business Process
• Gantt chart
Safety
Description of the Business Process
• All process involved in keeping a company compliant with federal and state regulations.
• Not following government safety standards will cause fines and restrictions to be applied by
regulators.
• Proper documentation of all company safety practices is the first step for any company to ensure
compliance. Compliance also maximizes the safety of a workplace, minimizing the occurrence
of accidents.
Typical Owner(s) of the Business Process
• Operations
Other Stakeholders of the Business Process
• Human Resources
Type of Business Graphic Typically Used to Describe the Business Process
• Process flow diagram
Production
Description of the Business Process
• The process of creating the product or service that has been defined by a company.
• Not documenting the processes involved in producing a product will lead to inefficient practices,
higher waste, poor quality and loss of potential revenue.
• A series of Flowcharts depicting each step during production allows for review and improvement
of each process, greatly reducing waste and potential increasing revenue.
Typical Owner(s) of the Business Process
• Production Manager
Other Stakeholders of the Business Process
• Manufacturing
Type of Business Graphic Typically Used to Describe the Business Process
• Process flow diagram
Manufacturing
Process Details
Lean
Description of the Business Process
• A style of management that places high priority on reducing waste. The 7 areas of waste Lean
focuses on are: Transportation, Inventory, Motion, Waiting time, over production, processing,
defective products
• Lean requires extensive documentation, making it easier to discover the activities producing
waste. Using business graphics like process flow diagrams further eases this process.
Typical Owner(s) of the Business Process
• Operations Manager, Manufacturing
Other Stakeholders of the Business Process
• Department Heads
Type of Business Graphic Typically Used to Describe the Business Process
• Process Flow Diagram, Work Flow Diagram
Six Sigma
Description of the Business Process
• A popular method of improving processes to reduce defects in products and services.
• Using business graphics like work flow and a process flow diagram in conjunction with Six
Sigma methodologies maximizes the ROI for a company improving their processes.
Typical Owner(s) of the Business Process
• QA
Other Stakeholders of the Business Process
• Department heads
Type of Business Graphic Typically Used to Describe the Business Process
• Process Flow Diagram
Quality Assurance
Description of the Business Process
• The process of establishing a baseline for quality and testing that all products meet this baseline.
• In the software industry, poor QA practices cost companies $22 billion annually.
Typical Owner(s) of the Business Process
• QA
Other Stakeholders of the Business Process
• Manufacturing
Type of Business Graphic Typically Used to Describe the Business Process
• Process Flow Diagram
Production
Description of the Business Process
• The process of creating the product or service that has been defined by a company.
• Not documenting the processes involved in producing a product will lead to inefficient practices,
higher waste, poor quality and loss of potential revenue.
• A series of Flowcharts depicting each step during production allows for review and improvement
of each process, greatly reducing waste and potential increasing revenue.
Typical Owner(s) of the Business Process
• Production Manager
Other Stakeholders of the Business Process
• Manufacturing
Type of Business Graphic Typically Used to Describe the Business Process
• Process Flow Diagram
Product Development
• The first stages of product development are often referred to as the “fuzzy front
end”.
• These beginning stages can use as much as 50% of the time allocated for
development, often causing delays such as those experienced by Microsoft and
the release of its latest OS Vista®
• Announcement of a shipping delay or production issue can cause a 9% drop in
stock price. Over a 6 month period the drop in stock price can amount to 20%.
Process Details
Market Research
Description of the Business Process
• Defining the market a product will be sold to, including establishing number of prospective
customers, projected revenue, and market saturation.
• Documenting and optimizing the processes will reduce the amount of time needed to do
research.
• Over time a company will develop a well defined process for market research and a library of
data that can be used to further reduce the time and personnel needed to define a new market
opportunity.
Typical Owner(s) of the Business Process
• Business Development
Other Stakeholders of the Business Process
• Marketing, Product Development
Type of Business Graphic Typically Used to Describe the Business Process
• Process Flow Diagram
Competitive Analysis
Description of the Business Process
• Identifying and analyzing competitors for a company’s products or services.
• Improper competitive analysis can result in commercial failure or lawsuits.
