Each square in that diagram is a 'state'. Thats about it. Next, you have the arrows, which connect the states. States are the stages which a 'document' flows through during a process. The document gets routed from desk to desk, gaining signatures, and getting notes stapled to it.
Notes have a date attached.
Some notes might by cryptographically signed with electronic signatures, etc. Some notes may contain embedded images, embedded html, or references to other documents. Next, you have permissions. The role 'Boss' would have this authority. That is, the role 'Boss' has almost exactly the same list of permissions, except that the last one would be marked 'Yes' instead of 'No'.