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The Process of Process Management - Strategy Execution in a Digital World

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BPM-D Paper - Philadelphia, London, June 2015
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The Process of Process Management:
Strategy Execution in a Digital World
By Mathias Kirchmer and Peter Franz
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Abstract:
Business strategies and operations need to consider scores of ever-shifting factors: from
demographic changes, capital availability and legal regulations to technological innovations
and an all present digitalization. Static business models do not keep pace with this
dynamic change. Companies need a management approach that fits to this volatile
environment. Organizations need to execute their strategy systematically and deal
proactively with our “digital world”. In effect, they must know how and when to modify or
enhance their business processes, which processes are best candidates for intervention,
and how to move rapidly from strategy to execution.
That’s where the Business Process Management-Discipline (BPM-Discipline) helps. The
BPM-Discipline has become the “Strategy Execution Engine” of an organization. It delivers
significant business value by converting strategy into people and IT based execution at
pace with certainty.
The BPM-Discipline is implemented through the “process of process management”.
Organizations look for a way to systematically establish their process of process
management fast and cost effectively. This can be achieved using a holistic framework and
reference model. This whitepaper introduces the BPM-Discipline and how it is
implemented through the process of process management.
Keywords:
Agility, ARIS, BPM, BPM Center of Excellence, BPM-Organization, BPM-Discipline,
Business Process Management, Compliance, Digitalization, Enterprise Architecture,
Execution, Governance, Information Model, Innovation, Management Discipline, Process
Model, Reference Model, Standardization, Strategy, Strategy Execution, Value-driven BPM
1. Things are changing
Organizations’ strategies and operations are driven by scores of ever-shifting factors: from
demographic changes, capital availability, legal regulations and customers who require
something new every day to technological innovations and an all present digitalization. Static
business models do not keep pace with this dynamic change. Companies need a
management approach that makes them successful in this volatile environment.
Organizations need to master a systematic strategy execution and deal proactively with the
opportunities and threats of our “digital world” (Sinur, Odell, Fingar, 2013). Companies need
to become “Exponential Organizations” who achieve a significant higher output than peers
through the use of new organizational techniques and related technologies available in a
digital environment (Ismail, Malone, van Geek, 2014). In effect, organizations need to know
how and when to modify or enhance their business processes, which processes are optimal
candidates for intervention, and how to move rapidly from idea to action.
That’s where the Business Process Management-Discipline (BPM-Discipline) helps. It
enables organizations to deal with change successfully, drive their growth agenda and create
immediate as well as lasting competitive advantage. Companies increasingly invest in areas
of “intangibles” such as “business process” (Mitchel, Ray, van Ark, 2015). The BPM-
Discipline delivers significant business value by converting strategy into people and IT based
execution at pace with certainty to meet the requirement of a systematic strategy execution
and benefit from the opportunities of digitalization (Kirchmer, Franz, 2014) (Rummler,
Ramias, Rummler, 2010).
Existing approaches to BPM focus in general on one or very few aspects of process
management, e.g. implementing a process automation engine or setting up an enterprise
architecture. There is a need for a comprehensive overarching approach to identify and
establish all process management components required to form a simple but successful
BPM-Discipline in the context of a specific organization. This is the topic of the research
presented in this paper.
The BPM-Discipline is implemented through the “process of process management”
(Kirchmer, 2015), just as other management disciplines are implemented through appropriate
business processes: human resources (HR) through HR processes, finance through finance
processes, to mention a couple of examples. The process of process management (PoPM)
operationalizes the concept of the BPM-Discipline. It applies the principles of BPM to itself.
This whitepaper defines the BPM-Discipline and its value. It explains how this management
discipline is further operationalized through the Process of Process Management (PoPM).
Then it gives an overview of a reference model for the PoPM, developed to enable a
systematic application of the PoPM approach to build and run a value-driven BPM-Discipline
for strategy execution. Finally the paper will share experiences with the practical application
of the PoPM.
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2. Value and Definition of the BPM-Discipline
Research involving over 90 organizations around the world of different sizes and in different
industries has shown that companies who use BPM on an ongoing basis get significant value
in return (Kirchmer, Lehmann, Rosemann, zur Muehlen, Laengle, 2013) (Franz, Kirchmer,
Rosemann, 2011). Basically all surveyed organizations state that the transparency BPM
brings is a key result. This transparency is on one hand a value by itself: It enables fast and
well-informed decisions which is, in the volatile business environment we are living, crucial
for the success of a company. On the other hand BPM and the transparency it provides also
helps to achieve other key values and enables the systematic management of the trade-offs
between those values. BPM enables four key “value-pairs”:
Quality and Efficiency;
Agility and Standardization (Compliance);
External Networks and Internal Alignment; and
Innovation and Conservation.
Let’s look at an example. A company wants to improve its call centre process. Only few sub-
processes are really relevant for clients and their willingness to pay a service fee for them.
