Bititci, Ackermann, Ates, Davis, Gibb, MacBryde, MacKay, Maguire, van der Meer, Shafti and Bourne, 2008

, Manage Processes – what are they?, SIOM Research Paper Series, 001, 17Jun 2008, www.strath.ac.uk/siom/research/papers

Manage Processes - What are they?
Umit Bititci, Fran Ackermann, Aylin Ates, John Davies, Stephen Gibb, Jillian MacBryde, David MacKay, Catherine Maguire, Robert van der Meer, Farhad Shafti University of Strathclyde, Glasgow, UK Michael Bourne Cranfield University, Cranfield, UK

1. Introduction
Motivated by earlier works on business process management in general and manage processes in particular, this paper seeks to understand the current state of knowledge on manage-processes and propose a research agenda that would lead to a better understanding of manage-processes. Our curiosity is motivated by the belief that the capabilities and competencies of manage processes are critical to sustaining competitive advantage. A point further elaborated in our discussions and conclusions. The term manage-process was first introduced by the CIMOSA Standards Committee (1989) and was subsequently built upon by Childe et al (1994) in an attempt to define a classifications and generic architecture for business processes as depicted in Figure 1. It therefore has its roots in a business process arena.

Business Process Architecture

Operate Processes

Manage Processes

Support Processes

• Get Order • Develop Product • Fulfil Order • Support Product

• Set Direction • Make Strategy • Direct Business

• Support IS • Support Finance • Support HR • etc

Figure 1 – Business Process Architecture (based on CIMOSA Standard, 1989 and Childe et al, 1994) According to the CIMOSA Standard (1989) and Child et al (1994) business processes may be classified into Operate, Support and Manage Processes. This classification is not unique as evidenced by other authors, such as Davenport (1993), Armistead and Machin (1997) and Garvin (1998), who have developed similar classifications for business processes and will be detailed later in the paper. Although these authors use slightly varying terminologies and there appears to be a degree of confusion with regards to how business processes should be classified, these authors are in

Bititci, Ackermann, Ates, Davis, Gibb, MacBryde, MacKay, Maguire, van der Meer, Shafti and Bourne, 2008, Manage Processes – what are they?, SIOM Research Paper Series, 001, 17Jun 2008, www.strath.ac.uk/siom/research/papers

general agreement concerning the existence and importance of manage, management or managerial processes. However, and perhaps not surprisingly, there is a degree of confusion with regards to what these manage processes are, and what are their boundaries, scope and contents. As a means for further exploring this arena and hoping to provide additional understanding on manage processes the objective of this paper is to review the extant literature and develop a research agenda towards better understanding of manage processes.

2. Research Method
A systematic approach to a literature review (Tranfield et al, 2003) was adopted throughout the research. The review has been undertaken by an academic team with varying backgrounds including; Business Process Management, Management Science, HRM, Operations Management, Strategic Management and Psychology all of whom were participating in the research that is being reported here. As such a wide coverage of the area was carried out. The focus of the literature search was based on the notion that the capabilities and competencies of the manage-processes are critical to sustaining competitive advantage. Thus the following areas were deemed to be of particular interest: • Literature on business processes in general and manage processes in particular. • Literature on strategy and strategic management, including the literature on the Resource Based View, covering capabilities and competencies and competitive advantage. Each of these to foci are now considered in turn. 2.1 Business Processes Literature Keyword searches were employed to identify articles published between 1990 and 2007 in specific management databases such as Business Source Premier, Web of Knowledge, Emerald Insight, Management and Organisation Studies and Science Direct. Also a number of journals were chosen as they attract a large number of papers in the field of business process management very often addressing a broad range of managerial problems from a business process perspective. These include; Business Process Management Journal, International Journal of Operations and Production Management; as well as other leading general management journals. Initial key word searches were performed using terms such as “business process”, “manageprocess”, “managerial process” and “management process”. These search strings identified over 20,000 articles. An initial study of this literature led us to the conclusion that, although a large number of articles do match the search strings as defined above, the contents of these articles were in very few instances specific to manage processes as defined above. More commonly the results returned articles that focused on specific processes such as “maintenance management process” or “how to manage process performance”. Consequently a further survey of the literature was conducted by narrowing down this search by including only those articles that took a managerial perspective rather then technology

. www.uk/siom/research/papers perspective (e. SIOM Research Paper Series. MacBryde. 001. Maguire. but alongside that. Today. 3. there was a particular interest in manage processes. Table 1. Shafti and Bourne. Strategy and Strategic Management Literature As noted above. more or less. The most common ontological description of a process is that it begins with inputs which proceed through some form of transformation. This categorisation is used to help us to explore the literature and is not intended as a proposal as to how this literature should be categorised.g.Bititci. it is a well accepted concept across all industrial. Although the literature provides numerous more complex definitions (Table 2) for business process. such as the strategy process. Long Range Planning. MacKay. literature review or case study papers on the subject. techniques and approaches for modelling. Indeed there are several articles that are multifaceted and overlap/crossover these categories. Davis. The remainder of this section will explore the contribution of each one of these areas from a manage-process point of view. Gibb. van der Meer. Academy of Management Review. • Classification of business processes • • • • How to model business processes Developing various tools. as well as closely related journals such as Journal of Management Studies and British Journal of Management. Categorisation of the business process literature. Following section examines these two bodies of literature. Ackermann. commercial and public sector communities. Ates. Manage Processes – what are they?. 2008.ac. Thus the literature review commenced with an examination of the leading strategy journals. and the result is an output. Category Business process definition Business process classification Business process modelling Main area of concern • What business processes are and how they fit into an organisation’s structure. 17Jun 2008. including: Strategic Management Journal.strath.1 Business Process Definition The notion of business processes that has been around since the early 1980s was first popularised by Hammer (1990) and since gained wide spread acceptance across the academic and practitioner communities alike. Academy of Management Journal. as illustrated in Table 1. ICT) and presented conceptual. How best to improve organisational performance through radical or incremental change Developing generic but prescriptive models for specific business processes Business process improvement/re-engineering Business process archetypes 3. all of these reflect. the same ontology. Business Processes Literature Initial analysis of the business process literature led us to categorise this literature into a number of areas. a general understanding of the literature on the resource based view competencies was also sought – particularly in relation to competencies and capabilities relating to competitive advantage.

