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The perceived effects of business process management
Abstract
Several organizations choose to be process-oriented. They apply the concept of business process management and focus on business processes instead of emphasizing functional structures, i.e. they explicitly design and document their processes, implement the process owner role, employ process performance measurement, etc. This paper empirically explores the outcomes of business process management by conducting interviews with a total of 44 process-oriented firms. Key findings indicate that process orientation leads to higher transparency, clear responsibilities, higher efficiency, structure and tidiness, higher product quality, faster throughput times, and better customer orientation.
... In fact, existing work on Business Process Management (Hammer, 2007; Jeston and Nelis, 2006; Hengst et al.,2004; Kohlbacher, 2009; Larsen and Klischewski, 2004; Hammer, 1999) has stressed the key role of the process owner as someone responsible for the end-to-end process. The process owner's attributions include process design and operation (ensuring it is appropriately performed). ...
... One arrangement for putting this kind of management into practice is the division between senior and middle managers, the former responsible for the end-to-end process and the latter, for sub-processes or individual processes that are part of the end-to-end process. Kohlbacher (2009) states that, associated with a business process, there must be a manager with end-to-end responsibilities. He presents a study of 44 Austrian metal and machinery industry organizations, 20.45% of which confirm that a process-oriented organizational approach yields clear responsibilities, because of the process owner role, reducing uncertainties caused by departmental fragmentation of responsibilities. ...
... Fig. 6Owner and Aspect Owner are specializations of the Organization Role, and Owner is responsible for an EPC (this relation was incorporated from (Hengst et al., 2004). The Organizational Unit can be refined by Organizational Role (Kohlbacher, 2009) and also refined by a Position as Manager. Person, Manager, and Organizational Role are all specializations of Actor. ...
Purpose
– The purpose of this paper is to propose a representation scheme based on the i* strategic actor model to represent the process owner information and show how to incorporate this approach into the event driven process chain and Business Process Modeling Notation-BPMN meta-models and also into the aspect-oriented business process modeling (BPM) context.
Design/methodology/approach
– The authors use a case study in a real setting to evaluate the proposal and a controlled experiment to get more evidence about its relevance.
Findings
– The authors presented evidence both from a case study in a real-world library showing the importance of representing – previously unavailable – process owner information, and from an experiment which involved participants analyzing the same models of the case study, confirming the preliminary evidences. It is important to stress the recognition that the proposed representation provided more transparency, in terms of ownership, than the usual BPM models. These benefits are due to the combination of the aspect-oriented approach and the strategic actor model, providing ownership information in a more transparent way.
Originality/value
– The authors not only argue the importance of clearly established process ownership, both of the core process and the aspectual process, but also the authors presented an approach to represent the actor involved in process and aspect ownership as an instantiation of the i* strategic actor. Using this approach, the process owner can be defined in terms of actors instead of the activities performed. It is also possible to define the aspect owner and to include the aspectual process concept in the business process model.
... Organizations have realized the importance of technology and the role it can play for improving the efficiency and quality of their business processes through effective business process management (BPM). While BPM helps organizations to continuously improve their processes, it also monitors the technological advancements that can be integrated in the development of efficient processes through business process reengineering (BPR) and business process innovation (BPI) [1]. Hence, organizations are continuously redefining their business by means of IT, clearly showing that IT is acting as a tool/catalyst for BPR and BPI2345. ...
... Therefore BPM can be broadly depicted as a provider of tools and techniques to efficiently manage business processes [15]. BPM can play a crucial part in the development of an organization, especially which focuses on a business process view [1] because BPM not only provides discovery, design, deployment and execution of business processes, but due to the fastidious evolution it can also provide interaction, control, analysis and optimization of processes [16]. Today as the complexity of business process is increasing, organizations are becoming more open and distributed. ...
Business process management (BPM), business process reengineering (BPR), and business process innovation (BPI) have been the primary strategies adopted by several organizations to manage their business successfully along with IT. In the last few years, the concept of BPM, BPR, and BPI has been a hot topic among the IS community, which is evident in the degree of literatures devoted to it. Due to the dynamic nature of this research area, this paper aims to add knowledge to the existing ones by answering (1) what is the current level of development on BPM, BPR, and BPI within AIS basket of top journals and Science Direct database? and (2) what are the potential future research directions on BPM, BPR, and BPI?. A total of 55 articles from the AIS basket of top journals and 61 articles from the Science Direct database are analyzed based on the year of publications, AIS geographical regions, approaches adopted by the author/s, components of BPM areas and industrial application covered, and potential future research directions are discussed.