Hence you improve those sub-processes focused on qualityaspects. Other sub-processes
are more administrative. Clients don’t really care about them but they are important and need
to be executed well. Hence the prime focus on those processes is on “efficiency” (mainly cost
or time) aspects, using appropriate BPM approaches. BPM delivers the transparency to
achieve both values and end up with the highest quality where it matters and the best
efficiency where this counts most. BPM helps to identify where it is really worth thinking of
process innovation and where you can conserve existing good practices. Since an
organization only competes with 15-20% of its processes, it is key to identify where
innovation pays off. This is again possible though the transparency BPM delivers. The values
BPM delivers are shown in figure 1 (Kirchmer, Franz, 2013).
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Figure 1: Values delivered by BPM
In general all those values are important for an organization. However, depending on the
overall business strategy, companies focus on a subset of those values. These values and
the underlying strategic objectives need to be realized across organizational boundaries
within a company and beyond, while focusing on creating best results for clients.
In order to achieve those values consistently it is required to establish BPM with its
infrastructure as an ongoing approach to run an organization (Alkharashi, Jesus, Macieira,
Tregear, 2015) (von Rosing, Hove, von Scheel, Morrison, 2015). BPM becomes a
management discipline.
We define BPM as the management discipline that transfers strategy into execution – at pace
with certainty (Franz, Kirchmer, 2012). Hence, we refer to BPM as the BPM-Discipline (BPM-
D). This definition shows that BPM uses the “business process” concept as vehicle for a
cross-organizational strategy execution, including the collaboration with market partners like
customers, agents, or suppliers. The execution of the strategy can be people or technology
based or a combination of both. This definition is consistent with newest findings in BPM
related research (Swenson, von Rosing, 2015). In addition it stresses the value that
processes management produces and its key role as strategy execution engine.
The BPM-Discipline addresses the entire business process lifecycle, from design,
implementation through the execution and control of a process. Hence, it handles the build-
time as well as the run-time phase of a business process. The definition of BPM as a
management discipline is shown in figure 2. We refer to it as the BPM-D™ Framework.
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Figure 2: The BPM-D™ Framework: Definition of BPM as Management Discipline to Execute
Strategy
3. The Processes of Process Management
While over years many practitioners, especially executives, questioned the value of BPM, this
situation has changed significantly in the past 5-7 years. Most organizations and their
leadership start at least understanding the value proposition and the broader dimension of
BPM. The challenge has become how to establish it in an organization in a pragmatic but
systematic way with minimal up-front investment.
In order to resolve this issue we can look at other management disciplines and how they are
implemented. An example is the discipline of Human Resources (HR), as mentioned before.
How do you implement the HR discipline? You introduce it into an organization through the
appropriate HR processes, like the hiring process, performance evaluation or promotion
process.
Consequently, you can implement a BPM-Discipline through the “process of process
management”, the BPM process. You address the BPM-Discipline just like any other
management discipline. If you interpret the BPM-Discipline as process itself, you can apply
all the process management approaches, methods and tools to it enabling an efficient and
effective approach. You basically implement BPM using BPM.
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In order to identify and address all key aspects of the process of process management we
use the ARIS Architecture (Scheer, 1998), a widely accepted and proven framework to
engineer processes from different points of view. This enables the operationalization of the
framework so that it can be applied to specific organizations. Based on ARIS, the BPM-D
Framework is decomposed into sub-frameworks. Result are four core frameworks describing
the process of process management:
BPM-D Value Framework;
BPM-D Organization Framework;
BPM-D Data Framework; and
BPM-D Process Framework.
The decomposition of the overall process of process management as shown in figure 2 into
sub-frameworks based on ARIS is visualized in figure 3. The BPM-D Process Framework
covers both, a functional decomposition and aspects of the control view of ARIS.
The BPM-D Value Framework is shown in figure 1 and has been discussed before. It
describes the key deliverables (values) the process of process management (PoPM)
produces. The use of this framework therefor enables a value-driven approach to BPM. This
is especially important when you establish BPM as a management discipline so that you
don’t end up just with another overhead unit but an organization that systematically drives
value by improving execution of strategy.
Figure 3: Operationalizing the Process of Process Management using the ARIS Architecture
by A.-W. Scheer
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The previously mentioned research studies also show that organizations who apply BPM
successfully have multiple different process specific roles in place. We identified over 40. The
segmentation of those roles led to the BPM-D Organization Framework.
There exist two big groups of process-related roles: Core roles and extended roles. People
with BPM core roles are part of the core BPM organizational unit, for example a centre of
excellence (Alkharashi, Jesus, Macieira, Tregear, 2015) (Franz, Kirchmer, 2012). People with
roles in the extended BPM organization are part of other organizational units. BPM roles can
be centralized to achieve best synergies or decentralized to be close to operational
improvement initiatives. Roles can be permanent or project based, relevant only for a specific
initiative. In most of the cases the roles are internal roles. However, there is in more and
more organizations a tendency to procure more administrative roles, like helpdesk activities
or the maintenance and conversion of process models, externally, as a managed service.
The BPM-D Organization Framework is shown in figure 4.
