View source for OCEB2F 04 Business Motivation Modeling

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==Module 4. Business Motivation Modeling⌘==
===Source of Information⌘===
Business Motivation Model Specification, V 1.1
* http://www.omg.org/spec/BMM/1.1/PDF/
<table>
<tr><td>[[File:BPMaRigorousApproachCover.jpg|100px]]</td><td>Martyn Ould - Meghan-Kiffer, Business Process Management: A Rigorous Approach, 2005 [ ISBN-10: 0929652274 ]</td></tr>
</table>

===Business Motivation Model⌘===

* The Business Motivation Model provides a scheme for developing, communicating, and managing '''business plans''' in an organized manner. 
* BMM answers following questions:
** Why a company exists?
** How it plans to make money?
* OMG Business Motivation Model:
**'''identifies factors that motivate the establishing of business plans.'''
**identifies and defines the elements of business plans.
**indicates how all these factors and elements inter-relate.
**is a structure that is methodology-neutral; it will support a range of approaches for creating and maintaining a BMM for an enterprise
<!--:Among these elements are those that provide governance for and guidance to the business — Business Policies and Business Rules.-->

====Motivation behind BMM⌘====

*Many different books define business vocabulary used in business plans differently
*Software which needs to support business plan and connections to business processes and rules has to have unified vocabulary and clear ''object model''
*Creating legal and IT system from clearly defined business plan saves a lot of time and money
*http://www.omg.org/spec/BMM/
*http://www.businessrulesgroup.org/second_paper/BRG-BMM.pdf

====BMM Overview⌘====
[[File:Figure7.1-BMM-Overview.png|700px]]

<!--
===OMG Business Motivation Model⌘===
BMM contains:
*A set of built-in concepts that define the elements of business plans.
*They are associated in a structure that is methodology-neutral; it will support a range of approaches for creating and maintaining a BMM for an enterprise, and is particularly strong in support of processes that are driven by business change
*The document defines a business motivation model in terms of the''' Means, Ends, Influencers and Assessments, also includes Referenced Elements and Business Vocabulary'''
-->

===BMM Motivation⌘===

The Ends, Means, and Influencers are related to each other in order to answer the following two fundamental questions:

#'''What is needed to achieve what the enterprise wishes to achieve?''' <br/>This question is answered by laying out the particular elements of the business plans — in other words, the Means necessary to achieve the desired Ends.
#'''Why does each element of the business plan exist?''' <br/>This question is answered by identifying the particular Ends that each of the Means serves, and the Influencers that underlie the choices made in this regard. This is what is meant by '''motivation'''.

<!--
===Motivation (1)⌘===

*If an enterprise prescribes a certain approach for its business activity, it ought to be able to say '''why'''<nowiki>; that is, what result(s) the approach is meant to achieve.</nowiki>
*Sometimes it is difficult to uncover such motivation, especially in operations that have been going on for some time
*All too often it turns out to be "... ''because we had to find a workaround for a system that didn't do quite what was needed''" This may describe business work practice, information systems, or both.
-->

<!--
===Motivation (2)⌘===

*A cornerstone of any work addressing motivation had to be the enterprise's aspirations (its Vision) and its action plans for how to realize them (its Mission).
*The general term '''End''' refers broadly to any of the 'aspiration' concepts (Vision, Goal, Objective) i.e. '''being'''
*The term '''Means''' refers generally to any of the 'action plan' concepts (Mission, Strategy, Tactic) i.e. '''doing'''
-->

===SYSTEM THINKING⌘===

*System thinking is a highest level unique approach to problems solving and managing the complexity.
*It views certain 'problems' as a part of the overall system so focusing on these outcomes further develops the undesired element or problem.
*Some methods use this in BPM

===What is not defined by BMM⌘===

*The OMG's BMM is not a full business model
*The elements of business plans do not prescribe in detail any of the following, each of which is an essential part of a full business model.
**Business Processes (see BPDM - Business Process Definition Metamodel)
**Workflows (see Workflow Management Facility)
**Business Vocabulary (see SBVR)

<!-- more http://www.omg.org/technology/documents/br_pm_spec_catalog.htm -->

===BMM Ends⌘===
<table border="0" cellpadding="0" cellspacing="0">

		<tr>
			<td>
			[[File:BMMEnd.png]]
			</td>
			<td>
*What an organization wants to be; Ends:
**Can be changing what the enterprise is e.g. Developing new lines of business, moving into new markets
**Or Maintaining its current positions relative to its market competition
			</td>
		</tr>

</table>
====Vision⌘====

*Describes the future state of the enterprise, without regard to how it is to be achieved.
*The ultimate, possibly unattainable, state the enterprise would like to achieve.
*Often compound, rather than focused toward one particular aspect of the business problem. 
*A Goal, in contrast, should generally be attainable and should be more specifically oriented to a single aspect of the business problem
*Vision is ''supported or made operative'' by Missions. 
*It is ''amplified'' by Goals

=====Vision Diagram⌘=====
[[File:BMMVision.png|850px]]

=====Vision Examples⌘=====
[[File:BMMVisionExample.png|800px]]

====Desired Result⌘====

*A Desired Result is an End that is a state or target that the enterprise intends to maintain
*A Desired Result is supported by Courses of Action.

