Process Management Center of Excellence: Three Different Managerial Models

Author(s)

President, TSG, Inc.
William Ulrich is President of TSG, Inc. and a strategic planning consultant specializing in business / IT alignment. He has worked with numerous large corporations and government agencies in the area of business / IT alignment. Mr. Ulrich has written several books and published hundreds of articles. His latest book is Business Architecture: The Art and Practice of Business Transformation. Mr. Ulrich is a Former Editorial Director of BAInstitute.org and Co-founder of the Business Architecture Guild and an advisor to the Penn State Enterprise Architecture Advisory Group.

1. INTRODUCTION

Organizations have been searching different ways to improve their process performance. In search of excellence, some changes can be done in their managerial patterns and practices. As stated in my previous article [9], organizations have sought concepts and guidelines towards structuring a process center of excellence – PCE [3][5]. However, there is a need for choose which managerial model will guide the PCE design and implementation. This article presents three different managerial models. Choosing one of them will influence organization and process design and performance. The paper is the second of four.

2. PROCESS MANAGEMENT MODELS

Process management has to be understood within a spectrum of operating approaches. There are three possible models: completely functional management, functional management of cross-functional processes and completely by-process management:

  • Characteristically, functional management involves silos culture, poor coordination capability and, particularly, unknown processes. On this approach, objectives are primarily departmental, individual competences do not extend beyond functional boundaries, and there are no organizational units responsible for processes as a whole [10][4][8][7].
  • In functional management of cross-functional processes, the model prioritizes process-based organizational management, but preserves the division of work by specialization [1]. Davenport [2] argues that process structure (rather than structure by processes) can be distinguished from the more hierarchical, vertical versions of organizational structure. While hierarchical organizational structure typically entails a fragmentary vision of responsibilities and reporting relations, process structure involves a dynamic vision of how the organization produces value [8][7].
  • Process-oriented management entails altering the organizational structure and other elements of the organizational design towards prioritizing processes as a managerial dimension of greater importance than the functional dimension. The changes in the organization go beyond simply stressing processes as opposed to hierarchy and placing special emphasis on results and customers [8][7].

Organizations follow paths depending on their process management model, which usually trace a spectrum involving the three models presented above. Figure 1 shows a spectrum of process management models.

Figure 1

Figure 1 – Process Management Model Spectrum

There is a path from a traditional functional structure to a process-oriented structure, as shown in Figure 2. The diagram highlights the situations where processes are gradually prioritized in the structure.

Figure 2 - click to view

Figure 2 – Path of change from a traditional functional structure to a process-oriented structure. Adapted from BPMEnterprise. 

In the first image, the organization structure contains no formal representation of processes, only departments or organizational units. In the second image, cross-functional processes come to be recognized by the organization, which continues to have functional elements, but acknowledges cross-functional processes as of secondary importance, which characterizes it as a weak matrix structure. In the third image, the structure continues to be matrix, but now processes are prioritized. In the fourth image, the functional units lose importance and are often resource repositories. The cross-functional processes come to define the major dimension in which the organization constructs its organizational design.

3. FINDINGS AND CONCLUSIONS

This article presented three process management models. Organization shall analyze them and evaluate which fits better in their overall managerial model. Choosing a completely functional management is not recommended. If a functional management of cross-functional processes is chosen, the PCE will be normative focused in designing process policies, guidelines and procedures. It will also guide the way the work is coordinated. Information technology and people management will be highly process oriented.

If the option is a completely by-process management model, the PCE may move into coordinating and controlling the activities and resource allocation that occur as part of organizations’ day-to-day operations.

The case studies revealed that PCE are in most of cases responsible for process design out of a day-to-day base. It will be possible to more PCE closely associated with by-process management? More research is needed to answer that question.The previous paper presented a PCE value chain. The third will present a responsibility matrix defining which organization unit does what in process management and the last one will present PCE organization structure scenarios. This study was conducted by a team composed by Rafael Paim, Vanessa Nunes, Bruno Pinho, Flavia Santoro, Claudia Cappelli and Fernanda Baiao from GEOS/Cefet-RJ, Np2tec/Unirio & GPI/UFRJ.

4. REFERENCES

[1] Ashkenas R., Ulrich D., Jick T. & Kerr S. The Boundaryless Organization: Break the Chains of Organizational Structure. Jossey-Bass, San Francisco, 2002.[2] Davenport T. Process Re-Engineering: how to innovate in an organization through IT. (in Portuguese). Rio de Janeiro: Campus; 1993.[3] Davenport, T., The Coming Commoditization of Processes. Harvard Business Review. Vol.83. No. 6, pp. 100-108, 2005.[4] Galbraith J, Downey D, Kates A. Designing Dynamic Organizations: a hand-on guide for leaders et al. levels. New York; 2002.[5] Hammer, m. The audit process. Boston: HBR Press. 2007.[6] Harmon, P., Wolf, C., The State of Business Process Management, Business Process Trends, 2006, 2007, 2008.[7] Paim R, Caulliraux H, Cardoso R. Process Management Tasks: a conceptual and practical view. Business Process Management Journal 2008; Vol 14, N. 5, p. 694-723.[8] Paim R. The tasks for process management. Rio de Janeiro: D.Sc. Thesis (in Portuguese). COPPE/UFRJ, 2007.[9] Paim, R. Structuring a Process Management Center of Excellence: the Value Chain. BPMInstitute, February, 23, 2009.[10] Rummler G A, Brache A P. Improving Performance: How to Manage the White Space on the Organizational Chart, 2nd ed. San Francisco: Jossey Bass; 1995.