Figure 4: BPM-D Organization Framework
Very important is an emergent top leadership role in the BPM-D core organization: the Chief
Process Officer (Kirchmer, Franz, von Rosing, 2015) (Kirchmer, Franz, 2014a). This business
leader owns the overall process of process management, hence leads the overall BPM-
Discipline. The empirical research confirmed the trend of such an emerging top management
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position. Successful BPM organizations in many cases report directly to the board of a
company.
The most important role in the extended BPM organization is the process owner, responsible
for the end-to-end management of a business process. This role has to make sure things get
done with the expected impact on the strategic value-drivers, using the BPM core
organization as internal service group. Other groups of core and enabling roles are shown in
figure 4.
In most of the organizations you may not have representatives for all the groups of roles
immediately or some may only be part time roles. It depends on your overall BPM agenda
which roles you need when. The required roles change over time, driven by the specific value
the BPM discipline has to provide to execute an organization’s strategy. It is important to
have both, core and extended roles in place to be on one hand able to execute, on the other
hand avoid to re-invent the wheel for every new initiative.
Next “ARIS view” to be addressed is the data view. The information used in or produced by
the process of process management is summarized in the BPM-D Data Framework. This
view helps to plan information requirements for the process of process management. This
includes business strategy related information to enable the link between strategy and
execution. Example are strategic goals realized through value-drivers. But also operational
information, like project related information, enterprise architecture, organization or tool and
technology related information. The BPM-D Data Framework is shown in figure 5 in form of a
simplified entity-relationship model.
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Figure 5: BPM-D Data Framework
The most important area for the operationalization of the process of process management is
the BPM-D Process Framework, covering the function and control view of the ARIS
Architecture. It basically represents the first three hierarchy levels of a functional
decomposition and a content related segmentation of the key activities of the PoPM.
The structure of the Process Framework is based on the principle thinking suggested in
Scheer’s Y-Model to segment the processes of an industrial enterprise (Scheer, 1995). In
order to make the PoPM happen an organization requires project-related sub-processes
(activities), focussing on improving specific business processes. On the other had it also
needs to have “assets-related processes” in place to execute improvement projects efficiently
and effectively. Both, project and asset related sub-processes require planning and
execution. This results in four groups of BPM-related sub-processes as shown in figure 6.
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.Figure 6: Segmentation of BPM-related activities
The specific sub-processes of the PoPM were identified based on the analysis of over 200
process management initiatives. The result is shown in the BPM-D Process Framework in
figure 7.
Figure 7: BPM-D Process Framework
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The BPM Strategy identifies high impact low maturity processes, BPM capability gaps that
need to be filled to improve those processes and the development of a BPM Agenda,
showing which processes are improved when to achieve specific business objectives and
which BPM capability gaps are closed during that specific improvement initiative. Hence,
every initiative delivers immediate business value while creating lasting process management
capabilities. Improvement projects follow a straightforward project approach: launch,
execution, and conclusion of the project. BPM-Operations enable the execution of activities
outside specific projects, for example the value realisation once a project is already
concluded.
The Enterprise Architecture related sub-processes handle all activities necessary to create
and manage information models, necessary to improve specific processes or keep them on
track. Process and Data Governance sub-processes organize the way process
management is executed, hence, grant the power to take decisions, drive action and deal
with the consequences of those actions. Important here is the integration of process and data
governance (Packowski, Gall, Baumeister, 2014). Insufficient master data quality in many
cases also leads to ineffective processes. An integrated governance approach aligns both
aspects.
The availability of improvement approaches and of people trained in those approaches
enables improvement projects which use those capabilities. People enablement is all about
information, communication and training. Hence it prepares people to think and work in a
process context and deal with process change successfully. Tools and Technology related
sub-processes handle the technical infrastructure required for a successful BPM-Discipline,
including for example automation engines, rules engines, repository and modelling tools,
process mining, strategy execution tools, social media, the internet of things and other
internet-based approaches, or e-learning applications. These are core BPM tools but also
additional technology required to increase the performance of a process to the required level.
While all the sub-processes of the PoPM shown in figure 7 can be important in a specific
company context, organizations only rarely need all of them in full maturity. The specific
objectives of a company’s BPM-Discipline determine the importance of a specific sub-
process and the required maturity level. Once the relevant sub-processes of the PoPM are
selected and their required maturity level is defined, the necessary roles and information are
identified using the appropriate BPM-D frameworks. All frameworks need to be configured
consistently to a specific organization, its strategy and business context. The right application
of the BPM-Framework and its sub-components enables companies to focus on what really
matters, improve those areas efficiently and effectively as well as to sustain those
improvements. These key tasks of a BPM-Discipline are visualized in figure 8.
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Figure 8: Key Tasks of a BPM-Discipline
The BPM-D Framework with all its components is patent-pending. It is a strategy execution
environment helping organizations dealing successfully with the challenges of the new
normal in a digital world.
4. Reference Model
In order to operationalize the BPM-D Framework and its components further, the framework
is transferred into a more formalized reference model. Reference models are generalized
knowledge, structured and documented in a manner that enables adaptability to specific
situations (Kirchmer, 2011) (Fettke, Loos, 2007).