• Establishing and documenting a process for analyzing competitors gives better information to
marketers and developers, enabling them to better target a product or service. The more
targeted, the more likely it will be a success.
Typical Owner(s) of the Business Process
• Business Development
Other Stakeholders of the Business Process
• Product Development, Marketing
Type of Business Graphic Typically Used to Describe the Business Process
• Process Flow Diagram
Development
Description of the Business Process
• If planning is 50% of the product cycle, Development is the other 50%. Development is
changing a perceived need into a solution.
• Documenting the process of development is crucial. By documenting each step and all activities
that follow, such QA and manufacturing are better able to occur efficiently.
• Future improvements to the process can also be made once an initial process has been
documented.
Typical Owner(s) of the Business Process
• Developers
Other Stakeholders of the Business Process
• Marketing
Type of Business Graphic Typically Used to Describe the Business Process
• Process Flow Diagram
This section of the white paper describes the best practices associated with the various types of diagrams
that you can use for process improvement. For each diagram type, we discuss what it is, when to use, how to
use it, and provide an example of the typical use of the diagram.
Describing Business Processes
Activity Diagram
Binary Decision Diagram
Block (Function) Diagram
Causal Loop Diagram
Data Flow Diagram
Data Structure Diagram
Decision Tables
Decision Trees
Entity Relationship Diagram
Hierarchy Diagram
Influence Diagram
Mind Map (Concept Map)
Onion Diagram
Process Flow Diagram
Structograms (Nassi-Shneiderman)
State Diagram
Swim Lane Diagram
System Context Diagram
Use Case Diagram
Warnier/Orr Diagram
Work Flow Diagram
Activity Diagram
“What is it?”
An activity diagram is part of UML, or unified modeling language. They describe a series of related
activities. Each diagram contains 4 elements: Swimlanes, Action States, Action Flows, and Object
Flows.
“When do I use it?”
When you need to show a high level flow of control between objects, an activity diagram is an
effective tool. Its strengths are showing object relationships, overall flow of control, and activities of
classes.
“How do I use it?”
• Establish swimlanes. Start with three vertical lines. Each column represents a group of
responsibilities that belong to the overall activity you are documenting. You don’t have to worry
about what goes in the columns just yet, but it is good to start with the framework.
• Add a start point. A small filled circle represents a start point, and should be placed in the top-
left corner of the first column. Every activity diagram needs to have a start point.
• Add activities. An activity is represented by a rounded rectangle. You might hear them
referred to as activity states. Add them to your diagram labeling them as you add them with a
description of the activity.
• Decisions. In an activity diagram, a small diamond shape represents a decision. When an
activity requires a decision to move on to the next activity, add a diamond between the two
activities.
• Need a Guard? In UML, guards are a statement written next to a decision diamond that must
be true before moving next to the next activity. These are not necessary, but are useful when a
specific answer, such as “Yes 3 labels are printed”, is needed before moving forward.
• Organize and align. Once you have added all the activities, organize them in order of
occurrence, and align the activities in the swimlanes. Keeping things lined up will make the
activity diagram easier to read and modify later.
• End the process. A small filled circle that has a double border represents an end point. Once
all your activities have been written down place an end point just after the last activity.
“What does one look like?”
Decision Tables
Description – “What is it?”
In the simplest of terms, a decision table is a non-complicated way to display complicated logic.
They consist of a table that is divided into 4 quadrants: conditions, condition alternatives, actions,
action entries.
Typical Uses – “When do I use it?”
When complicated logic or decisions are present, a decision table helps visualize all possible
outcomes. They can be also useful for tasks like trouble shooting technical problems. Developers
use decision tables to visualize the logic and making changes to their code, while still satisfying all
conditions
Best Practices – “How do I use it?”
• Draw a table. Draw a table with the 4 quadrants mentioned above. Label the first cell of the
table “condition” and the cell below that “actions”.
• Identify conditions. In the second cell list every possible condition, keeping each on a
separate line. The number of conditions will be equal to the number of rows when you are done.
