Index

Note: Page numbers followed by f indicate figures and t indicate tables.

­A process owners, 167–169

ACORD, 101 process redesign group, 171–172
Activity analysis, 232–235 Sarbanes-Oxley, 172
Activity-based costing, 3 senior management’s commitment, 163–164
Activity standards, 237 Six Sigma, 171–172
Activity support, 237–238 transition to process-based management, 173
Activity-system map, 41 vision and plan, 164–165
for Southwest Airlines, 40, 40f BPMS. See Business process management software
AlphaGo, 422–426 (BPMS)
Amazon, 442–443 BPTrends’ process
Apple, 444 change methodology, 51, 52f
ARIS methodology, 12 pyramid, 450–451, 451f
Artificial intelligence (AI), 417–426 Brache, Alan, 4–5
analysis and redesign phases, 435–436 Business architecture, 69
combined approaches, 431–432 definition, 485, 488
data, 419 IT approach, 74–79
dendral, 418–419 Supply Chain Council’s SCOR framework,
developing and deploying of, 432–438 72–74, 91–92
Google, 420–422 Business Architecture Body of Knowledge
IBM, 420–422 (BIZBOK) model, 77–78, 79f
information, 419 Business entity, 2, 2f
knowledge, 419 Business initiatives, 27, 47
knowledge-based approaches, 426–429 Business models, 27, 47
mycin, 418–419 Business organization, 2, 4
neural networks, 429–431 Business problem analysis checklist
sputnik, 418 day-to-day management problems
As-Is process diagram, 185–186, 221, 222f, communication problems, 464
353–354f, 360 manager’s goals and incentives conflict, 465
Assemble documents, 209 monitoring and control problems, 464–465
Automating activities planning and organization problems, 464
definition, 247–249 enabler problems, 461–462
entry of expense reports, 241–245 bookkeeping and accounting problems, 462
employee problems, 461
equipment problems, 462
­B facilities problems, 462
Balanced scorecard system, 16, 109–112 IT problems, 461–462
Best practices, 38, 394–395 location problems, 462
Boeing Global Mobility Systems (GMS) division, guide problems, 459–461
112–115, 151 input problems, 458–459
balanced scorecard, 171–172 management problems, by higher level
CMMI, 172 managers, 465
core and support processes, 165f output problems, 458
executive process owners, 166 process activity and flow problems, 462–463
ISO 9000, 172 types, 457
Lean, 171–172 Business process analysis, 325–330
modeling, 165–167 Business process architecture, 51
PBM process team, 171–172 core processes with subprocesses, 81–82, 81f
process-based management system, 170–171 creating, 82–83
process measures, 169 defining life cycle process, 85–86