Figure 9: Level 1 of BPM-D Process Reference Model
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Figure 10: Level 2 of BPM-D Process Reference Model – Process Strategy
Figure 11: Level 3 of BPM-D Process Reference Model Targeting Value of the Process
Strategy
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During the development of the BPM-D Reference Model the BPM-D Process Framework is
further detailed and integrated with the other BPM-D sub-frameworks. The control flow logic
is added to the functional decomposition. Key functions are linked to tools, templates or other
job-aids supporting their execution.
The process framework is described on 3 levels of detail. The top level is represented as
value chain diagram (VCD), level 2 and 3 as event-driven process chain (EPC). The EPC
notation was selected since it is focusing on the description of the business content and has
less formal requirements than other methods like the business process modelling notation
(BPMN). It is in general easily understood by business practitioners. Also people used to
work with other modelling methods can usually quickly adjust and understand the EPC
notation. In order to support a potential automation of some of the sub-processes of the
process of process management, level 3 processes are also available in BPMN (simple
model conversion). These BPMN models can be used as starting point for the specification of
application software supporting the PoPM. While this redundancy needs to be managed we
feel that at the current point of time it helps to achieve both, easy use of the content by
process practitioners and by software developers.
Figure 9 shows level 1 of the process reference model. Examples for levels 2 and 3 are
represented in figures 10 and 11. On level 3 process models, for example in the model
shown in figure 11, it is exactly described which BPM roles are required, what the people in
those roles have to do, which data (information) they use and in which logical sequence they
work. Hence, the process is sufficiently described to be implemented (Kirchmer, 2011).
The reference model is developed in a web-based process repository tool. This enables the
easy access from all relevant locations and reduces tool maintenance to a minimum. It can
be easily transferred into all market leading modelling and repository applications. The
reference model currently consists of 67 individual information models.
The implementation and execution of the level 3 processes is further supported through the
link of the models to execution tools, templates and other job aids. The sub-process “BPM
Capability” of “Process Strategy” is, for example, linked to a BPM maturity assessment tool,
based on the BPM-D Framework. The “Responsibility” sub-process of the “Process and Data
Governance” is linked to job aids supporting the establishment of a BPM Center of Excellent
with its different roles and the introduction of process and data governance to a specific end-
to-end process. The reference model includes over 20 tools, templates and other job-aids.
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5. Lessons Learned
The BPM-D Framework and Reference Model or components of it have been applied in 23
organizations of different industries and sizes over the last two years to implement the
process of process management or components of it. This has been done through a
combination of consulting, coaching and educational activities, combined with appropriate
research activities to continuously improve the process of process management reference
model.
Let’s look at a couple of examples: The CEO of a medium-size consumer goods company
has, for several years, focused successfully on a small niche market. The company offers
their products at a high price enabling high revenues and profits in spite of a relatively high
cost level. Now competitors have entered that niche market and offer similar products at a
much lower price. The CEO decided to adjust strategy, reduce their prices in the current
market and enter new market segments with new products. However, to reduce prices they
need to reduce cost. None of the functional executives sees significant cost reduction
potential in their own areas. They blame other departments for the cost issues. Also the
innovation related processes are not performing at the level required. A process repository
with its process models did not really help: the models are outdated and inconsistent
regarding semantic content as well as modelling format. The only person who is somehow
familiar with the models and the repository has left the organization. There is no cross-
functional management in place with responsibilities beyond department boundaries. It is
very difficult or even impossible to identify focus areas for cost reduction or a consistent
approach for the development and launch of new products.
The situation is addressed through a combination of defining and establishing an appropriate
BPM-Discipline through the according process of process management, combined with the
immediate application of the new capabilities to “no regret” processes. Additional
improvement targets are defined when all high impact low maturity processes are identified
by the new BPM-Discipline. Key areas of the PoPM addressed in this initial BPM-Discipline
launch are the development of a process strategy (high ipact low maturity process to focus
on and capability development plan), introduction of a simple process and enterprise
architecture approach, definition of a basic process governance, outline of a straight forward
model-based improvement approach and some targeted training.
Another typical example is a large financial organization. They have, over the last four years,
invested significant amounts of money into what they call “BPM”. However, none of the top
executives has seen any business impacts or usable results after all that time and money
spent. A stakeholder assessment and BPM maturity analysis showed that almost all BPM
related initiatives focus on tools and technologies for all business units in parallel. There is,
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for example, a process repository in place with over 1000 models how to get value out of
them is unclear. A flexible process automation is in the works but business changes faster
than the technology can be adjusted. And it is impossible to focus on just one area because
business priorities are not or not well enough defined.
The introduction of a value-driven BPM-Discipline, led by a top manager as Chief Process
Officer” and its use for a simplification of processes with known issues as preparation for a
more focused and business-driven automation is used here to address the current issues.