• Identify the actions. Do the same in the cell to the right of actions. List all possible actions,
each on its own line. Think of an action something that can happen that might have an effect on
one or more of the conditions.
• Add a column. Once you have your conditions and actions, add a column to the right side of
your table, dividing it into half.
• Make a grid. Under each condition and action draw a horizontal line that extends across the
new column. In the new column draw vertical lines to create a grid in the last column. The
number of vertical lines you need to draw varies, but can be figured out by with the help of a
calculator. That is the number of lines you need to draw.
•
• Fill the grid. Fill each grid cell in the conditions area with an alternative (like yes or no). Again,
a little calculation can help us figure out how to fill the squares. Start with the first condition.
Take the number of columns and divide it by the number of alternatives. Let’s say the result of
this is 4 (8 / 2). Fill 4 grid cells with one alternative, and the remaining cells in that row with the
other alternative. For the next condition, take the number a single alternative from the previous
condition and divide it by the number of alternatives. In our example this would be 2 (4 / 2). Fill
two grid cells with one of the alternatives, and 2 with the other alternative. Fill the rest of this
row following this pattern.
• Repeat. Continue with this above process until the table is filled in
• Mark off actions. In the actions section, place an X in each grid cell that matches the action to
the conditions.
• Verify accuracy. Consult with all stakeholders to verify accuracy.
Example – “What does one look like?”
Decision Trees
Description – “What is it?”
A decision tree can be either a predictive tool or a descriptive tool, depending on its application. In
either instance they are constructed the same way and are always used to visualize all possible
outcomes and decision points that occur chronologically. Decision trees have three main parts,
nodes, branch nodes, and leaf nodes. In more less technical jargon, a node is a starting point, a
branch node is a question needing an answer, and a leaf node is a possible answer (which can lead
to another question).
Typical Uses – “When do I use it?”
Most commonly decision trees are used in the financial world for things like loan approval, portfolio
management, and spending. Another common usage is product development, when examining the
viability of a new product, or new market for a current product.
Best Practices – “How do I use it?”
• Start your tree. Draw a rectangle near the left edge of your page; this is your first node. In this
rectangle write the first question or a criterion that leads to a decision.
• Add branches. For every possible alternative draw a separate line that begins at your node
and moves away toward the right of your page. Using a loan approval process as an example,
the first node may have been “Income”, and the associated branches might be <$50K, $51K -
$100K, >$101K.
• Add some leaves. The bulk of your decision tree will be leaf nodes, which is a fancy way of
saying questions or criteria that occur after the initial node. At the end of each branch add a leaf
node. Fill each of these leaf nodes with another question or criteria.
• Add more branches. Repeat the process of adding a branch for each possible alternative
leading from a leaf. Label each branch just as before.
• Complete the tree. Continue adding leaves and branches (rectangles and lines) until every
question or a criterion has been resolved and you arrive at the outcome.
• Terminate a branch. When you arrive at an outcome, add a small triangle to the end of the
branch. Just after the triangle you can write down the results of that branch in plain text.
• Verify accuracy. Consult with all stakeholders to verify accuracy.
Example – “What does one look like?”
Flowcharts
Description – “What is it?”
A flowchart is the visualization of a system or process. Consisting of 5 basic objects:
• Oval – start or end point
• Rectangle – a process
• Diamond – a decision
A flowchart is one of the 7 fundamental tools of quality control, and the base for many business
graphics.
Typical Uses – “When do I use it?”
A Anytime you need to visualize, share, or modify information, whether about a process or not, a
flowchart is a highly efficient tool. Flowcharts are also very effective for visualizing deficiencies in a
process, and making decisions.
Best Practices – “How do I use it?”
• Start your chart. Define the start point the process or system to be visualized.
• Add a line. Draw a line from the bottom of the start point (oval) extending down a bit.
• Add a process. Draw a rectangle and write a brief description of the first process at the end of
your line.
• Add a line. Draw a line from the bottom of the process (rectangle) extending down a bit.
• Indicate input and output. If the process generates an output, or needs an input to move on to
the next process, add a parallelogram. Label the parallelogram with the output or input.