=====Desired Result Diagram⌘=====
[[File:BMMDesiredResult.png|950px]]

=====BMM Goal⌘=====

*Compared to an Objective, a Goal tends to be:
**longer term, 
**qualitative (rather than quantitative), 
**general (rather than specific), 
**and ongoing
**focused enough that Objectives can be defined for it
*A Goal is a statement about a state or condition of the enterprise to be brought about or sustained through appropriate Means
*'''A Goal amplifies the Vision – that is, it indicates what must be satisfied on a continuing basis to effectively attain the Vision'''

=====Goals Examples⌘=====
[[File:BMMGoalsExamples.png|800px]]

=====BMM Objectives⌘=====

*Compared to a Goal, an Objective tends to be
**Short term,
**quantitative (rather than qualitative),
**specific (rather than general),
**and not continuing beyond its timeframe (which may be cyclical).
*A statement of Objective
**'''attainable''', 
**'''Time'''-targeted (by January 2007, in 2 years, etc..)
**'''measurable''' (doneness)

target that the enterprise seeks to meet in order to achieve its Goals.

Objectives are “'''SMART'''”: Specific, Measurable, Attainable, Relevant, and Time-Based.

=====Statements of Objective⌘=====

*Statements of Objective should always begin with the time-targeted phrase, followed by a quantified noun.
*Example time-targeted phrases:
**By 09/01/2001, ...
**Effective immediately, ...
**After 2 years, ...
**Within 5 weeks, ...
**On or before June 1, 2002, ...
**On April 15, 2001, ...

=====Objectives⌘=====
*An Objective quantifies a Goal - that is, it provides the basis for measures to determine whether the Goal is being achieved
*Conversely, the Goal is quantified by these measurable Objectives.
*For example, 
**the Goal "To provide industry-leading customer service" '''is quantified by''' 
**the Objective "Effective immediately, a ranking of 8 or better on a monthly customer satisfaction scale of 1-10" and by 
**the Objective "By Jan. 1, 2001, a B+ grade level on the annual Better Business Bureau ratings."

=====Objective Examples⌘=====
[[File:BMMObjectiveExamples.png|600px]]

=====Interrelating Desired Results (include relation)⌘=====
[[File:BMMInterrelatingDesiredResults.png|700px]]

=====Desired results decomposition⌘=====

*One Desired Result can include other Desired Results; a Desired Result can be included in some other Desired Result
*In other words, there can be a ‘parts explosion’ of Desired Results.
*This connection should be used only to associate like instances — that is, Goals only to other Goals and Objectives only to other Objectives.

=====Parts Explosion⌘=====
[[File:ClipCapIt-150918-111502.PNG]]
*A ‘parts explosion’ of Desired Results happens when there is a decomposition of some higher-level Goal (or Objective) into lower-level Goals (or Objectives)
*Such decomposition occurs, for example, when elements of the business plans created by one level of management are handed down to a lower organizational level for more detailed planning or implementation
*For example, the Goal “To keep customers satisfied” includes the sub-Goal “To deliver pizzas in an expedient amount of time” and the sub-Goal “To produce tasty pizzas.”
<!-- *This creates a ‘recursion’ among the elements, from higher level to lower level. -->

====BMM Metrics⌘====

*Metrics
**Measures of performance are defined in an enterprise's BMM as objectives.
**They may be based on risks and potential rewards identified in assessments. 
 
*KPI/CSF are not especially distinguished in BMM
*Each Goal can have one or more '''''measures of performance'''''
**For example, a metric of the Goal “To be profitable” is the measure of performance ‘annual net revenue.’
*Objectives should always be measurable. Therefore Objectives, by definition, will have metrics.