... Therefore, promoting BPM philosophy is considered a key goal to be achieved by the organizations. Another goal stressed during the interviews is the creation of a BPMO, which is one of the main characteristics of process-oriented organizations (Kohlbacher, 2009). The BPMO fosters the implementation of major roles for BPM and supports all activities of BPM lifecycle. ...
... In particular, they need to increase awareness of the benefits, conceptual and technical basis of BPM among employees. Another issue claimed by all organizations is the lack of human resources with BPM expertise, which is a fundamental capability for organizations to succeed in BPM (Kohlbacher, 2009). To overcome this obstacle, most of them have external consultants or trainees as part of their BPM teams. ...
BPM governance is a key factor to ensure the successful deployment of BPM across an organization. BPM governance emphasizes not only the accountability and control of BPM initiatives, but also provides the mechanisms to ensure that BPM delivers desirable results. Despite growing research identifying the importance of BPM governance, there has been limited number of empirical studies investigating this issue. In this paper, we adopt existing BPM governance elements presented in the literature to investigate how these elements are embraced by public organizations. We conducted case studies with four public organizations in Brazil. All organizations are involved in BPM initiatives with varying levels of maturity. The results suggest that strong sponsorship, suitable BPM training and availability of internal staff with BPM expertise are key success factors for these initiatives. To provide a richer understanding on the factors that affect the performance of BPM initiatives, we conducted a system dynamic analysis of how barriers and facilitators interact with each other and create patterns of dysfunctional systemic behaviors, which may slowdown the success of the BPM initiative. The generated system archetypes can enhance the understanding of current situation and direct future actions.
... Em seguida, uma análise comparativa das metodologias selecionadas foi conduzida para identificar as práticas necessárias ao estabelecimento de um BPMO. As metodologias abaixo foram analisadas, tendo sido selecionadas com base na avaliação de elementos considerados pela literatura como relevantes para a Estruturação de um BPMO: [Kohlbacher 2009]. Adicionalmente analisamos os pontos fortes e as lacunas observadas em cada metodologia. ...
... Por este motivo, Trkman (2010) reforça que o BPMO deve dividir responsabilidades e classificar os papéis dos envolvidos para que não haja inconsistências na execução das atividades. Kohlbacher (2009) ...
The establishment of Business Process Management Office (BPMO) is a strategy recently adopted by organizations that aim to manage BPM initiatives in a structured manner. The academia and industry propose several methodologies to guide the construction of this type of unit. The differences among these methodologies fostered the conduction of a comparative analysis aiming to identify practices needed for the structuration of a BPMO. The results will serve as basis for the definition of a methodology support to establishment of a BPMO for a public organization of Federal Government.
... The exhaustive literature underpins the significance of innovation in business process model. An improvement in the business process model of an organization leads to the efficient functioning of an organization(Kohlbacher, 2009).It is the one new idea that makes an organization a unique business model making it innovative. ...
... Many companies have started to realize the benefits associated with implementing business process orientation (Kumar et al., 2008). Several authors and empirical studies refer to a positive impact of process-oriented organizational design on firm performance (Ittner and Larcker, 1997;Kohlbacher, 2009;McCormack and Johnson, 2001;Škrinjar et al., 2008;Vera and Kuntz, 2007). However, despite the growth in the business process management literature, certain important gaps still remain. ...
Purpose – The purpose of this paper is to explore empirically the interaction effect of process performance measurement and the process owner role on organizational performance. Design/methodology/approach – Using a sample of Austrian manufacturing companies, the paper uses multivariate data analysis techniques to test the joint effect of process performance measurement and process ownership on firm performance. Findings – The empirical evidence indicates that implementing process performance measurement or the process owner role only is insufficient to achieve high performance. Organizations must implement both concepts – process performance measurement and the process owner role – to reap the fruits of process management. Research limitations/implications – Several research limitations apply. First, the sample only included Austrian manufacturing firms. The generalizability of the findings to other industries or other countries is open to scrutiny. Second, only one interview per firm was conducted. Interviewing several managers per firm would have led to even higher data quality. A third important limitation of this work is the small number of cases in the regression models. Such a small number of cases are not appropriate for a clear demonstration of empirical effects. Fourth, this work relies on survey data, which leaves open the possibility of self-serving bias in the data. Practical implications – The promise of process management is to help firms gain competitive advantage, and, as such, managers facing organizational problems may adopt process management practices as a response to these problems. But managers must fully understand the concept of process management to ensure these practices are used in the appropriate contexts. Managers must understand the multidimensional nature of process orientation and the importance of its key dimensions. The empirical evidence of the study suggests that managers should put their effort into establishing process owners as well as process performance measurement as both process management concepts are needed in order to achieve firm performance improvements. Originality/value – While the importance of process management has often been highlighted, much more remains to be understood about the performance impact of specific process management practices. This paper focuses on the process owner role and process performance measurement – as empirical studies investigating the interaction effect of these two practices have been remarkably limited to date.