491
492 Index

Business process architecture (Continued) product, 387

definition, 52–53 senior management dashboard, 386f
kickoff meeting, 83–84 service-oriented architecture (SOA), 385
level 2 processes, organizing and consolidating, vendors, 387–389
86–90 workflow tools, 379
scope the project, 84–85 Business Process Model and Notation (BPMN)
simple process architecture, 80, 80f process flow diagram, 210–211f, 215f,
worksheet, 149 217–220f, 222f, 224f, 242–243f, 248f, 270f,
Business process change 352–353f, 357–358f, 361f, 363f, 377f,
Internet, 13–14 400f, 405f
IT technology, 17–18 Business process modeling tools, 207
Lean and Toyota Production System, 11 Business process reengineering (BPR)
in new millennium, 15–17 misuses of, 10
in 1990’s, 7–10 role of IT, 9–10
organizations as systems, 2 Business process standards
Six Sigma movement, 6–7 Geoffrey Moore’s technology adoption
systems and value chains, 2–6 life cycle, 475f
Business process change professionals for implementation, 480–481
recruit, train, and manage, 162 organization-level, 477–478
Business process, definition, 483, 488 process level, 479–480
Business process management (BPM) group, 15, 53 Business strategy
advantage, 153–154 balanced scorecard approach, 43–46
architecture, 152–153, 152f definition, 28–30, 37
automation, 156 formal approach, 28
Boeing GMS case study (see Boeing Global Porter’s strategic themes, 39–41
Mobility Systems (GMS) division) Treacy and Wiersema’s positioning strategies,
BP professional training and support process, 41–43
160f Business streams, 57–58
enterprise strategy, 151 Buyers, 30–31
generic solutions, 159f
identify, prioritize, and scope, 154, 154f
improvement, 156 ­C
management, 157 Capability, 240
manage risk/compliance reporting and definition, 483, 488
documentation, 162–163 gap, 186
organization diagram, 154, 155f Capability Maturity Model (CMM), 6, 447
outsourcing, 157 Capability Maturity Model Integration (CMMI)
process manager system, create and support, audit, 160
160f, 161 level 4 or level 5 organization, 267
process performance system, create, maintain and management, 141–145
manage, 159f, 160–161 Case, definition, 227
redesign, 156 Case management, 225–229
risk and standards reporting process, 160f processes, 184
stakeholders, 154–156, 155f Case Management Model and Notation (CMMN)
strategic process, 157f, 158–159 process diagram, 227f
types of activities, 151–152 Case plan model, 227f, 228
Business process management software (BPMS), 16 Cause-effect diagram, 191f, 302f, 350f
application creation, 389–390 Chevron case study, management redesign, 280–281
architectural overview of, 383, 383f Cognitive maps, 253–262
business intelligence (BI) techniques, 385 Cognitive task analysis, 255–256
Cloud, 386–387 Communication and change management, 318
features of, 376 Company cultures, 42
process diagrams and, 381–383 Competition, Porter’s model of, 30–32

Competitive advantage
definition, 37
Porter’s theory of, 36–39
Competitive Advantage: Creating and Sustaining
Superior Performance (Michael Porter),
2, 36
Competitive Strategy (Michael Porter), 28
Competitive Strategy: Techniques for Analyzing
Industries and Competitors (Michael
Porter), 36
Compliance reporting and documentation, 162–163
Consequences, 238–239
Core business process modeling notation
activities, 469
analysis and redesign, 468–469
association, 470–471
BPMN, Version 2.0, 467
data objects, 470
event, 469–470
extensions of activity
BPTrends special notation, 473
circle, 472
gateway diamond, 472
lean/value-add notation, 473
rectangle, 471
gateway, 470
message flow, 470
OMG, 467
pool with swimlanes, 471
sequence flow, 470
Corporate computing, 6
Cost leadership, 34
Could-Be process diagram, 221
Customer contract, 271–272
Customer intimacy, 42
Customer measures, 44, 109
Customer process, 210–211, 221
Customer resource management (CRM)
applications, 393
Siebel’s software, 403
­D
Day-to-day management problems, 205–206
communication problems, 464
manager’s goals and incentives conflict, 465
monitoring and control problems, 464–465
planning and organization problems, 464
Decision-centric BPMS application, 389
Decision management, 249–253
business rules
in business processes, 261–262
and knowledge rules, 258
for software development, 258–260
Index 493
knowledge workers and cognitive maps, 253–262
risk management and compliance issues,
260–261
rule-based systems and capture of expertise, 260
systems, 438
Deliver pizzas process, 187–188, 188f, 268–269,
269f
Departmental computing, 6
Differentiation, 34
Digital transformation, 10
DMM decision diagram, 252f
Documentation, 162–163
Document workflow systems, 12
­E
eBusiness Telecom Operations Map (eTOM)
framework, 99, 100f, 101
Electronic data interchange (EDI), 13
Empowering employees, 246–247
Enabler problems, 461–462
bookkeeping and accounting problems, 462
employee problems, 461
equipment problems, 462
facilities problems, 462
IT problems, 461–462
location problems, 462
Enterprise alignment cycle, 454, 455f
Enterprise application integration (EAI) tools, 376
Enterprise architects, 74–75
Enterprise processes, day-to-day management of,
53–54
Enterprise resource planning (ERP), 12, 383–384
best practices, 394–395
BPMS usage, 407–414
implementation, 402–405
Nestlé USA, 405–407
packages, 394–395
processes, 394–395
SAP, 395–402
Event, definition, 208–209
Event-driven process chain (EPC) diagrams,
207–208
Executive-level BPM group. See Business process
management (BPM) group
External measures, 105–107, 122
­F
Federal Enterprise Architecture Framework
(FEAF), 76, 78f
Feedback, 239
Financial measures, 44, 109
Five forces model, 30, 31f
494 Index