=====Metrics and Goals⌘=====
[[File:BMMMetricsAndGoals.png|800px]]

===Means⌘===

<table border="0" cellpadding="10" cellspacing="0">

		<tr>
			<td>
			[[File:BMMMeans.png]]
			</td>
			<td>
*A Means represents any device, capability, regime, technique, restriction, agency, instrument, or method that may be called upon, activated, or enforced to achieve Ends
*Means does not indicate either the steps (business processes and workflow) necessary to exploit it, nor responsibility for such tasks, but rather only the capabilities that can be exploited to achieve the desired Ends
*In describing Means, it is useful to document who established the Means and at what point in time, so that an audit trail exists for future reference

			</td>
		</tr>

</table>


====Mission⌘====

*Mission, like its counterpart Vision, indicates a correspondingly long-term approach — one that is focused on achieving the Vision
*Like Vision, Mission is not very specific; it is something broadly stated, in terms of the overall functioning of the enterprise
*Indicates the ongoing operational activity of the enterprise
*Describes what the business is or will be doing on a day-to-day basis
*A Mission makes a Vision '''operative''' — that is, it indicates the ongoing activity that makes the Vision a reality 
*A Mission is '''planned by means''' of Strategies.


=====Mission Diagram⌘=====
[[File:BMMMissionDiagram.png |950px]]

=====Statement of Mission⌘=====

A Mission statement should consist of the following:

*An action part
**e.g. "provide"
*A product or service part
**"pizzas"
*A market or customer part
**"customers city-wide"

The Mission statement should be focused on '''day-to-day operations''', generic enough to cover '''all Strategies''', and broad enough to cover the complete area of operations

=====Mission Example⌘=====
[[File:BMMMissionExample.png|600px]]

====Courses of Action⌘====

*A Course of Action is '''an approach or plan''' for configuring some aspect of the enterprise involving things, processes, locations, people, timing, or motivation, '''undertaken to achieve Desired Results'''.
*CoA '''channels efforts''' towards Desired Results.
*CoA are governed by Directives.
*CoA are the basic elements of a general plan or overall solution
*CoA is an overall approach that the enterprise will take to achieve its Desired Results
*CoA '''are''' '''NOT''' Business Processes
*CoA can be '''realized''' ('''made operative''') by Business Processes

<!--
====Course of Action⌘====

*Courses of Action alone tend to be rather blunt instruments. 
*They require Directives to have any real chance of success.
*In contrast to Courses of Action, Directives cannot really stand on their own. 
*They exist to give the Courses of Action a fine edge
-->
=====Course of Action Diagram⌘=====
[[File:BMMCourseOfActionDiagram.png |950px]]

=====Strategies and Tactics⌘=====

*Compared to Tactics, Strategies tend to be longer term and broader in scope
*A Strategy is '''implemented by '''Tactics, Tactics '''implement (support)''' Strategies;
*'''Strategies''' usually '''channel efforts towards Goals''', Tactics channel efforts towards Objectives
*Determining whether a Course of Action is a Strategy or a Tactic may be impossible without in depth knowledge of the context and intent of the business planners
*In the course of developing and analyzing business plans, some elements may change category as the target problem is understood better

<!--
=====Strategies and Tactics⌘=====

*The dividing line between 'minor Strategy' and 'major Tactic' is blurred
*Over time, some Courses of Action may evolve from Tactic to Strategy, and some Strategies may devolve into Tactics
*Some enterprises do make a hard distinction between Strategies and Tactics; these enterprises may choose to pair Strategies only with Goals, and Tactics only with Objectives
-->

=====BMM Strategy⌘=====

*A Strategy is a '''component of '''the plan for the Mission
*A Strategy represents the essential Course of Action to achieve Ends – Goals in particular
*A strategy usually '''channels efforts towards those Goals.'''
*A Strategy is more than simply a resource, skill, or competency that the enterprise can call upon
*Strategy is accepted by the enterprise as the '''right''' '''approach''' '''to achieve its Goals''', given the environmental constraints and risks

=====Strategy Examples⌘=====
[[File:BMMStrategyExamples.png|600px]]

=====BMM Tactic⌘=====

*A Tactic is a Course of Action that represents part of the detailing of Strategies.
*A Tactic '''implements '''Strategies
**e.g. the Tactic "Call first-time customers personally" implements the Strategy "Increase repeat business."
*Tactics generally '''channel efforts '''towards Objectives
**e.g. the Tactic "Ship products for free" channels efforts towards the Objective "Within six months, 10% increase in product sales."

=====Tactic Examples⌘=====
[[File:BMMTacticExamples.png|600px]]

====Directives⌘====

*Represent encoded (i.e., written down) knowledge that ensures the highest possible chances of success for the Courses of Action
*A '''Directive''' always has to do with '''governance or guidance'''
*A CoA, in contrast, identifies an '''active approach in moving toward''' the Ends
*A CoA is always '''action-dominated (action-oriented)'''

=====BMM Directive⌘=====

*Directives indicate how the Course of Action should, or should not be carried out – in other words, they '''govern Course of Action.'''
*Specifically, a Directive defines or constrains or liberates some aspect of an enterprise. 
*It is intended to assert business structure or to control or influence the behaviour of the business, and is stated in declarative form.

