Search and Find
Service
More of the content
Handbook on Business Process Management 2 - Strategic Alignment, Governance, People and Culture
Foreword
8
How to Read this Handbook
12
Contents
14
Contributors
18
Part I
22
Strategic Alignment
22
Delivering Business Strategy Through Process Management
25
1 Introduction
22
2 Lost in Translation
26
2.1 Today´s Reality
26
2.2 The Outside-in Perspective: The One that Counts
27
2.3 Methodology Implications
28
3 An Integrative Model from Drivers Through Aligned Capability
30
3.1 Validate Strategic Direction (Methodology 1.1)
32
3.1.1 Purpose of the Activity
32
3.1.2 Strategic Concepts
32
3.1.3 Scope of the Strategic Models
34
3.1.4 External Assessments
34
3.1.5 Strategic Analysis of External Assessments
35
Business Scenario Analysis
35
Value Proposition
35
Balanced Scorecard
36
3.1.6 Documenting the Strategic Intent
36
3.2 Determine Stakeholder Relationships (Methodology 1.2)
37
3.2.1 Purpose of the Activity
37
3.2.2 The Stakeholder Business Context
38
3.2.3 Stakeholder Relationship Analysis
39
3.2.4 Stakeholder Expectations and Goals
39
3.2.5 Measurement of Relationship Performance
40
3.2.6 Critical Success Factors (CSFs) and Required Capability for Relationship Success
40
3.3 Consolidate Strategic Criteria (Methodology 1.3)
41
3.3.1 Purpose of the Activity
41
3.4 Architect Business Processes (Methodology 2.1)
41
3.4.1 Purpose of the Activity
41
3.4.2 Lifecycle Approach to Building the Architecture
43
3.4.3 Reference Frameworks Approach to Building the Architecture
44
Generic Enterprise Models
44
Industry-Specific Models
45
Domain-Specific Models
45
Process, Lifecycle, and Value Chain Models
45
3.4.4 Architecture Consolidation
46
3.5 Identify Measures of Performance (Methodology 2.2)
46
3.5.1 Purpose of the Activity
46
Top Down and Horizontal Perspectives
47
3.6 Align Process Governance (Methodology 2.3)
48
3.6.1 Purpose of the Activity
48
3.6.2 Motivation Alignment and Stewardship Support
51
3.7 Prioritize Processes (Methodology 2.4)
51
3.7.1 Purpose of the Activity
51
3.7.2 Matrix Alignment Approach
52
The Process/Stakeholder Value Matrix
52
The Process/Stakeholder Performance Gap Matrix
52
Pain and Gain
53
3.8 Align Process Capabilities (Methodology 2.5)
54
3.8.1 Purpose of the Activity
54
3.9 Establish Enterprise Transformation Portfolio (Methodology 2.6)
55
3.9.1 Purpose of the Activity
55
4 Conclusion
55
References
56
Management of Process Excellence
58
1 Management of Process Excellence (MPE) Requirements and Approach
58
2 Innovation: Key Target of MPE
63
3 Information Technology Enabling the Execution of MPE
66
4 Business Process Governance for MPE
70
References
74
Process Capital as Strategic Success Factor:The Lufthansa Example
76
1 Processes as Intangible Assets (``Process Capital´´)
76
2 The Correlation Between Strategy and Process Capital
79
2.1 Overview
79
2.2 Core Competencies in Process Capital
80
2.3 Strategy Implementation Using Process Capital
81
3 Process Capital Management
83
3.1 Overview
83
3.2 Anchoring Process Capitals in the Strategy
84
3.3 Building up Process Capital
85
3.4 Managing Process Capital
86
4 Case Study: Lufthansa AG
87
4.1 Example of Lufthansa´s Process Capital
87
4.2 Strategy Implementation at Lufthansa Based on Process Capital
88
4.2.1 Passenger Handling
89
4.2.2 In-Flight Service
89
4.2.3 Operations
89
5 Summary and Outlook
90
References
90
Process Classification Frameworks
92
1 Introduction
92
2 Framework Development
94
2.1 Background
94
2.2 A Framework for Behavior Classification and Modeling
95
2.3 Application of the Framework
100
2.3.1 Integration of Behavioral Descriptions
102
2.4 Process Architecture Analysis
103
2.5 Process Architecture Development
105
3 Conclusion and Future Work
108
References
110