2006) Adding to the above definitions… Two independent studies by MacIntosh (1997) and Bititci and Muir (1997) using inductive studies modelling work-flow through various activities arrived at some understanding of the key business processes in the case study organisations. and intermittent processes that start and finish when they are no longer required. Shafti and Bourne. 2002) (Anon. Which ever definition we choose to adopt. It is the way in which all the resources of an organisation are used in a reliable. 1993) (Zairi. Davis. It implies a strong emphasis on how work is done within an organization. 1998) (Lin et al. Meaningful business processes cuts across departmental functions and boundaries. 17Jun 2008.. it seems that these classifications are inconsistent whilst also being overlapping. www. The authors provide varying .strath.e. often involving several organisational units and operated by actors (humans or machines). A structured. Ates.. Building up on these findings Bititci and Turner (1999) argue that business processes exist naturally in organisations because of what an organisation does.. Defined in terms of start-point. What seems to make the business process approach so powerful is that it not only focuses on activities. repeatable and consistent way to achieve its goal. 1997) (Malhotra. interfaces and organisational units involved. some of which are transformed into outputs and some of which do the transforming. processes that run continuously. MacBryde. A series of activities. that are aiming to create value for customers A sequence of activities which adds value by producing required outputs from a variety of inputs. as illustrated in Table 3.2 Business process classification It seems that only a few authors from the business process literature have attempted to classify business processes. 2006) (Slack et al. 001. A collection of activities that takes one or more kinds of input and creates an output that is of value to the customer. what is done or how it is done.ac. van der Meer. MacKay. References (Davenport & Short. Processes take in a set of input resources. it also places great emphasis on how these activities are interconnected and how work flows through these activities to produce efficient and effective results. An approach for converting inputs into outputs. Gibb. 1993) (Hammer & Champy. These are. Moreover. Ould (1995) brings an additional dimension to the above definitions of business processes by defining them in accordance with their life cycle. 1990) (Davenport.Bititci. end-point. Manage Processes – what are they?. 2008. all of the above definitions either explicitly or implicitly agree that a business process consists of a series of continuous or intermittent cross-functional activities that are naturally connected together with work-flowing through these activities for a particular outcome/purpose. measured set of activities designed to produce a specified output for a particular customer or market.uk/siom/research/papers Table 2 – Definitions of business process What is a business process? A process is a set of logically related tasks performed to achieve a defined business outcome. i. SIOM Research Paper Series. Ackermann. Transformation of inputs into outputs. 3. Maguire.

Childe et al (1994) whilst providing detailed models for operate processes. In contrast Armistead and Machin (1997) refer to the CIMOSA classification and suggest that Manage processes are split in to two distinct process categories: Managerial processes and Direction setting processes. which he calls a unifying framework. Ates. van der Meer. Armistead & Machin (1997) Garvin (1998) Porter (1985) Operational Processes • Product and service development processes • Research • Engineering and design • Manufacturing • Logistics Operational processes Organisational • Work processes o Operational o Administrative • Behavioural processes o Decision making o Communication o Learning • Change processes o Creation o Growth o Transformation o Decline Primary Activities • • • • • In bound logistics Operations Outbound logistics Marketing & Sales Service Manage Processes • • • Set Direction Formulate strategies Direct Business Managerial processes Support Activities • Firm infrastructure • Human resource management • Technology development • Procurement Support Processes • • • Support IS Support HR Support Finance • etc • Customer Facing processes • Marketing • Order management and sales • Service processes Direction setting Support processes Managerial • Direction setting • Negotiation and selling • Monitoring and Control Management processes • Strategy formulation • Planning and budgeting • Performance measurement and reporting • Resource allocation • Human resource management • Infrastructure building . MacKay. entrepreneurial. 001. Manage Processes – what are they?. They justify this by arguing that business excellence models such as EFQM (Eskilsen et al. Porter (1985) provides an classification of business activities.Bititci. Gibb. Garvin (1998) on the other hand explains what he means by these processes and gives examples from literature and practice to support his classification. MacBryde.ac.strath. www. Table 3. Classification of business processes Child et al (1994) & CIMOSA Standards Committee (1989) Operate Processes • • • • Get Order Develop Product Fulfil Order Support Product Davenport (1993). Davis. 17Jun 2008. competence building and renewal processes are managerial processes”. For example. which may also be interpreted as processes. Primary Activities and Support Activities. Maguire. Whilst he recognises the importance of capabilities such as leadership and influence building he suggests that they may be outside the realm of business process orientation. Ackermann.uk/siom/research/papers degrees of insight to the rationale behind their classification as well as to the inner workings of the processes they have defined. Shafti and Bourne. 2001) separate leadership from policy and strategy process. merely list the manage and support processes as examples. Davenport (1993) also provides a comprehensive classification of business processes with a view to providing a greater degree of structure to managerial work. SIOM Research Paper Series. 2008. According to Armistead and Machin (1997) “managerial processes to some extent superordinate to the other categories and contain the decision making and communication activities.

ac. www. Protos. The majority of these tools include well established business process modelling techniques such as the Structured Systems Analysis and Design Method – SSADM (Gane & Sarson. IDEFine. For example. Researchers and practitioners in this field take the view that to build a complete model of a business process.strath. Table 4 – Perspectives on process modelling (Bal. Shafti and Bourne. such as Setting New Directions. Davis. there seems to be consensus that business processes exist for different purposes. it seems that. Formulating and Implementing Strategies. Ackermann. Ates. Manage Processes – what are they?. some are customer facing operational processes. tools and techniques use the above perspectives to describe a business process using visual techniques. MacKay. tools and techniques are commonly used in other areas of business process literature. MacBryde. 2005) (Caldwell & Platts. Some others are managerial processes concerned with the future performance of the organisation. 1998) CIMOSA Anon (1989) • • • • Function Information Resource Organisation (Roberts. as follows. 1997).. 2005) • Structured • Soft • • • • • • Functional Informational Resource Organisational Decisional Behavioural • • • • Routines Architecture People Culture • Sequence of tasks • Communication and information flow • Decisions • Strategic & Political process • Creative process It seems that the business process modelling is a mature field of research where majority of business process modelling approaches. These approaches.5 Business Process Improvement and Re-engineering . Maguire. 17Jun 2008. including introducing a range of supporting tools such as Aris. Managing Change and Transformations. 3. and so on.4 Business Processes Modelling The business process literature contains a plethora of research on business process modelling. Qask.Bititci. van der Meer. BluePrizm. 2008. 1994) and Strategic Options Development and Analysis – SODA (Rosenhead & Mingers. SIOM Research Paper Series. Furthermore. Integrated Definition Methodology – IDEF (Mayer et al. Monitoring and Control to ensure that progress is made in the intended direction. whilst all the authors agree on the fundamental content and context of different business processes there seems to be some confusion over how to classify these processes and what to call them. 1979. 001. 2004) (Scozzi et al. 2001).. An overview of the different interpretations of what these perspectives should be is shown in Table 4 below. Lombardi. Gibb. it needs to be studied and modelled from a number of perspectives (Mingers & Brocklesby. other are administrative support processes which are also operational but are not customer facing. Yourdon.uk/siom/research/papers • Stakeholder communication Therefore. [this seems a bit weak] 3. 1989).