... 3.1 Link between PO and financial performance PO introduces transparency in the organization (Kohlbacher, 2009). By discovering and analyzing an organization's business processes, non-value adding activities are easily detected. ...
Purpose
– Several organizations choose a process‐oriented organizational design as a source for competitive advantage. The purpose of this paper is to explore empirically the relationship between process orientation (PO) and firm performance. The paper considers PO as a multidimensional construct and examines how its underlying dimensions impact different aspects of organizational performance.
Design/methodology/approach
– The paper uses an exploratory research design and investigates the effects of the different PO dimensions on profitability, customer satisfaction, product quality, and time‐based performance using a random sample of Austrian manufacturing firms.
Findings
– The empirical findings reveal that process performance measurement, a process‐oriented organizational structure, the application of continuous process improvement methods, and – in particular – a culture in line with the process approach, are significantly and positively associated with organizational performance.
Originality/value
– While a few studies examined the effects of PO on financial performance, there is a clear lack of quantitative studies investigating the effects of PO on other, non‐financial performance measures. In addition, since most of the existing studies treated PO as a single measure, there is a clear lack of studies that investigate the performance effects of individual PO dimensions. The paper incorporates the multidimensional nature of PO and examines the effects of individual PO dimensions on several firm performance aspects.
... Therefore, BPM can be broadly described as a provider of tools and techniques to efficiently manage business processes [5]. BPM plays a key role in the advancement of an organization, especially which focuses on a business process view [6] because BPM can provide interaction, control, analysis, and optimization of processes [7]. ...
Business Process Management (BPM) is considered as a management approach that primarily focuses on analyzing and continuously improving business processes. It has been a key strategy adapted by organizations to manage their businesses successfully along with information technology. In the past few decades BPM has been one of the promising research areas. This paper adds knowledge to the existing research by answering following questions: (1) what is the status of BPM research domain? And (2) what are the possible future research directions on BPM? A thematic review was conducted focusing a series of literature on BPM which have been published between 2001 and 2020. The findings highlight that the integration of BPM into new digital innovations, such as process mining, is essential for an effective and efficient organization. More research on BPM and IT management needs to be conducted to support this integration between BPM and digital innovations.
... Process orientation introduces transparency in the organization [17]. By discovering and analyzing an organization's business processes, non-value adding activities are easily detected. ...
Business process orientation can be interpreted as the organizational approach making business processes the platform for organizational structure, strategic planning, and information technology. While recent research focused on the question whether process-oriented organizational design impacts firm performance, there is a lack of studies measuring the construct of process orientation by means of whether the process approach is actually lived in the organization. This paper empirically explores the relationship between a corporate culture in line with business process orientation and firm performance in industrial settings. The empirical evidence indicates that firms which actually live the process approach are outperforming other firms in terms of financial firm performance, delivery time, and delivery reliability.
... Para que os benefícios preconizados por BPM sejam obtidos, é necessário que haja uma transformação organizacional gradativa envolvendo três eixos: pessoas, tecnologia e processos [10][5] [3]. Neste contexto, são exigidas mudanças culturais, técnicas e metodológicas que possibilitem o alinhamento entre estas três dimensões e que proporcionem o alcance dos objetivos almejados pela organização. ...
... The main idea of Content Analysis is the inclusion of elements of a text into categories (Berelson, 1952;Creswell & Clark, 2007;Holsti, 1969;Huntemann & Morgan, 2001;Krippendorff, 2004;Mayring, 2014;Rustermeyer, 1992). Qualitative Content Analysis is a systematic methodology of translating the concepts around us into categories for coding (Kohlbacher, 2009;Manzo & Trotter, 2007). A central issue of this research was to find the references of the text through which the cultivation of critical thinking skills is promoted and the inclusion of these references in a system of categories. ...