=====Directive Diagram⌘=====
[[File:BMMDirectiveDiagram.png|950px]]

=====“Governs” relationship⌘=====

*Directives govern Courses of Action
**e.g. the Business Rule "Pizzas may not be delivered beyond a radius of 30 miles" governs the Strategy "Deliver pizzas to the location of the customer's choice." 
*This governance applies to Tactics as well
**e.g. the Tactic "Encourage rental extensions" is governed by the Business Policy "Allow extension of rentals by phone."

<!--
=====“Governs by”⌘=====

*It is expected that all Courses of Action should be governed by some Directive (especially in maturity of the business plan)
*Any Course of Action not governed by a Directive should be examined carefully to discover potential omissions.
*Having too many Directives may become unduly constraining
*Unless a Directive is made explicit, it is assumed that no constraint on other elements of the business plans will be exercised
*To be taken into account within the Model, every Directive must be explicit and recorded in an official manner


=====Directives and CoA⌘=====

*Courses of Action can be formulated based on Directives.
**e.g. the Tactics 'Comply with manufacturer's maintenance schedules' and 'Equalize use of cars across rentals so that mileage is similar for cars of the same car group and age' are both formulated based on the Business Policy 'Depreciation of cars must be minimized'
*The Directive thereby serves as the source of the Course of Action

=====Directives and CoA⌘=====

*Occasionally a Directive is defined to support the achievement of a Desired Result directly
**e.g. The Business Policy "The cell phone numbers of customer representatives should be available to customers" supports achieving the Goal "To provide high-quality customer support."
**e.g. The Objective ''"Within six months, 10% increase in product sales"'' is supported by this Business Rule that defines product sales: ''"Product sales must be computed as total sales, minus all of the following: sales tax, shipping charges, and maintenance contract fees."''
-->

====Business Rule Enforcement Level⌘====

*A Business Rule has an enforcement level from "'''''strictly enforced'''''" (if the rule is violated, the penalty is always applied) to "'''''guideline'''''"
*Enforcement levels represent alternatives in a graded or ordered scale, each of which indicates the severity of action imposed to put or keep a rule in force
*Deciding what enforcement level is to be applied to a Business Rule is often a Tactic within business plans
*In the Model, '''Tactic effects''' enforcement level of Business Rule

<!--
=====Example of enforcement levels⌘=====
[[File:BMMExampleOfEnforcementLevels.png |800px]]

=====Enforcement Levels Examples⌘=====
[[File:BMMEnforcementLevelsExamples.png |800px]]


====Directive as Regulation⌘====

*A Directive may act as some other Organization Unit's Regulation
*The Business Rules and Business Policies determined at one level in an organization may be effectively the law (Regulation) for lower-level organizations.

=====Directive as Regulation Example⌘=====

*''Production'' and ''sales'' divisions both have to comply with company ''policy on safety at work''
*These units in turn have to determine their own ''local policies and rules ''for their particular compliance with the 'law' (company policy) imposed from above. 
*Furthermore, the rules and policies they come up with will most likely be unique; rules for safety within the production division are different from those in sales.
-->

====Business Rule and Business Policy⌘====

*'''Business Rule''' is highly structured and is carefully expressed in terms of standard vocabulary
*'''Business Rule '''should be discrete and atomic — that is,represent only a single aspect of governance or guidance 
*'''Business Policy''' tends to be less structured, less discrete, and usually not atomic — that is, not focused on a single aspect of governance or guidance
*'''Business Policy''' tends to be less compliant with standard business vocabulary, and less formally articulated

<!--
====Business Rules and Business Policies⌘====

*'''Business Policies''' provide broader '''governance or guidance''' that is '''not directly actionable'''
*'''Business Rules''' provide specific, '''actionable governance or guidance '''to implement Business Policies
*''''Actionable'''' means that a person who understands a Business Rule could observe a relevant situation (including his or her own behaviour) and '''decide directly '''whether or not the business was '''complying''' with the rule
-->

====Directives Automation⌘====

*Some Business Rules could be automated in software; some are practicable only by people.
*Business Policies are not directly automatable.
<!--
====BMM Policy⌘====

*A Business Policy is a''' non-actionable''' Directive, whose purpose is to govern or guide the enterprise.
*Business Policies '''''provide the basis '''''for Business Rules.
*Business Policies also '''govern''' Business Processes
*The '''formulation''' of a Business Policy, which is always under the enterprise's control, is by some party who is authorized to manage, control or regulate the enterprise by selecting from a variety of '''alternatives''' in response to one or more '''Assessments'''


