Professional Documents
Culture Documents
r 2008 British Academy of Management. Published by Blackwell Publishing Ltd, 9600 Garsington Road, Oxford
OX4 2DQ, UK and 350 Main Street, Malden, MA, 02148, USA.
492 P. A. Smart, H. Maddern and R. S. Maull
the paper describes the derivation of a conceptual financial services companies. This provided an
framework for BPM. The framework, derived opportunity to explore the extent to which these
from a systematic review and synthesis of current companies engaged in BPM practice. The com-
literature, and validated in empirical data from a pany which exhibited the most developed process
case company in the service sector, provides a management practices from this group was
common foundation for future academic debate identified as an appropriate case company for
for the derivation of BPM theory. This confirms the more in-depth research. The company, a large
the approach described by Meredith et al. (1989) UK bank, was an early adopter of business
where a ‘mental model of the suspected relation- process re-engineering (BPR). The bank had
ships are posited . . . (and) . . . evaluated by means experienced a wave of mergers and acquisitions
of a framework that captures the essence of the in the late 1990s, which culminated in the closure
system under investigation’. of its BPR programme. More recently, however,
the bank had re-visited process management
through the introduction of a Process Design
Research method Authority, charged with understanding, control-
ling and improving processes. The bank is a
The research was structured into two main complex organization, with a number of sub-
phases. The first phase was concerned with the sidiary companies, offering a wide range of
development of an initial framework which financial products through diverse business
reflected current BPM thinking (initial mental processes.
model). Models, concepts and approaches, found The case study approach adopted aligns with
within the literature, were synthesized into five the perspective of Yin (1981), where phenomena
key themes. To provide a focus for further are studied in a real-life context, and with Barton
exploratory research the following research ques- (1995), where a history of past or current
tion was formulated: to what extent do the five phenomena is drawn from multiple sources. Data
themes emerging from existing literature ade- were collected through semi-structured interviews
quately conceptualize BPM? with seven experienced senior managers who
The empirical work was based on in-depth case were recognized as process experts and had a
research. Case-based methods are widely recog- range of process management responsibilities.
nized as an effective means for unpacking These included the Director of Group Opera-
complex concepts en route to the development tions, Head of Customer Management, Head of
of explanatory theory (Meredith, 1998). The Process Design and Improvement and Director
advantages of case research include studying the of Payments Processing. The interviews focused
phenomenon in its natural setting and hence on two key areas: the development of process
generating theory from actual practice; the ability management over time and an exploration of
to ask the why questions rather than just the what practitioners’ understanding of the meaning,
and how; the ability to uncover variables which scope, significance and value of process manage-
may be misunderstood or unknown (Benbasat, ment. Interviewees were encouraged to drive the
Goldstein and Mead, 1987). Voss, Tsikriktsis and discussion and consequently responses varied
Frohlich (2002) represent the views of a growing considerably in form and sequence.
number of researchers when they argue that ‘case To support the interviews, and to triangulate
research has consistently been one of the most the responses, an extensive range of secondary
powerful research methods, particularly in the data was collected and analysed, including
development of new theory’. However, propo- project documentation; examples of process
nents of case methodology emphasize the rigour management outputs (including process models
that must be applied. Effective case selection, and measurement data); central and local pro-
underpinned by a structured research protocol, cess communications; minutes; and terms of
has been identified as critical in ensuring such reference. These data were analysed, initially,
rigour (Stuart et al., 2002; Voss, Tsikriktsis and using the thematic coding approach proposed
Frohlich, 2002). by Flick (1998), to identify the existence of the
Case selection for this project was informed five theoretical BPM themes in the empirical
through an initial workshop held with ten data.