Taxonomy of Business Process Management Approaches
112
1 Introduction and Motivation
113
2 Situational Method Engineering
114
2.1 Design Research for Information Systems
114
2.2 Representation of Situational Aspects in SME
115
2.3 Method Fragments as Building Blocks in SME
116
3 Empirical Study on Business Process Management Approaches
117
3.1 Data Set and Course of Analysis
118
3.2 BPM Design Factors
119
3.3 BPM Realization Approaches
121
3.4 BPM Project Types
123
4 Exemplary Adaptation of the ``Process Innovation´´ Method
124
4.1 Overview of the Method
125
4.2 Situation-Specific Embodiments of the Method
125
5 Conclusion and Outlook
128
References
130
Process Performance Management
134
1 Measurement as Part of Operational Process Controlling
134
2 Approaches for Measuring Process Performance
136
2.1 Concepts for Performance Measurement
136
2.2 Process Performance Measurement Based on Indicators, Measures, and Figures
138
2.3 Measurements to Determine Process Performance
139
2.4 Frameworks for Measuring Process Performance
141
3 Development of a Company-Specific Process Performance Measurement System
145
3.1 Setting the Process Objectives
146
3.2 Identifying Critical Process Success Factors
148
3.3 Deriving Performance Indicators, Measures, and Figures
150
4 Conclusion
152
References
152
Business Process Analytics
155
1 Introduction
155
2 Sources for Process Analytics Data
156
3 A Source Format for Process Events
158
4 Process Metrics
161
5 Quality Criteria for Process Metrics
163
6 Historical Process Analysis
166
7 Real-Time Process Analysis
167
8 Predictive Process Analysis
168
8.1 Simulation
168
8.2 Data Mining
172
8.3 Process Optimization
174
9 Summary
174
References
174
Managing Regulatory Compliance in Business Processes
176
1 Introduction
176
2 Scenario and Background
178
3 Methodology for Compliance Management
180
3.1 Control Directory Management
181
3.2 Ontological Alignment
182
3.3 Modeling Controls
182
3.4 Process Model Enrichment
183
3.5 Compliance Enforcement
184
3.6 Compliance Monitoring
184
4 State of the Art
185
4.1 Modeling Controls
186
4.2 Process Model Enrichment
188
4.3 Summary
188
5 Discussion and Outlook
189
References
190
Prioritizing Process Improvement: An Example from the Australian Financial Services Sector
193
1 Introduction and Background
193
2 Introducing the Case Organization
195
3 Building the Business Value Scoring Tool
198
3.1 High Level Overview of the Business Value Scoring Tool
198
3.2 Understanding the Components of the Tool
199
3.2.1 Dimensions of Measurement
199
3.2.2 Outcomes and Scores for Each Dimension
200
3.2.3 Choice of Evaluation Perspective
201
3.2.4 Cost Calculations
202
3.2.5 Formula Manipulation
202
4 Testing and Implementing the Tool
204
5 Tool Adoptability and Application
206
6 Conclusion
208
Appendix1: QIC Organizational Chart
209
Appendix2: Business Value Score Tool Elements
210
References
211
Part II
212
Governance
212
Business Process Governance
215
1 Introduction
215
2 The Management of Organizational Structures and Business Process Governance
217
2.1 Management Hierarchies and Business Processes
217
2.2 Lateral Relations and Process Organization Mechanisms of Business Process Governance
220
2.3 Tradeoffs in Organizational Design and Business Process Governance
222
3 Process Governance Within Organizations
228
3.1 Process Coordination Units: The Example of Duke Power
228
3.2 Process Organization: The Example of Texas Instruments
230
3.3 Process Unit: The Example of Shared Services at Procter and Gamble
231
4 Governing Processes that Cross Organizational Lines
232
4.1 Multiple Mechanisms for Inter-Organizational Process Governance: The Example of San Mateo County EMS
233
4.2 Multiple Mechanisms for Inter-Organizational Process Governance: The Supply Chain Management Example