Similar Resources

Enhancing Your Team’s BPM Capabilities: The Value of External Expertise

Enhancing Your Team’s BPM Capabilities: The Value of External Expertise

Author(s):

Editor & Founder, BPMInstitute.org, BAInstitute.org and DBIZInstitute.org

Enhancing Your Team's BPM Capabilities: The Value of External Expertise In today’s dynamic business environment, managing and improving business processes is critical for any organization aiming to maintain a competitive edge. Many companies consider handling Business...

Exploring Shared Data Model and Notation (SDMN) and Its Role in BPM+

Exploring Shared Data Model and Notation (SDMN) and Its Role in BPM+

Author(s):

Editor & Founder, BPMInstitute.org, BAInstitute.org and DBIZInstitute.org

Exploring Shared Data Model and Notation (SDMN) and Its Role in BPM+ Introduction In the evolving landscape of Business Process Management (BPM), the introduction of Shared Data Model Notation (SDMN) marks a significant advancement. As businesses increasingly seek to...

Article: Embracing the Future: Low-Code and No-Code Platforms in BPM+

Article: Embracing the Future: Low-Code and No-Code Platforms in BPM+

Author(s):

Editor & Founder, BPMInstitute.org, BAInstitute.org and DBIZInstitute.org

Article: Embracing the Future: Low-Code and No-Code Platforms in BPM+ Introduction In the realm of business process management (BPM), low-code and no-code platforms have emerged as transformative tools, reshaping how organizations develop applications and manage...

Featured Certificate: BPM Specialist

Everyone starts here.

You're looking for a way to improve your process improvement skills, but you're not sure where to start.

Earning your Business Process Management Specialist (BPMS) Certificate will give you the competitive advantage you need in today's world. Our courses help you deliver faster and makes projects easier.

Your skills will include building hierarchical process models, using tools to analyze and assess process performance, defining critical process metrics, using best practice principles to redesign processes, developing process improvement project plans, building a center of excellence, and establishing process governance.

The BPMS Certificate is the perfect way to show employers that you are serious about business process management. With in-depth knowledge of process improvement and management, you'll be able to take your business career to the next level.

Learn more about the BPM Specialist Certificate

Courses

  •  

 

Certificates

  • Business Process Management Specialist
  • Earning your Business Process Management Specialist (BPMS) Certificate will provide you with a distinct competitive advantage in today’s rapidly evolving business landscape. With in-depth knowledge of process improvement and management, you’ll be able to take your business career to the next level.
  • BPM Professional Certificate
    Business Process Management Professional
  • Earning your Business Process Management Professional (BPMP) Certificate will elevate your expertise and professional standing in the field of business process management. Our BPMP Certificate is a tangible symbol of your achievement, demonstrating your in-depth knowledge of process improvement and management.

Certification

BPM Certification

  • Make the most of your hard-earned skills. Earn the respect of your peers and superiors with Business Process Management Certification from the industry's top BPM educational organization.

Courses

 

Certificates

  • Operational Excellence Specialist
  • Earning your Operational Excellence Specialist Certificate will provide you with a distinct advantage in driving organizational excellence and achieving sustainable improvements in performance.
 

 

OpEx Professional Certificate

  • Operational Excellence Professional
  • Earn your Operational Excellence Professional Certificate and gain a competitive edge in driving organizational excellence and achieving sustainable improvements in performance.

Courses

Certificate
  •  

  • Agile BPM Specialist
  • Earn your Agile BPM Specialist Certificate and gain a competitive edge in driving business process management (BPM) with agile methodologies. You’ll gain a strong understanding of how to apply agile principles and concepts to business process management initiatives.  
 

Business Architecture

 

Certificates

  • Business Architecture Specialist
  • The Business Architecture Specialist (BAIS) Certificate is proof that you’ve begun your business architecture journey by committing to the industry’s most meaningful and credible business architecture training program.

  • Business Architecture Professional
  • When you earn your Business Architecture Professional (BAIP) Certificate, you will be able to design and implement a governance structure for your organization, develop and optimize business processes, and manage business information effectively.

BA CertificationCertification

  • Make the most of your hard-earned skills. Earn the respect of your peers and superiors with Business Architecture Certification from the industry's top BPM educational organization.

Courses

 

Certificates

  • Digital Transformation Specialist
  • Earning your Digital Transformation Specialist Certificate will provide you with a distinct advantage in today’s rapidly evolving business landscape. 
 

 

  • Digital Transformation Professional
  • The Digital Transformation Professional Certificate is the first program in the industry to cover all the key pillars of Digital Transformation holistically with practical recommendations and exercises.

Courses

Certificate

  • Agile Business Analysis Specialist
  • Earning your Agile Business Analysis Specialist Certificate will provide you with a distinct advantage in the world of agile software development.

Courses

Certificate
  • DAS Certificate
  • Decision Automation Specialist
  • Earning your Decision Automation Certificate will empower you to excel in the dynamic field of automated decision-making, where data-driven insights are pivotal to driving business innovation and efficiency.