Why Process Management Delivers Superior Results

Why
Process Management Delivers Superior Results

Management Brief
April 2018
©2018 Business Enterprise Mapping, LLC

BUSINESS ENTERPRISE MAPPING
Since 1993, BEM has solely provided business mapping services,

driving performance improvement in over 300 enterprises.

REPRESENTATIVE CLIENTS
BEM’s clients run large and small, public and private, and from all
industries. We know that best practices from unrelated industries
can often help when solving a difficult client problem.

ORGANIZATION PERFORMANCE
Organization results are driven by organization design. If you’re

dissatisfied with performance, then redesign the organization for
different results that deliver improved performance.
Every organization is perfectly
designed to get the results it gets.

THE TRADITIONAL ORGANIZATION
While common, the traditional organization structure, aligned

though departments, functions, and jobs, creates many barriers
to the effective and efficient management of performance .
Centralized Hidden Measures Conflicting
Decision-Making Problems KPI Only Priorities
Superheroes Department Reactive Finger

Silos Management Pointing
THE NEGLECTED WORKFLOW PUZZLE
Missing in the traditional organization structure is the work that

must be managed. Workflow is a puzzle, where each piece (task)
must fit with adjacent pieces to deliver customer value.

Does your organization use a well designed workflow puzzle
or do pieces lay jumbled in departmental piles?
Customer
Service
Product Human
Development Accounting Procurement
Resources
Facilities
Management Information
Operations Technology Equipment
Sales Management
BUSINESS PROCESS IS THE MISSING LINK

The solution is match organization structure to workflow by

defining business processes that align to deliver major value
streams for the organization.
While companies regularly invest in:

ASSETS
Facilities Information
People Equipment Technology
Business processes make these assets productive!

THE BUSINESS PROCESS CHALLENGE
In traditional organizations, about 72% of all improvement

opportunities lay hidden in broken business processes.
The Top Reasons:

1.  Process undefined
2.  Process done differently
3.  Boundaries disconnected
4.  Customers unknown
5.  Excess reviews/approvals
6.  Complex workflows
*Based upon data

collected with BEM clients.
THE BUSINESS PROCESS PARADIGM
PM yields a substantial and sustainable performance improvement

over the traditional organization. Business processes provide the
engine that powers organization performance.
ENTERPRISE
BUSINESS SYSTEM
OWNERSHIP
PROCESS
EXPERTS
LEADERSHIP
KNOWLEDGE
WHY PM DELIVERS SUPERIOR RESULTS
Shown following are 10 management characteristics that

illustrate the advantages of Process Management
Top Down STRUCTURE Business Process
Undefined WORK FLOW Fully Defined

TRADITIONAL ORGANIZATION
Centralized ACCOUNTABILITY Distributed
PROCESS MANAGEMENT
Disconnected BOUNDARIES Clearly Connected
Concentrated KNOWLEDGE Shared
Lagging MEASUREMENT Leading
Project Oriented IMPROVEMENT Process Oriented
External Only CUSTOMER External/Internal
SOPs COMPLIANCE Business Maps
Difficult to Align STRATEGY Fully Aligned

ORGANIZATION STRUCTURE
TRADITIONAL PROCESS
Organized by departments, Aligned through business

functions, and jobs. systems, processes, tasks.

THE IMPROVEMENT
Better execution, resource match-up, measurement and accountability.

WORK FLOW MANAGEMENT
TRADITIONAL PROCESS
Undefined or solely defined Standard, defined business

through IT architecture. systems and processes.
THE IMPROVEMENT
Those who do the work, define and improve the work.

ACCOUNTABILITY
TRADITIONAL PROCESS
Centralized responsibilities Decentralized based on

VP/DIR/MGR/SUP/EMP. business process.

THE IMPROVEMENT
Reduced overhead costs, responsibilities assigned directly to work.

BOUNDARY MANAGEMENT
TRADITIONAL PROCESS
Defined randomly, Intentional, clearly defined

creating silos and barriers. and aligned boundaries.
THE IMPROVEMENT
By aligning business processes, organization silos are eliminated.

KNOWLEDGE MANAGEMENT
TRADITIONAL PROCESS
Concentrated, parochial, Documented, shared,

close to the vest. distributed, transparent.
THE IMPROVEMENT
Protects valuable intellectual property assets owned by the organization.

MEASUREMENT
TRADITIONAL PROCESS
KPIs monitored only at Captured and monitored by

department level business process & system.
THE IMPROVEMENT
Lagging KPI’s are replaced by leading, actionable measures.

IMPROVEMENT MANAGEMENT
TRADITIONAL PROCESS
Projects address Projects aligned with

disconnected problems. business improvement.
THE IMPROVEMENT
Priorities and resource allocations are clear and aligned with strategy.
CUSTOMER EXPERIENCE
TRADITIONAL PROCESS
Focus is on external Internal alignment delivers

customer, missing journey. customer experience.

THE IMPROVEMENT
Loyal external customers are built by creating aligned internal customers.

COMPLIANCE
TRADITIONAL PROCESS
Clunky Standard Operating Business process maps

Procedures (SOPs). deliver improvement.
THE IMPROVEMENT
Process maps are better, faster, cheaper, and more valuable.

STRATEGY DEPLOYMENT
TRADITIONAL PROCESS
Disconnected strategy, Aligned strategy with

missed execution. managed execution.
THE IMPROVEMENT
Leadership understands the organization’s capability and opportunity.