This chapter introduces the framework and causal model of organizational culture, organizational climate, knowledge management, and job performance related to business process orientation. It argues that dimensions of organizational culture, organizational climate, and knowledge management have mediated positive effect on job performance. Knowledge management positively mediates the relationships between organizational culture and job performance and between organizational climate and job performance. Organizational culture is positively related to organizational climate. Furthermore, the author hopes that understanding the theoretical constructs of organizational culture, organizational climate, knowledge management, and job performance through the use of the framework and causal model will not only inform researchers of a better design for studying organizational culture, organizational climate, knowledge management, and job performance, but also assist in the understanding of intricate relationships between different factors.
This chapter introduces the framework and causal model of organizational culture, organizational climate, knowledge management, and job performance related to business process orientation. It argues that dimensions of organizational culture, organizational climate, and knowledge management have mediated positive effect on job performance. Knowledge management positively mediates the relationships between organizational culture and job performance and between organizational climate and job performance. Organizational culture is positively related to organizational climate. Furthermore, the author hopes that understanding the theoretical constructs of organizational culture, organizational climate, knowledge management, and job performance through the use of the framework and causal model will not only inform researchers of a better design for studying organizational culture, organizational climate, knowledge management, and job performance, but also assist in the understanding of intricate relationships between different factors.
This chapter introduces the framework and causal model of organizational culture, organizational climate, knowledge management, and job performance related to business process orientation. It argues that dimensions of organizational culture, organizational climate, and knowledge management have mediated positive effect on job performance. Knowledge management positively mediates the relationships between organizational culture and job performance and between organizational climate and job performance. Organizational culture is positively related to organizational climate. Furthermore, the author hopes that understanding the theoretical constructs of organizational culture, organizational climate, knowledge management, and job performance through the use of the framework and causal model will not only inform researchers of a better design for studying organizational culture, organizational climate, knowledge management, and job performance, but also assist in the understanding of intricate relationships between different factors.
ArchiMate is an established enterprise architecture modelling language that allows organizations to be modelled from a holistic perspective. As a result, its modelling constructs are coarse grained by design and architects may feel that they do not get enough guidance from the language in producing ArchiMate models. To address this issue, we suggest using methods with a more refined semantics and elaborated modelling guidance, as a `front-end' to ArchiMate. In this paper, we will show how the DEMO method can indeed be used as a front-end to ArchiMate, where we will focus on the automatic transformation of DEMO models to ArchiMate models. This is done by creating a formal link between DEMO and ArchiMate with additional benefits of linking DEMO's key modelling concept of transactions, being as (socio-economic) commitments between actors, to ArchiMate. Specifically, we provide a formal approach that can be used to transform DEMO models into ArchiMate models. In addition, we provide a software implementation of our approach which is illustrated by means of an illustrative case study from the insurance domain.
Purpose
– This paper aims to present a solution that enables organizations to monitor and analyse the performance of their business processes by means of Big Data technology. Business process improvement can drastically influence in the profit of corporations and helps them to remain viable. However, the use of traditional Business Intelligence systems is not sufficient to meet today ' s business needs. They normally are business domain-specific and have not been sufficiently process-aware to support the needs of process improvement-type activities, especially on large and complex supply chains, where it entails integrating, monitoring and analysing a vast amount of dispersed event logs, with no structure, and produced on a variety of heterogeneous environments. This paper tackles this variability by devising different Big-Data-based approaches that aim to gain visibility into process performance.
Design/methodology/approach
– Authors present a cloud-based solution that leverages (BD) technology to provide essential insights into business process improvement. The proposed solution is aimed at measuring and improving overall business performance, especially in very large and complex cross-organisational business processes, where this type of visibility is hard to achieve across heterogeneous systems.
Findings
– Three different (BD) approaches have been undertaken based on Hadoop and HBase. We introduced first, a map-reduce approach that it is suitable for batch processing and presents a very high scalability. Secondly, we have described an alternative solution by integrating the proposed system with Impala. This approach has significant improvements in respect with map reduce as it is focused on performing real-time queries over HBase. Finally, the use of secondary indexes has been also proposed with the aim of enabling immediate access to event instances for correlation in detriment of high duplication storage and synchronization issues. This approach has produced remarkable results in two real functional environments presented in the paper.
