ACTION-BASED ANALYSIS OF BUSINESS PROCESSES

Reuven Karni and

Maya Lincoln

Shenkar College of Engineering and Design

12 Anna Frank Street, Ramat Gan 52626, Israel

William Davidson Faculty of Industrial Engineering and Management

Technion, Israel Institute of Technology, Haifa 32000, Israel

Keywords: Business process management; business process analysis; Pareto analysis; content analysis.

Abstract: We suggest a method for supporting the management of a business process suite through reliance on an

action-based viewpoint. We abstract the action verb from each process descriptor, and perform a verb

frequency analysis. Through a Pareto approach those common to a large number of processes are identified.

Semantic analysis of these significant actions provides three directions for BPM support: locating actions in

the planning, execution or control domain; identifying common procedures to be implemented; and

ascertaining where operational consistency and coordination is required between organizational units.

1 INTRODUCTION

A specific enterprise process model encompasses a

set or suite of business processes implemented in

that enterprise. However, there is a lack of an

enabling science to apply the model directly to guide

the formulation of procedures specifications and

standards within a BPM framework, especially when

the suite contains a large number of processes

(Lincoln and Karni, 2003). In this paper we create a

direct connection between the model and BPM,

addressing processes as a whole, rather than in

isolation, and seeking to understand the totality of

processes, their boundaries and interrelationships

(Maddern et al, 2004). We (1) demonstrate a

methodology for perceiving a process suite through

semantic understanding of the action incorporated in

each process; (2) examine the set of actions to

determine those common to a large number of

processes; and (3) interpret and exploit these

significant actions in order to guide the formulation

of procedures, specifications and standards for BPM.

The outcome of the process descriptor analysis is a

study of management area – determination of the

management domain to which the action belongs

(plan/execute/control) and thus enable better

assignment of process management responsibility;

significant actions – identification of significant

actions which should be the focus of business

process management and formulation of procedures

and standards for process quality related to these

actions; and cross-functionality – noting which

actions occur in several functionalities and therefore

require operational consistency between organi-

zational units or sub-units.

2 ACTION-BASED CONTENT

ANALYSIS

Fundamental definitions:

 Process descriptor: a verb phrase used to

describe the content of a business process

 Process content: lexical and semantic

interpretation of the set of basic linguistic units

comprising the descriptor

 Predicate: one of the two main constituents of a

process descriptor, containing an action (verb) and

its qualifiers

 Action: something done or carried through

 Pareto analysis: selection of a limited number

of process actions that produce a significant

overall effect, based on the principle that not all of

the causes of a particular phenomenon occur with

the same frequency or with the same impact

 Pareto list: a list of process descriptors or

actions, sorted in descending order of the action

verb frequency within the process suite

239

Karni R. and Lincoln M. (2008).

ACTION-BASED ANALYSIS OF BUSINESS PROCESSES.

In Proceedings of the Tenth International Conference on Enterprise Information Systems - ISAS, pages 239-243

DOI: 10.5220/0001694902390243

 SciTePress

 General process content analysis comprises a

set of procedures for collecting and analysing

descriptors of all business processes within a

given suite and making inferences about the

characteristics and meaning of the actions realized

and the objects created or modified by these

processes within the context of the suite. Action-

based content analysis focuses on the action verb;

the corresponding object-based based content

analysis focuses on the object noun. This paper

deals with content analysis of the action verb.

For example, the process “Negotiate purchase order

conditions with supplier” indicates the action of

“negotiating”. We search the process suite being

analyzed to find all negotiation processes. If many

processes concern “negotiate”, a general negotiation

protocol needs to be established, specifying the

necessary authority for workers to set conditions and

make decisions, and training them how to negotiate

(e.g., with customers, suppliers, sub-contractors,

potential employees).

Our action-based analysis encompasses the

following steps:

(a) Create a Pareto list of action verbs

(1) Standardize process descriptors in terms of

verb, noun and prepositional phrases.

(2) Compile a list of verbs.

(3) Check for operational synonyms for each verb

(e.g., approve / authorize; evaluate / rate) and

combine these verbs.

(4) Count of the number of processes in which

each verb occurs.

(5) Order the verbs in descending count order.

(6) Using the Pareto principle, determine which

verbs are common to a significant number of

processes (= “significant action”).

(b) Carry out the following action-based analyses:

(7) Management area: determine to which

management domain each significant action

belongs (plan/execute/control). This

influences factors such as the action time

window, the vocabulary of a procedure or

specification, and the category of both

managers and workers involved.

(8) Significant actions: identify significant actions

to be the focus of business process manage-

ment. This pinpoints areas for creating pro-

cedures and standards for process execution

and quality related to the significant actions.

(9) Cross-functionality: note which actions occur

in several functionalities. The corresponding

processes will require operational consistency

between organizational units or sub-units.