context: (BPM). . .‘has to be capable of modelling A number of studies have raised our awareness
a process, brokering that process, delivering it of BPM, and begun the process of characteriza-
with straight through processing, and then tion (Armistead, 1996; Lee and Dale, 1998; Zairi,
managing it, all within a single environment. 1997). However, there is no current consensus on
Because of its far reaching implications for the the principles or key characteristics of BPM found
ability of enterprises to adapt, it is much more within the literature. We believe that the deriva-
than a technology fad but a management issue tion of a common framework, a pre-theory
that needs to be on senior management’s agenda, (Meredith, 1993) which provides a platform on
driving the IT support of the business’ which to engage in both academic inquiry and
(BPMI.org1). practitioner debate, will provide significant op-
In summary, BPR, itself, is no longer a portunities for both understanding and applying
significant phenomenon. A limited amount of BPM. The initial framework presented here is the
specialist BPR research continues to be reported, result of a systematic review and synthesis of the
together with analyses of late adopters. Business current literature. This has facilitated the identi-
process automation, often labelled BPM, is a fication of five key themes of BPM: process
growing activity, albeit one which tends towards strategy, process architecture, process ownership,
a narrower, IT-centric, context. Process-based process measurement, process improvement.
interventions, in particular Six Sigma, are in
vogue, although doubts remain as to the dur-
Process strategy
ability of such interventions in the absence of a
process management framework (Hammer, Process strategy addresses the linkages between
2002). Nevertheless, as noted earlier, process the articulation of strategic intent and the
management continues to engage many busi- intended actions in the deployment and ongoing
nesses, particularly within the services sector. The management of a process infrastructure. The
apparent contradiction between the demise of linkage between strategic intent and deployment
BPR and the re-emergence of a focus on process within BPM has been explicitly highlighted by
management has been examined by a number of Pritchard and Armistead (1999). These authors
researchers. However, although there is some introduce the concept of an ‘integrator’ which
commonality of thought on the nature of the re- links strategic level planning with task level
birth of ‘process’ there is currently much confu- deployment. The articulation of a strategic intent
sion and a lack of consensus. to focus on processes has been identified by a
number of authors (e.g. Bateman and Rich, 2003;
Burlton, 2001; Grover, Kettinger and Teng, 2000;
BPM Lee and Dale, 1998; Meadows and Merali, 2003;
Silvestro and Westley, 2002). While there is a
Processes are considered ‘a generic factor in all consensus that BPM requires the articulation of
organizations. They are the way things get done’ strategy, there is some debate regarding the
(Armistead, Pritchard and Machin, 1999). Pro- strategic performance achievable through BPM
cesses are also viewed as ‘strategic assets’, which deployment. Silvestro and Westley (2002), for
require companies to ‘take a business process example, discuss the appropriateness of BPM for
orientation’ (McCormack and Johnson, 2001). strategic differentiation, but challenge the appro-
Process is not simply the management fad of re- priateness of BPM for a cost leadership position.
engineering, but a more pervasive issue, requiring This contrasts with the findings of Armistead and
serious attention. ‘Process thinking has become Machin (1997) which suggest significant oppor-
mainstream’ (Grover, Kettinger and Teng, 2000). tunities for the attainment of a cost reduction
BPM in this context considers process as both a strategy, in addition to increased delivery relia-
business imperative and a means of understand- bility, speed of new product introduction, in-
ing and explaining business activities – the way creased flexibility and consistent product quality.
customer requirements get transformed into This articulation of business strategy and
actual goods and services. the identification of possible dimensions of
enhanced competitiveness depend on the strategic
1
Accessed 2005; no longer in operation. approaches adopted. Armistead, Pritchard and
Machin (1999) draw on the broader literature in implementation (Pritchard and Armistead, 1999).
strategic management and suggest the categor- As these authors point out, the key is to ‘link
ization of prescriptive versus emergent, hard strategy with day to day operations’; this
goals versus stakeholder aspirations, and strate- inevitably invokes discussions regarding policy
gic content versus strategic process when con- deployment. Our view is that this deployment is
sidering the strategic approaches adopted by achievable through the consistent pattern of
companies undertaking BPM. The findings from decisions (Mintzberg and Quinn, 1996) made in
their work indicate that a blend of ‘prescriptive’ each of the four other themes described below.
