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APQC's Process Classification Framework
A case study example
By Michelle Cowan
Organizations use process frameworks for a variety of purposes. Models like APQC's Process
Classification Framework (PCF) are developed as guides for organizations to think about their businesses
in terms of process. Concentrating on end‐to‐end processes—rather than on function‐ or department‐
specific workflows—changes the way an organization visualizes itself and promotes a more holistic view
of the activities taking place enterprise‐wide.
The IT function within an organization, in particular, often has an obligation to understand enterprise
activities—at least those requiring specific technologies—on a much broader scale. To effectively serve
the entire organization while minimizing costs and streamlining systems, IT must understand the
connections that exist between various groups and the applications and programs they use.
The IT organization within one APQC member company realized that the only way to achieve the kind of
alignment they needed would be to map every part of the business to specific processes and then map
those processes to the applications used. If they could do this, IT would know which applications would
work for each process, no matter where it occurred within the vast and dispersed enterprise. They could
also record which technologies and applications were employed within particular functions so that if a
change was ever needed, IT could determine any conflicts or dependencies that might exist between the
affected applications.
IT's Mapping Approach
Figure 1
CHALLENGES DRIVING THE ADOPTION OF APQC'S PROCESS CLASSIFICATION FRAMEWORK
Prior to attempting this effort, the IT function at this APQC member organization had a difficult time
determining the differences between technology systems used by various areas of the enterprise. The
Fortune 500 company that the IT function supports spans 150 countries and provides many different
kinds of products and services, including technological equipment and support. The organization works
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directly with customers and leverages hundreds of applications to support its multiple business units.
Order capture and invoicing in particular require a significant number of unique applications.
Before IT began mapping applications to processes and functions, it was impossible to know where
technological overlaps and duplicate processes existed. Therefore, solutions to simplify or enhance
workflow in one geographic location or business unit typically were not applied to other areas of the
enterprise. If solutions like these were replicated, it took a considerable amount of time and effort for IT
to pinpoint the other locations where the enhancement would be appropriate. This lack of knowledge
also prevented IT from quickly diagnosing potential conflicts before the version upgrades or software
changes were institutionalized.
The best solution appeared to be aligning all of the different businesses in the enterprise (and their
processes) to one standard process framework. If IT could merge and revise the lexicons used to
describe the processes at all the diverse business units into a single standard, it could identify places
where IT efforts could be simplified or replicated, roll out application updates or changes
simultaneously, reduce conflicts, and decrease costs.
IT leaders looked at several process frameworks, but none could be applied as holistically as APQC's.
Executives rejected smaller frameworks targeted at specific business segments, asserting that they did
not encompass the business as a whole and would not paint an accurate picture of the enterprise. IT
needed something more robust. Version 4.0 of APQC's PCF came closer than the rest, but the
organization still had reservations about some of the process areas that were not covered in as much
detail as the enterprise required.
Luckily, the organization's framework selection process coincided with the release of APQC's PCF version
5.0 and several industry‐specific PCFs. These publications filled in many of the process gaps the IT team
had struggled with in the 4.0 version. Based on the APQC structure and terminology, the team was able
to start tweaking the framework to a custom version that would represent their organization more
accurately and be more accepted enterprise‐wide.
BUILDING THE BUSINESS CASE FOR IT INITIATIVES BY BUILDING THE BUSINESS CASE FOR PCF
STANDARDIZATION
Historically, IT had a difficult time proving its case to business executives for certain upgrades or
technology changes. The IT organization could not communicate its goals or the reasons for its
suggestions in terms that executives could understand it. IT came to leadership speaking its
technological language, when what leadership needed was a business case tied to the business structure
in terms that complemented the executive view of the organization. Senior leaders needed to see where
their dollars were going and how IT fit into the make‐up of the enterprise.
Mapping IT applications to the business (via processes) would help achieve the business alignment IT
needed. It would facilitate communication between executives and IT representatives, with the process
taxonomy providing a shared language. To set the stage for this project, IT began holding talks with
business unit leaders about its plan to align the organization to one process framework. These meetings
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were essential because IT would need the support of those decision makers to get the time and
resources required to map very specific segments of the business to the framework.
Going into these meetings, IT changed its usual tactics. Instead of trying to secure leadership to
understand where it was coming from, IT decided to go into each meeting with the goal of speaking the
executives' language. Rather than selling an IT agenda, IT approached leaders with a vision to improve
the efficiency, cost, and quality of work across the enterprise by aligning applications with processes.
These meetings initiated an exercise where functional leaders mapped the activities within their units
to APQC's Process Classification Framework. The effort began in supply chain, which is usually the
function within an organization most ready to apply process thinking. Many supply chain activities fall in
clear process lines, so they were easy for IT to map to the framework. IT then mapped the supply chain
processes to the IT applications currently in place.
After mapping just one part of the enterprise, the relationships between technologies became clearer.
As IT understood the work that was being performed in a more tangible way, they could see the
interconnections between applications and where they could simplify the systems. IT gained a deeper
picture of how the business operated which it had previously lacked.