Key areas of the PoPM addressed are the value-driven process strategy with its prioritization
approach, process and data governance, a process model based simplification and
standardization approach and several people enablement initiatives. Existing capabilities are
linked to specific outcomes to achieve step by step a value-driven approach to BPM.
The experience with the first 23 organizations shows that organizations looking for the
systematic implementation of a BPM-Discipline through the process of process management
fall into three groups:
1. Organizations have launched one or even multiple process improvement initiatives but
the results are not sustained. Every new improvement initiative starts from scratch, not
using existing knowledge about business processes systematically.
2. Organizations put in place many components of a BPM infrastructure (e.g. process
execution environments) but have not achieved real business value through their BPM
activities.
3. Organizations launched some improvement initiatives and built some BPM
infrastructure but both do not really fit together, it is unclear what the next steps and
priorities are. The produced business value is limited.
Organizations of the first group establish the “project-focused” sub-processes of the PoPM
but forget about the activities and infrastructure necessary to keep the improved processes
on track and to be able to create synergies between different initiatives over time. In those
cases “asset-focused” sub-processes need to be addressed. In most of the cases this results
in a combination of governance, enterprise architecture and people enablement processes,
combined with the development of an appropriate value-driven BPM agenda.
The second group of organizations gets lost in all the available methods, tools and
technologies but forgets to identify how to create business value through them. The link of
BPM activities to strategic value-drivers and the launch of initiatives effecting those value-
drivers is key here. Hence, the “project-focused” sub-processes of the PoPM need to be
addressed. The launch of a process strategy initiative is here most important: identifying high
impact low maturity processes, the required BPM capability and based on those the
development of the BPM agenda. This needs to be combined with the launch and execution
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of improvement projects and the consequent value-realization. BPM capabilities can be
adjusted according to the requirements identified in the BPM agenda.
Most organizations belong to group three. They have some BPM capabilities and
improvement initiatives in place but the BPM journey is missing direction, focus and clear
business impact. They don’t have a BPM-Discipline in place but know how to apply a number
of methods and tools, e.g. Six Sigma. Instead of strategy execution, BPM activities result in
operational fixing of symptoms. Here a combination of a real outcome-focused process
strategy, the management of the process knowledge in an enterprise architecture and a well-
defined (but simple) governance approach are good starting points to move towards a value-
driven BPM-Discipline.
Here some key lessons learned from first practice experiences:
Get top management support. Establishing a value-driven BPM-Discipline requires the
top-down support, best for the entire company, but at least for the business unit in
scope.
Identify business processes where you can deliver immediate benefits while building
the required lasting BPM capabilities. Otherwise sponsors will lose patience.
Set clear priorities, don’t try to “boil the ocean”. Organizations who launch too many
initiatives at once often fail.
Keep things simple, “less is often more”. This is especially true for the use of tools and
technologies.
Encourage innovation and creativity instead of punishing people for making mistakes.
A value-driven BPM Discipline is an enabler of growth and strategic agility, not just a
cost reduction engine.
People are key for success. You need to treat them accordingly.
A value-driven BPM-Discipline and its leadership recognizes the business value potential of
technology and digitalization and makes it transparent to the organization. It enables real
business value from digital initiatives.
The first experiences with the BPM-D Framework and the reference model of the process of
process management have demonstrated the business impact of the approach and enabled
the continues improvement of the reference model. The reference model allows to identify
and establish the appropriate BPM capabilities in the company-specific context quickly and at
low cost while applying them immediately to achieve fast business benefits.
A company can use the adjusted reference model as basis for the definition of the company-
specific BPM processes. The process of process management is transferred into an
operational business process. It becomes part of the enterprise architecture of the company.
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The owner of the process of process management, a “Chief Process Officer”, manages this
process.
Business Process Management (BPM) has become a value-driven management discipline
that transfers strategy into people and technology based execution at pace with certainty.
This management discipline is implemented through the process of process management. It
enables an organization to execute its business strategy systematically in a digital world.
The process of process management enables companies to create an end-to-end “value
network” around the existing organizational structure. This is the basis for sustainable
performance and productivity.
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6. References
Alkharashi, Jesus, Macieira, Tregear, 2015: Establishing the Office of Business Process
Management, Leonardo Consulting Publication, Brisbane.
Fettke, Loos, 2007: Reference Modelling for Business Systems Anlysis, ICI Global, London.
Franz, Kirchmer, 2012. Value-driven business Process Management The Value-Switch for
Lasting Competitive Advantage, McGraw-Hill, New York, e.a.
Franz, Kirchmer, Rosemann, 2011: Value-driven Business Process Management Which
values matter for BPM. Accenture / Queensland University of Technology BPM Publication,
London, Philadelphia, Brisbane.
Ismail, Malone, van Geest, 2014. Exponential Organizations Why new organizations are
ten times better, faster, and cheaper than yours (and what to do about it). Diversion Books,
New York.