and ‘stakeholder aspirations’ approaches are Effective communication of these decisions
dominant, driven by the use of the EFQM model is paramount for success (Davenport, 2004;
for achieving organizational effectiveness. This is Meadows and Merali, 2003). As Pritchard and
consistent with analyses of the external market Armistead (1999) suggest, the inability of an
value chain and the identification of key business organization to determine and communicate its
processes to compete in the identified market view of process can create cynicism among its
(Pritchard and Armistead, 1999). members which may be difficult to overcome by
Increasing attention is being given, however, to the time they are asked to implement the strategy.
the possible strategic leverage provided by under- Deployment of the strategy through BPM is
standing and capitalizing on distinct capabilities therefore based on the consistency of decisions
attainable through specific resource configura- and the cohesiveness between the decisions in
tions. A key aspect of BPM is the articulation of each of the following areas: the architecture of
process capability which includes an understand- processes, process ownership and organizational
ing of resource capability. As companies become design, process measurement and associated
more process mature it is possible that strategic award structure, and the continuous pursuit of
differentiation will be based more on a capability- process improvement.
centric approach. However, capability driven
strategy formulation, while receiving significant
Process architecture
attention (Lewis, 2003), has still not realized the
paradigmatic neatness commented on by Teece, A process architecture is constructed as a means
Pisano and Shuen (1997). It is possible, however, for understanding the organization (Pritchard
to envisage a business-process-based strategic and Armistead, 1999) from a business process
capability which synthesizes process capability perspective. A business process as a unit of
and market-led strategies (Acur and Bititci, analysis and improvement was a central theme in
2004). Business process capabilities provide previous literature relating to BPR (e.g. Davenport,
significant strategic opportunities (Roth and 1993; Harrington, 1992; Rummler and Brache,
Jackson, 1995) and the processes themselves 1990; Smart, Childe and Maull, 1999). To avoid
may be viewed as strategic assets (McCormack the reiteration of the numerous definitions of
and Johnson, 2001). ‘process’ which emerged during this time we
While it is possible to draw from the broader suggest the following points for clarification.
strategic management literature to discuss the Processes are the conceptual notation of what
relative merits of strategic approaches, the key organizations do. They may be described as
issue here is the effective deployment of an transformations which are cross-functional in
intended strategy through an infrastructure that nature and are customer facing. ‘One property
is process-centric. Armistead and Machin (1997) associated with business processes is their end-to-
provided some examples where companies have end nature’ (Armistead and Machin, 1997).
linked their long-term plans with annual plans for Although various taxonomies of processes
key business processes. It is possible to suggest have been previously described (Childe, Maull
that BPM itself represents this deployment – a and Bennett, 1994; Smart, Childe and Maull,
strategy in action. Process management is more 1999), there is growing consensus on the categor-
than a way to improve individual processes – it is ization of processes in terms of ‘manage’,
a way to operate and manage a business ‘operate’ and ‘support’ (AMICE, 1989). We
(Hammer, 2002). Xerox, for example, was driven acknowledge, however, some deviation from this
to adopt BPM by the need to improve strategy categorization, e.g. the separation of ‘direction
setting’ processes from ‘manage’ (Armistead and architecture theme is hierarchy. Processes are
Machin, 1997). The emphasis of the process often decomposed into greater levels of granu-
architecture theme of BPM must, however, also larity which provides greater detail on the
include the linkages between processes (Zairi, constituent parts of the integrated process. This
1997). Our experience concurs, in part, with the has been observed by Armistead and Machin
anecdotal evidence from the judges of the (1997) among others.
European quality award (described in Armistead, Hammer (2002) also notes the requirement to
1996), which indicates that many organizations consistently review and update relevant models.
focus on a discrete process and fail to look at an We extend this to include a review and update of
integrated set of processes. Our experience is that the process architecture. In our experience this is
many organizations construct high level frame- achieved through a central repository of models
works consisting of multiple processes, but fail to often accessed through a corporate intranet. This
identify the physical and information flows that is one aspect of the discipline required to
integrate the processes. This can result in the successfully implement BPM. It (BPM) relies on
construction of horizontal silos which are no systems and documented procedures to ensure
more effective than the functional silos they have discipline, consistency and repeatability (Zairi,
replaced (Armistead, 1996). Hammer (2002) 1997).