• Continue the process. Moving down your page, continue to add rectangles and
parallelograms until you have documented everything you want to.
• Verify accuracy. Consult with all stakeholders to verify accuracy.
Example – “What does one look like?”
Hierarchy Diagram
Description – “What is it?”
A hierarchy diagram is a type of data structure diagram. They are used to visualize conceptual data
models and the hierarchy of a system. There are 2 components to a hierarchy diagram, rectangles
and arrows. A rectangle represents an entity, and an arrow represents a relationship. They look
similar to an org chart.
Typical Uses – “When do I use it?”
When designing a complex system it is often necessary to look at a more general view of the system.
DSD are helpful in this situation because they are easy to create, and focus on a “high-level” view of
the system. They are related to hierarchy diagrams, so they are also helpful for viewing the
hierarchy of a system. DSD are not helpful when a detailed look at individual processes is needed.
Best Practices – “How do I use it?”
• Identify the process. Define the start point for the process to be examined.
• Add an entity. Draw a square below the start point. In this square write a description of what
this square represents. If it is the 1st process, label it process 1 for example.
• Add a relationship. Draw a straight, solid line from the start point to the first entity.
• Add other processes. Once you have the start and first entity drawn, continue to add other
entities and connecting them with straight lines. Things that are directly connected to the start
should all be drawn on the same level (or hierarchy). If the entity needs to go through the start
and then a step it should be drawn on a lower level. Follow with this logic create the hierarchy
of your data structure.
• Verify accuracy. Consult with all stakeholders to verify accuracy.
Example – “What does one look like?”
Influence Diagram
Description – “What is it?”
A close cousin of the decision trees and often used in conjunction, influence diagrams are a
summary of information contained in a decision tree. They involve 4 variable types for notation: a
decision (a rectangle), chance (an oval), objective (a hexagon), and general (a rounded rectangle).
Influence diagrams also use solid lines to denote influence.
Typical Uses – “When do I use it?”
When you have a very complex decision tree and need either explain it to someone, or present it, an
influence diagram is very helpful.
Best Practices – “How do I use it?”
• Start your tree. Draw a rectangle near the left edge of your page; this is your first node. In this
rectangle write the first question or a criterion that leads to a decision.
• Add branches. For every possible alternative draw a separate line that begins at your node
and moves away toward the right of your page. Using a loan approval process as an example,
the first node may have been “Income”, and the associated branches might be <$50K, $51K -
$100K, >$101K.
• Add some leaves. The bulk of your decision tree will be leaf nodes, which is a fancy way of
saying questions or criteria that occur after the initial node. At the end of each branch add a leaf
node. Fill each of these leaf nodes with another question or criteria.
• Add more branches. Repeat the process of adding a branch for each possible alternative
leading from a leaf. Label each branch just as before.
• Complete the tree. Continue adding leaves and branches (rectangles and lines) until every
question or a criterion has been resolved and you arrive at the outcome.
• Terminate a branch. When you arrive at an outcome, add a small triangle to the end of the
branch. Just after the triangle you can write down the results of that branch in plain text.
• Verify accuracy. Consult with all stakeholders to verify accuracy.
Example – “What does one look like?”
Onion Diagram
Description – “What is it?”
An onion diagram is a very simple diagram used to display dependencies in a visual way. It is begins
with a small circle and adds slightly larger circles until each “layer” has been diagrammed. In an
onion diagram a layer is a dependency.
Typical Uses – “When do I use it?”
Using an onion diagram is effective when you need to quickly visualize how pieces of a process
depend on each other. They can also show how things are related, based on their dependencies.
Best Practices – “How do I use it?”
• Identify inner circle. Define the start of your process and draw a small circle. Label this circle
with a brief description. This circle should represent something that must occur in a process
before anything else does.
• Add concentric circles. Draw a slightly larger circle around the previous circle to represent the
next step in the process, and label it. Repeat this for each process until you have included
every step in the process.
• Verify accuracy. Consult with all stakeholders to verify accuracy.
Example – “What does one look like?”
• Rectangle – a process
• Diamond – a decision
Typical Uses – “When do I use it?”