Originality/value
– The value of the contribution relies on the comparison and integration of software packages towards an integrated solution that is aimed to be adopted by industry. Apart from that, in this paper, authors illustrate the deployment of the architecture in two different settings.
Transparency is one of concern for local government in Indonesia. A problem arise when we're talking abut business process in local government. Does the process business has made impact for transparency? This question will be answered in this paper. Through this research, one of local government will be investigated and studied to identify transparency of information. Department of Transportation, Information and Communication Technology at Bontang City, Indonesia trough Unit of Vehicle Inspection has a role to issue a license for road worthiness of a vehicle, such as truck, urban transportion, pickup, etc. There are some issues occured in this unit. The latest is about illegal levies. This probem will be identified using unstructured interview and six sigma statistics analysis.
This chapter introduces the framework and causal model of organizational culture, organizational climate, knowledge management, and job performance related to business process orientation. It argues that dimensions of organizational culture, organizational climate, and knowledge management have mediated positive effect on job performance. Knowledge management positively mediates the relationships between organizational culture and job performance and between organizational climate and job performance. Organizational culture is positively related to organizational climate. Furthermore, the author hopes that understanding the theoretical constructs of organizational culture, organizational climate, knowledge management, and job performance through the use of the framework and causal model will not only inform researchers of a better design for studying organizational culture, organizational climate, knowledge management, and job performance, but also assist in the understanding of intricate relationships between different factors.
This chapter introduces the framework and causal model of organizational culture, organizational climate, knowledge management, and job performance related to business process orientation. It argues that dimensions of organizational culture, organizational climate, and knowledge management have mediated positive effect on job performance. Knowledge management positively mediates the relationships between organizational culture and job performance and between organizational climate and job performance. Organizational culture is positively related to organizational climate. Furthermore, the author hopes that understanding the theoretical constructs of organizational culture, organizational climate, knowledge management, and job performance through the use of the framework and causal model will not only inform researchers of a better design for studying organizational culture, organizational climate, knowledge management, and job performance, but also assist in the understanding of intricate relationships between different factors.
This book constitutes the proceedings of the 9th International Workshop on Enterprise and Organizational Modeling and Simulation, EOMAS 2013, held in conjunction with CAiSE 2013 in Valencia, Spain, in June 2013. Tools and methods for modeling and simulation are widely used in enterprise engineering, organizational studies, and business process management. In monitoring and evaluating business processes and the interactions of actors in a realistic environment, modeling and simulation have proven to be both powerful, efficient, and economic, especially if complemented by animation and gaming elements. The ten contributions in this volume were carefully reviewed and selected from 22 submissions. They explore the above topics, address the underlying challenges, find and improve solutions, and show the application of modeling and simulation in the domains of enterprises, their organizations and underlying business processes.
This chapter primarily provides a thorough account of what the process perspective encompasses to address the attention that business processes perspective in today's postmodern organizations attracts. It exhibits how organizations designed around business processes are able to become more agile, competitive, dynamic, flexible, and adaptable to constantly shifting market realities. Accordingly, this chapter also covers the underlying logic behind business process orientation (BPO) as a comprehensive view of the process perspective. As BPO is thought to offer an integrated approach that encompasses structures of the organizations, their information technology systems and strategies, it is considered to possess qualities that will continuously create value for the global market.
This chapter introduces the framework and causal model of organizational culture, organizational climate, knowledge management, and job performance related to business process orientation. It argues that dimensions of organizational culture, organizational climate, and knowledge management have mediated positive effect on job performance. Knowledge management positively mediates the relationships between organizational culture and job performance and between organizational climate and job performance. Organizational culture is positively related to organizational climate. Furthermore, the author hopes that understanding the theoretical constructs of organizational culture, organizational climate, knowledge management, and job performance through the use of the framework and causal model will not only inform researchers of a better design for studying organizational culture, organizational climate, knowledge management, and job performance, but also assist in the understanding of intricate relationships between different factors.
The literature on Business Process Management (BPM) confirms the importance of establishing process ownership but conventional approaches as BPMN or EPC do not offer a way to represent the process owner. The aspect-oriented business process (AO-BPM) approach makes this issue more prominent because of the separation between crosscutting concerns and the core elements of a process. In this paper we present a way to represent the ownership based on the Strategic Actor model from i*and incorporate this approach to the EPC meta-model. We also provide a proof of concept by means of an example that illustrates our solution.