Flow diagramming Internal business measures, 44, 109

event, 208–209 Internal measures, 105–107, 122
order fulfillment process, 210 Internet, 13–14
organization diagram, 213–214, 213f ISO 9000, 162
process, 208 ISO 9000:2000 standard, 7
process/workflow diagram, 208f IT Governance Institute’s COBIT framework,
Flow Kaizen practitioner, 306–307 146–148
Flow problems, 203, 204f
Functional management, 129–130
­J
Job descriptions
­G definition, 232, 234
Gap Model, 185, 185f of salesperson, 244f
analysis and redesign techniques, 186, 187f
Geoffrey Moore’s technology adoption
life cycle, 475f
­K
Key performance indicators (KPIs), 27, 104,
Goal, 27
121, 160
Google AI application, AlphaGo, 422–426
Knowledge-based systems, 420
Guide problems, 459–461
Knowledge workers, 183

­H ­L
HP-Compaq supply chain process, 96–98
Lagging indicators, 107–108
Human performance analysis
Leading indicators, 107–108
activity standards, 237
Lean, 11
activity support, 237–238
A3 page (document), 308–310
capability, 240
benefits of, 304–310
consequences, 238–239
Flow Kaizen practitioner, 306–307
feedback, 239
process improvement approach, 305
skill and knowledge, 240
Process Kaizen, 307–308
Human Performance Technology, 3
Learning measures, 44, 109
Hypercompetition, 38
Line of Vision Enterprise Methodology (LOVEM),
207, 221
­I
IBM, 404f
AI application ­M
Deep Blue, 420 Management and Business Process Redesign
Watson, Jeopardy!-playing application, tradition, 14–15
420–422 Management problems, by higher level managers,
IGOE (inputs, guides, outputs, and enablers) 465
diagram, 190–191 Management process
Improving Performance: How to Manage the White manager performance, evaluation of, 278
Space on the Organization Chart (Alan measurement and improvement, 278–280
Brache), 4–5 process redesign team, 267, 280
Industrial Engineering/Quality Control tradition, Project Management Institute model, 277, 278f
14–15 redesign at Chevron, 280–281
Industries, 33–34 subprocesses, 269–271, 270f
competitors, 30 communicate, 274–275
Information systems architecture, Zachman’s control work, 275–276
framework for, 75, 75f organize work, 273–274
Information technology (IT) tradition, 14–15 plan work, 271–273
Innovation measures, 44, 109 swimlane diagram, 269, 270f
Input problems, 458–459 types of, 267–268, 268f
Integrated Definition (IDEF) language, 189 worksheet, 276, 277f
 Index 495