Kirchmer, 2015. The Process of Process Management Mastering the New Normal in a
Digital World. In: BMSD Proceedings, July 2015. (in publication)
Kirchmer, Franz, von Rosing, 2015. The Chief Process Officer: An Emerging Tope
Management Role. In: von Rosing, M., Scheer, A.-W., von Scheel, H.: The complete
Business Process Handbook Body of Knowledge from Process Modeling to BPM, Volume
1, Amsterdam, Boston, e.a., p. 343-348.
Kirchmer, Franz, 2014a. Chief Process Officer – The Value Scout. BPM-D Whitepaper,
Philadelphia, London.
Kirchmer, Franz, 2014b. Targeting Value in a Digital World. BPM-D Whitepaper,
Philadelphia, London.
Kirchmer, Franz, 2013. The BPM-Discipline – Enabling the Next Generation Enterprise.
BPM-D Training Documentation, Philadelphia/London.
Kirchmer, Lehmann, Rosemann, zur Muehlen, Laengle 2013. Research Study BPM
Governance in Practice. Accenture Whitepapers, Philadelphia.
Kirchmer, 2011. High Performance through Process Excellence – From Strategy to Execution
with Business Process Management. Springer, 2nd edition, Berlin, e.a.
Mitchel, Ray., van Ark, 2015.: The Conference Board CEO Challenge 2015: Creating
Opportunity Out of Adversity: Building Innovative, People-driven Organizations. The
Conference Board Whitepaper, New York, e.a. 2015.
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Packowski, Gall, Baumeister, 2014. Enterprise Process and Information Governance
Integration of business process and master data governance as competitive advantage
Study Results, Camelot Whitepaper.
Rummler, Ramias, Rummler, 2010: White Space Revisited Vreating Value thorugh
Processes.Wiley, San Francisco
Scheer, 1998. ARIS – Business Process Frameworks, Springer, 2nd edition, Berlin, e.a.
Scheer, 1995. Business Process Engineering Reference Models for Industrial Enterprises,
Springer, 2nd edition, Berlin, e.a.
Swenson, von Rosing, 2015: What is Business Process Management. In: von Rosing, M.,
Scheer, A.-W., von Scheel, H.: The complete Business Process Handbook Body of
Knowledge from Process Modeling to BPM, Volume 1, Amsterdam, Boston, e.a., p. 79.88.
Sinur, Odell, Fingar, 2013: Business Process Management: The Next Wave Harnessing
Complexity with Intelligent Agents, Meghan-Kiffer Press, Tampa.
Von Rosing, Hove, von Scheel, Morrison, 2015: BPM Center of Excellence. In: von Rosing,
M., Scheer, A.-W., von Scheel, H.: The complete Business Process Handbook Body of
Knowledge from Process Modeling to BPM, Volume 1, Amsterdam, Boston, e.a., p. 217-240.
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Dr. Mathias Kirchmer
As innovative CEO and Managing Director at BPM-D, Accenture, and IDS Scheer, Dr.
Kirchmer has worked successfully in an international environment across various industries.
He has combined his broad practical business experience with his extensive academic
research. This systematic integration has led to pioneering management approaches that
have proven to be both sustainable and provide immediate benefits.
Dr. Kirchmer is visionary leader, thought leader and innovator in the field of Business
Process Management (BPM). He is an affiliated faculty member at the University of
Pennsylvania, published six books as well as numerous articles and shares his insights
regularly in presentations around the world.
Peter Franz
Peter Franz has been working at the forefront of Business Process Management (BPM) for
many years as part of a 30-year career with Accenture. He has a deep understanding of the
application of Business Process Management discipline to drive real business results.
His career includes education and experience in the use of Information Technology and thus
understands the Business / IT interaction from both sides and can help bridge this divide. He
is passionate about BPM and its application to real business challenges.
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www.bpm-d.com
... However, the discipline of BPM 4.0 is not just about digital technologies but about aligning strategy, process, people and digital capabilities. This functioning of the BPM-Discipline is illustrated in the BPM-D Framework, shown in figure 3 [12]. ...
... The Discipline of BPM 4.0 -described through the BPM-D Framework [12] Digital and often cloud-based BPM maturity assessment tools help to define required capabilities and identify capability gaps. These gaps can then be systematically closed in the context of transformation initiatives. ...
Article
Full-text available
Global research shows: over 75% of organizations have started their digital transformation [1]. They plan to use digital solutions to meet their goals and enable values like agility, innovation, compliance and with all that profitable growth. However, the study also shows that most organizations are struggling meeting the high expectations through their digitalization projects and programs. According to another study only 1% of organizations have their business processes sufficiently under control to realize the full business potential of their digital transformation activities [2]. That's where business process management (BPM) becomes the enabler of real business value through digitalization.
... Value-driven business process management provides a management discipline delivering the transparency and agility required to enable innovation, especially business process innovation and the closely related business model innovation. It sets the parameters so that an organization is able to react to change fast and effectively [27]. Innovation in general and process innovation specifically are powerful ways of dealing proactively with change. ...
... The discipline of BPM helps to identify the 15-20% of high impact processes where innovation really matters. It points the innovation activities to the right target to get the best value out of them [27]. This is the basis for successful business model and process innovation. ...