234
5 Concluding Remarks
235
References
235
Business Process Management Governance
237
1 Introduction
237
2 Research
239
3 Obstacles
241
3.1 Reference Models Lack Cross-Functionality
242
3.2 Improvement Method Deployment
243
3.3 Process Maturity
244
4 BPM Governance Principles and Practices
246
5 Management Accountability
247
6 Measuring Performance
248
7 Process Management Plan
249
8 Deploying Information Technology
251
9 Summary
251
References
251
The Process of Business Process Management
253
1 Introduction
253
2 The Process of Business Process Management
255
2.1 Business Process Strategy Phase
256
2.2 Business Process Design Phase
258
2.3 Business Process Implementation Phase
260
2.4 Business Process Controlling Phase
262
3 Main Elements of a Holistic BPM Approach
263
4 Services and Responsibilities of a BPM Center of Excellence
265
4.1 BPM Leadership
266
4.2 Regulatory Framework
269
4.3 Project Support
271
4.4 Training, Communication, and Process Controlling
272
5 Roles Within a BPM Organization
272
6 Conclusion: How to Establish a Holistic BPM Approach Within an Organization
277
References
278
The Service Portfolio of a BPM Center of Excellence
280
1 Typical Stages of Business Process Management Adoption
280
2 The Business Process Management Service Portfolio
282
3 A Proposed List of Business Process Management Services
284
3.1 Business Process Management Maturity Assessment
284
3.2 Strategic Alignment
285
3.3 Process Modeling
285
3.4 Library Management
286
3.5 Process Improvement
287
3.6 Designing Process-Aware Information Systems
287
3.7 Process Automation
288
3.8 Process Change Management
288
3.9 Management of Business Process Management Projects
288
3.10 Process Governance
289
3.11 Process Compliance
289
3.12 Process Performance Measurement
289
3.13 Process Forensics
290
3.14 Process (Management) Education/Training
290
3.15 Process Portfolio Management
291
4 Case Study
291
5 Patterns in Business Process Management Center of Excellence Service Portfolios
292
6 Conclusion
296
References
296
BPM Center of Excellence: The Case of a Brazilian Company
298
1 Introduction
298
2 The BPM CoE´s Three Main Capabilities
299
2.1 Diffusion of BPM Culture
300
2.2 Creation of Convergence Among BPM Initiatives
301
2.3 Internal Consulting Orientation
303
3 Implementing a BPM CoE in a Brazilian Company
304
3.1 Organization´s Main Characteristics and its History of BPM Initiatives
304
3.2 The BPM CoE Initial Design and Implementation
306
3.2.1 CoE´s Insertion in the Organizational Structure
306
3.2.2 BPM Services and Governance Design
306
3.2.3 CoE´s Internal Routines, Methods and Tools Design
308
3.2.4 Design of the CoE´s Relationship with Other Organizational Areas
309
3.2.5 CoE´s Resources Design
309
3.2.6 Implementation Design
309
3.3 The Transition to a more Strategic Role of the BPM CoE
310
3.3.1 CoE´s Insertion in the Organizational Structure
310
3.3.2 BPM Services and Governance Design
311
3.3.3 CoE´s Internal Routines, Methods, and Tools Design
312
3.3.4 Design of the CoE´s Relationship with Other Organizational Areas
312
3.3.5 CoE´s Resources Design
312
3.3.6 Implementation Design
312
3.4 BPM CoE´s Implementation Analysis
313
3.5 Synthesis of Lessons Learnt and Tendencies of Evolution
314
4 Final Conclusions
315
References
318
Business Process Standardization
320
1 Standardization Dilemma
320
1.1 Defining Variation
322
2 Globally Consistent or Locally Relevant
323
2.1 Attraction of the Global
323
2.2 Attraction of the Local
324
2.3 Balancing Act
324
3 Local Variation
326
3.1 Reasons for Variations
326
3.2 Costs of Variation
327
4 Resolving the Dilemma
329
4.1 Global BPM Framework
330
4.2 Development and Management
331
4.3 Balancing Global and Local
332
4.4 Global BPM
333