Managing performance, 241 goal, 104

Measure 1, Internal (M1-E) measure, 275
Measures, 28
M1-I measure, 275–276
M-2 measures, 276
M-3 measures, 276
­N
Natural language systems, 431–432, 435
Nestlé USA, 405–407
Netflix, 443–444
Neural network systems, 426
Niche specialization, 34
Nonvalue-adding activities, 36
­O
Objectives, 27
Object Management Group (OMG), 77–78
Operational excellence, 42
Order fulfillment process, 210
Organization
comprehensive business process method, 51–54
diagram, 62–63, 62f, 66f, 67, 70f
models and diagrams, 61–62
with multiple value chains, 71f
strategy and enterprise BPM, 54–55
systems and processes, 67–68
systems view, 60–61
traditional view, 55–57
transformation, case study of, 57–60
understanding enterprises, 55
and value chains, 63–67
Organizational innovation and deployment (OID)
process, 144
Organizational process definitions (OPD)
process, 143
Organizational process focus (OPF) process, 144
Organizational process performance (OPP) process,
144
Organizational Project Management Maturity
Model (OPM3), 141
Organizational structure, types of, 137f
Organizational training (OT) process, 144
Organization chart, 125–126, 129f
Organization diagram, 62f, 66f, 155f
Organization-wide process performance
measurement, 103
aligning process measures, 112–115
balanced scorecard and process measures, 109–112
comprehensive measurement system, 108–109
measurement terms
data, 104
internal and external measures, 105–107
key performance indicators, 104
leading and lagging indicators, 107–108
objective, 104
target, 103
timeframe, 104
unit of measure, 103
vision statement, 104
process-driven approach, 108–109
SCOR framework, 115–118
Output problems, 458
Outsourcing, 64
­P
Performance gap, 186
Policies and business rules, 356–359
Porter, Michael, 2
Potential entrants, 32
Process activity and flow problems, 462–463
Process alignment, 451
Process-based management (PBM) approach, 164
Process-based management system (PBMS)
Boeing Global Mobility Systems (GMS)
division, 170–171
Process change project, business case for, 199–201
Process, definition, 208
Process diagram, 208f, 218f, 450–451
Process flow diagrams, 206–208
basics, 208–214
Process governance, definition, 53
Process Kaizen, 307–308
Process management
business process architecture worksheet, 149
definition, 127–134
functional managers, 127–130
functional/process management, 134
operational management, 127
process managers, 131–134
project management, 127
documenting management processes, 148–149
matrix management, 135–137
of outsourced processes, 137–138
PMI’s Project Management Maturity Model, 141
problems, 203, 204f
process perspective, 125–127
SCC’s SCOR Framework, 145–146
SEI’s CMMI Model, 141–145
value chains and process standardization
enterprise resource planning application, 138
managers, setting goals and establishing
rewards for, 140–141
matrix organization, 138–139, 139f
496 Index

Process maturity gap, 448f As-Is flow diagram, 354f

Process measurement scheduling, 271, 273 business process analysis, 352–361
Process measures business process management (BPM), 344
aligning, 112–115 cause-effect diagram, 350f
balanced scorecard system, 109–112 customer process, 356–361
defining, 169 implementation process, 364–365
vs. functional measures, 280f notation flow diagram, 352f
worksheet, 277f organization chart, 346f
Process mining tools, 372–373t organization of, 344f
Process modeling repository, 369 overview of, 346f
Process notation, 214–221 partial process scorecard, 348f
Process relationship diagram, 324, 326 problem analysis worksheet, 351f
Process scope diagram, 206 process improvement, 345
with controls and support processes, 196, 197f redesigning, 361–364
deliver pizzas process analysis, 191–192 roll out, 365–366
elements of, 190–191, 190f scope diagram, 349f, 351f
Process thinking, 68 stakeholder diagram, 346–347, 347f
Product leadership, 42 subsubprocesses, 360f
Products, 33–34 To-Be diagram, 362
Professional business process modeling tools, 369 Research and interviewing, 317
Project management Robotics, 418
training in, 317–318 Rule-based systems and capture of expertise,
Project Management Institute (PMI), 136, 277 260
Project Management Maturity Model, 141 Rummler, Geary, 3
Project teams, communication plan, 318 Rummler-Brache diagram, 489
Provide delivery service process, 267–268 Rummler-Brache methodology, 5–6
Rummler-Brache notation, 207
­Q
Quality control, 6–7 ­S
initiatives, 7 SAP, 12
applications, 397–398
business architecture, 396f, 397, 398f
­R business maps, 396
Radar evaluation diagram, 387 C-business map, 401f
Redesign methodology components, 396, 397f
agile methodologies, 337–340 reference model, 401
BPTrends process, 316f Sarbanes-Oxley legislation, 153, 162, 172
business process team, 320 Scope diagram, 190f, 192f, 194f, 197–198f, 204f,
description, 315 268f, 349f, 351f, 358f, 377f
executive committee, 321 Scoping process
implementation of, 333–335 business process problems, 185–186
phase 1, 323f control problems, 194–195
phase 2, 327f definition, 179–180
phase 3, 330, 331f enabling/support processes, problems with, 195
phase 4, 334f initial process description, 189–199
phase 5, 336–337, 336f input problems, 193–194
project facilitator, 321–322 output problems, 192–193
steering team, 321 process change project, business case for,
step-by-step process, 337 199–201
Regional operating companies (ROCs), 58–59 process levels and levels of analysis, 181–182
Relationship map, 69 simple and complex processes, 182–185
Rental Cars-R-Us SCORcard, 94–95
analysis planning worksheet, 355f SCOR Reference Manual, 116
 Index 497

