Decision Modeling:
Foundation for Process
Reengineering
Gemini Consulting
June 1998
Objectives
• To define Decision Modeling and provide the context of how
it is different from traditional process modeling
• To provide a step-by-step approach for building decision models
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What is a Decision Model?
The Decision Model shows a chronological sequence of major
decisions, in a To-Be mode, with the knowledge needed to
support them
Gemini intends to start using modeling, uniformly, as a new
foundation for process reengineering
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The Decision Model is a foundation for the To-Be
process
As-Is Process:
1
2
4
3
Decision Model:
To-Be Process:
1
1
2
3
3
4
New
Decisions will always have to be made no matter how the tasks
are carried out.
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Decision Modeling focuses on the “whats” instead
of the “hows”
Process Modeling
1
2
Decision Modeling
4
1
3
2
3
4
•
Focuses on “what” needs to be
accomplished
•
Depicts “how” the work is done
. . . often highlighting decisions
•
An excellent bridge to the “ToBe” phase
•
An excellent place to start,
especially in an “As-Is” state
•
Provides focus on the
undergirding decisions . . . the
work that MUST be done
An “As-Is” process model should identify key decisions.
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Gemini intends to start using Decision Modeling as the
new foundation for process reengineering
Decision Modeling . . .
• Helps abstract away from the often cluttered “As-Is” process
• Provides focus on what’s essential and builds consensus among
participants on areas to be tackled
• Makes it easier to design the “To-Be” process rather than having
to initially deal with many small steps
• Focuses on the purpose of each group of process steps
– without any constraints related to current work practices, technology or client specific policies.
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Decision Modeling jump starts the “To-Be” phase . . .
Decision Modeling
• Client workshops can start
immediately and are very
productive
Rational
– Initial focus is rational . . . a good decision
model is one where EVERYONE agrees
Political
Emotional
• Immediately developing “To-Be”
process modeling can be painful
and extremely unproductive
– “We need to do it this way because we
have always done it this way”
– Can get too detailed, too quickly
– Can be difficult uncovering non-valueadding work
. . . often allowing for the Results Delivery to be shorter in length.
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Decision Modeling - A step-by-step approach
1. Build the “As-Is” process flow (brown paper mapping), identifying
both activities and decisions.
2. Identify decisions from the “As-Is” process in a chronological order.
3. Evaluate the decisions and determine knowledge required for making
them.
4. Work decision points by adding, removing, re-sequencing, grouping
and splitting as needed.
5. Agree on the “To-Be” decision model.
6. Use the Decision Model as the framework for the “To Be” design.
Client Workshops should be used extensively.
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Step 1: Build the “As-Is” process flow identifying
activities and decisions
As-Is Process
Client Request
for Proposal
Active
Referral
Forward
Request
to RM
Internal
Network
Recommendations
Analyze
Customer
Base to
Determine
Leads
Client
Initiated
Opportunities
Pass Yes
Initial
Screening
?
No
Contact
Client to
Define
Needs
Contact
Specialist
to
Understand
Needs
Develop
Solution
Yes
Establish
Pricing
Pursue
?
No
Archive
Request
Archive
Request
Send Proposal
to client
Meet
with
Client
and
Product
Group
No
Prepare
Initial
Proposal
Review
Proposal
Internally
Formal
Present
?
Resolve
Queries
Yes
Win
?
Provide
Service
Support
No
Yes
Prepare
Formal
Presentation
Present to
Client
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Archive
Proposal
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Step 2: Identify decisions from the “As-Is” process in a
chronological order
As a starting point,
chronologically
order the decisions
Interbanken
Pass
Initial
Screening?
Pursue ?
Formal
presentation?
1
Does RFPa. pass initial screen?
2
Should we pursue RFP?
3
Should we prepare a formal
presentation?
4
Did we win proposal?
Why or why not?
Win Proposal?
As a group, are there any other decisions that should be considered?
a. Request for proposal (request for bid)
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Step 3: Evaluate the decisions and identify knowledge
required to make these decisions
For Example:
Does RFP Pass Initial Screen?
We have a
decision to make
Qualify
Prospect
Evaluate Decisions
• Is it congruent with our
Marketing strategy?
• What are our chances of
winning?
Identify Possible
Enablers
(Knowledge
Requirements)
• Marketing Objectives
• Post-Mortems
– Prospect specific
• Win/Loss Ratio
XXXXX
XXXXX
XXXXX
XXXXX
The undergirding decisions that need to be made are knowledge
intensive
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Step 4: Work decision points by adding, removing, resequencing, grouping and splitting as needed
Decision Model
Re-sequenced
XXXXX
XXXXX
XXXXX
XXXXX
XXXXX
XXXXX
XXXXX
XXXXX
Should we have
internal compliance
standards before we
screen?
Grouped
XXXXX
XXXXX
XXXXX
XXXXX
Split
XXXXX
XXXXX
XXXXX
XXXXX
XXXXX
XXXXX
XXXXX
XXXXX
Do we have any promising
leads?
Should “Response Strategy” be
split into multiple decisions?
Group intelligence from:
- Client requests
- Relationship Managers
- Customer database
- Compliance (respond according to their
outline)?
- Scope (respond to all parts)?
- Price (price high, low, fixed price)?
Like classical Reengineering, Decision Modeling is a combination of
Art and Science.
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Step 5:
Agree on the “To-Be” Decision Model
Decision Model
Compliant
RFP
• Is the RFP
compliant?
– Enough info
– Comprehensive
Bid /
No Bid
Determine
Response
Strategy
• Internal capacity
– Are we fully
utilized?
– Do we have the
specific expertise
available?
• Compliance
– Do we respond according to
their outline?
• Scope
– Do we respond for all or part?
• Pricing
– Do we price high or low?
Qualify
Prospect
• Strategic fit
– Congruent with our
marketing objectives?
– Do we have the
internal capabilities?
– What are our chances
of winning?
Develop
Solution
• What resources are required?
• What solution areas do we
emphasize?
• How much of the solution do
we provide?
• How would our competition
respond?
• Does it pass internal QA / QC?
Assemble
Delivery
Team
Gain
Approval
•
•
•
•
What timeframe?
How do we ensure victory?
Do we amend our response?
What did we do good/bad
(internal)?
• What was the client’s
feedback? (external)
•
•
•
•
•
Who?
What?
when?
Where?
How
Long?
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Step 6: Use the Decision Model as the framework
for the “To-Be” design
“To-Be”
Assess
Against
Guide-line
Compliant
RFP
Collect
Information
Y
N
Marketing
Objectives.
RFP
Matches
Guideline
Internal
Capabilities
Y
N
“Decision
Model”
Complete
RFP
Qualify
Prospect
Bid /
No Bid
Determine
Response
Strategy
From the “To-Be” . . .
• Establish Measures
• Build RACI
• Determine knowledge enablers and supporting technology
Keep it high level
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In Summary, Decision Modeling:
• Starts with an “As-Is” process flow
• Requires extensive use of client workshops
• Provides an excellent framework for the “To Be” design
For more information, please access the AKM Centre of Excellence
Knowledge Base.
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Exercise - Develop a Decision Model
Use your Brown Paper to develop a Decision Model, following step 2 to 4.
(You have already done step 1 making the Brown Paper)
Agenda
1. Identify decisions from the process (your Brown Paper) in a
chronological order.
2. a) Evaluate the decision and
b) determine knowledge required for making each of the decisions.
3. Work decisions by adding, removing, re-sequencing, grouping and
splitting as needed.
Prepare for a debrief in the large group.
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