American Process Quality Classification Framework (APQC)
WHAT IS APQC
The APQC is a process classification framework aimed at improving business performance and productivity. Within their library bank, are a large number of industry specific process taxonomies, enabling organisations to compare their internal workings, with the suggested workings of the APQC. It is designed to be customised. That is, there is no expectation that your business does, or should conform to every single process, activity, and task identified within. Rather, that you will look at this framework as a suggested practice and adapt this to your business to provide your business with better outcomes.
How is the Process Classification Designed?
The APQC is broken into Process Functions much like the Porter’s Value-Chain is (e.g. Human Resources ((Develop and Manage Human Capital)); Finance ((Manage Financial Resources)) and so on). Within each of these Process Functions are Process Groups (eg Human Resources is broken down to Develop and Manage Human Resources (HR) Planning, Policies, and Strategies; Recruit, Source, and Select employees; Develop and Counsel Employees; Manage Employee Relations and so on. Within each Process Group are Processes. For instance, the Process Group Recruit Source and Select Employees is supported by the Processes: Manage Employee Requisitions; Recruit/Source Candidates; Screen and Select Candidates; Manage New Hire/Re-hire; Manage Applicant Information. Under each Process are Activities. For instance, Screen and Select Candidates is broken down to Identify and Deploy Candidate Selection Tools; Interview Candidates; Test Candidates; Select and Reject Candidates. For some activities, these are broken down further into Tasks. Though this is not consistent throughout and is in fact the exception rather than the norm.
How to Apply this to Business Analysis Planning?
As part of the Business Analysis (BAPL) technique of Breadth Before Depth, the APQC can be used for initiative scoping to aid in effective planning and estimation. For instance, when you start a new initiative, it is important to understand the touch points of the business enacting the initiative. The replacement of a finance system will inherently impact the finance Function, but can you confidently exclude other business Functions. You can use the APQC as a reference to discuss the Process Groups below each Function to identify whether there are any impacts and what sort of impacts there are. This will narrow your focus as you can then begin to exclude particular areas. With this first level of breadth uncovered, you can then begin to focus on the next level of depth and the breadth within that level (remembering this is an iterative approach). Within each in-scope Process Group, you can meet with the relevant owner to discuss the Processes that may be impacted. Again, at this point, you can continue to include and exclude Processes based on the feedback by the Process Group owner. Once you have identified the in-scope Processes you can use the Business Analysis (BAPL) Process Estimation Tool to enable you to provide estimates on your current and future state analysis, or the variation of this based on your chosen delivery framework.
Application of APQC during Current and Future State Analysis?
It is never a great idea to walk into a room without some knowledge of what you are there to discuss. However, as a Business Analyst working across numerous areas of the business, can you really be expected to be across everything? The APQC can be used both prior to workshops and in workshops themselves. Prior to workshops, the Business Analyst may decide to interview key stakeholders to develop an understanding of the Current State Process. The business Analyst can use the APQC to show the sequence of Activities against each Process and gain confirmation from the interviewee that these activities indeed occur, that the names of each activity are relevant to the business language (update if not), and that there are not missing activities from what has been presented. This can then be used to provide a more valuable input into the pending current state workshop. During workshops, should the previous activity not have been already completed. The Business Analyst can apply a very similar approach. They may choose to display each process and APQC define activities against them, or simply use the APQC to prompt conversation to ensure the workshop attendees are considering all facets of the activities. This can also be completed at the Activity to Task level analysis depending on the level of process required.