Anytime you need to visualize, share, or modify information about a process, a process flow diagram
is a highly efficient tool. Process flow diagrams are also very effective for visualizing deficiencies in a
process, and making decisions.
Best Practices – “How do I use it?”
• Start your chart. Define the start point the process or system to be visualized.
• Add a line. Draw a line from the bottom of the start point (oval) extending down a bit.
• Add a process. Draw a rectangle and write a brief description of the first process at the end of
your line.
• Add a line. Draw a line from the bottom of the process (rectangle) extending down a bit.
• Indicate input and output. If the process generates an output, or needs an input to move on to
the next process, add a parallelogram. Label the parallelogram with the output or input.
• Continue the process. Moving down your page, continue to add rectangles and
parallelograms until you have documented everything you want to.
• Verify accuracy. Consult with all stakeholders to verify accuracy.
Example – “What does one look like?”
Structograms (Nassi-Shneiderman)
Description – “What is it?”
Structograms are a type of flowchart used to visualize structured programming. They are more
commonly referred to as Nassi-Shneiderman diagrams, named after their creators. The main
purpose of a Nassi-Shneiderman diagram is to create a logical structure (a blueprint) for the
program.
Typical Uses – “When do I use it?”
If you would normally use a flowchart, but need a bit more structure, then a Nassi-Shneiderman
diagram is your best tool.
Best Practices – “How do I use it?”
• Identify the process. Define the start point and finish point for the process to be examined.
• Identify the key process participants. Identify all key individuals or work groups that
participate in the process.
• Outline and label the diagram. Create a large box to contain the process actions. Subdivide
the box into vertical columns, with one column for each of the key process components. Label
the key participants.
• Indicate input and output. Label the input that activates the process, and label that output that
ends the process.
• Identify each major step of the process. For each step, describe the activity and locate the
box in the appropriate column of the individual or work group that performs the activity. Connect
boxes to show to sequence of events.
• Verify accuracy. Consult with all stakeholders to verify accuracy.
Example – “What does one look like?”
State Diagram
Description – “What is it?”
A state diagram is a graphical representation of the relationships between states. When working with
software, a state diagram based on standardized UML notation is used. You can also use state
diagrams to show how things behave in a system.
Typical Uses – “When do I use it?”
State diagrams can be used to document how things act in a system or process by visualizing
several examples. State diagrams are should not be used when you only need to know general
information. They offer a great deal of information about how things behave.
Best Practices – “How do I use it?”
• Establish swimlanes. Start with three vertical lines. Each column represents a group of
responsibilities that belong to the overall activity you are documenting. You don’t have to worry
about what goes in the columns just yet, but it is good to start with the framework.
• Add a start point. A small filled circle represents a start point, and should be placed in the top-
left corner of the first column. Every activity diagram needs to have a start point.
• Add states. A state is represented by a rounded rectangle. You might hear them referred to as
activity states. Add them to your diagram labeling them as you add them with a description of
the activity.
• Decisions. In an activity diagram, a small diamond shape represents a decision. When an
activity requires a decision to move on to the next activity, add a diamond between the two
activities.
• Organize and align. Once you have added all the activities, organize them in order of
occurrence, and align the activities in the swimlanes. Keeping things lined up will make the
activity diagram easier to read and modify later.
• End the process. A small filled circle that has a double border represents an end point. Once
all your activities have been written down place an end point just after the last activity.
• Establish swimlanes. Start with three vertical lines. Each column represents a group of
responsibilities that belong to the overall activity you are documenting. You don’t have to worry
about what goes in the columns just yet, but it is good to start with the framework.
Example – “What does one look like?”
• Use cases – what the system does for or too the user
Use case diagrams are very general and resemble other UML diagrams like DFD and DSD.
Typical Uses – “When do I use it?”
Use case diagrams are should be used when a displaying or sharing all the details of several use
cases is over kill, but a summary of several use cases in a simple document would work well. An
example is when a web developer might need to explain how an online purchasing system will work
to a client. A general overview of sample events will give the client the information they need to feel
comfortable.
Best Practices – “How do I use it?”
• Identify the process. Define the start point and finish point for the process to be examined.