As global spending on healthcare increases and service improvement is not adequately reflecting on resource consumption, many healthcare organizations therefore resolve to improving their services by implementing Business process reengineering (BPR). BPR is a business strategy adopted by so many healthcare organizations in order to efficiently and successfully manage their business using currently available technology. BPR has been a hot topic in Information Systems discipline and extensive research has been carried out in different settings with numerous methodologies and approaches. As a result of ever changing nature of BPR this paper intend to provide additional knowledge exploring the current level of development of BPR in healthcare. To achieve this, a total of 27 articles from Science Direct database, 15 from IEEE explore, 16 from Taylor & Francis, 25 from SpringerLink and 8 from SAGE Hub database covering the period from 2005 to early 2014 were analyzed based on their setting and methodology. And finally the article concludes with suggestions for future research related to BPR in healthcare.
Drawing on an in-depth case study of the Volvo automobile company’s strategy in the early 1990s, before the Ford takeover in 1999, this paper demonstrates how policies designed to reduce inventory costs and slim the distribution pipeline can affect a business’ network of suppliers and distributors in unexpected ways. It also shows how the implementation of cost reducing reengineering projects naturally lead to sub-optimization and a need to consider higher-level processes. In the Volvo illustration a manufacturer’s reengineering of its distribution chain evolved into a complete recasting of its order fulfillment process, and an adoption of a process management structure. The paper traces the effects on the network of distributors and dealers and shows how Volvo’s new structure curtails the distribution role of foreign sales subsidiaries and shifts their tasks towards market analysis, demand forecasting and customer service in foreign markets. It also shows how a process management perspective impacts a firm’s value chain, marketing function and organizational structure. In the end, the case demonstrates how a division can cut costs and still become more customer-oriented – and become a more valuable asset for a diversified corporation.
The dangers of functional organisation structures are well documented and have led to the advocation, particularly by exponents of BPR, of the process enterprise paradigm. This paper reports the results of case-study research that was conducted in order to explore the operational changes resulting from re-engineering companies along process, rather than functional lines. Increased market responsiveness, improved collaboration between functions and alignment of organisational objectives were some of the perceived benefits of the new process structures; but some disadvantages were also identified. Duplication of functional expertise and increased operational complexity resulted in an escalation of costs, the emergence of horizontal silos, inconsistency in the execution of functional decisions between processes, and general erosion of the efficiency of the operations network. These preliminary findings point to some possible contingencies of organisational design, suggesting that process structures may be conducive to the realisation of differentiation strategies, whilst functional structures may offer benefits to cost leaders. It is further proposed that matrix structures may be appropriate for companies adopting mixed strategies; however, it is envisaged that a more flexible approach to organisational design, based on a network rather than a matrix paradigm, could stimulate new developments in the future quest for strategic and structural alignment.
The central idea of process-based organization design is that organizing a firm around core business processes leads to cost reductions and quality improvements.
We investigated theoretically and empirically whether the implementation of a process-based organization design is advisable in hospitals.
The data came from a database compiled by the Statistical Office of the German federal state of Rheinland-Pfalz and from a written questionnaire, which was sent to the chief executive officers (CEOs) of all 92 hospitals in this federal state. We used data envelopment analysis (DEA) to measure hospital efficiency, and factor analysis and regression analysis to test our hypothesis.
Our principal finding is that a high degree of process-based organization has a moderate but significant positive effect on the efficiency of hospitals.
The main implication is that hospitals should implement a process-based organization to improve their efficiency. However, to actually achieve positive effects on efficiency, it is of paramount importance to observe some implementation rules, in particular to mobilize physician participation and to create an adequate organizational culture.
Every company wants to improve the way it does business, to produce goods and services more efficiently, and to increase profits. Nonprofit organizations are also concerned with efficiency, productivity, and with achieving the goals they set for themselves. Every manager understands that achieving these goals is part of his or her job. In this balanced treatment of the field of business process change, Paul Harmon offers concepts, methods, cases for all aspects and phases of successful business process improvement. Updated and added for this edition are coverage of business process management systems, business rules, enterprise architectures and frameworks (SCOR), and more content on Six Sigma and Lean--in addition to new coverage of performance metrics. * Extensive revision and update to the successful BPM book, addressing the growing interest in Business Process Management Systems, and the integration of process redesign and Six Sigma concerns. * The best first book on business process, the most up-to-date book to read to learn how all the different process elements fit together. * Presents a methodology based on the best practices available that can be tailored for specific needs and that maintains a focus on the human aspects of process redesign. * Offers all new detailed case studies showing how these methods are implemented.