emphasizes the terms ‘organized’ and ‘together’
in describing the integration of activities within a
Process ownership
business process. We extend this thinking to
emphasize integration at a process level – both The identification of process owners and their
the intra and inter connectedness of ‘manage’, allocation to core business processes has been
‘operate’ and ‘support’ processes. The purpose of identified by a number of authors as a key
the architecture is to provide a top level element of BPM (Armistead, Pritchard and
hierarchical model which integrates the flows Machin, 1999; Lee and Dale, 1998). Process
within the business. This provides a coordinating owners are seen as champions of the process who
mechanism for improvement and change. Silvestro have responsibility for process performance
and Westley (2002) deviate from the notion of (Armistead, 1996; Pritchard and Armistead,
common process and describe the implementation 1999). This is also of particular importance in
of a product-based process structure based on meeting the responsibility–accountability require-
market segmentation. While this is an interesting ments of Sarbanes Oxley. Pritchard and Armistead
structure which may be linked to process design (1999) suggest that process mature organizations
utilizing the concepts of ‘runners, repeaters, and exhibit a higher proportion of senior managers as
strangers’ (Parnaby, 1988), there is little evidence process owners. Armistead (1996) also indicates
of success. This is perhaps one of the reasons why that a key role for process owners is to work at
the authors report difficulties in their case the interfaces with other key processes. This
companies’ attaining a cost leadership position. mitigates against the creation of horizontal silos,
Previous work has indicated that processes are and reinforces the underlying principle of sys-
analogous to ‘systems’ (Smart, Childe and Maull, temicity described earlier.
1999). Process architectures reflect the principle An additional element of this theme of BPM,
of systemicity drawn from this discipline. This evident in the literature, is the switch in emphasis
argument suggests the inclusion of both technical to process-based teams (Armistead, 1996; Armis-
and non-technical resources responsible for the tead, Pritchard and Machin, 1999; Pritchard and
transformation of input to output, and the Armistead, 1999). These teams may be considered
identification of control structures which con- as networks of ‘process operatives’ (Armistead
strain these transformations. In addition, it is and Machin, 1997) who work together to deliver
important to identify the conditions which trigger process performance. Samson and Challis (2002)
transformational activities (Ould, 2003). ‘The note: ‘leading companies have broadened the
process paradigm provides an approach for scope and span of all employees’ mindsets and
coordination across the whole organisation’ their cycle of objectives, performance and re-
(Armistead and Machin, 1997). An additional sponsibility. Functional barriers and parochial
systems principle of importance to the process mindsets (the ‘‘silo’’ mentality) have been largely
overcome and replaced by a unity of purpose and structure versus a ‘fuzzy’ network-type structure
spirit of co-operation.’ where individuals are allocated across more than
This requirement for a switch to team-based one process; the establishment of empowered
structure necessitates the implementation of teams which foster innovation versus the for-
alternative reward and recognition structures malized control of performance. The tendency
(Hammer, 2002; Pritchard and Armistead, for organizations to preserve functional structure
1999). Hammer (2002), in forging strong links has led to the adoption of matrix-based organiza-
between Six Sigma and BPM, introduces the tional structures (Silvestro and Westley, 2002). In
notion of two additional types of team: project their description of the adoption of a product-
teams and process design teams. Project teams based process structure in their case companies,
are deployed within a process to identify and these authors note a marked shift in power from
rectify the causes of poor process performance – both function to product categories, or from
processes are a framework for a problem-solving function to customer business units. While
regimen. Process design teams challenge the neither of these cases exhibited an overlay of a
nature of a process and seek to reconfigure process structure upon a traditional functional
processes to minimize the amount of non-value- structure, functional optimization was less in
adding activities. This can be linked to ‘lean evidence due to the reduction in size of the
thinking’ (Womack and Jones, 1996). The pro- organizational units. Three options for organiza-
cess owner obtains the resource that is required tional structure are presented by Armistead,
and manages the performance of the process, Pritchard amd Machin (1999): a predominant
often irrespective of formal organizational struc- focus on process lines with functions providing a
ture. The process owner therefore needs to ensure centre of expertise to support the processes; the
that the people performing the process under- coexistence of function and process as a matrix
stand it, are trained in it (Hammer, 2002) and (although the authors point out that this needs a
receive the necessary reward and recognition for sophisticated approach to management, as illu-
success. strated by Hewlett Packard); profunction –
This gives rise to potential conflict in the (which) ‘displays all the characteristic of a
organizational design. The ambiguity which function and is embedded in a larger business
arises between process owners and their teams process’. In our view the latter structure appears
and the ongoing functional management may be to be in direct conflict with the notion of
a source of conflict. However, research by processes being cross-functional in nature.
