Of all the tools and techniques available to BAs, business process modelling is a firm favourite for many practitioners. This is for very good reason as business process modelling is a great technique for uncovering how things work currently and exploring possible improvements. Business process models are also an excellent way of communicating with a wide and diverse stakeholder group. When drawn well, they require little explanation, conveying rich detail about an existing (or potentially new) process.

Business process models also help to explore the financial implications of current processes and the impact of different proposed courses of action. For example, automating specific tasks might mean an entire department is no longer required to carry out certain processes, and this could raise questions about the financial feasibility of a proposed new process. Alternatively, the costs associated with a process may outweigh the income it generates and analysing each of the tasks can help to identify where beneficial changes might be made.

Data relating to the finances associated with a process are often available, but this area is often overlooked. Where financial data is obtained, it can provide insights and ideas for improvement that can help an organisation operate more efficiently and with greater cost-effectiveness. The holistic nature of business process modelling can also ensure that this efficiency isn't achieved by diminishing the customer experience.

In some cases, data relating to costs or income is difficult to obtain or quantify so a useful approach is to assess and represent the costs using a heatmap, with different colours showing the relative cost of each task. For example, tasks highlighted in green have the greatest cost efficiency, amber tasks are those where costs are a potential issue, and red is where the costs are high and outweigh the income or benefits from the task. Highlighting the relative cost/benefit ratio has the potential to show where improvement efforts should be focused and there is most potential for efficiency improvements.

Business analysis practitioners need to understand the financial aspects of the business operations that they are investigating. An analysis of the costs associated with conducting a business process and an evaluation of the revenue generated can be most illuminating, helping to uncover inefficient work practices and highlighting areas for improvement and savings. From a broader perspective, understanding business finance helps business analysts to focus their efforts not only when improving business processes but also to enhance their work in many other areas. This is a skill well worth obtaining and improving.

Looking to update your BA toolkit? Check out AssistKD's wide choice of business analysis courses.

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