In recent years, companies have developed much more sophisticated strategic measurement systems, based on such tools as the balanced scorecard, key performance indicators, computerized dashboards and the like. Nonetheless, there seems to be a widespread consensus that they measure too much, or too little, or the wrong things, and that, in any event, they don't use their metrics effectively. Why? On the basis of discussions with hundreds of managers, noted management thinker, author and professor MICHAEL HAMMER (Hammer and Co.) concludes that the operational metrics that companies commonly use make little or no sense. In the core article of this specialreport, "The 7 Deadly Sins of Performance Measurement and How to Avoid Them," Hammer identifies seven common mistakes -the deadly sins -that seriously impede the relevance and usefulness of operating measures. He also offers managers some means for redemption. In addition, four prominent managers CAROLE J. HANEY (Boeing Co.), ANDERS WESTER (Tetra Pak Group), RICK CICCONE (Procter & Gamble Co.), and PAUL GAFFNEY (Desktone Inc.) -comment on Hammer's thesis through the prism of their own experience in the field and offer insights from their own philosophy of performance measurement. Copyright © Massachusetts Institute of Technology, 2007. All rights reserved.
Every company wants to improve the way it does business, to produce goods and services more efficiently, and to increase profits. Nonprofit organizations are also concerned with efficiency, productivity, and with achieving the goals they set for themselves. Every manager understands that achieving these goals is part of his or her job. In this balanced treatment of the field of business process change, Paul Harmon offers concepts, methods, cases for all aspects and phases of successful business process improvement. Updated and added for this edition are coverage of business process management systems, business rules, enterprise architectures and frameworks (SCOR), and more content on Six Sigma and Lean--in addition to new coverage of performance metrics. * Extensive revision and update to the successful BPM book, addressing the growing interest in Business Process Management Systems, and the integration of process redesign and Six Sigma concerns. * The best first book on business process, the most up-to-date book to read to learn how all the different process elements fit together. * Presents a methodology based on the best practices available that can be tailored for specific needs and that maintains a focus on the human aspects of process redesign. * Offers all new detailed case studies showing how these methods are implemented.
Global competition is forcing American Managers to rethink the way they do business. It is no longer the “big that eat the small” it is now the “fast that eat the slow”. This paper will examine how business process orientation (BPO) has a positive impact on esprit de corps, reduced conflict and improve connectedness and overall business performance. This implies that there is a ROI for becoming more business process oriented and reengineering an organization to more horizontal structures.
Business process management is coming into the lexicon through the concepts associated with business process re-engineering (BPR) and total quality management (TQM). TQM and BPR have been adopted by service organizations. Two questions are considered. What are the implications of this focus on processes for service productivity? In particular, how does the adoption of a process view affect an organization’s perspective on productivity and the way it is managed? Considers the nature of BPR and the development of approaches to business process management, based on the literature; and presents the development of a case study of the Royal Mail.
Many organizations use quality management to improve firm performance, but the results do not always come quickly. Research in the manufacturing sector has found that different organizational characteristics, such as firm size and the degree of capital intensity, influence the perceived benefits of quality management. Uses data from 281 firms that work with quality management to investigate the role of quality practices in service organizations. The results of our investigations support that the relationship between quality practices and business performance is dependent on firm size. In addition provides insight into how the business results are influenced by individual quality practices such as employee management, process orientation and customer orientation, depending on firm size.
Purpose – The presentation and validation of a checklist that can be used to determine an organization's process orientation prior to a business process management systems (BPMS) implementation. Its aim is to help predict the success of BPMS implementation on the basis of the identified process awareness within an organization. Design/methodology/approach – The checklist has been developed on the basis of relevant literature and augmented with practical experience from staff of one of the world's largest BPM system vendors. The study of three BPM System implementations at different client sites have been used to validate the checklist. Findings – The study suggests that a lack of process orientation may be related to all kinds of problems that affect the speed and cost of a BPMS implementation. The checklist seems useful to predict those problems at sites where process orientation is insufficient. Research limitations/implications – The number of cases used (3) is quite small. Furthermore, the retrospective assessment of the situation prior to BPM system implementation limits the reliability of the findings. Current results seem a good basis for further refinement and validation. Practical implications – A very practical, easy to use instrument that can directly be applied by organizations that are expected to be involved in multiple BPM system implementations (e.g. large banks, consultancies, system integrators, etc.). Originality/value – This paper presents an instrument that does not yet exist to measure a relation often hypothesized upon in existing research.