Llewellyn and Armistead (2000) suggests that
the value added from the end-to-end perspective
Process measurement
supports front line staff in, for example, the
resolution of ‘problem jobs or situations’. They Process measurement is an integral part of BPM
develop the concept of ‘social capital’ to describe (Armistead, Pritchard and Machin, 1999; Melan,
this phenomenon, arguing that ‘Social capital 1989) which seeks to optimize process perfor-
operates at a process level with social credits mance against both customer requirements and
being traded across functional boundaries’. economic targets. As Armistead, Pritchard and
Pritchard and Armistead (1999) point out that Machin (1999) also point out, single measures of
well progressed organizations have experienced performance can be dangerous. Simmons (2000)
structural changes as a result of BPM. This notes that performance measurement is very
necessitates a discussion of trade-offs between much influenced by financial reporting which
functional and process-based organizational ‘does not reflect the need for customer-focused,
structures. There is evidence that companies process-oriented learning organisations’. How-
adopting BPM do not dismantle the established ever, there is potential to integrate the work
functional groups. A number of trade-offs which which has been undertaken into the design of
emerge, as described by Armistead (1996), performance measurement systems from the
include the potential loss of a critical mass of broader literature (e.g. Kaplan and Norton,
experts with specialist knowledge versus greater 1992, 1996; Lynch and Cross, 1991; Neely,
process understanding and customer centricity; 1999; Neely, Gregory and Platts, 1995). These
the clarity of a well understood functional systems exhibit a number of key characteristics:
they are balanced; drive organizational improve- provide a good basis for engaging in process
ment; and link strategy to operations. It is improvement activity. Armistead (1996) extends
important to note that strategic performance this thinking and suggests that there is also a
measurement systems have a role to play in both requirement to articulate volume, variety and
the articulation of business strategy and the variation in demand – the 3Vs. Our experience is
deployment of strategy through a BPM ap- that in situations where each of the 3Vs is ‘high’
proach. For example, there is discussion in the there is a need to assess the dynamic behaviour of
literature regarding the merits of the use of the processes – a move beyond static model and
balanced scorecard in conjunction with goal- measurement. However, the fundamental issue
based (Cameron, 1986) quality frameworks such within this theme is that the monitoring of
as the EFQM (Armistead, Pritchard and Machin, performance against appropriate targets provides
1999) for BPM deployment. Armistead and a mechanism for the prioritization of corrective
Machin (1997) identify particular difficulties in action.
managing process performance with a large
number of detailed measures which are not
positioned into a higher level strategic measure. Process improvement
This reinforces the need for a performance Improvement activity is central to realizing the
measurement architecture which links strategic benefits of BPM. The ability to overcome
and operational targets. problems in the ‘white space’ (Rummler and
Our intention is not to delve into the intricacies Brache, 1995) remains the core source of value
of debate concerning these measurement systems, for improvement activity. This is based on having
but to recognize that, in addition to economic- a structured, consistent approach to process
based assessments, a key aspect of process improvement (Armistead and Machin, 1997;
performance is the extent to which processes Lee and Dale, 1998) that delivers on continuous
fulfil customer requirements. Importance is given and radical improvements (Armistead, Pritchard
to customer satisfaction and customer loyalty in and Machin, 1999; Hammer, 2002; Pritchard and
addition to measures of efficiency (Armistead and Armistead, 1999). Reporting on the approach
Machin, 1997). This service measurement per- adopted by Texas Instruments, Armistead,
spective has received much attention in the Pritchard and Machin (1999) describe a three-
literature with the growing popularity of the level approach to obtaining process control:
service profit chain (Heskett et al., 1994); how- stabilization, which involves the deployment of
ever, there is little evidence of a link to cross- statistical process control (a view supported by
functional process architectures (Maddern, Maull Love, Gunasekeran and Li, 1998) and Taguchi
and Smart, 2007). The adoption of a process- methods; continuous improvement using the
based approach necessitates a reappraisal of the seven quality control tools; radical change invol-
operational definitions of key performance me- ving BPR-type projects. They also suggest the use
trics. This linking of process-based measurement of the Hoshin Kanri methodology as a more
with existing measurement systems can be com- rigorous approach.