====Business Policy⌘====

*Business Policies exist to govern — that is, control, guide, and shape — the Strategies and Tactics
**For example, the Business Policy ''"We will not make on-site visits''" governs the Strategy "''Encourage repeat business''," as well as the specific Tactics that might be selected to implement the Strategy. 
**Specifically, no Tactic requiring on-site visits will be permitted to support the Strategy — even though on-site visits would probably be effective in that regard. On the other hand, a Tactic involving sending coupons by mail would be acceptable under the Business Policy since it involves no on-site visits.
-->
=====Policy Examples⌘=====

*EU-rent
**Rental contracts are made under the law of the country in which the pick-up branch is located
**Rentals must comply with relevant laws and regulations of all countries to be visited
*Pizza Company
**Safety in the kitchen, and in the streets, comes first.
*E-Business Company
**A business representative will personally contact each customer who makes a complaint.
<!--
====Business Rule⌘====

*A Business Rule is a Directive, intended to '''govern''', '''guide or influence''' business behaviour, '''in support of Business Policy''' that has been formulated '''in response to an Opportunity, Threat, Strength, or Weakness'''
*It is a single Directive that '''does not require additional interpretation''' to undertake Strategies or Tactics
*Often, a Business Rule is derived from Business Policy
*Business Rules '''''guide '''''Business Processes
*Formally, a Business Rule is a rule that is under business jurisdiction.
*A rule is a proposition that is a claim of obligation or of necessity
*The common sense understanding of 'rule' is that a rule always tends to remove some degree of freedom
-->
=====Business Rule Examples⌘=====
[[File:BMMBusinessRuleExamples.png |500px]]

<!--
*This decomposition occurs, for example, when elements of the business plans created by one level of management are handed down to a lower organizational level for more detailed planning or implementation
*This creates a 'recursion' among the elements, from higher level to lower level.
*For example, the Strategy "Ensure that the stock of available vehicles never falls below an acceptable level" is composed of sub-Strategies appropriate to each geographic region.
-->
<!--
====Interrelating Courses of Action - Enabling⌘====

*One Course of Action can be enabled by another Course of Action
*In other words, the latter Course of Action provides basic support that makes the former Course of Action viable
*This connection should generally be used to associate like instances — that is, Strategies only to other Strategies and Tactics only to other Tactics.
*For example, the Strategy "Ensure that the stock of available vehicles never falls below an acceptable level" is enabled by the Strategy "Maintain vehicles in good working condition."
*For another example, the Tactic "Provide each member of the sales force with a palmtop" enables the Tactic "Input sales orders at the source."

====Interrelating Business Policies⌘====

*One Business Policy can include other Business Policies; a Business Policy can be included in other Business Policies.
*In other words, there can be a 'parts explosion' of Business Policies.
*For example, the Business Policy “Safety first” can be decomposed into more specific policies that deal with vehicle safety and workplace safety.

====Question⌘====

Question:

*Name the elements of BMM which can be decomposed (i.e. you can use the ''includes'' association)

Answer:

*Desired Results
*Course of Actions
*Business Policies
-->

====Examples of “qualitative” words⌘====
Ends and Directives usually use “qualitative” (judgemental or comparative) words:

[[File:BMMExamplesOfQualitativeWords.png |600px]]

These words should be avoided in expressing Missions, Strategies, and Tactics when the words actually refer to a desired end-state.

<!--
====Expressing Core Elements of the Business Motivation Mode⌘====

*'''Ends''' and '''Directives''' are usually laden with words that are '''judgemental''', '''qualitative''', and/or '''comparative'''.
*The ‘'''qualitative'''’ (judgemental or comparative) words should be '''avoided''' in expressing '''Missions''', '''Strategies''', and '''Tactics'''
*Other statements containing such words should be carefully analyzed and then re-stated as appropriate Desired Results or Directives.
*The '''absence''' of '''adjectives''' suggesting desired end-states is one fundamental way in which '''Courses of Action''' are '''distinguished''' from '''Desired Results and Directives'''.
*However, qualitative words may be used in Courses of Action if the words do not refer to the end-state desired.
**For example, the Tactic “ship products for free” includes the adjective ‘free.’ This is valid word usage in a Course of Action since it does not describe the Desired Result.
-->

===Influencers on the Ends and Means⌘===

*An Influencer can be anything that has the capability to ‘produce an effect without apparent exertion of tangible force or direct exercise of command, and often without deliberate effort or intent.’
*The Influencers specifically of concern to business plans are those that can impact the enterprise in its employment of Means or achievement of its Ends. This impact has influence that is judged in Assessments.
*Influencers '''are always neutral'''
*Influencers '''must be assessed''' to determine implications for business plans