). DeToro and McCabe. 1999) almost unanimously agrees on the following steps to improve the performance of a business process: • Identify and define key business processes. Shafti and Bourne. 2008. 1997. 2006). Gibb. Zairi. re-configure the process to improve performance. Load Approval Process. . Manage Processes – what are they?. Davis. 3. 1993. 1997. this approach is also consistent with modern process improvement techniques such as Lean Enterprise and Six Sigma’s DMAIC (Define.uk/siom/research/papers Also known as Business Process Management. Deliver. It identifies resistance to change as a major barrier to successful business improvement projects (Davenport. The SCOR Model comprises Plan. Product Development Process. Measure. SIOM Research Paper Series. Return and Enable processes. Sales Process. www. Ackermann. Support Product processes. • Measure and track these metrics. 001.6 Business Process Archetypes Since Hammer’s (1990) seminal paper a large number of academics. benchmarked and improved. modelled. Control) approach (Antony. Childe et al (1995) built upon the CIMOSA Standard (1989) and developed generic models for Operate processes using IDEF techniques. Corrigan. Elzinga et al. This literature (Armistead et al. and is primarily concerned with the improvement of business process performance where the words “re-engineering” and “improvement” are used to describe large scale radical change and incremental change respectively. Here the business process modelling techniques discussed above are commonly used. HR Recruitment Process. 1996. Develop Product. In addition to the more methodical and systematic aspects of business process improvement. this literature also recognises the importance of the social aspects of business process improvement projects. • Understand these processes by documenting and modelling them. In fact. which covers Get Order. O’Neill and Sohal. Make. van der Meer. Improve. the roots of this area of research lie in the quality management literature. 1997. HR Appraisal Process and so on (Harrington.ac. The Supply-Chain Council (2006) developed a generic business processes model (Supply Chain Operations Reference – SCOR – Model) for supply chains also using an IDEF like technique. • Report on business fundamentals. Harrington. It covers a similar ground to that of Childe et al’s (1995) Order Fulfilment Process with the exception of the Enable Process which seems to contain elements of Support Processes as defined earlier in this paper. Source. 1995. 17Jun 2008. re-design. 1998. MacKay. 1999) with very little reference to how manage processes have been identified. • Define metrics against these processes. Maguire. Analyse. 1998. O’Neil and Sohal. measured. MacBryde. Ates. Even though.Bititci. • Take corrective action.strath. this literature cites several business process improvement and re-engineering case studies almost all of these cases seems to focus on operate or support processes such as Order Fulfilment Process. Fulfil Order. consultants and organisations have used the modelling formalisms discussed above to develop generic models for various business processes. • Benchmark where appropriate and possible. Lee and Dale 1998. Lee and Dale 1998.

some are administrative support processes. 17Jun 2008. For example. Gibb. (2004) developed a model of the strategy management process based on a review of the strategy literature. At this point it seems that there is need for a unified business process architecture that is grounded in theory. it seems that the operate and support processes have been extensively studied. this review of the business process literature provides clear and compelling reasons for further research into business process classification and more grounded definition of manage processes. (2004) and few practitioners such as Nokia (Tuomi. and some are managerial processes concerned with the future performance of the organisation. www. Ates.7 Business Process Literature: Conclusions It is clear that business process approach is recognised as an important and powerful approach with a certain degree of consensus with regards to the definition and modelling of business processes in general. However.. Building on the earlier conclusion regarding modelling of business processes. Managing Change and Transformations. 2006). which are also operational but are not customer facing. Davis. Formulating and Implementing Strategies.ac. 3. However. 001. arriving at this conclusion without first . Similarly (Cakar et al. MacKay. Some are customer facing operational processes. However. Within the practitioner community there seems to be a prolific number of proprietary generic models for business processes.uk/siom/research/papers O’Donnel and Duffy (2002) have also used IDEF formalisms to develop a generic model for the Product Development Process. Manage Processes – what are they?. Their justification for taking a business process based approach to strategy management is that it ensures consistent generation and communication of strategy throughout an organisation and that the performance of a business strategy can then be measured against a model of initial alignment and effective implementation.Bititci. 2003) used the IDEF technique to develop a model of the Human Resource Management business process. In the literature there is also general consensus that business processes exist for different purposes. van der Meer. such as Setting New Directions. and Monitoring and Control to ensure that progress is made in the intended direction. Despite this level of consensus there seems to be confusion over how to classify business processes and what to call them. Munive-Hernandez et al. SIOM Research Paper Series. Their model is yet to be tested and validated.strath. little progress seems to have been made by the academic community to define and understand the manage processes. MacBryde. as these systems are primarily concerned with supporting the work flow through operational processes it is not surprising that the generic processes defined do not include manage or managerial processes.1997). with the exception of Munive-Hernandez et al. 2008. Shafti and Bourne. Ackermann. the literature concerning classification of business processes in general and definition of manage processes in particular offers fragmented and conflicting views where the discussion does not seem to have moved beyond conceptual models to provide practical guidelines and models. However. defined and modelled by both the academic and practitioner communities. Thus. Maguire. the SAP ERP system is supported by numerous business process models for different industries (Rickayzen et al.

MacBryde. Maguire. 001. www. MacKay. . SIOM Research Paper Series.ac. 2008.uk/siom/research/papers reviewing the strategy and strategic management literature would be in appropriate. Thus. Davis. van der Meer. Shafti and Bourne.strath. Ates. Ackermann. 17Jun 2008. the following section reviews literature in these fields. Manage Processes – what are they?.Bititci. Gibb.