... Applying a simple and pragmatic process of process management realizes the expected value of RPA while minimizing the risks. The components of the process of process management especially important for a successful use of RPA are sown in figure 1 [8]. [8]. ...
... The components of the process of process management especially important for a successful use of RPA are sown in figure 1 [8]. [8]. ...
Article
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Robotic Process Automation (RPA) has become an important trend in process management and automation. The article examines briefly the value it delivers and associated risks. On this basis it recommends a company specific approach to maximize RPA value and minimize risk.
... Process governance goes through a digital transformation itself [9]. Figure 5 shows a simple digital tool architecture to enable fast well-informed decisions to support the rapid realization of the targeted value. Business process management is established as the overarching management discipline [10] [11] for the transformation and the following process governance. Thus BPM-Discipline becomes the value-switch for the digital transformation journey: value-driven, process-led and data-based. ...
Article
Full-text available
Most organizations have started, or have at least planned, their digital transformation journey [0] [1]. These organizations expect to increase their performance drastically by leveraging digital technologies. However, many of those businesses struggle to meet the high expectations through their digitalization initiatives, and don’t deliver the expected value. A successful digital transformation is value-driven, process-led, and data-based. It targets business value and works towards a well-defined business case. This value of the transformation is delivered through new or enhanced business processes [2]. Digitalization only delivers its business benefits if you improve what you do or if it helps to do something new that provides additional value – without creating issues in other areas. Hence, processes guide the transformation initiatives towards value-realization. A process delivers, by definition, a result of value – which needs to be moved to the next level. To optimize the time-to-value, fast and well-informed decisions are required. This is achieved through a data-based approach, delivering the required information about current and future process performance at pace in the required quality.
... Business process management is established as the over arching management discipline [12]organizing process governance and integrating it with the organization. Thus BPM-Discipline becomes the value-switch for the digital transformation journey. ...
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Full-text available
Value-driven Digital Transformation (VDT) enables significant performance improvements by leveraging the power of process management. VDT identifies the processes that matter most for an organization. Then it transforms them holistically applying the right digitalization approach in an end-to-end process context. Finally, VDT sustains achieved results by governing processes appropriately.
... As empresas precisam de uma abordagem de gestão que as torna bem-sucedidas nesse ambiente volátil. Na verdade, as organizações precisam saber como e quando modificar ou aprimorar seus processos de negócios, quais processos são ótimos candidatos para intervenção, e como se mover rapidamente de ideia para ação (KIRCHMER; FRANZ, 2015). Ritzman e Krajewski (2004) conceituam processo como sendo uma atividade ou conjunto de atividades que transformam e agregam valor aos insumos, resultando em um produto ou serviço a ser ofertado aos clientes. ...
Chapter
Today’s business environment is constantly changing—new opportunities and challenges arise every day—often driven through increased digitalization. Achieving and sustaining high performance has become more and more difficult. New competitors emerge from all around the world empowered through the “Internet of things,” while others disappear. A company becomes a member of many enterprise networks, resulting in more changes and additional competitive situations. Fingar, a well-known BPM expert, introduces “extreme competition” as a result of different market forces, like knowledge as business capital, the Internet, “jumbo transportation,” billions of new “capitalists,” as well as the new dimension of information technology and digitalization [1].
Chapter
Several readers of the past editions of this book have asked for an integrated case study. That is why I have added this chapter describing the case of a consumer goods company that needs to address, on one hand, urgent business issues using process-led approaches and wants, on the other hand, to establish BPM as a management discipline that supports the ongoing systematic execution of the business strategy.
Chapter
Change is the only constant in today’s business environment. Mastering this change successfully is a main driver for establishing business process-oriented management approaches in enterprises striving for high performance. New, flexible digital information technology (IT) architectures provide the necessary agility and innovation from a technology point of view, as we have discussed in the previous chapter. But how can you prepare people and help them cope with impending adjustments? How can people benefit from the opportunities of change and avoid the threats? People enablement through appropriate change management provides the answer to those questions. People change management has become one of the greatest challenges for organizations on their journey to high performance in our digital world. Companies have to manage their talent with caution and enable continuous learning, as well as help adjust to different business and work environments.
Chapter
Today, many enterprises still use concepts of business process management (BPM) for one-time transformation and improvement projects or short-term initiatives. An increasing number of organizations, however, recognize its power as a fundamental management discipline which is instrumental in achieving strategic goals for competitive advantage and long-term success. BPM becomes the discipline of strategy execution. This demands ongoing attention to deliver high performance in our digital world. The “process of process management” has to be managed as part of the day-to-day business. Organizations must orchestrate and adapt their overall management approach to realize the full potential of the BPM-Discipline. These organizational aspects about granting power, making decisions, acting on them, and controlling the results are referred to as business process governance (BPG). BPG enables the effective management of the process life cycle and with that the achievement of high performance.