3 ILLUSTRATIVE EXAMPLE

We illustrate the process through a hotel front desk

(HFD) process suite. The suite comprises 136

processes (cf. Karni and Meiren, 2005). A number of

these processes, categorized by function, are detailed

in Table 1 (lefthand column). The suite includes 32

distinct actions (Table 2). The eight most common

verbs, covering 88 processes, are: (1) provide

information (35 processes); coordinate (10); handle

(10); manage (8), issue (7); create (6); charge (6);

and maintain (6). When the set of 136 processes is

grouped by verb and ordered is descending verb

frequency, we obtain an action viewpoint of the

same suite (Table 1 – righthand column).

Juxtaposition clearly shows the contribution of the

action viewpoint in helping to grasp the “totality” of

the process suite. Action-based analysis provides the

following insights:

(1) Plan/execute/control: The eight most frequent

verbs encompass two areas: execute (provide

information, coordinate, handle, manage, issue,

create, charge); and control (maintain data bank). As

expected, the HFD is operations-intensive; BPM

support is required up front and must be harmonized

with the activities of the front desk staff.

(2) Control: The following procedures and

specifications should be established for the

significant actions:

 Provide (information to guest): specify a

comprehensive database for all information to

be provided to staff and guests; “advertise”

information services offered; set up a procedure

to ensure continued updatedness of the data

 Coordinate (with other hotel departments): set

up a procedure to ensure coordination and

cooperation between hotel departments; set up a

procedure for collaborative processes and

progress reporting of guest request

implementation

 Manage (lobby): formulate a clear guide for

lobby administration; set up a procedure to

coordinate with further hotel departments (e.g.

advertising, event hosting, maintenance)

 Issue: provide computerized and/or hard-copy

templates for clarity, completeness of recording,

and transparency towards the customer

 Create (reservation): establish a procedure to

ensure that all reservation channels and methods

of confirmation are consistent and coordinated;

set up a procedure to ensure that all reservation

data is unified within the reservation database;

organize training for frontal or distance

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encounters with guests with emphasis on service

and on cultivation of guests

 Charge (room and services): specify charges

that are unambiguous and understandable to

staff and guests; ensure that charge schedules

are easily accessible to staff and guests; set up a

procedure to ensure updatedness of all charges

 Maintain (historical data): implement a

procedure to ensure data updatedness and

completeness; set up an efficient system for data

entry database integration; set up procedures for

analysis and interpretation of historical data and

feedback of lessons learned

(3) Cross-functionality: The cross-functionality

matrix (Table 3) indicates the functions within

which the actions take place.

From a functional viewpoint we see that:

 Provide (information to guest): information is

provided to guests by the front desk within

multiple contexts (rates and yields, check-in,

guest relationships and guest information

services). Management must decide whether the

staff will be trained to act as generalists or

specialists when advising guests.

 Coordinate (with other hotel departments):

these activities occur mainly within the service

support coordination management function.

 Handle (items on guest record): cancellations,

complaints and queries are dealt with within

multiple contexts (reservations, check-in, guest

relationships). Management must ensure that the

staff is trained in handling anticipated,

unanticipated or unpleasant interactions when

facing guests at the front desk.

 Manage (lobby): these activities only occur

within the front-desk zone function.

 Issue (documents): documents are issued to

guests within multiple contexts (reservations,

check-out and guest relationships). Management

must decide whether the staff will be trained to

act as generalists or specialists when issuing

documents.

 Create (reservation): these activities only occur

within the reservation management function.

 Charge (room and services): guests are charged

within multiple contexts (reservations and guest

relationships). Management must ensure that

charging is coordinated and no duplication of

charges occur.

 Maintain (historical data): these activities occur

within the special databank management

function.

In summary, we see that the HFD process suite can

be partitioned into those with actions common to

several processes (65%) and those with relatively

singular actions (26%); the number of frequent

actions based on the Pareto principle, is relatively

small (8 actions cover 88 processes). Hotel

management can therefore focus on developing a

reasonable number of procedures, specifications and

standards which will encompass about 2/3 of the

processes in the HFD domain.

4 CONCLUSIONS

Action-based content analysis describes what the

business does (“charge”, “authorize”, “check”)

through surrogate itemization of a suite of business

activities, representing the compass of a specific

function, enterprise or industrial sector, in terms of

actions. Through the “Pareto effect” – which we

have shown does exist – the organization can focus

on a restricted number of actions and implement a

limited number of common procedures that can

produce a significant overall effect. These include

coordination and cooperation between organiza-

tional units, consistency of cross-enterprise pro-

cedures, decisions regarding generalization or

specialization of employee training, training for

interactions with external agents (e.g., guests),

prevention of duplicate or inconsistent transactions,

and specification of an integrated infosystem for

process support. It is hoped that BP practitioners and

managers will be able to use the approach to

understand the totality of a business suite and to

create an action profile of the organization.

REFERENCES

Karni, R., & Meiren, T., 2005. SERVLAB: a laboratory

for the support of service research. 18th International

Conference on Production Research, University of

Salerno, Italy.