Having taken supply chain leaders through the process mapping exercise, IT could more effectively
articulate to decision makers the changes it wanted to make. The lines IT could now draw between
applications and business results (from the start of the process to the output) supported its case for
changes in a way executives could understand. Leaders could see the impact that giving extra dollars
given to IT would make, such as reaping long‐term cost savings from replacing one management system
with another.
Previously, executives asked for IT to reduce costs, and IT was unable to prove that an investment in
system reorganization or replication would result in a net savings. Now, IT could show leaders not only
the costs associated with a single system or piece of technology, but also the overall impact that
investments in a technology can have on processes from initiation to completion.
SPREADING PCF MAPPING ENTERPRISE‐WIDE
After having success mapping supply chain processes, IT began addressing other areas of the business,
including product development. At this point, APQC's industry‐specific PCFs came into play more
heavily. Developing a combination of the industry PCFs with version 5.0 of the cross‐industry PCF was
necessary to ensure that all activities were covered, in particular service‐related processes common to
functions like product/service development, sales, and customer service. Without these gaps filled,
leadership would not support the project.
Currently, the organization's custom amalgam of APQC's cross‐industry PCF version 5.0 and a selection
of industry‐specific processes covers 90 percent of processes within any portion of the business. It took
IT a couple of years of refining the framework in cooperation with the various business units , but now,
the process framework is aligned to the needs of the entire enterprise and increasingly embraced by
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leadership. Because decision makers see the congruencies in the PCF more readily than the gaps, their
receptivity level has increased significantly.
However, the lack of a process roadmap eventually became a red flag for executives, who were
appreciating the benefits of process mapping more and more. Leadership saw other areas of the
business developing roadmaps (functions to processes to applications) and consequently demonstrating
cost savings, higher efficiency, and enhanced IT support. Therefore, executives required that the go‐to‐
market function follow their lead.
Only essential go‐to‐market systems would be funded until the sales function could align their business
activities and technological needs with process terms. This required moving a representative from the
enterprise architecture team (the internal group that oversees the IT alignment initiative) into the
organization to assist with the task. Currently, go‐to‐market mapping efforts are well underway,
resulting in a better understanding of go‐to‐market activities and their relationships to different
applications.
IT USE OF THE PCF AND LESSONS LEARNED
By creating a process framework that depicts all enterprise activities, IT can paint an accurate picture of
how its services and technologies are deployed and what the interactions and commonalities are
between those deployments. Work being done now to build roadmaps will make continued upkeep of IT
systems much easier. IT can easily tie their applications to business outcomes, no matter where the
application is employed. And if ingenious technological solutions or packages are developed for a
particular part of the business, IT can replicate them in other locations, an important feature within an
organization as globally dispersed and cost and quality focused as this one is..
The leaders of this IT initiative offer three lessons they learned to others thinking about implementing a
process approach:
• Start with the most robust framework possible.
• Speak to leaders in their language, or at least have the goal of learning their language and applying it
to your own proposals.
• Start in an area of the business conducive to process thinking (like supply chain); then, you can
demonstrate success to parts of the organization that may be more resistant to the process
paradigm shift.
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Interestingly, IT itself does not use APQC's PCF process category 7.0 Manage Information Technology to
map its internal processes. Instead, it uses various, highly IT‐specific frameworks like ITIL 1 and COBIT 2 .
The model employed for this IT group demonstrates the fact that organizations must customize
frameworks so that they apply most closely to their particular businesses. If a framework does not apply,
it will not be embraced and may not even be useful.
In this case, APQC's PCF has enabled IT to reach out to other functions and business units and start an
enterprise‐wise movement toward process thinking, which has helped the enterprise understand its
many components and how they relate to each other and to outcomes. Equipped with a better
understanding of how work is actually accomplished, IT can offer better, more targeted service and
provide more appropriate applications. The shared process language that has been developed allows IT
to better communicate with leadership about its needs; it also helps executives frame their vision for
the enterprise in more practical terms of what they need from IT and where they need it. Business
relationships have been improved from all sides because a process framework has been implemented in
ways that accurately reflect and inform the enterprise.
ABOUT APQC
For over 30 years, APQC has been on the leading edge of improving performance and fostering
innovation around the world. APQC works with organizations across all industries to find practical, cost‐
effective solutions to drive productivity and quality improvement. We are a member‐based nonprofit
currently serving more than 500 organizations in all sectors of business, education, and government.
CONTACT INFORMATION
123 North Post Oak Lane, Third Floor
Houston, TX 77024‐7797
phone: +1‐713‐681‐4020 or 800‐776‐9676
fax: +1‐713‐681‐8578
e‐mail: apqcinfo@apqc.org
www.apqc.org
1
The Information Technology Infrastructure Library (ITIL) is a collection of best practice approaches and models for IT, a
registered trade mark of the Office of Government Commerce in the United Kingdom and other countries.
2
Control Objectives for Information and related Technology (COBIT) is a widely‐used framework for IT management created by
the Information Systems Audit and Control Association (ISACA) and the IT Governance Institute (ITGI).
For additional information, e‐mail apqcinfo@apqc.org.
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