4.5 Local BPM
334
5 Managing The Dilemma
335
5.1 Achieving Standardization
335
6 Summary
338
References
339
BPO through the BPM Lens: A Case Study
341
1 Introduction
341
2 Business Process Outsourcing: A Closer Look
343
3 Business Process Management Framework for Analysis
345
4 Case Study
346
4.1 Business Process Outsourcing Relationship 1: Maturing from Cost-Effective to Optimized
347
4.1.1 Process Details
347
4.1.2 Challenges/Interesting Aspects
348
4.1.3 Process Requirements
349
4.1.4 Technology Usage
349
4.1.5 Process Improvement
349
4.1.6 Critical Success Factors
351
4.1.7 Impact of the Business Process Management Initiative
351
4.2 Business Process Outsourcing Relationship 2: Eliminating the Work
352
4.2.1 Process Details
352
4.2.2 Challenges/Interesting Aspects
353
4.2.3 Process Requirements
353
4.2.4 Technology Usage
354
4.2.5 Process Improvements
354
4.2.6 Critical Success Factors
355
4.2.7 Impact of the Business Process Management Initiative
355
4.3 Business Process Outsourcing Relationship 3: Stabilizing for Predictability
355
4.3.1 Process Details
356
4.3.2 Challenges/Interesting Aspects
356
4.3.3 Process Requirements
356
4.3.4 Technology Usage
357
4.3.5 Process Improvement
357
4.3.6 Critical Success Factors
357
4.3.7 Impact of the Business Process Management Initiative
358
4.4 Case Study Analysis
358
4.4.1 Strategic Objectives
358
4.4.2 Business Process Management Lifecycle
358
Create (Identify, Define and Improve Processes)
359
Align (Link Processes to IT Systems)
360
Execute (Process Operations, Monitoring and Control)
361
4.4.3 Business Process Management Enablers
361
4.4.4 Business Process Management Governance, People, and Infrastructure
361
Business Process Management Roadmap and Strategy
362
Business Process Management Ownership
362
People Aspects
362
Process and Technology Infrastructure
362
5 Conclusions
364
References
365
Toward a Global Process Management System: The ThyssenKrupp Presta Case
367
1 Introduction
367
2 The Case Organization ThyssenKrupp Presta
368
3 Strategic Alignment of the Business-Driven Approach
368
4 Technical and Organizational Issues Involved in Using a Corporate Process Modeling and Documentation System
373
5 Governmental Issues of Setting the Right Structures
375
6 Finding a Stepwise Approach to Process Improvement
377
7 Summary and Outlook
379
References
379
Business Process Maturity in Public Administrations
380
1 Challenges of Public Administration Modernization
380
1.1 Problem Identification and Motivation
380
1.2 Design Science as the Overall Approach of Research
382
2 Define Objectives of a Solution
383
2.1 Preliminary Considerations
383
2.2 BPM in the Context of the 48-h-Service Promise
384
2.3 BPM Maturity for the Fulfillment of the 48-h-Service Promise
387
2.4 Specifics of Business Process Management in Public Administration
389
2.4.1 Factor: Strategic Alignment
390
2.4.2 Factor: Governance
391
2.4.3 Factor: Methods
391
2.4.4 Factor: Information Technology
392
2.4.5 Factor: People
392
2.4.6 Factor: Culture
393
3 Known Maturity Models for BPM and Public Administration
393
4 Design and Development
396
5 Demonstration and Evaluation
401
6 Summary and Outlook
404
References
405
Part III
408
People and Culture
408
Expertise in Business Process Management
411
1 Introduction and Background
411
2 Business Process Management Expertise Model
414
2.1 Constructs of the Model
416
2.1.1 Living System Construct
416
2.1.2 Knowledge Construct
418
2.1.3 Behavioral Characteristics Construct
420
2.1.4 Context Construct
422
2.2 Dynamic Nature of the Model
423
2.2.1 Knowledge Flows
424
2.2.2 Learning
424
3 Model Applicability
425
4 Summary
426
References
427
Business Process Management Curriculum
432
1 Introduction
432