plex and demanding (Pritchard and Armistead, Organizations face the problem of selecting
1999). While there is an ensuing debate on from a large stock of improvement methodolo-
appropriate dimensions of performance (e.g. gies and tools – ranging from the pure qualitative
Zairi (1997) identifies cycle time, quality and cost such as removal of duplicate activities or
dimensions), there is a growing recognition that a re-sequencing of activity (Reijers and Mansar,
key factor of measurement is the variation of 2004) to systematic approaches for process opti-
output from customer expectation. This measure, mization using factorial design (Breyfogle, 2003).
borrowed from the Six Sigma domain (Breyfogle,
2003; Linderman et al., 2003) and derived
through a comparison of process output against Results
critical-to-quality parameters identified by the
Validating the five themes
customer, facilitates the monitoring of process
effectiveness. These effectiveness measures, com- The case-based research involved the collection
bined with more common efficiency measures, of data from seven senior managers who were
A B C D E F G
Strategy 2 2 1 1 1 7
Architecture 1 2 2 2 4 3 2 16
Ownership 1 1 2 3 1 3 1 12
Measurement 1 1 3 6 4 1 1 17
Improvement 1 3 2 5 1 1 1 14
66
Figure 1. The enterprise process framework.
on’ management of key banking processes such system availability and complaints, were sched-
as payments and enquiries. Their priority was to uled for future development, an understanding of
improve customer service. Dedicated resource customer service performance across all key
was allocated to enable this, and Six Sigma processes was considered the priority. The ambi-
performance improvement targets were set for tion was to have 80% of ‘customer touches’ in the
each team. By 2002, POTs had identified and retail bank under sigma measurement by the end
prioritized over 145 process improvements, in- of 2003. In addition stretch improvement targets
cluding reducing lending complaints by 38% and were set for individual process performance.
improving the turnaround times for replacement
cards and cheque books, which were previously
the most significant sources of customer com- Process improvement
plaints. Whilst the focus was on improving The Six Sigma improvement methodology,
customer service, cost savings of d300,000 pa known as DMAIC, was also introduced to
were also reported. Interestingly, in reporting the systematically identify and deliver process im-
success of process ownership, emphasis was provements. DMAIC represents the five stages of
placed on the role in laying foundations for the improvement cycle: define, measure, analyse,
long-term benefit: ‘The POTs’ tangible benefits improve and maintain. Training followed the GE
are the outward signs of success, but the hidden model, where over 200 staff were trained in Six
achievements provide the foundations for long- Sigma improvement techniques, led by twelve Six
term ongoing benefits’ (Director of Payments Sigma Black Belts. In addition, a dedicated
Processing). The need to fully integrate process process simulation team was established to
ownership within the bank was also recognized: support large-scale change projects. The decision
‘The POTs have made a real difference in the to introduce a consistent, best practice approach
drive to make process ownership an integral part to process improvement reflected concerns that
of the group culture. In an organization of this previous ad hoc improvement efforts had resulted
size, however, this is still only the start, because in duplication and wasted effort. As part of the
the enthusiasm to drive this forward needs to be attempt to fully align systems and processes a
in step with the readiness of the organization to revised change management system was intro-
accept cultural change’ (Head of Customer duced in which the process implications of all
Management). change projects were highlighted and evaluated
prior to investment decisions.