====Categories of Influencers⌘====
BMM categorizes influencers for analysis of the kinds of changes and resulting assessments and decisions

It provides:
*Two broad Influencer Categories:''' External''' and '''Internal'''
*A set of '''general''' '''categories'''
It suggests that each Influencer is categorized as (at least) one of the general categories and as either internal or external

====Influencers Categories⌘====

<table border="1" cellpadding="10" cellspacing="0">

		<tr bgcolor="#BDBDBD">
			<td colspan="2" style="height:28px; width:366px">
			<p style="text-align: center">'''Influencer'''</p>
			</td>
		</tr>
		<tr bgcolor="#F2E0F7">
			<td style="height:27px; width:168px">
			<p>external</p>
			</td>
			<td style="height:27px; width:198px">
			<p>internal</p>
			</td>
		</tr>
		<tr bgcolor="#A9E2F3">
			<td style="height:95px; width:168px">
			<p>competitor</p>

			<p>customer</p>

			<p>environment</p>

			<p>partner</p>

			<p>regulation</p>

			<p>supplier</p>

			<p>technology</p>
			</td>
			<td style="height:95px; width:198px">
			<p>assumption</p>

			<p>corporate value</p>

			<p>habit</p>

			<p>infrastructure</p>

			<p>issue</p>

			<p>management prerogative</p>

			<p>resource</p>
			</td>
		</tr>

</table>
<!--
[[File:BMMInfluencersCategories.png |600px]]
====External Influencers⌘====
[[File:BMMExternalInfluencers.png |850px]]

====Internal Influencers⌘====
[[File:BMMInternalInfluencers.png |850px]]

=====Exercise: Influencer Categorises⌘=====
Please categorize the Influencers below as show in the first sample:

*Influencer
**The car rental market in Eastern Europe growing year-on-year by at least 5% per year 
=====Exercise: Influencer Categorises⌘=====

*Availability and cost of (environment-friendly) electric and LPG cars.
*Successful branch managers are usually allowed to remain at their branches for as long as they want to.
*EU-Rent is environment-friendly. All the car models it offers for rental have good fuel economy and low emissions.
-->
<!--
====Influencing Organization⌘====

*It is also useful to be able to connect an Influencer to one or more Influencing Organizations; Examples:
**To connect Regulation Influencers to their originating Regulators.
**To reference some specific competitor companies from a Competitor Influencer.
-->
<!--
====Influencing Organization Diagram⌘====
[[File:BMMInfluencingOrganization.png |800px]]
-->

===Assessing the Impact of Influencers on<br/>Ends and Means⌘===
<br/>
*Influencers are neutral — they are more or less simply just ‘there’ until someone makes an Assessment of them as they relate to Ends and/or Means.
*Such an Assessment represents a judgement of an Influencer with respect to its impact on Ends and/or Means. 
*Specifically, the Assessment indicates that the Influencer affects the employment of Means and/or affects the achievement of Ends, in certain ways.
<!--
====Assessment Relations Diagram⌘====
[[File:BMMAssessmentRelationsDiagram.png |950px]]

====Assessment⌘====

*An Assessment expresses a logical connection (i.e., fact type) between Influencers and the Ends and/or Means of the business plans
*In this way, an Assessment indicates which Influencers are relevant to which Ends and/or Means.
-->
====Assessment⌘====

*Different people or groups of people might make different Assessments of the very same Influencers on the very same Ends and Means
*The same person or group of people at different points in time can assess things differently as well.
*It is very important to indicate which person or group of people makes which Assessment of an Influencer at which point in time, so that an audit trail exists for future reference
<!--
=====Assessment and Directive⌘=====

*An Assessment can provide the impetus for Directives that govern Courses of Action and/or support the achievement of Ends. 
*Directive is motivated by the Assessment.

=====Assessment and Directive⌘=====
[[File:BMMAssessmentRelations.png |800px]]
=====Assessment Uses Assessment⌘=====
[[File:BMMAssessmentUsesAssessment.png]]
*Typical use of this association is connecting an assessment to other assessments referenced while arriving at the judgement
*These associations can then be used for many purposes, including
*Decision support for making new assessments - identifying the full set of concerns taken into account in earlier assessments.
*Compliance audit - justifying decisions made in reacting to change.
-->
=====Categories of Assessment⌘=====
[[File:SWOT.png]]
*'''SWOT''' - Strength, Weakness, Opportunity, Threat - is a frequently-used set of categories for Assessment
*There are other approaches, but if an enterprise does not have another preferred set, SWOT is a sound default
*SWOT is used as the illustrative approach for discussion and examples in the rest of this presentation.

