A practical approach to embracing Business
Process Management

by Ian Rosam, Director S.L.R. Developments Ltd

 

Who wouldn’t want to improve and make their organisation more efficient and effective and improve performance? By viewing an organisation as a set of inter-related end-to-end processes (a complete Process Management System) helps organisations to:

Achieve business goals and objectives meeting stakeholder needs

Provide a way for organisations to manage and improve themselves based on performance

Focus on those activities that add value for your customers and increase satisfaction

Manage / reduce costs, time, waste and maximise the use of resources.

Organisations in the public and private sectors are looking towards the management of process as a strategic tool to gain a competitive advantage and address both internal and external issues. This change is also being facilitated by changes to the new ISO9001:2000 standard and by the increased use of The EFQM Excellence Model® both of which have process management at their core.

Standards and frameworks can help

The new ISO9001:2000 standard is based on the principle of Plan, Do, Check, Act and requires organisations to meet customers needs and expectations by:

Defining management responsibility to manage and control the organisation (Plan)

Allocating and managing resources effectively to deliver the objectives set (Plan)

Delivering the product or service (Do)

Measuring performance and improving based on fact (Check and Act).


Likewise The EFQM Excellence Model® requires:

Business plans to be delivered by a framework of key processes

Processes to be designed and managed including the allocation of key performance indicators

Products and services to be designed, developed and delivered

Processes to be improved so that greater value is added.

What is process management?

At a basic level process management is a cultural change in the way Managers view their organisation, organise resources and measure performance to deliver the objectives set. This change in thinking requires managers and staff at all levels to see themselves working in processes that run across an organisation rather than traditional functional silos. This cultural change needs to be planned carefully, but research suggests that there are a number of stages that can help this migration towards process management (see diagram 1).

Diagram 1 - Migrating towards process management

The trick is to recognise that the change will not happen ‘overnight’ and that there have been plenty of examples where organisations have tried to move towards the management by process only to be disappointed. All too often working in functional ‘silos’ can cause:

Fragmentation of effort and confusion

Possible duplication of effort Increased costs, lack of co-ordination

Management team not working to common goals but to individual agenda however unintentionally

Lack of focus on business objectives

Focused on initiative performance not business performance

Lack of meaningful key performance indicators to control and manage the business.

How do you create a process-based system?

In broad terms best practice tells us that at the highest level in an organisation there is a process map that defines the key customer facing and support processes that describes how the organisation works. This high-level process map or framework is ‘owned’ by the most senior person in the organisation and shows how the goals and objectives will be achieved.

Clearly success needs to be measured and therefore a number of key performance indicators (KPIs) need to be created and assigned, through which the senior manager will manage and control the organisation and therefore achieve the objectives set.

This high-level process map forms the basis for the whole system and will typically include aspects that would relate to any organisation:

Understanding the market the organisation is operating in

Developing and managing human resources

Developing, implementing and reviewing vision and strategy

Managing information and knowledge

Designing products and
services

Managing financial and physical resources

Marketing and selling those products and services

Managing relationships

Producing and delivering products and services

Managing improvement and change.

Invoicing and servicing customers

 


This is not an exhaustive list nor is it meant to imply that an organisation would have these or similar processes but is given to show the scope of activity that should typically be included. One way to validate the high-level process map is to check it against the plan, do, check, act principle. Do the processes describe the principle? If they do then providing the details below are considered then it is more than likely you are well on the way of creating a process based system that will meet the requirements of ISO9001:2000 by default.

From this point the processes, measures and procedures are developed in a systematic manner to cover what the organisation does and how it does it. In our experience the change in thinking begins to happen even at this basic ‘doing’ stage as process owners are appointed and their roles defined, process teams design and / or capture what actually happens and key performance indicators are defined for each process. A typical structure would look like:

The approach to introducing process management and the need to display information not only of the process but also the financial and performance data that relates to the process lends itself to a software solution. In our experience there are a large number of software packages available that will map processes but few with the flexibility to add and manipulate ‘process properties’. Process properties are the costs, time, resource, waste and any other factor that are critical to the success of each activity in a process. These need to be measured individually and collectively to give management the complete picture of process performance.

 

Implementing Process Management

Having agreed the processes and any supporting procedures be they text documents, video cams or flowcharts etc. The implementation of the system needs to include a number of facets:

Make the process visible to all staff.

For organisations with a website or intranet the processes can be uploaded for all to view

Process thinking training for managers and staff on the new system, where they fit and the role they play in operating the process i.e. start working to the process

Process Owners need to put in place management information systems that will collect information on process performance

Process Owners then need to report process performance to management and the process teams, identifying improvements where performance does not meet the targets set.

This is a critical stage and experience suggests that to maintain the momentum managers need embrace the change and what better way than to report on performance.

How do I know that people are working to the processes or even if they are the right processes?

A question not only for now but also for the future, especially as the needs and objectives of any organisation changes over time in todays fast moving environment. There is, therefore, a need for some sort of review that can be carried out to assess the effectiveness and efficiency of the processes to deliver the business objectives and therefore the needs of stakeholders.

The main consideration is that this is not an audit but an assessment. It is not a case of right or wrong as in an audit but a need to understand what the organisation is striving to achieve and what it is doing to get there. Therefore an assessment should look at:

How a process is managed rather than how it is done

Focus on what is right rather than what is wrong

How the organisation learns from its activity rather than whether or not it passes or fails

Meeting the business objectives and not just a standard or framework

Assessing a process is about ensuring the system is working to deliver the objectives and not just about following the rules.


Carrying out a process assessment, particularly covering a number sites or countries, needs careful planning, employing a range of assessment techniques to gather the information needed. This requires a different range of inter-personal and questioning skills than those used currently by many auditors. The aim is to provide relevant information to management on each process and collectively in order that the appropriate decisions can be taken.

Business Process Management is here to stay and as organisations become more efficient and effective in what they do, so how they do it will come under greater scrutiny. Knowing what your processes are and how to measure their performance is the bedrock upon which new technology, operating methods and e-commerce business models are built to deliver increasing stakeholder value.

 

Ian is a Director of S.L.R. Developments Ltd and has worked with many private and public sector organisations using process management and the Excellence Model to bring about cultural change and enhance business performance. Ian can be contacted on (44)604 470837 or at ian@slrdevelopments.com