Resources in Business Process Management (BPM)

In 2006 the Babson Process Management Research Center defined Strategic Alignment as the continual tight linkage of organizational priorities and enterprise processes, enabling achievement of business goals. Phrased differently this means linking strategy goals to operational goals and linking operational goals to process goals. This equates to defining a method for improving alignment among the organization’s performance measures, strategic plans, improvement projects, and budgets. It assumes that the organization employs a method for defining its business strategy such as a Balanced Scorecard (BSC). Using the BSC as an example one must first examine it to determine how BPM can be integrated into the BSC approach. BPM specifically focuses on improving the Internal Quadrant of the BSC. The Balanced Scorecard approach does the following:

Most process design methodologies start by modeling the As-Is processes before proceeding to define the To-Be processes. In our experience, many projects spend more time than is necessary modeling the As-Is, when they should be working towards the future. Time and resources spent modeling the As-Is delay the delivery of the final project, and should only be done to the extent that they add value. In this article, we will discuss the purpose of as-is modeling, common pitfalls which lead to excessive effort and concrete guidance on how to improve results with less effort and expense. While studying, current practices can be valuable, the current process must be flawed or you wouldn't be replacing it. The last thing you want to do is replicate the flaws of the existing solution.

Why do As-Is Modeling

Process improvement efforts have historically aimed at improving the quality, increasing the throughput, reducing the cost, or improving the predictability of a major process. Today though a considerable number of process thought leaders are pushing process improvement theories and practices into new areas – most prominently strategic planning. Processes represent the unique way an enterprise creates value for consumers. It follows that by adjusting an enterprise’s processes, products can be adjusted to deliver enhanced value for a consumer. By leveraging this direct relationship, an enterprise can define its strategic intentions in terms of its plans to adjust processes. This approach forges a solid link between strategic intentions and the eventual outputs.

Best in class companies understand that Operational Excellence (Op Ex) is the means to an end and not an end in itself. Yet, many organizations dedicated to Op Ex focus mostly on assuring that the core skills of Lean and Six Sigma are in place and that people understand work as a process. In some cases, companies choose to deploy Op Ex along departmental lines and fail to take full advantage of removing the non-value added steps residing in cross functional handoffs. While building the foundation for Op Ex is important, it’s not enough on its own. A company intent on taking Op Ex to the next level may wish to consider the following four tactics.