Deliberate strategy therefore provides a structured means of thinking on complex strategic problems. rehearse the conditions which it will encounter.). SWOT. Porter (1980 and 1996) produced powerful models and techniques focusing on this planning or positioning point of view. 2008. the basic idea can be ascertained as having a clear direction supported by a number of plans in order to achieve a particular outcome. 2005). Ates. The real challenge lies in synthesis and deriving deep insights and understanding from the situation at hand. Given influences from external forces and environmental factors this is . Authors such as Ansoff (1965.1 Evolution of the Strategic Management Literature As with the Business Process literature there is a wealth of writing around the area of strategy.uk/siom/research/papers 4. Strategy thus is viewed as a fit between a firm’s internal strengths and weaknesses and external threats and opportunities with the starting premise being either the environment (Chandler. Ackermann. MacBryde. Obvious tools include PESTLE. Chandler (1962) and later Andrews (1980 and 1987). Strategy and Strategic Management Literature 4. as with the Business Process field. Maguire. Porters 5 Forces etc (Johnson et al. is replete with diverse views and perspectives (see Mintzberg et al. industry structure and forces. and from this analysis. Porter 1980) or a unique market position thus gaining competitive advantage (Porter 1980 and 1996). It provides frameworks for determining the bases of competitive advantage as well as direction and methods for developing and evaluating strategic options.Bititci. Following the Second World War strategy came to represent a powerful way for organizations to increase their chance of success – where goals were often viewed as focusing on profit and growth. van der Meer.ac. For a strategy to be perfectly delivered it must be clearly articulated and planned. policies and action sequences into a cohesive whole” (Quinn 1980). the strategy field.strath. Deliberate strategy provides means of coordination and communication of intended strategy. Gibb. 1998 for a discussion on the many interpretations). Davis. 001. MacKay. However. the ideas of planning towards a set of goals is a reoccurring theme. Another similar definition is “a strategy is a pattern or plan that integrates an organization’s major goals. Probably one of the biggest distinctions that exists in the strategy world is the differences between those who advocate the deliberate (sometimes called planning or rational world) view on planning and those who adopt a more emergent viewpoint. SIOM Research Paper Series. One particular description is given by Wright (1992) who defines strategy as “top management’s plans to attain outcomes consistent with the organization’s mission and goals”. and advocates various tools and techniques that facilitate managers to understand the nature of the environment. organisational strengths and weaknesses. 2005). agreed objectives and to monitor strategic progress (Johnson et al. However. www. exactly understood throughout the organisation and executed as intended. position itself such that it is able to exploit opportunities while effectively mitigating threats. 1962. Shafti and Bourne. despite their utility and extensive adoption in organizations deliberate strategies have encountered a considerable amount of criticism. deliberate strategy builds on the premise that the firm through careful analysis can identify the external influences most likely to affect it. Furthermore. strategic management and strategic planning. As can be seen from both. Starting with the word itself ‘Strategy’ which originally was a Greek word ‘strategos’ meaning a general set of manoeuvres carried out to overcome an enemy. Manage Processes – what are they?. 17Jun 2008.

strath.Bititci. Pettigrew. Likewise there was an interest in the culture of the organisation (Weick. coherent and robust but it would also acknowledge and incorporate considerations around the need for the organisation as a whole to understand and own the strategy. This recognition of an organization’s capacity to experiment is significant as it opens the door for strategic learning and is what distinguishes emergent from deliberate. could be considered part of the development of strategy. Through seeing strategy as a process. Johnson et al. and he continued to note that another concern was that strategy making was carried out by planners and thus detached from the operational level raising questions about the overall comprehension and ownership. These could be as a result of opportunistic experiments and purposeful accidents (Collins and Porras 2000). www. The alternative view being posited thus emanated from studies indicating that realised strategies in organizations are better accounted for as emergent. Manage Processes – what are they?. So emergent strategy implies learning through experimenting. 2005). there was also greater chance of ownership and understanding. Shafti and Bourne. MacBryde. SIOM Research Paper Series. Mintzberg (1994) a particular critic of this view of strategy noted that strategic planning was ‘fallacy of prediction’ where its implied premise was that the environment can be suitably analysed and predicted. Ates. This view of strategy making as an emergent phenomena can be traced back to Lindbolm (1959) who found that decision making in organisations. meaning that they emerge as a consequence of activities and processes within the organizations rather than deliberate top down plans and intentions (Johnson et al 2005). MacKay. 17Jun 2008. 2008. In this manner not only could a strategy be seen as being well founded. Moreover through balancing the deliberate with the emergent. learning could take place and processes improved. 1995) was important. Both of these points suggest a separation from those implementing and managing the change. This view was further developed by Quinn (1980) who argued that the focus of strategic management is in the process and that “constantly integrating the simultaneous incremental processes of strategy formulation and implementation is the central art of strategic management” (Quinn 1980 p 145). van der Meer. one that enabled negotiation towards an agreed future.uk/siom/research/papers not realistic in practice. Gibb. Pettigrew (1997) called for there to be a recognition of the role of politics within strategy making (Pettigrew 1977) – a view upheld by Allison (1971) and Perrow (1986). was made incrementally through successive limited comparisons – which he labelled ‘muddling through’. far from being a rational phenomenon. 1976) along with attending to the social process (procedural justice – Kim & Mauborgne. Andrews (1981)) has criticised improvisation as a very limited strategy and refers to Lindblom’s muddling through as the classic response to politically confused decisions about purpose. seen as separate in the deliberate view. As such implementation. Additionally strategy is shaped by operational level experience and learning over time rather than deliberate positioning suggesting that strategies need not be deliberate but can also emerge (Mintzberg 1987). Others writing on strategy began to widen the scope. As a result of these different views it increasingly became apparent that a mix of rational analysis (procedural rationality – Simon. Ackermann. Davis. emergent strategy itself hasn’t avoided criticism.ac. 001. However. 1985. Two forms of managerial process. taking actions one by one to search workable patterns which becomes the strategy. Maguire. Another criticism of the emergent approach is ‘irrational incrementalism’ (Hayes and Jaikumar 1988) where the argument is that piecemeal improvements do not always lead to the desirable end effects. 1977. This is because a .