Book
Full-text available
This is the most comprehensive body of knowledge on business processes. Written as a practical guide for Executives, Practitioners, Managers and Students by the authorities that have shaped the way we think and work with process today. This book is one of tree volumes, representing the most comprehensive body of knowledge publised on business process. Second volume uniquely bridging theory with how BPM is applied today with the most extensive information on extended BPM. The third volume explores award winning real-life examples of leading business process practices and how it can be replaced to your advantage. Covering what Practitioners, Managers, Executives and Students need to know about Key Features · Learn what Business Process is and how to get started · Comprehensive historical process evolution · In-depth look at the Process Anatomy, Semantics and Ontology · Find out how to link Strategy to Operation with value driven BPM · Uncover how to establish a way of Thinking, Working, Modelling and Implementation · Explore comprehensive Frameworks, Methods and Approaches · How to build BPM competencies and establish a Center of Excellence · Discover how to apply Social BPM, Sustainable and Evidence based BPM · Learn how Value & Performance Measurement and Management · Learn how to roll-out and deploy process · Explore how to enable Process Owners, Roles and Knowledge Workers · Discover how to Process and Application Modelling · Uncover Process Lifecycle, Maturity, Alignment and Continuous Improvement · Practical continuous improvement with the way of Governance · Future BPM trends that will affect business · Explore the BPM Body of Knowledge
Conference Paper
Full-text available
Today business strategies and operations are driven by scores of ever-shifting factors: from demographic changes, capital availability and legal regulations to technological innovations and an all present digitalization. Static business models are no longer able to keep pace with such dynamic change. Companies need a management approach that fits to this environment. Organizations need to master the " new normal " and deal proactively with our " digital world ". In effect, they must know how and when to modify or enhance their business processes, which processes are optimal candidates for intervention, and how to move rapidly from strategy to execution. That's where the Business Process Management-Discipline (BPM-Discipline) helps. It enables organizations to deal with change successfully and create immediate as well as lasting competitive advantage. It delivers significant business value by converting strategy into people and IT based execution at pace with certainty. The BPM-Discipline creates a " strategy execution network ". The BPM-Discipline is implemented through the " process of process management ". Organizations look for a way to systematically establish their process of process management efficiently and effectively. This can be achieved using a holistic framework and reference model for the process of process management. The paper introduces the BPM-Discipline and how it is implemented through the process of process management, leveraging a powerful reference architecture in form of comprehensive information models as well as related tools and templates.
Technical Report
Full-text available
Extensive research has proven that an organization competes through less than 20% of its business processes which have a high impact on strategic value drivers. Over 80% of the processes are commodity processes. It is sufficient to achieve industry average performance in this area. A value-driven process design and implementation considers this by focusing innovation and optimization initiatives as well as company specific digitalization on the 20% high impact processes, while commodity processes are designed based on industry reference models and implemented as far as possible through available standard solutions. Design and implementation of processes focus systematically on creating business value. The paper describes an approach to such a value-driven segmentation, design and implementation of businesses processes, transferring strategy into execution, at pace with certainty in the digital world. The approach is explained using case examples.
Technical Report
Full-text available
We live in a continuously changing business environment which is closer and closer connected in the digital world. Successful organizations need to be proactive and adjust quickly. Therefore more and more organizations establish a Business Process Management-Discipline (BPM-Discipline™) in order to move their strategy into execution at pace with certainty. As any other management discipline, the BPM-Discipline is established through the appropriate business process, the process of process management. This new process is led through an emerging top management role, the Chief Process Officer (CPO). The CPO manages the process of process management in a way that it creates value by executing the business strategy across organizational boundaries, like departments or divisions. The CPO is the “value scout” of the organization.
Technical Report
We live in a fast changing business environment. The ability to move new ideas into execution fast and reliably will continue to be the prerequisite to business differentiation and success for the next decade. The course provides an executive overview of the management discipline of Business Process Management (BPM-D™) as a key enabler of the Next Generation Enterprise. It describes the value proposition and its positioning in the organization. Then provides an executive insights into some of the essential components of a value-oriented BPM capability.
Book
Continuously changing customer and market requirements as well as new developments in information technology have become a dominating factor in today's business environment. To be successful enterprises have to adapt quickly to new opportunities and threats. They have to take smart decision and execute fast. Innovation and agility become important success factors. The Management of Process Excellence (MPE) is the main enabler. It helps achieving immediate benefits while building lasting process management capabilities. MPE links strategy with people and technology based execution. Service Oriented Architectures (SOA), Web 2.0 or "cloud computing" support this approach. The right process governance, including centers of excellence, and knowledge assets in form of reference models increase the delivered value again. The resulting next generation enterprise is ready for long term success. The book discusses how business process management delivers real value in private and public sector organizations around the world. It addresses executives and managers as well as educators and students.
Book
From the Publisher: Written by the leading expertise in the area of business process modeling, this book describes modem methods for developing enterprise-wide information systems using the proven "Architecture of Integrated Information Systems (ARIS)" framework for the development of business process models for industrial companies. Examples from the standard software systems (SAP R/3) demonstrate the book's down-to-earth practicality. 554 illus.