Senior management’s commitment, at Boeing performance attributes and level 1 metrics, 94f
GMS, 163–164 thread diagram of simple supply chain process,
Service operations, 209 93f
Siebel architecture, 404f three levels of, 92f
Silo thinking, 6, 56–57 Systems thinking, 67–68
Simple and complex processes, 182–185 Systems view, of organization, 60–61
Simple organization chart, 56f, 129f
Simple process architecture, 80f, 89f, 100f,
165f, 345f
­T
TeleManagement Forum, 98
Simple process diagram, 2f, 180f, 188f, 346f
The Modern Firm: Organizational Design for
SIPOC diagram, 293f
Performance and Growth (John Roberts), 57
Six Sigma, 6–7, 283–286
The Open Group’s Architecture Framework
analyze, 299–303
(TOGAF), 76, 77f
concept, 286–289
To-Be diagram, 362, 363f
control, 303–304
To-Be process, 185–186
definition, 291–295
diagram, 221, 223, 224f
DMAIC process, 290
Toyota Production System (TPS), 11, 283, 304
improve, 303
Traditional organization chart, 55–56, 56f
measurement principles, 295–299
Treacy and Wiersema’s positioning strategies,
phases in, 290–304
41–43
process improvement projects, 289–290
quality control, 283
statistics, 285–286 ­U
teams, 288, 290 Uber Technologies, 444–445
Skill and knowledge, 240 Unified modeling language (UML) activity
Software engineering, 13 diagrams, 207
Software Engineering Institute (SEI) Use case diagram, 364f
approach, 160
maturity model, 76 ­V
Software requirements concept, 13 Value chain, 36–37
Software tools, business process work concept, 2–6
BPMS (see Business process management definition, 485
software (BPMS)) and organization, 63–67
modeling and management screens, 376 in an organization box, 69, 70f
professional tools, 374–376 and process standardization, 138–141
usage of, 369–370 Value-creating processes, 44–45
variety of, 370–371 Value-enabling activities, 36
Stakeholders, 154–156, 155f, 189 Value propositions, 33–34, 36
Stakeholder diagram, 347f Value stream, 65–66, 85, 87f
Strategic activity-system map, for Southwest Value stream map, 307f
Airlines, 40, 40f
Strategic positioning focus, 39
Strategy, 27. See also Business strategy ­W
Strategy Maps, 43, 45 Waste
Subprocess analysis, 345–346, 360f categories of, 308
Subprocess measures, 205 elimination of, 305
Substitutes, 31 forms of, 304–305
Suppliers, 31 sources of, 306
Supply Chain Operations Reference (SCOR) types of, 307–308
framework, 72–74, 91–92, 145–146 Watson, Jeopardy!-playing application, 420–422
developing a supply chain architecture with, Workflow diagram, 212
92–95 basic elements, 208f
extension of, 95–98 Workflow systems, 11