These examples span the different schools of thought.strath. Incorporating multiple views also attends to the consideration that whilst strategy processes can be seen to be emergent. MacBryde. in that it accepts that the content of strategy emerges through social interaction within the organisation as well as between the organisation and its environment (i. It appears that the strategy and strategic management literature has evolved through three schools of thought: Rational (Planned). the process). Eden & Ackermann (1998) address this through ‘emergent strategizing’ defining it as a process and a stream of actions that are not random but have a detectable pattern. its context) as a result of a rational pattern of activities (i. organisational renewal and growth and guides organisational operations. workbooks or frameworks rather then using process modelling techniques normally used in the business process field. SIOM Research Paper Series. 001.ac. they will have less utility unless one can ensure that the emergent strategy analyses and exploits the external environment.uk/siom/research/papers key aspect of strategy is changing the way people think and therefore act.Bititci. . 2008. whilst being influenced by Pettigrew’s (1992) work.e. MacKay. In fact it was Schendel and Hofer (1979) who first defined strategic management as a process that deals with entrepreneurial work. guidelines. Ates. whist adopting a process approach. seems to have focused on understanding and developing the strategy management process. Gibb. The processual school seems to encompass elements of other two schools.e. which. Maguire. Emergent and Processual. Thus the body of literature within the strategic management field. Pettigrew (1977 and 1992) build upon this work and suggested that strategic outcomes are shaped by features of strategic processes and contexts. Ackermann. www. have chosen to express/describe the strategy processes in the form of checklists. 17Jun 2008. Manage Processes – what are they?. Davis. van der Meer. Examples of some of these works are listed in Table 6. Shafti and Bourne.

formulating manufacturing strategy and action planning. long term and annual objectives. 1990 Strategy Strategy Thomson and Strickland. The pases include: Financial analysis. www. . The eight steps are not necessarily sequential but concurrent. MacKay. the strategic history of each business unit and goes on to facilitate the development of strategies for each business unit. A process for generation and communication of strategy throughout the organisation developed using IDEF business process modelling technique A 7-step process for understanding and enhancing peripheral vision Reference Andrews. Reflecting. Shafti and Bourne. and NEgotiating strategY A method that encompass work by senior management teams through a process of strategy making. corporate planning. identifies issues. 1996) Mills et al.Bititci. policies and procedures.. A workbook that guides the user through a series of tasks to define and implement a performance measurement system for the business. 1998 Strategy Direction setting Focus (2000) (Acur. uses Decision Explorer as a tool to manage ideas. Starts with vision. STRATEGEM – a process of auditing strategy and identifying improvements through Strategic Analysis.strath. This is intended as a process that needs to be embedded in to the organisation. van der Meer.. (2004) (Day & Schoemaker. formulates strategy. workbooks and checklist for management processes. 1990 Strategy Wheelen and Hunger. SIOM Research Paper Series. 1996 Performance management Strategy Change . 1992 Goodman and Lawless. 2004) Strategy Strategy Scanning MuniveHernandez et al. It starts with examining the organisations products. identifies strategies. A process based approach to identifying the value proposition of the organisation. business units. Ates. assess market/operations congruence. Process Description A high level framework for formulating and implementing corporate strategy that takes a process based approach starting with identification of opportunities and risks and ending with implementation of strategy through organisation structure. It also places considerable emphasis on embedding the strategy process into the organisation. formulates strategy. implements strategies. Also. 001. Uses cognitive & cause mapping as a technique to model qualitative data. reviews performance and takes corrective action. 2008. A workbook that guides the user through a seven tasks. evaluates and selects strategies. 1998) Performance (Neely et al.ac. Maguire. 1990 Strategy Ansoff.uk/siom/research/papers Table 6 . manufacturing analysis. An 8-Step model for managing change. Davis. Starts with environmental scanning. evaluates and controls performance A continuous cyclic framework that monitors performance against predefined goals. analyses situation (external and internal). processes and leadership A framework for strategy development and to a limited extent implementation. Strategy (Kotter. MacBryde. crafts strategy and performance objectives. action planning A workbook that guides the user through a series of tasks that identifies business objectives. Manage Processes – what are they?. and markets and concludes with a strategy and implementation plan for the strategy. A simple framework for corporate strategy management. ‘JOURNEY’ JOintly Understanding. 1996) (Eden and Ackermann. implements strategy. Starts with Company mission and end s with formulation of grand and functional strategies. implements and executes strategy. translates mission in to long and short range objectives. Ackermann. Gibb. 17Jun 2008. 1988 Digman. A framework for strategy formulation and implementation. values and expectations. plans and implements strategy and ends with strategic control A process based approach to strategic decision making starting from surveillance of the external and internal trends through to strategic decision making based on the degree of uncertainty A sequential framework that starts with defining mission. 1994 Hughes. 1987 Strategy Strategy Pearson and Robinson.Examples of guidelines.

1998. 2000. Collins & Porras. Ates. Kaplan & Norton. mission and vision is considered the first step of strategic management as noted in the early definitions. Ngamkroeckjoti & Johri. 1983. mission and values of the organisation with input from the internal and external business environment. Eden. Performance measurement and management is seen as the primary monitoring and control mechanism that deploys strategic objectives and actions through the organisation as well as informing strategic decisions (Kaplan & Norton. Bititci et al. Aaker. gathering the information. 1995 and 1996. they are implemented and they are monitored and reviewed – again either intentionally or unintentionally. Manage Processes – what are they?. 001. 1998.uk/siom/research/papers 2006) The content of Table 6. 1991. Pettigrew’s (1992) context and one of the key foci of the deliberate schools of thought. Gibb. 1999. SIOM Research Paper Series. www. 2003. 2006) this process comprises identifying the scope of environmental scanning. Van Wyk. Costa. 1998. Mintzberg & Quinn. 1995). van der Meer. making sense of information. Miller & Friesen. 1997. MacBryde.strath.Bititci. 1997.. the classic theory of change (Unfreeze. analysing. Freeze) as proposed by Lewin (1951) appears to be seen as a business process . MacKay. Neely & Adams. Albright.and macro business environment – i. Kaplan & Norton. The literature also places significant emphasis on the importance of monitoring and controlling progress and effect of strategic decisions and actions.ac. 1992. priorities and a picture of the future. Liu. Bititci & Carrie. 2002). implementation and review phases of the strategy process (Childe. Thus Manage Performance could be the manage process that provides a mechanism for monitoring and control. Beal. Despite the debate on emergent v intended there is general consensus that strategies arise (intentionally or unintentionally). Consequently. Van de Ven. 2004 and Day and Schoemaker. 2004. Campbell et al. Munive-Hernandez et al. The literature also places emphasis on the need for monitoring and analysing the micro . Shafti and Bourne. mission and values sets the ideals. 2001. 1992. Acur & Bititci. Maguire.. 17Jun 2008.. 1967. above. 2000. Harari. According to literature (Aguilar. 1992. Davis.. 1993. Neely et al. Pettigrew.. Johnson & Scholes.e. Thus Set Direction could be a manage process that defines and disseminates the vision. giving structure and direction to a business (Pearce & Robinson. 2002. 1977. Manage Strategy could be a manage process. 2008. Through seeing strategy as a process that enables negotiation towards an agreed future. 2005. benchmarking. 1998. Defining the business values. Abels. 1992. Move. Ackermann et al. Choo. its implementation therefore stands a greater chance of success as organizational members have a greater sense of understanding and ownership. In fact. 2005).. This is because a key aspect of strategy is to change the way people think and therefore act and touches on the earlier mentioned consideration of procedural justice. Chakravarthy & Doz. Aguilar (1967) identified environmental scanning as a process separate from strategy management. 1992. Camillus et al. 2000. Ackermann. In fact. A number of authors have drawn attention to strategy formulation. 1982. predicting the possible future scenarios and disseminating information and knowledge. 1995. Thus Scan Environment in itself could be a manage process. According to Nanus (1996) and Harari (1994) vision. 1998. suggest that strategy process research is a well-established field of study in strategy management literature.