Process measurement
The Six Sigma methodology, pioneered by Identification of additional core
Motorola in the 1980s and championed by GE concepts
in the 1990s, was chosen as the method for
measuring and systematically improving pro- While the case findings aligned closely with the
cesses in the bank. It focuses on what is five themes synthesized from the literature, the
critical to the customer and seeks to eliminate initial five-themed framework failed to fully
any defects which may arise in meeting customer account for the variety of responses found in
requirements. the case data. A simple content analysis of the
Introducing Six Sigma measurement involved coded texts revealed that 49% (63/129) of
the development of Process dashboards for all key the interviews were not explicitly related to the
processes. The dashboards contained a statement themes. A process of grouping data items to
of customer needs and provided a simple identify core categories in the residual of the
representation of the process flow, linking custo- codes was undertaken utilizing the 11 criteria
mer requirements to delivery. Operational mea- found by Glaser (1978).
sures were identified regarding the accuracy and The process architecture theme, for example,
timeliness of each process against customer was considered both necessary and successful in
requirements. Numbers of defects were also helping to create an overall process infrastruc-
identified and reported on a monthly basis. ture. The framework informed the design of
Whilst other measures, such as cost, productivity, POTs; the repository provided a physical control
of operational business processes. However, process used by Post Office Counters: ‘A related
interviewees emphasized that the most significant series of actions, directed to the achievement of a
contribution of the architecture was to introduce goal, that transforms a set of inputs into desired
a process language and key process concepts such outputs, by adding value’. In our own research,
as ‘end-to-end’ thinking and customer focus. This process experts in the bank defined a business
customer-centric view of the process framework process as ‘a set of related activities that create
encouraged staff to relate their day-to-day value for customers’.
activities to specific customer requirements – an The implications of this definition are signifi-
‘outside in’ view of the organization. In addition, cant. Businesses provide goods and services to
the ‘Rubik’s cube’ focused attention on the ‘end- customers; if processes are the means through
to-end’ delivery of customer requirements across which those goods and services are delivered,
different business units, products and channels. then all businesses have processes. The universal
A further analysis of these data identified three nature of business processes emerged as a strong
additional concepts: conscious, macro, centrality. theme during interviews with bank staff. ‘There is
We believe that these concepts form the key a given that says all organizations whether it be
principles for managing by ‘process’. As Smart the corner shop or the multinational plc, yes
et al. (2004) highlighted: ‘Articles that revoke we’ve all got processes, we must have’ (Head of
thematic initiatives, that label them as failures, or Process Design and Improvement).
that provide superficial explanations of the Given the universal nature of processes,
reasons for failure can be found in abundance. . . . process management, in some form, is not
More work, however, is required to understand optional. What is optional is the extent to which
the important management principles, encom- process management is pursued as a conscious
passed by the initiatives, which warranted them activity, rather than simply happening by default.
being heralded in the first place.’ We believe that Again, the significance of conscious process
these additional concepts are critical for a full management was emphasized by bank staff.
understanding of BPM, and are the central tenet ‘Processes exist in all organizations, as ways in
on which the BPM application components which customers ask for something and even-
deliver value. Table 2 indicates the frequency of tually it gets fulfilled, it’s how consciously you
coded data attributed to each of the emergent manage those processes that’s important. It’s like
themes. We have no clear indication of bias by golf or snooker, some do it by touch or feel, they
the respondents towards the application compo- don’t particularly know how they’re doing it,
nents or the additional concepts. The analysis has they just do it and it comes out well. So those
indicated, however, some consistency of reference lucky enough to do that have got a gift. For most
to the three additional concepts. Each of these people it’s harder than that, you have to train and
concepts is described in the following sections. practice more and more. Conscious process
management is when you have to think about it
more, you have to know when you’re doing it’
Conscious process management (Director of Group Operations).
