Business Process Management
The Business Process Management (BPM) capability is the ability to identify, design, document, monitor, optimize, and assist in the execution of both existing and new organizational processes.
Structure
BPM is made up of the following Categories and CBBs. Maturity and Planning are described at both the CC and the CBB level.
- AFoundation
- A1Strategy and Leadership
Establish strategies and plans to lead the development of process management activities.
- A2Support Organization and Personnel
Establish the structure, competences, roles, responsibilities, and resource levels to support process improvement activities.
- A3Standards and Methods
Establish a set of standards and methods for managing processes. These could include modelling standards, process notations, definitions of terminology to be used, improvement methods, process governance structures, and measures for determining value and the effectiveness of implementation.
- A4Technologies
Identify and implement technologies for documenting, organizing, and evaluating process improvements.
- A5Stakeholder Management
Generate understanding, motivation, and commitment to process management. This may include communication about process management approaches, success stories, lessons learned, potential value opportunities, and value realized.
- BImplementation
- B1Scope of Implementation
Establish the breadth of processes to be managed. This is guided by the organizational context – for example, by the structure, strategies, priorities, and culture of the organization.
- B2Process Architecture
Document the organization's process architecture, using consistent terminology, precise definition of objectives, roles, flows, and relationships, and agreed protocols for process naming.
- B3Process Governance
Establish a governance structure for the processes being addressed. This might cover process ownership, decision rights, and measures to evaluate progress against process objectives.
- B4Process Improvement
Identify and use available methodologies for evaluating, redesigning, and improving how the organization works towards its desired outcomes.
- B5Process Automation
Use technologies to simulate, integrate, operationalize, and monitor business processes.
- B6The IT Contribution
Use the IT function's organization-wide perspective to drive the effectiveness of business process management.
Overview
Goal & Objectives
An effective Business Process Management (BPM) capability aims to:
- Enable the organization to be more capable of change.
- Drive a holistic approach to process improvement using a cross-functional and organization-wide perspective.
- Correct and improve complex, people-intensive processes before (potentially) automating them.
- Support a better understanding of processes and their objectives, which in turn leads to a more reliable and efficient execution of these processes.
- Provide graphical representations of processes to facilitate more effective discussion and collaboration between process performers, and between performers and managers.
- Make the strategic objectives of the organization more explicit and visible (for example, reliability and efficiency, product or service quality, business agility, and so on).
Scope
Definition
The Business Process Management (BPM) capability is the ability to identify, design, document, monitor, optimize, and assist in the execution of both existing and new organizational processes.
Improvement Planning
Practices-Outcomes-Metrics (POM)
Representative POMs are described for BPM at each level of maturity.
- 2Basic
- Practice
- Evaluate appropriate BPM technologies for the organization.
- Outcome
- Coordinated approaches towards the use of BPM technologies enable greater levels of reuse.
- Metric
- Number of initiatives complying with a preferred suite of BPM technologies.
- Practice
- Define owners for some of the highest priority processes.
- Outcome
- There is increased accountability for managing the most critical business processes.
- Metric
- Percentage of business-critical processes with defined owners.
- Practice
- Establish a process improvement practice – such as Lean, Six Sigma, or Total Quality Management.
- Outcome
- Frequent tactical improvements in organizational performance are delivered.
- Metric
- The aggregated value of process improvement projects.
- 3Intermediate
- Practice
- Form a BPM governing body with employees from multiple business units to track metrics and milestones.
- Outcome
- A BPM capability is established with appropriate accountability and oversight.
- Metric
- Percentage of business units represented on the BPM governing body.
- Practice
- Create a BPM community of practice.
- Outcome
- There is improved sharing of proven practices, and deepening of skills.
- Metric
- Number of relevant personnel belonging to a BPM community of practice.
- Practice
- Ensure process improvement projects spanning multiple business units have the backing of senior management and are adequately resourced.
- Outcome
- Process improvement projects generate significant value for the organization.
- Metric
- The value created from process improvement projects as a percentage of organizational costs (or revenues).
- 4Advanced
- Practice
- Promote the process improvement strategy organization-wide.
- Outcome
- An organization-wide focus can be prioritized over local priorities, yielding higher value returns.
- Metric
- Percentage of process improvement initiatives spanning multiple business units.
- Practice
- Establish a central BPM support group to take organization-wide responsibility for standards, methods, models, and so on.
- Outcome
- A common set of practices for driving process improvement becomes deeply embedded in the culture of the organization.
- Metric
- Percentage of business process initiatives that use a common set of practices.
- Practice
- Ensure that all relevant processes are owned and managed.
- Outcome
- Process ownership and accountability across the organization help eliminate and/or reduce bottlenecks, poor hand-offs, and so on.
- Metric
- Percentage of relevant processes with assigned ownership.
- Practice
- Take a portfolio approach to process improvement so that individual process improvement projects are prioritized and sequenced by reference to the entire portfolio.
- Outcome
- The organization's process improvement portfolio is designed to deliver optimal financial and strategic value.
- Metric
- Year-on-year improvements in return on investment (ROI) from the process improvement portfolio.
- 5Optimized
- Practice
- Make knowledge of business processes a core competency for all managers.
- Outcome
- Managers understand BPM and know how to derive value from it.
- Metric
- BPM training and experience levels of managers.
- Practice
- Manage and continually improve processes that involve relevant business ecosystem partners.
- Outcome
- Process management and optimization beyond the boundaries of the organization deliver recognizable competitive advantage.
- Metric
- Number of agreements with third parties for integrated management of processes.
- Practice
- Regularly review how the portfolio of process improvement opportunities can influence the development of the business model.
- Outcome
- The organization can articulate the strategic value of its process improvements.
- Metric
- Number of independently verified process improvements or innovations that raise the organization's performance for a given function.
Reference
History
This capability was introduced in Revision 19.01 as an update to Business Process Management (16).