interpreting.uk/siom/research/papers (Sirkin et al. Nahapiet and Goshal. MacBryde. 2001. Manage Processes – what are they?. 1993. 1978. Osterloh and Frey. 1978). 001.strath. Organisational learning is defined as the process of generating and /or acquiring. distinctive competencies and so on. core competencies. 1995). i. MacKay. In the context of this paper (i. 1978. www. 1984. 2008. Although. Davenport and Prusack. Knowledge management. competencies. 1998. capabilities. Maguire. arises from the application of learning and knowledge from one context in to other contexts (McAdam. be it process. Keogh. Organisational learning and knowledge management are seen as the primary mechanisms for development of competencies and capabilities that would lead to rapid innovative responses (Argyris and Schon. the literature in this area seems to contain a lot of debate on the definition of terms such as capabilities. 1993). Prahalad and Hamel. Burnes. 4. The literature on organisational learning argues that organisations develop and sustain their competitive advantage through learning from their own and others’ (through relationships. It appears that the strategic management literature provides strong guidance as to what these manage processes could be. 2000. Nonka. that may be internal and external to the organisation. 2005. Amit and Schoemacher. 1998. Ates. Ackermann. 2004). However. 2000). etc is out side the scope of this paper. 1999). storing. These include: Organisational learning. retrieving.Bititci. generative learning (Argyris and Schon. Relationship management and Innovation. Gibb. 17Jun 2008. if difficult to immidate. Nonaka and Takeuchi. Review of this literature in this area led us to identify a number of capabilities and competencies that seems to be essential for an organisation to develop and sustain its competitive advantage. Davenport and Prusack.Quinn. Anderson and Finkelstein. Grant 1996. Shafti and Bourne.ac. networks and co development . van der Meer.. 1991. Davis. transferring and disseminating cognitive and behavioural knowledge in order to add value to the organisation (Argyris and Schon. 1996. it would be premature to come to a final conclusion at this stage without first understanding the competencies for sustainable competitive advantage and then comparing the results of the strategy literature to that of the business process literature. 4.e.e. In fact it is argued that innovations. what makes successful organisations different?) our objective is to understand those factors that enable organisations to develop and sustain competitive advantage. and internalising these experiences and associated knowledge.2 Resource Based View: Competencies for Sustainable Competitive Advantage Competencies capabilities are tangible and intangible assets/resources that organisations created over time. Thus the facilitation of organisational learning through effective management of knowledge throughout the organisation is seen as a critical competence that enables organisations to develop and sustain competitive advantage (Pettigrew and Whip. ????) experiences. product.3 Strategy and Strategic Management Literature: Conclusions It appears that for an organisation to develop and sustain its competitive advantage some adherence to the manage processes identified earlier in this section should be in place and . Therefore the Manage Change process could also be a manage process. SIOM Research Paper Series. or business model. Conner and Prahalad. that could be leveraged to develop competitive advantage (Wernerfelt. Thus the debate surrounding definitions of competencies. 1998).

However. Ackermann. Considering the table above and the literature we would propose Set Direction. Garvin (1998) Child et al (1994). Strategy and Strategic Management Literature • Set direction • Scan environment • Manage strategy (i.1 Manage Processes In this paper. so far. . Scan Environment. 5. On the one hand the business process community seem to have recognised the existence of management processes as described earlier. it appears as yet. www. Davis. 17Jun 2008. MacBryde. manage relationships.e. 001. we have examined two streams of literature: Business Processes and Strategic Management. 2008. Manage Change and Manage Performance as potential manage processes. Manage Processes – what are they?.g. no one from the two communities has sought to define a common definition as to what these management processes should be and how they should interact with each other. Davenport’s definition of Strategy Formulation includes direction setting and environmental scanning) there is a relatively high degree of congruence as to what these manage processes could be. Ates.strath. SIOM Research Paper Series. Table 7 below compares the manage processes defined in the business process literature against the manage processes emerging from the strategy and strategic management literature. MacKay.ac. identify threats opportunities in the external and internal environment and rapidly formulate innovative responses and act up on these. formulate and implement strategy) • Manage change and transformation • Manage performance Davenport (1993). Shafti and Bourne.uk/siom/research/papers that these manage processes should collectively enable the organisation to learn generatively. CIMOSA Standards Committee (1989) and Armistead and Machin (1997) • Set Direction • Formulate strategies • Strategy formulation • Strategy formulation • Direction setting • Monitoring and Control • Decision making • Communication • Learning • Negotiation and selling • Change processes • Monitoring and Control • Strategy formulation • Planning and budgeting • Resource allocation • Resource allocation • Formulate strategies • Direct Business • Performance measurement and reporting • Direct Business It appears that although different terminologies are used to describe these processes and that what is meant by and the scope of a particular term may vary (e.Bititci. Discussion 5. Maguire. It appears that these two streams of literature have developed largely independently with some common points. develop and leverage distinctive competencies. Manage Strategy. on the other hand the strategic management community has recognised that viewing strategy as a business process provides a platform for combining the strengths of the rational and emergent schools of thought. van der Meer. Gibb. mange knowledge.