Whilst there is considerable confusion surround- Such thinking reflects the idea that processes
ing the meaning of such terms as BPR and BPM are conceptual constructions. Processes have to
there is some consensus about the nature of a be ‘discovered’ and managed as processes. This is
business process itself (Davenport and Short, particularly evident in service organizations
1990; Hammer and Champy, 1993). Zairi (1997), where processes are less ‘visible’ than in a
for example, reports the definition of a business manufacturing environment.
activity does not constitute BPM. It is simply an aged and scheduled. It has a finite timetable.
ongoing operational practice. Companies who Permanently embedding the process concept,
are engaged in BPM seek to understand the putting process at the centre of the organization,
totality of processes, their boundaries and inter- however, is an ongoing task.
relationships. ‘By definition we’re managing a
number of processes at any one time and a lot of
them may be interdependable, but the net result is
we have to succeed in the delivery of all of those
processes’ (Director of Payments Processing). BPM – an integrated framework
Moreover, BPM requires the management of
processes on an ‘end-to-end’ basis, from initial The findings suggest that a robust theoretical
customer contact through to the fulfilment of the BPM framework needs to consider both the
customer need. Few processes provide fulfilment application of BPM and its conceptual under-
at point of contact from a single engagement. pinnings (Figure 3). Much of the existing
Relatively simple customer requests, for example literature addresses the application of the tangi-
providing a credit card, may require input from a ble aspects of BPM (as described in our five-
specialist risk assessment function and a card themed framework). Companies who embark on
production unit. More complex products, such as BPM must focus on identifying their processes,
mortgages, often demand input from several measuring them, establishing dedicated end-
functions and fulfilment may extend over a to-end process management, introducing a sys-
number of weeks. Typically, however, the ‘end- tematic process improvement programme, all
to-end’ process is not managed throughout its life within an overall process strategy. We have
cycle. labelled these the application components of BPM.
The conceptual underpinnings of BPM are less
visible. They address the fundamental nature and
The centrality of process scope of BPM, and the thinking which informs
Within BPM, the process concept is inextricably business decisions to adopt and implement BPM.
linked to the customer. Processes do not exist in Findings from the case research lead us to
isolation. They are discovered retrospectively characterize BPM as an optional management
from an understanding of customer needs. philosophy which seeks to create value from a
Processes are simply the means by which various sustained focus on business processes. It is
customer needs are met: ‘The whole reason we’re predicated on the view that processes are the
in business is to make profit; you make profit by vehicle through which customer needs are satisfied.
satisfying your customers. To the customer, we This view demands the conscious management of
are as good as our processes. So if you’re not the totality of a company’s ‘end-to-end’ business
bothered about your processes, in my mind, processes. As an optional management philosophy,
you’re not bothered about your business’ (Head it requires an initiating intervention. However, the
of Customer Management). realization of the benefits offered by the philosophy
From this perspective, BPM is not a ‘one-off’ can only be achieved through a process journey,
activity. It demands a sustained focus on rather than a one-off intervention.
processes as a means of creating ongoing value
for the organization. Companies engaging in
change programmes, whether IT or personnel
focused, need to be addressed from the process
perspective.
Achieving this sustained focus has profound
implications for the nature of BPM implementa-
tion. In contrast with the ‘short, sharp, fix’
methods associated with previous BPR initia-
tives, BPM is a ‘process journey’. Introducing a
process infrastructure, creating process models
and measurement systems, can be actively man- Figure 3. An integrated framework for BPM.
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Dr Philip Andrew Smart is a Senior Lecturer in Management and Director of Exeter Centre for
Strategic Processes and Operations (XSPO) at the University of Exeter. Since obtaining his PhD in
1996 Andi’s research has focused on process management, business process design grounded in the
‘systems’ discipline. Andi is also engaged in the development and promotion of service operations
management which he is undertaking in his role as a EurOMA board member.
Harry Maddern is a Research Fellow at the University of Exeter. He has considerable business
experience in strategic and change management and was Head of Process Design at a large UK bank
before joining the University to complete his Doctorate. His research interests include BPM, service
management, strategy and systems theory. He has previously published in the International Journal
of Operations and Production Management.
Roger Maull is Professor of Management Systems at the University of Exeter. With Dr Andi Smart
he leads the Exeter Centre for Strategic Processes and Operations (XSPO). He believes strongly in
the need for relevant research that informs practitioners and has researched and published widely
from sectors such as manufacturing, banking, health, telecommunications and various public bodies.
His current focus is on drawing out the aspects of systems thinking which will underpin a generic set
of process design rules.