This paper explores the relation between retail banks' branch-based processes and financial performance. There are 11 processes included in this study, which represent the bulk of the activities performed in a typical retail branch (e.g., opening checking accounts). The first finding of this study is that the financial performance of banks that perform better across these processes tend to be better than that of other banks. In addition to the variation in process performance across banks, there is also substantial variation across processes within banks. That is, banks that performed well in one process often performed quite badly in another. We present an analytical model that shows that improvement in process variation can be more important than improvement in aggregate process performance when dealing with certain customer segments. Empirical evidence from the Wharton Financial Institution Center Retail Banking Study of bank holding companies in the United States provides support.
Many companies have succeeded in reengineering their core processes, combining related activities from different departments and cutting out ones that don't add value. Few, though, have aligned their organizations with their processes. The result is a form of cognitive dissonance as the new, integrated processes pull people in one direction and the old, fragmented management structures pull them in another. That's not the way it has to be. In recent years, forward-thinking companies like IBM, Texas Instruments, and Duke Power have begun to make the leap from process redesign to process management. They've appointed some of their best managers to be process owners, giving them real authority over work and budgets. They've shifted the focus of their measurement and compensation systems from unit goals to process goals. They've changed the way they assign and train employees, emphasizing whole processes rather than narrow tasks. They've thought carefully about the strategic trade-offs between adopting uniform processes and allowing different units to do things their own way. And they've made subtle but fundamental cultural changes, stressing teamwork and customers over turf and hierarchy. These companies are emerging from all those changes as true process enterprises--businesses whose management structures are in harmony, rather than at war, with their core processes. And their organizations are becoming much more flexible, adaptive, and responsive as a result.
Few executives question the idea that by redesigning business processes--work that runs from end to end across an enterprise--they can achieve extraordinary improvements in cost, quality, speed, profitability, and other key areas Yet in spite of their intentions and investments, many executives flounder, unsure about what exactly needs to be changed, by how much, and when. As a result, many organizations make little progress--if any at all--in their attempts to transform business processes. Michael Hammer has spent the past five years working with a group of leading companies to develop the Process and Enterprise Maturity Model (PEMM), a new framework that helps executives comprehend, formulate, and assess process-based transformation efforts. He has identified two distinct groups of characteristics that are needed for business processes to perform exceptionally well over a long period of time. Process enablers, which affect individual processes, determine how well a process is able to function. They are mutually interdependent--if any are missing, the others will be ineffective. However, enablers are not enough to develop high-performance processes; they only provide the potential to deliver high performance. A company must also possess or establish organizational capabilities that allow the business to offer a supportive environment. Together, the enablers and the capabilities provide an effective way for companies to plan and evaluate process-based transformations. PEMM is different from other frameworks, such as Capability Maturity Model Integration (CMMI), because it applies to all industries and all processes. The author describes how several companies--including Michelin, CSAA, Tetra Pak, Shell, Clorox, and Schneider National--have successfully used PEMM in various ways and at different stages to evaluate the progress of their process-based transformation efforts.
This paper explores the relation between retail banks' branch-based processes and financial performance. There are 11 processes included in this study, which represent the bulk of the activities performed in a typical retail branch (e.g., opening checking accounts). The first finding of this study is that the financial performance of banks that perform better across these processes tend to be better than that of other banks. In addition to the variation in process performance across banks, there is also substantial variation across processes within banks. That is, banks that performed well in one process often performed quite badly in another. We present an analytical model that shows that improvement in process variation can be more important than improvement in aggregate process performance when dealing with certain customer segments. Empirical evidence from the Wharton Financial Institution Center Retail Banking Study of bank holding companies in the United States provides support.
The Process-Focused Organization
- R A Gardner
R. A. Gardner, The Process-Focused Organization. Milwaukee; WI:
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Geschäftsprozessmanagement in der Praxis
- H J Schmelzer
- W Sesselmann
H. J. Schmelzer and W. Sesselmann, Geschäftsprozessmanagement in der Praxis. München: Carl Hanser, 2006
The A-Z of Management Concepts and Models
- B Karlöf
- F Lövingsson
B. Karlöf and F. Lövingsson, The A-Z of Management Concepts and
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