• Add your actors. Draw a stick figure for each possible type of user. Place them vertically, and
space them evenly to keep your diagram clean and simple.
• Add your system. Draw a large rectangle that will represent your system as a whole. The
actors should not be in this rectangle, but rather just outside of it.
• Add your use cases. Inside of the rectangle, draw a circle for each use case, and write a brief
description of each use case in the circle.
• Add associations. Draw a solid line from an actor to a use case. This is an association, and
depicts that that type of user will use the system in a manner that matches the use case.
• Verify accuracy. Consult with all stakeholders to verify accuracy.
Example – “What does one look like?”
Warnier/Orr Diagram
Description – “What is it?”
Warnier/Orr diagrams are a type of flowchart focusing on a hierarchy. Just like flowcharts they
describe processes and events in the order they happen in. The distinguishing feature of a
Warnier/Orr diagram is its extensive use of brackets as notation.
Typical Uses – “When do I use it?”
When you need to describe a process or system, and need a very simple diagram, you should be
using a Warnier/Orr diagram. They are not useful for showing relationships, or responsibility.
Instead you should use a swim lane diagram.
Best Practices – “How do I use it?”
• Identify the process. Define the start point of the process you wish to describe by drawing a
large bracket. Label the bracket with a description of the first step.
• Add more brackets. Continue to add brackets, one for each step of the process, until the
entire process has been described. When you add a bracket, add it to the end of the previous
bracket. If the process splits, add a bracket to each end of the previous bracket.
• Verify accuracy. Consult with all stakeholders to verify accuracy.
• Identify the process. Define the start point of the process you wish to describe by drawing a
large bracket. Label the bracket with a description of the first step.
• Add more brackets. Continue to add brackets, one for each step of the process, until the
entire process has been described. When you add a bracket, add it to the end of the previous
bracket. If the process splits, add a bracket to each end of the previous bracket.
• Verify accuracy. Consult with all stakeholders to verify accuracy.
Example – “What does one look like?”
About SmartDraw
Founded in 1994, SmartDraw.com is the creator of SmartDraw, the World's Most Popular
Business Graphics Software.
SmartDraw.com is the leader in the rapidly growing Business Graphics market that is
made up of the millions of ordinary computer users who want to create attractive and
effective business graphics, but don't have the expertise to use software designed for
graphics professionals.
The key to SmartDraw's success is its unique SmartTemplate™ technology that makes
creating business graphics as easy as typing a letter with a word processor. SmartDraw
has developed hundreds of SmartTemplates for every type of business graphic. Each
SmartTemplate loads a diagram specific SmartPanel™ command set and the associated
SmartHelp™ step-by-step instructions. By using a SmartTemplate, a user becomes an
instant expert on how to make a complex diagram and with SmartDraw's gallery of
professionally designed styles, an instant graphic designer too.
Planning
• Planning Process
• Project Approval Process
Human Resources
• Hiring
• Pre-Employment Testing
• Payroll and Compensation
• Annual Performance Review
• Holiday Scheduling
• Recruitment
• Event Planning
• Grievances
• Workplace conduct
• Training
Facility Management
• Work Place Safety
• Maintenance Requests
• Energy Usage Control
• Space Allocation (Planning)
• Preventative Maintenance
• Environmental Control
• Cleaning
• Security
• Cost Accounting
• Payroll
• Records Management
• Invoicing
Information Technology
• Deployment of New Software
• Client System Upgrades
• Request Management
• Sever Back up
• Server Maintenance
• Solution Implementation
• System Design
• Employee Training
• Project Evaluation
• Disaster Recovery Procedures
• Reporting
Customer Care
• Tech Support
• Customer Training
• Customer Relationship Management
• Incoming Call Routing
• Incoming Email Handling
• Conflict Resolution
• Product Repair
Operations
• Shipping
• Inventory
• Supply Chain Management
• Purchasing\Procurement
• Staffing
• Safety
• Production
Manufacturing
• Lean
• Six Sigma
• Quality Assurance
• Assembly
Product Development
• Market Research
• Competitive Analysis
• Development