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Business Process Management

 Papers:
 Managing the Flow
 Despite Potential Advantages…
 The Holy Grail of Business Management

 Presented By:
 David Linehan
 Karen McLoughlin
 Brendan Lucey
BPM: Common Definitions

 “…a systematic, structured approach to analyse,


improve, control, and manage processes with the
aim of improving the quality of products and
services”
 Elzinga et al (1995)

 Drivers of BPM:
 Globalisation
 Technology
 Regulation
 Actions of stakeholders
 Armistead et al (1997)
Our Understanding
 “Comprehensive, modern BPM is an iterative
socio-technical approach to optimising a
company's business processes through
application of technology and business
methods, cutting across traditional functional
barriers.”

 Actively monitoring business process


performance, largely through technology, and
engaging in BPR and BPI to optimise them .
Relationship between BPM & BPR/BPI

 Depending on the interpretation, very thin line


between these terms.

 BPM a “layer” above technology, tools and


processes, facilitates and involves BPR/BPI

 Project comparison more accurate for BPR/BPI


Lifecycle
 Lusk
 Define
 Develop
 Deploy
 Execute
 Monitor & Measure
 Savvion
 Design
 Modelling
 Execution
 Monitoring
 Optimisation
BPM Technologies
 “….a technology platform that provides a
systematic approach to improving an
organisation‟s business processes in order to
make them more efficient and improve the bottom
line.”

 Workflow
 Business Rules
 Simulation & Testing
 Monitoring & Managing
 Analysis (dashboards)
BPM

 „The customer cares nothing for our management


structure, our strategic plans, or our financial
structures, he (the customer), cares about one
thing, and one thing alone, results-the value we
deliver to him‟. (Hammer & Champy.1993).
Advantages of BPM

1. Saves money & Time.


2. Process Automation.
3. Optimization Processes (Benchmarking).
4. Increasing Customer Satisfaction.
Criticisms of BPM

1. Many find it difficult to understand the concept


of BPM. (Armistead et al. 1999).
2. „There are no comprehensive and substantial
benefits that can justify the hype that surrounds
BPM‟. (Vergidis et al. 2008).
3. Failure of business managers to consider the
processes involved in their business operandi.
Criticisms of BPM (contd.)

4. Organisational Culture as an ambiguous


concept;
Culture is „a pattern of beliefs and expectations
shared by the organisation‟s members, and
which produce norms that powerfully shape the
behaviour of individuals and groups in the
organisation‟. (Schwartz & Davis. 1981).
Criticisms of BPM (contd.)

5. Automation may not be the answer for every


business.
6. Presumptions...
Businesses should not assume that the adoption
of BPM will bring about competitive advantage.
Some Guidelines for BPM
1. Identify area of business for improvement.
2. Web services provide a suitable socio-technical
foundation.
3. Describe Processes.
4. Compliance Requirements.
5. Maintain operational effectiveness.
6. Improve Communication.
7. Ensure change management procedure is
followed.
Some Guidelines for BPM (contd.)

8. Necessary Skills; „...having the right human


elements...‟. (Richardson. 2007).
Applying BPM
Key features
 Activities and processes need to be mapped and
documented
 A reliance on systems and documentation to ensure
consistency
 A reliance on measurement activity
 Needs to be a continuous process of optimisation
 BPM involves culture change
Zairi, (1997)
How not to do it
 Organisations underestimate how difficult it is to get
people to change their behaviour
 Lack of a clear strategy
 Deciding to automate processes without performing a
process and analysis phase
“It is important to realize that BPM is not just about
using technology to automate processes, but it is also
about gaining a better understanding of how
processes work in order to improve them. While
process discovery and analysis can take time, the
results can be dramatic.”
Julien, (2007)
What „Good‟looks like
 Commitment: Strength of ownership and ensuring
the availability of resources
 S C #!L and C##T!@R L: The „people‟
element of change
 Communication: The timing and content of
messages, internally and externally.
 Tools and Methodologies: Project management,
benchmarking, performance and process
measurement tools.
 Interactions: Managing the balance between
normal operations and other changes
Clarke and Manton, (1997)
Express-Drop

Large transportation and distribution business


employing 50,000 people and operating in over 20
countries. In the UK it has 3 major divisions
specialising in domestic parcels delivery, distribution
management solutions for companies and newspaper
and magazine distribution.
Modified Sociotechnical Systems
(MoSTS) methodology
 Focus on holistic social and technical process analysis
as opposed to a focus on technical process only
 Emphasis on the impact of human elements in
redesign
 Recognition of redesign as a continuous versus one-
time effort
 Assuming a spectrum of redesign possibilities,
ranging from incremental to radical.
 Addresses the criticisms of BPR, i.e. lack of emphasis
on human elements and failure to achieve holsitic
analysis
Keating et al, (2001)
MoSTS methodology
Keating et al (2001), pp 39
Process Scanning

Defined the processes of interest. Established the


boundaries

Established an analysis team.

 Detailed Specifications of analysis to be conducted,


including activities, timetables, resources and
deliverables
Technical Subsystem Analysis

Processes were explored and mapped

Key process variances were identified

 Key variances prioritised

Results then analysed in conjunction with the social


subsystem analysis
Social Subsystem Analysis

Identified key mechanisms, social contexts, and


dynmaics that could affect the system.

Familiarised the analysis team with the social


subsystems in place, through informal discussions
with employees, review of organisational
documentation, attendance at routine process realted
meetings and observation of the process being
performed
Social Subsystem Analysis (contd.)

Exploration was conducted along the guidelines of ;


Environment, Identity, Structure, Performance,
Decision making, Management style, Staff skills,
Reward/Incentive, Information/Communications,
work climate, Underlying dynamics and Learning
systems.
Interpretation of Analysis

Technical and social analysis brought together

Critical to achieve joint optimisation

Process leverage areas identified


Process Redesign Leverage

Processes to be redesigned were identified


Incremental or radical approach decided upon
Which aspects of the process should be redesigned
Capability and capacity of organisation for
generating change assessed
Process redesign is embarked upon or abandoned
BPM
?
The Cat’s Pyjamas?

Or a lame duck?
A bit of both
A duck in cat’s pyjamas
A bit of both

Not a revolution but an evolution


BPM uses both technologies and business methods
to improve performance. These methods are not
particularly new in themselves, for example much of
what is relevant to BPR is also relevant to BPM to
BPM. However new applications are used. E.g.
unlike Business Process Re-engineering Business
Process Management addresses the issue of cultural
change methodologies and is less radical and more
of an iterative approach.
A bit of both

It provides clear advantages and efficiencies in the


right situations, however there are criticisms
A bit of both

One size doesn‟t necessarily fit all. Additionally


certain guidelines need to be followed in order to
maximise the potential of BPM ( Hammer and
Champy, Richardson, Zairi, Julien, Clarke and
Manton)