Hammering Home Process Management

Hello Again from CyberSpace!

In much the same vein as the last posts, this is a two-parter. This first post is a summary of the article What is Business Process Management? by Michael Hammer.  Typically, I like to link to the article so that you can enjoy it for yourself, but unfortunately, I am unable to locate this one in CyberSpace. Our professor handed out the article, so you'll just have to take my word for it.

The article is broken down into eight sections:

1. Origins of BPM

According to the article, the predecessors of modern process modelling are Six Sigma and Business Process Engineering. Six Sigma is focused on using statistical methods to reduce variance, whereas Business Process Engineering, created by the author of this article, is focused on mapping processes on a large scale.

2. The Process Management Cycle

Current Business Process Management has been shaped by the previous methods of improving business processes. The focus is now on plotting a business process end-to-end, and always cycling back to continue improvement process.

3. The Payoffs of Process Management

There are many reasons to embark on the path of BPM. Some examples are higher productivity, reduced costs, greater consistency, and improved customer service. One benefit, though, isn't as easy to quantify - the ability to respond to rapid change. By having greater control of your processes, it is easier to adapt them as customers demand.

4. The Enablers of Process

Despite the benefits of BPM, not every company has success using it. According to the article, there are five enablers required to gain the benefits of BPM:

1. Process Design - Details of the process in question
2. Process Metrics - End-to-end metrics that measure targets important to customers
3. Process Performers - Individuals skilled in working within these parameters
4. Process Infrastructure - Technology and HR support to allow performers to do their jobs
5. Process Owner - The person who has the responsibility of making the process better

5. Organizational Capabilities for Process

There are four capabilities a company must have in order to install the enablers of success:

1. Leadership - Company leaders must be passionately interested in driving change
2. Culture - The culture of the company must be one that values the customer, and this is shaped by leadership
3. Governance - A body of mechanisms which monitor all process across multiple departments
4. Expertise - Process Management is not particularly easy, so a company must have many people well versed in these methods

6. The Principles of Process Management

There are several principals to process management, including:

• All work is process work
• Any process is better than no process
• A good process is better than a bad process
• One process is better than many
• Even a good process must be performed effectively
• Even a good process can be made better
• Every good process eventually becomes a bad process

7. The EPM as a Management Tool and BPMS

EPM, or Enterprise Process Model, is the foundation of the process model. This is the high-level map of a process, rather than a narrow view of changing a process. This high level view gives a management tool for defining what a company actually does.

8. The Frontiers of BPM

Even with all the benefits listed in the article, BPM is not perfect and has issues as well. According to the article, some of these include management structure and responsibility, IT support, and industry structure.

There you have it - the article in a nutshell. In my next post, I'll give my impressions.