=====Strength⌘=====
*Advantage or area of excellence '''within''' '''the''' '''enterprise''' that can impact its employment of Means or achievement of Ends.
[[File:BMMStrength.png |800px]]

=====Weakness⌘=====
*Area of inadequacy '''within the enterprise '''that can impact its employment of Means or achievement of Ends.
[[File:BMMWeakness.png |800px]]

=====Opportunity⌘=====
*Influencer can have a favourable impact on the organization’s employment of Means or achievement of Ends. 
**For example, the bankruptcy of Pizza Company’s major competitor in Region-Y is assessed to be an Opportunity in its Goal “To increase market share.”

=====Threat⌘=====
*Indicates that some Influencer can have an unfavourable impact on the organization’s employment of Means or achievement of Ends.
[[File:BMMThreat.png |800px]]
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=====Potential Impact⌘=====
*An Assessment records judgements about the impact (or potential for impact) of some Influencer on Ends and Means in terms of Potential Impacts. 
*Assessment identifies some Potential Impacts that are significant to that Assessment.
*Each Potential Impact is an evaluation that quantifies or qualifies some aspect of an Assessment in specific terms, types, or dimensions. 
*A Potential Impact significant to an Assessment can '''''provide the impetus for''''' '''Directives''' that govern Courses of Action or s'''''upport the achievement of ''Ends'''.
*An Influencer may lead to the creation of a Business Policy only through an Assessment if the Assessment identifies some Potential Impact.

=====Categories of Potential Impact⌘=====
*Potential Impacts are categorized as follows:
**Risk
**Potential Reward
*Risks are typically regarded to be negative impacts, whereas Rewards are considered positive.
*Where there is more than one Assessment associated with a single instance of an End or Means, the total impact should be evaluated to uncover tradeoffs between Risks and Potential Rewards. 
*This is the basis of risk/benefit analysis.

=====Risk⌘=====
*Risk is a category of Impact Value that indicates the impact and probability of loss.
*Some Risks are expressible as formulae.
**Probability of loss (e.g., 5% probability)
**Potential loss (e.g., $500,000 loss)
**Unit-of-measure (e.g., loss in USD)

=====Potential Reward⌘=====
*A Potential Reward is a category of Potential Impact that indicates the probability of gain. Some Potential Rewards are
*expressible as formulae, for example:
** Probability of gain (e.g., 30% probability)
** Potential gain (e.g., $40,000 gain)
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===BMM Business Process⌘===

*Business Processes '''''realize''''' Courses of Action.
*They provide processing steps, sequences, including:
**cycles (branches and synchronization), 
**structure (decomposition and reuse)
**interactions and connections to events that trigger the processes.
*Courses of Action are '''''governed by''''' Business Policies; Business Processes are also '''''governed by''''' Business Policies.
*'Business Process' participates in the following associations:
**Governed by Courses of Action
**Governed by Business Policies
**Guided by Business Rules
**Responsibility of one or more Organization Units
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===Separation of Concerns⌘===
The distinction between:
*'''Ends''' and '''means''' - what an enterprise '''wants to be''', as opposed to what it has decided '''to do'''. 
**Means can be changed without changing the ends.
*Changes caused by '''influencers''' and '''assessment''' of their impact.
**The impact of a given change may be assessed differently by different people in the enterprise.
*'''Assessments''', and the '''decisions''' based on them.
*“'''How'''” and “'''How well'''.” 
**Courses of action define how capabilities will be used; measures of how well they are used are defined within objectives they support.
**Objectives can be changed without changing courses of action.

{{PB}}

===Core Concepts of the Business <br/> Motivation Model⌘===
<br/>
[[File:BMMCoreConceptsBusinessMotivationModel.png |400px]]

<small>The Business Motivation Model, Business Governance in a Volatile World</small>
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===BMM Placeholders⌘===

*'''Asset''', '''Organization''' '''Unit''', '''Business''' '''Process''', and '''Business Rule '''- have roles in the structure of the Business Motivation Model but actually belong in other standards, where they are defined and associated with related concepts needed for detailed business modeling
*'''Business Rule''' is a core concept of the BMM (although its definition is adopted from '''SBVR''' - Semantics of Business Vocabulary and Business Rules). 
*'''Organization Unit – '''comes from OSM Organizational Structure Model
*'''Business Process '''are placeholders for association with concepts in BPDM - Business Process Definition Metamodel.
*'''Assets''' are not yet referenced to any particular OMG specifications.

====Organization Unit⌘====

*It is difficult to avoid references to ‘Who’ in discussions of ‘Why.’ 
*We cannot say “the motivation is that the company wants it that way.” 
*Saying so may lead to the perpetuation of unnecessary rules — unnecessary either because:
**the business requirement for them has passed, or
**they were not Business Rules in the first place (e.g., they were imposed as workarounds in systems that did not fully support business needs).