• Manage Performance . www. In particular. SIOM Research Paper Series. • Scan Environment – the continuous process by which the organisation monitors the changes and developments in its immediate (micro) and wider (macro) environment and assesses the significance of these changes and developments with respect to its own direction. based on the above discussion we would propose the following definitions for the five manage processes we have identified in this paper: Set Direction – the intermittent process by which the organisation defines and reviews its mission. whether intended or not.strath. Manage Strategy and Manage Performance are likely to be continuous processes as the literature in these areas suggest that the environment needs to be continuously scanned. the output of the Set Direction process would govern the activities and decisions of other processes.1) we would argue that these processes. naturally exists in organisations and that they may be continuous or intermittent processes. value propositions and policies leading to a set of long term goals for the organisation that provides direction and guidance to all other decisions and actions. Maguire. the evolution of the strategic management literature points us towards exploring the key characteristics of manage processes with respect to operate processes. Furthermore. similarly the out put of processes such as Scan Environment and Manage Performance would inform the activities and decisions of other manage processes. • Manage Strategy – the continuous process by which the organisation formulates. van der Meer. informing and governing each other. For example.uk/siom/research/papers We would go further and add that. collectively. which have been well researched by the business process management community.the continuous process by which the organisation measures.ac. strategy and performance. Davis. vision. according to Ashby’s (1952) law of • . 17Jun 2008. have to operate in an environment that is both complex and uncertain (Johnson & Scholes. strategic decisions and actions needs to be continuously managed as they emerge and performance of operational and support processes needs to be managed in according with these decisions and actions on a continuous basis. Whereas processes such as Scan Environment. MacBryde. manage processes. monitors and coordinates the performance of activities within the organisation to ensure that they individually and collectively meet the objectives set. 1999). 2008. evolution of the strategic management literature from a Rationalist School to Emergent School is fundamentally based on the fact that future is unpredictable and that planned (rationalistic) approach to strategy does not work in practice Mintzberg (1994). Ackermann. disseminates. Ates. Manage Processes – what are they?. 001. • Manage Change – the intermittent process by which the organisation manages any incremental or radical changes. For example. Furthermore. based on our earlier definition for business processes (see section 3. MacKay.Bititci. implements and reviews the means by which it intends to achieve the long term goals of the organisation. Thus we would argue that. This interdependence and governance suggest that this system of manage processes provides the basis of an architecture for manage processes. Set Direction and Managing Change are likely to be intermittent processes triggered by a need for reviewing current direction and change respectively. Gibb. values. Furthermore. Thus. Shafti and Bourne. based on the literature reviewed these processes are not mutually exclusive but they are highly interdependent.

strath. MacBryde. MacKay. uncertain. Gibb. Thus manage processes are more cognitive and interpretative. concurrent and emotional environment. in order to perform in this complex. van der Meer. how they differ from other support and operate processes and what their collective competencies and . Table 8 summarises conclusions as to the key characteristics of manage processes v operate processes. performance etc takes place as result of conversations between different players either formally in boardrooms or informally in offices and even in corridors (Mintzberg. www. Ates. We have also developed an initial view on what these manage processes would be. including the resource based view.e. 001. 2005). Shafti and Bourne. Manage processes seem to be more concurrent than sequential. Table 8 – Characteristics of Operate v Manage processes Manage Process operate in an environment that is… More uncertainty More emergent More concurrent More cognitive and intangible More complex More influenced by emotions and behaviours More Learning. This also means that manage processes need to deal with holistic issues by integrating different and potentially conflicting and emotional views (Johnson & Scholes. 2005).. that. based on the resource based view. change. Maguire. 17Jun 2008. the five manage processes listed above must develop core competencies in: Organisational learning Knowledge management Relationship management Developing and leveraging distinctive competencies Identifying opportunities and threats in the environment Rapidly developing innovative and appropriate responses Rapid execution (i. action on the appropriate responses) Filtering or minimising uncertainly for operate and support processes to enable them to perform in a relatively stable and predictable environment Having review the business process literature and compared this with that in strategic management. we would infer. Thus.uk/siom/research/papers requisite variety the greater the complexity and uncertainty the greater the amount of significant information that needs to be processed incorporating learning and knowledge management activities. Ackerman et al. In this paper we have demonstrated the synergy and tensions between these two fields and went on to conclude that both fields readily recognise and accept the existence of manage processes and have more or less attempted to progress their understanding further. It is also a recognised fact that managerial decisions and actions relating to strategy. Manage Processes – what are they?. 1999) across the organisation whilst trying to create a “workable balance” between stability and constant change (Ackerman et al.Bititci. SIOM Research Paper Series.. 1994. Davis.ac. 2008. emergent. we have come to the conclusion that although there is a lot of synergy between the two fields (business process and strategic management) they remain distant from each other. knowledge management focused Operate Process operate in an environment that is… More certain More planned More sequential More task oriented and tangible Less complex More influenced by procedures and skills More operational and technical excellence focused Therefore. We think the primary reason behind this may be the epistemological orientations of the researchers in the two fields. Ackermann.