Lincoln, M., & Karni, R., 2003. A generic business

function framework for industrial enterprises. 17th

ICPR Conference, Blacksburg, VA.

Maddern, H., Maull, R., & Smart, A., 2004.

Understanding business process management:

evidence from UK financial services. 11th Annual

EUROMA Conference: Operations Management as a

Change Agent, INSEAD, Fontainebleau.

ACTION-BASED ANALYSIS OF BUSINESS PROCESSES

241

Table 1: Hotel Front Desk processes – function and action viewpoints.

(a) Functional viewpoint

1 Reservation management

• Check current room availability and status for

reservation

• Check future room availability and status for

reservation

• Search available units for specified date range

and unit capacity

2 Rate and yield management

• Provide information on regular rates

• Provide information on seasonal and weekend

rates

• Provide information on special rates

3 Check-in management

• Welcome regular guest

• Check in guest arriving on time to reserved room

• Provide information on alternative means of

payment

4 Check-out management

• Issue check-out invoice with list of guest fees

• Accept credit card payment

• Issue final receipt

5 Guest relationship management (guest services)

• Handle guest queries

• Charge additional services to guest record

• Arrange car rental for guest

• Handle complaints

6 Guest information service management (hotel

amenities)

• Provide information on meal timetables

• Provide information on hotel facilities

• Provide information on hotel shop

7 Guest information service management

(external amenities)

• Provide information on vehicle rental agencies

• Provide information on tourist agencies

• Provide information on restaurants

8 Communication management

• Record and/or post messages for guest

• Enable guests to receive e-mail messages

• Enable guests to send e-mail messages

9 Service support coordination management

• Coordinate guest request with housekeeping

• Coordinate guest request with maintenance

•

Coordinate guest request with room service

10 Front desk zone management

• Manage front desk (including flowers)

• Manage lobby billboard(s)

• Manage ambient music

• Manage clock-in clock-out

11 Special databank management (hotel services)

• Maintain wait list for reservations

• Maintain historical data on guests

• Maintain historical data on complaints

(b) Action viewpoint

Provide

• Provide information on flight schedules

• Provide information on means of payment

• Provide information on city maps and guides

• Provide information on cultural attractions

• Provide information on currency exchange rates

• Provide information on hotel facilities

• Provide information on countrywide weather

• Provide information on medical services

• Provide information on organized tours

• Provide information on vehicle rental agencies

Coordinate

• Coordinate guest request for wake-up call

• Coordinate guest request with computing

• Coordinate guest request with housekeeping

• Coordinate guest request with laundry facility

• Coordinate guest request with maintenance

• Coordinate guest request with restaurant

• Coordinate guest request with room service

Handle

• Handle cancellation telephonically

• Handle cancellation via Internet

• Handle complaints

• Handle guest queries

• Handle credit card invalidity

• Handle dinner reservation for guest

Manage

• Manage cash drawer

• Manage clock-in clock-out

• Manage front desk (including flowers)

• Manage front desk audit

• Manage lobby

• Manage lobby billboard(s)

• Manage night audit

Issue

• Issue check-out invoice with list of guest fees

• Issue final receipt

• Issue safe receipt

• Issue reservation confirmation letter and send

Create

• Create reservation frontally

• Create reservation telephonically

• Create reservation via Internet

Charge

• Charge room at time of reservation

• Charge room at check in

• Charge additional services to guest record

Maintain

• Maintain historical data on guests

• Maintain historical data on DNRs

• Maintain historical data on complaints

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Table 2: Pareto distribution of the verbs for the “Hotel Front Desk” function.

# Verb Processes # Verb Processes

1 Provide (information) 35 17 Deliver 2

2 Coordinate 10 18 Offer 2

3 Handle 10 19 Search 2

4 Manage 8 20 Swipe 2

5 Issue 7 21 Welcome 2

6 Create 6 22 Adjust 1

7 Charge 6 23 Allocate 1

8 Maintain 6 24 Arrange 1

9 Enable 5 25 Confirm 1

10 Check 4 26 Direct 1

11 Check-in 4 27 Order 1

12 Accept 3 28 Record 1

13 Check-out 3 29 Replace 1

14 Select 3 30 Specify 1

15 Supply 3 31 Transfer 1

16 Add 2 32 Verify 1

Table 3: Cross-functionality matrix (significant actions) for the HFD example.

Action/function 1 2 3 4 5 6 7 8 9 10 11 Total

Provide (info) 4 3 1 9 18 35

Coordinate 1 9 10

Handle 5 1 4 10

Manage 8 8

Issue 2 2 3 7

Create 6 6

Charge 3 3 6

Maintain (data) 6 6

Key (see Table 1 – lefthand column): 1: reservations; 2: rates and yields; 3: check-in; 4: check-out; 5:

guest relationships (guest services); 6: guest information services (hotel amenities); 7: guest

information services (external amenities); 8: communication management; 9: service support

coordination management; 10: front desk zone management; 11: special databank management (hotel

services)).

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