PROCESS MANAGEMENT IN SUMMARY…
Front line associates own, define, monitor and improve their

work, allowing leadership to operate strategically.
PROBLEMS
TRADITIONAL MGT
CRITICAL FEW
CRITICAL
SYSTEMIC
IMPORTANT
DAY TO DAY
IMPROVE
ORGANIZATION PROBLEMS
RESOURCES PROCESS MGT
HOW PM DRIVES IMPROVEMENT
ENTERPRISE BENEFITS
Stakeholder Satisfaction P&L Balance Sheet Governance
Business Increase
Customer Employee Grow Reduce Reduce Reduce
IMPROVEMENT Loyalty
Partner
Loyalty Revenue Expense W/C
Asset
Risk
Loyalty Prod
Define Work Flow ♦ ♦ ♦ ♦

Improve Customer
Experience ♦ ♦ ♦ ♦
Reduce Costs ♦ ♦
Increase Efficiency ♦ ♦ ♦
Improve Productivity ♦ ♦ ♦
Reduce Cycle Time ♦ ♦ ♦ ♦

PROCESS MANAGEMENT VALUE
§  Bankruptcy to BEST IN CLASS

§  Enterprise value improvement 6X in 5 years
§  Project ROI 7-1
§  Cycle time reduction 50%
§  Labor productivity improvement 20%
§  Inventory reduction 50%
§  Customer satisfaction up 20%
§  Revenue increase of 40%
§  Triple certification:

A CASE STUDY IN MINING
Minera San Cristobal, the world’s third largest producer of silver and
zinc, is located 4000 meters above sea level in the Andes Mountains
in Bolivia. Through 10 years of Process Management, the mine is a
top 10% performer worldwide.
Brazil
Bolivia The results attained by

Business Enterprise
PACIFIC OCEAN
Mapping to improve
operations and quality
were nothing short of
amazing.
ANDES MOUNTAINS,
SOUTHWESTERN BOLIVIA. ~ VP & General Manager
THE PERIGON METHOD
Developed over 25 years, BEM utilizes our proprietary Perigon®

Method to rapidly diagnose organizational opportunities and
streamline workflow for sustainable business process improvement.
SEASONED &
CERTIFIED PROGRAM STRUCTURED
DIRECTORS PROCESS ALIGNMENT
INSIGHTFUL BUSINESS STRUCTURED &

MAPS & TOOLS ENGAGING
METHODOLOGY

Thank you!
480.515.9001
www.businessmapping.com
All rights reserved. All materials the proprietary information of Business Enterprise
Mapping, LLC. and are intended for single use only. No part of this presentation may be
modified, displayed, published, performed, transferred, reproduced, copied, used to create
derivative works from, stored in a retrieval system, or transmitted by electronic,
mechanical, or any other means without the prior written permission of Business Enterprise
Mapping, LLC., 20860 N. Tatum Blvd., Suite 300, Phoenix, AZ 85050, USA.

Why Process Management Delivers Superior Results

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Why Process Management Delivers Superior Results

Uploaded by

Copyright:

Available Formats

Why

Process Management Delivers Superior Results

©2018 Business Enterprise Mapping, LLC

Since 1993, BEM has solely provided business mapping services,

©2018 Business Enterprise Mapping, LLC

©2018 Business Enterprise Mapping, LLC

Organization results are driven by organization design. If you’re

©2018 Business Enterprise Mapping, LLC

While common, the traditional organization structure, aligned

Superheroes Department Reactive Finger

Missing in the traditional organization structure is the work that

The solution is match organization structure to workflow by

While companies regularly invest in:

Business processes make these assets productive!

©2018 Business Enterprise Mapping, LLC

In traditional organizations, about 72% of all improvement

*Based upon data

PM yields a substantial and sustainable performance improvement

Shown following are 10 management characteristics that

Undefined WORK FLOW Fully Defined

Centralized ACCOUNTABILITY Distributed

Concentrated KNOWLEDGE Shared

Lagging MEASUREMENT Leading

Project Oriented IMPROVEMENT Process Oriented

External Only CUSTOMER External/Internal

SOPs COMPLIANCE Business Maps

Difficult to Align STRATEGY Fully Aligned

©2018 Business Enterprise Mapping, LLC

Organized by departments, Aligned through business

Better execution, resource match-up, measurement and accountability.

Undefined or solely defined Standard, defined business

Those who do the work, define and improve the work.

Centralized responsibilities Decentralized based on

Reduced overhead costs, responsibilities assigned directly to work.

Defined randomly, Intentional, clearly defined

By aligning business processes, organization silos are eliminated.

©2018 Business Enterprise Mapping, LLC

Concentrated, parochial, Documented, shared,

Protects valuable intellectual property assets owned by the organization.

KPIs monitored only at Captured and monitored by

Lagging KPI’s are replaced by leading, actionable measures.

Projects address Projects aligned with

Focus is on external Internal alignment delivers

Loyal external customers are built by creating aligned internal customers.

Clunky Standard Operating Business process maps

Process maps are better, faster, cheaper, and more valuable.

Disconnected strategy, Aligned strategy with

Leadership understands the organization’s capability and opportunity.

©2018 Business Enterprise Mapping, LLC

Front line associates own, define, monitor and improve their

Define Work Flow ♦ ♦ ♦ ♦

©2018 Business Enterprise Mapping, LLC

§ Bankruptcy to BEST IN CLASS

©2018 Business Enterprise Mapping, LLC

Bolivia The results attained by

Developed over 25 years, BEM utilizes our proprietary Perigon®

INSIGHTFUL BUSINESS STRUCTURED &

©2018 Business Enterprise Mapping, LLC

You might also like

§  Bankruptcy to BEST IN CLASS