2 Understanding the Role of Business Process Analyst in Current Business Process Management Practice
434
3 Business Process Analyst Curriculum Description
438
3.1 Course Descriptions
439
3.1.1 Business Process Modeling, Analysis, and Design
442
3.1.2 Additional Advanced Courses and Proposed Tracks
448
4 Limitations and Discussion
449
References
450
Dealing with Human-Driven Processes
452
1 Introduction
452
2 Human Interaction Management
455
2.1 Collaborative Transaction
460
2.2 Levels of Control
460
3 Goal-Oriented Organization Design
460
4 Respond to Request for Proposal
462
4.1 Roles
464
4.2 Interactions
465
4.3 Collaborative Transactions
465
5 Development of Branding Package
466
6 Conclusion
468
References
470
Knowledge Engineering in Business Process Management
471
1 Introduction
471
2 Knowledge Engineering in BP-Framework
474
2.1 The BP-Framework
474
2.1.1 The Business Model
474
2.1.2 The Domain
475
2.1.3 The Regulation
475
2.1.4 The Model Processing
475
2.2 Knowledge Engineering for BP-Framework
476
2.2.1 Analyzing Knowledge for KE in BP-Frameworks
477
2.2.2 Model-Based Approach for KE in BP-Framework
477
2.3 Conceptual Integration of KE and BP-Framework
478
2.3.1 Meta Model Frameworks
479
2.3.2 KE in BP-Framework Using the Meta Model Approach
479
2.4 Solutions for KE in BP-Framework
480
3 Knowledge Engineering in the BP-Management Method
482
3.1 The Organizational Context of BP-Framework
482
3.1.1 The BP-Management Method
482
3.1.2 Knowledge Intensive Actions in the BP-Method
483
3.2 KE Solutions for BP-Management Method
484
4 KE in BP-Deployment
486
4.1 Knowledge Techniques and Solutions for BP-Deployment
486
5 Outlooks on KE in BPM
488
5.1 Conceptual KE and BPM Alignment
488
5.2 Technical KE and BPM Alignment
489
6 Summary
491
References
491
Cultural Change in Process Management
494
1 Introduction
494
2 Prerequisites for Modeling Business Process Driven Organizational Change
498
2.1 Influencing Factors on Organizational Change
499
2.2 Approach for Describing Change Projects
502
2.2.1 Case Study: Implementation of the Customer Service Idea Within an IT Organization
Part One: Description of the Change P.504
2.3 Responsiveness to Change: An Explanatory Model
506
2.3.1 Case Study: Implementation of the Customer Service Idea Within an IT Organization
Part Two: Observations on the Impact .510
3 Change Method Engineering: Method Construction for Organizational Change
510
3.1 Basics of Method Construction
511
3.2 Structured Process of Method Construction
513
3.2.1 Analysis
513
3.2.2 Definition
515
3.2.3 Sequencing
515
3.2.4 Case Study: Implementation of the Customer Service Idea Within an IT Organization
Part Three: Extract of the Results of.516
3.3 Management Process for Change Method Engineering
517
4 Conclusion
518
References
519
Managing Creativity-intensive Processes: Learning from Film and Visual Effects Production
522
1 Introduction
522
2 The Case of Visual Effects (VFX) Production
524
3 Creativity-intensive Processes
526
3.1 The Dynamics of Creativity-intensive Processes
526
3.2 Structure versus Pockets of Creativity
527
4 Roles in Creativity-intensive Processes
530
4.1 Artists
531
4.2 Creative Supervisors
532
4.3 Clients
533
5 Managing Creativity-intensive Processes: Creativity-aware Business Process Management
533
5.1 Understanding and Refining the Requirements
534
5.2 Doing Work
535
5.2.1 Managing the Scope of Creativity
536
5.2.2 Allocating Resources
536
5.3 Evaluation of the (Intermediate) Creative Product
537
5.3.1 Approval Processes/Reviews
538
5.3.2 Ongoing Communication/Showing Work in Progress
538
5.4 The Use of Information Technology (IT)
539
5.4.1 Artist Systems
539
5.4.2 Groupware
539
5.4.3 Knowledge Management Systems
540
5.4.4 Asset Management Systems
540
5.4.5 Workflow Technology
541