====Organization Unit⌘====
*This capability is reflected in the Model by linking elements of the business plans to specific parts of the organization (i.e., its Organization Units).
*It should be done where the connection is important for developing, analyzing, challenging, and maintaining the business plans.

=====Logical connections (i.e., fact types) for Organization Unit⌘=====
'''Organization Unit is:'''
*responsible for Assets
*is responsible for Liabilities
*defines Ends
*establishes Means
*acts as Influencing Organization
*recognizes Influencers
*makes Assessments
*is defined by Strategies
*is responsible for Business Processes

====Business Process⌘====

*'''Business Processes''' and '''Business Rules''' are closely related
*'''Business Processes''' '''''realize''''' Courses of Action – they provide detail of activities, plus sequencing, control, and synchronization that enable the enterprise to undertake its Courses of Action. 
*'''Business Rules''' '''''guide''''' '''Business Processes''' – they provide the basis for decisions that need to be made within Business Processes.
*Business Processes, Courses of Action, and Business Rules are all developed to help the enterprise reach its Goals.
*They need to be coherent and consistent.

====Business Process⌘====

*Business Processes are governed by Business Policies, which:
**Provide guidance (both directly and via Courses of Action) on what Business Processes have to do.
**Set limits on how Business Processes may undertake what they have to do.
*Each Business Process '''''is the responsibility of''''' some Organization Unit ('''the process owner''').
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====Asset⌘====

*“Asset” in BMM is NOT used in the sense of accounting (economic value owned by a company that may be converted into cash)
*Assets are ‘things’ that are used in operating the enterprise
*In BMM they have an operational perspective i.e. refer to the real things in the business - the actual equipment, buildings, and stocks of materials rather monetary values in accounting
*They are represented in the Model as Assets, of two kinds:
**Fixed Assets (tangible, intangible)
**Resources: things that are consumed and replenished, such as raw materials, parts, finished goods, and cash.

====Asset and Offering⌘====

*Asset, Resource, and Fixed Asset are only placeholders – defined outside its BMM
*Only those that are relevant to governance decisions need be included.
*There is no requirement for a coherent, complete structure of Assets within a BMM
*Asset that is often explicitly referenced is the enterprise’s products and services, called “'''Offering'''” in the Model. 
*An Offering is a specification of a product or service - an intangible Fixed Asset. 
*Instances of Offering, such as quantities of finished goods, would be a Resource.

====Liability⌘====
* As well as Assets, enterprises also need to consider Liabilities - again, not in an accounting sense (company's obligations arising from its normal operations).
* A Liability is a ''reservation'''''Bold text''' of Resource(s) to meet commitments, such as materials needed to fulfil a contract, or cash to pay taxes.

===Placeholder's association⌘===

*Courses of Action may
*'''deploy''' Assets*determine how Assets will be assigned and used in realizing the Courses of Action.
*'''define''' Offerings, the products and services that can be supplied by the enterprise
*'''discharge''' Liabilities*ensure that commitments are met.


===Placeholder's association⌘===

*A Directive may '''''govern use of''''' Assets, regardless of which Courses of Action deploy them.
*Business Processes may:
*'''''deliver''''' Offerings
*'''''manage''''' Assets
*An Organization Unit may be '''''responsible for''''' Assets and/or Liabilities.

===Placeholders' association⌘===
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===Ould's 8 Principles for Process Modelling⌘===
More: Business Process Management - A Rigorous Approach - Introduction by Martin Ould
*'''One''': If we must have abstractions, let's make them meaningful. When we model processes – what people do – we need a limited set of concepts and depict things as they are, they should be concrete enough to someone looking at our model to readily understand
:[[File:ClipCapIt-160523-233401.PNG]]
*'''Two''': The real world is messy, but at a high level of abstraction any process can be made to look neat and tidy. When we model organizations, we are most interested in dynamics.
*'''Three''': A model '''must mean something, but only one something: the notion should have a unique shared meaning'''

===Ould's 8 Principles for Process Modelling⌘===
*'''Four''': Process models are '''about''' '''people, and for people'''
** When we model a process we are describing what people do.
** The notation has to make sense to people.
*'''Five''': There's what people actually do, and there's what they effectively do
** We won't try to reconcile concrete and abstract models. 
** There are two different views of the same thing.
*'''Six''': People work in functions, but they do processes
*'''Seven''': It's what people do, a process is about doing, deciding and cooperating.

===Module 4. Questions⌘===
* What is the difference between Goal and Objective?
* Can you describe BMM architecture?
* What is SWOT?
* Can you describe Ould's Principles for Process Modelling?