. Shafti and Bourne. 17Jun 2008.uk/siom/research/papers capabilities should be. when defining the model shown in Figure 1. SIOM Research Paper Series. The research approach would need to balance between qualitative and quantitative analysis. or… how a number of management activities and practices are bundled together and executed in relation to one another? Modelling the Manage Processes • Considering the different characteristics of the manage processes fro the operate processes. concurrent and emotional nature of manage processes? • How do these manage processes interact with other support and operate processes? • • We believe that it would be necessary to seek answers to these questions through inductive studies using grounded theory techniques by examining management activities and practices of a variety of organisations.. 5. 2008.strath. Are the current process modelling methods. MacKay. Davis. 2003)? • What determines the capabilities of these processes?. 001.e. cognitive. would be essential for identifying patterns and interrelationships between processes. is it possible to identify the manage processes and the constituent management activities and practices associated with companies that consistently perform above average? • Is it possible and useful to develop outcome based on capability lifecycles or maturity models for these processes (Helfat and Peteraf. These are: • Scope Structure and Content of Manage Processes • Are the five manage processes we have identified here valid in practice? • Are there other manage processes that our review failed to identify? • How do the five manage processes interact with each other? • Are the five manage processes we identified a set of sub-process within a large manage process? • What is the structure and content of each manage process? I. qualitative analysis would serve to surface the finer details and identify the softer variables that may underpin the factors that differentiate a good process from a average process. . using generic taxonomies that emerge from the data set.. Manage Processes – what are they?. management activities and practices. support and managerial processes do not concur strongly on the definitions boundaries and contents of these. Maguire. tools and techniques appropriate for modelling and understanding the uncertain. what are the constituent management activities and practices of each process? Capabilities and Competencies of Manage Processes • How can we measure or assess the performance or capability of these processes? • If the competencies and capabilities of the manage processes are key to sustaining competitive advantage. Ackermann.2 Generic Business Process Architecture As noted above.ac. These conflicting and overlapping opinions furthermore are proposed without reference to each others work hindering both theoretical development and practical usage. van der Meer. Ates. MacBryde. emergent.. the business process community having differentiated between the operational. Quantitative analysis. this review also led us to raise number further questions that requires further research. www. However.Bititci. In fact Childe et al’s (1994) focus. individual management activities and practices?. Gibb.

uk/siom/research/papers was to understand operate processes 1 .strath. 17Jun 2008. MacKay. Manage Processes – These are processes that direct and control the organisation to sustain performance and competitiveness. Manage Processes Research – Advisory College Meetings on April 2006 and April 2007. Maguire. Ackermann. Support Processes – They exist to support the operate and manage processes through the provision of appropriate resources (tangible and/or intangible). Working on this basis and drawing from the literature we would propose therefore the following definitions for the three generic classifications of business processes as depicted in Figure 2 below: Operate Processes – These are external customer facing operational processes that create value and define the current competitive position of the organisation. Davis. In our opinion there is an opportunity to research and develop a generic business process architecture that unifies the works of the business process and strategic management communities. this is done in isolation and without the contextual framework or architecture that unifies how these managerial processes relate to one another. On the other hand the strategy and strategic management community clearly recognises the need and does indeed view strategy. 001. Shafti and Bourne. They did not intend their framework to define in detail other processes of ‘support’ and ‘manage’. www. 1 Private communication. 1989 and Childe et al. Ates. SIOM Research Paper Series. . MacBryde. Manage Processes – what are they?. and how they relate and interact with other operate and support processes.Bititci. 2008. 1994) provides a good basis for proposing a generic architecture as it appears to accommodate all the business processes detailed in Table 3 under a single framework. In our opinion the original architecture defined in Figure 1 (CIMOSA Standard.ac. change. However. van der Meer. We believe that such a framework would open opportunities for further theoretical and practical insights in to both strategic management and business process management. performance management and so on as business processes. Gibb.

Davis.Bititci. Manage Processes – what are they?. SIOM Research Paper Series.strath. MacKay. www. Ates. 17Jun 2008. 001. Gibb. Maguire. MacBryde. there is also a need to consider the support processes – and one of the messages from this paper is that there is a need for a research initiative specifically to identify the scope and content of support process in the context of the Generic Business Process Architecture proposed. Ackermann. van der Meer. Shafti and Bourne. Environment Environment Environment Environment Manage Manage Manage Manage Performance Personnel Set Direction Direction Direction Direction Manage Manage Manage Manage Strategy Technology Corporate Learning Manage Manage Finance Support Figure 2 – Proposed business process architecture If we are to develop a unifying architecture that would encompass all business processes and their interrelationships. Manage Change Operate Processes Develop Product Get Order Fulfil Order Support Product Support Processes .uk/siom/research/papers Manage Processes Monitor Ext. 2008.ac.

1965. Strategic Assets and Organisational Rent. 17Jun 2008. compared and reflected on the two bodies of literature it has become clear that “manage processes”. K.1 no. Harvard Business Review. Andrews. The Concept of Corporate Strategy. 1999. Andrews. Addison-Wesley Publishing Company. Ates. how they relate to one another and how their capabilities evolve (Van de Ven. Bititci U S and Turner T J. International Journal of Agile Manufacturing Systems. Essence of Decision: explaining the Cuban missile crisis. 2006.17 no. although not discussed in depth we also identified the need to work towards a unifying business process architecture that could provide the framework to guide further research in to support. Shafti and Bourne. Organisational Learning. Such research conducted collaboratively between the two fields will indeed make a significant contribution to management research and practice by producing grounded insights as to the patterns of activities and practices associated with different levels of performance outcome. 1999. Antony.9. MacKay. 2008. Machin S. 1978. 4. Maguire. We believe that a unifying architecture will also have significant implications for both researchers and practitioners alike by providing an integrated business process based framework in to the study. pp 433-454. 1992). operate and manage processes.R. The Concept of Corporate Strategy. Conclusions Having examined.T.uk/siom/research/papers 6.ac. Boston: Little Brown. pp 886-898. 1993. Ackermann. 2006. Strategic Management Journal. K. pp. New York: McGraw-Hill. Business Process Management Journal. van der Meer. . www.Bititci.R. Furthermore. J. no. Argyris C and Schon D. design and improvement of organisational structures. K. Reading. Andrews. 234-248. 001. Corporate Strategy. Replaying the Board's Role in Formulating Strategy. I. 2006. No. 12 . Homewood IL: Irwin Edition. 14. and Helms M M."The Viable Business Structure". Amit R and Schoemacher P. 1971. in the strategic management literature there is clear trend toward process based approaches to management the two fields remain distant from each other mainly we think due to epistemological reasons. Allison. References Allen R S.3. 1997. vol. 1987.2. G. Six Sigma for Service Processes. Vol. 33-46. 1981. Armistead C. Gibb. SIOM Research Paper Series. through inductive studies that examine management activities and practices using capability lifecycle approaches (Helfat and Peteraf. Pritchard JP. also known as Managerial processes or management processes. vol. is a valid construct. Linking Strategic Practices and organisational performance to Porter’s generic strategies. 1980. MA. McGraw-Hill: New York. International Journal of Operations and Production Management.strath. In this paper we have identified the need for better understanding what these manage processes are. processes and performance outcomes. Davis. analysis.12. Manage Processes – what are they?. Business Process Management Journal. MacBryde.R. Ansoff. May-June(18-26. Implications of business process management on operations management. vol. a Theory and Action Perspective. 2003). Although.

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