5.5 Summary of Managerial Practices and IT Used in Creativity-intensive Processes
542
5.6 Measuring Creativity-intensive Processes
542
6 Conclusions
543
References
544
Global Processes and Data: The Culture Journey at Hilti Corporation
546
1 Introduction
546
2 Culture as an Integral Part of the Hilti Business Model
548
2.1 Introducing the Hilti Business Model
548
2.1.1 Purpose and Values
549
2.1.2 Our Culture Journey
550
2.1.3 Customer, Competence, and Concentration
551
2.1.4 Processes
551
2.1.5 Outcome
552
2.2 A Closer Look at Culture: The Hilti Culture Journey
553
2.2.1 Realizing a Corporate Culture: Taking Efforts for Values
553
2.2.2 Maintaining the Corporate Culture: Making Values Relevant
554
2.3 Implications for Hilti IT: A Business-Driven IT-Strategy
555
2.3.1 Impact on the IT Core Purpose Statement
556
2.3.2 Impact on the IT-Terminology
556
2.3.3 Impact on the IT-Organization
556
3 Global Processes and Data: An IT-Project Driven by Culture
557
3.1 Scope of the Project
557
3.1.1 IT Becomes Global
557
3.1.2 IT Supports Sales
558
3.2 Challenges Within the Project
559
3.2.1 Organizational Issues: Restructuring Hilti IT
559
3.2.2 Financial Issues: Adjusting the Budgeting Structure
560
3.3 The Role of Culture: Assessing the Cultural Leverage
560
4 Conclusion
563
References
564
An Organizational Approach to BPM: The Experience of an Australian Transport Provider
566
1 Introduction
566
1.1 BPM as a Technology Solution
567
1.2 BPM as a Lifecycle Approach
567
1.3 BPM as an Organizational Approach
568
1.4 Distinguishing a Lifecycle from an Organizational Approach
569
2 Background to Company Q
570
2.1 BPM Within Company Q
570
3 Developing a BPM Capability Framework
572
4 Applying the BPM Capability Framework in Company Q
573
4.1 BPM Communication
573
4.2 BPM Strategy Selection and Implementation
574
4.3 Internal BPM Consulting Engagements
575
5 Benefits of Adopting BPM as an Organizational Approach
576
5.1 Increased Customer Focus
576
5.2 Improved Strategic Planning and Strategy Deployment
576
5.3 Changing Human Resource Capability
577
5.4 Increased Recognition in BPM Community
577
6 Issues in Adopting BPM as an Organizational Approach
578
6.1 Changes in Business Model
578
6.2 Changes in Organizational Structure
579
6.3 Lessons Learnt During Company Q´s BPM Journey
580
6.3.1 Strategic Alignment
580
6.3.2 Governance
581
6.3.3 Methods
581
6.3.4 Information Technology
582
6.3.5 People
582
6.3.6 Culture
582
7 Conclusion
583
References
583
Who Is Who
585
Dr. Chris Aitken
585
Dr. Wasana Bandara
585
Prof. Dr. Ulrike Baumöl
586
Jyoti M. Bhat
586
Eric Brabnder
587
Markus Brenner
587
Ryan Brinkworth
588
Tobias Bucher
588
Roger Burlton
588
Prof. DSc. Heitor Caulliraux
589
Jim Champy
589
Prof. Dr. Andr Coners
590
Paul Coogans
590
David Court
590
Dr. Tonia de Bruin
591
Gaby Doebeli
592
Didier Elzinga
592
Jude Fernandez
592
Dr. Peter Fettke
593
Sukriti Goel
593
Dr. Guido Governatori
594
Alain Guillemain
594
Keith Harrison-Broninski
594
Dr. Diana Heckl
595
Alexandra Kokkonen
595
Dax D. Jacobson
596
Leandro Jesus
596
Prof. Dr. Dimitris Karagiannis
597
Daniel Karrer
597
Dr. Mathias Kirchmer
598
Bo sterberg Kristensen
598
Dr. Manish Kumar
599
Dr. Yvonne Lederer Antonucci
599
Prof. Dr. Peter Loos
600
Andr Macieira
600
Prof. Dr. M. Lynne Markus
600
Prof. Dr. Jrgen Moormann
601
Dr.-Ing Stefan Novotny
601
Dr. Martin Petry
602
Nicholas Rohmann
602
Prof. Dr. Michael Rosemann
603
Dr. Shazia Sadiq
603
Prof. Dr. August-Wilhelm Scheer
604
Dr. Stefan Seidel
604
Robert Shapiro
605
Katherine Shortland
605
Theresa Sinnl
606
Christian Sonnenberg
606
Andrew Spanyi
607
Christine Stephenson
607
Roger Tregear
608
Prof. Dr. Jan vom Brocke
608
Prof. Dr. Robert Winter
609
Dr. Robert Woitsch
609
Prof. Dr. Michael zur Mühlen
610
Jrg Zwicker
610
Index
612
All prices incl. VAT