Systems in Strategy

Strategy and Business Process Management

Processes

Chad Moffiet, NGSB Strategic Management, 2007

Outline

1. What is Business Process Management?2. Where did it come from?3. How does it Work?

• Process modelling• Process ownership• Available Frameworks

4. Summary

What is Strategy?

• “A company can outperform rivals if it can establish a difference it can preserve…..”

• “Ultimately, all differences between companies in cost or price derive from the hundreds of activities required to create, sell and deliver products and services...”

» Porter, What is Strategy?, 1996

SummaryHow does it work?Where did it come

from?What is BPM?

Business Process Management

• A structured way of aligning business activities with a company’s defined strategic objectives.

• Strategy = Selecting the right things to do.• BPM=Doing the right things right!

SummaryHow does it work?Where did it come

from?What is BPM?

Traditional View of Organisation

SummaryHow does it work?Where did it come

from?What is BPM?

Process Centric View of Organisation

Steps performed in pursuit of objective 1

Steps performed in pursuit of objective 2

Steps performed in pursuit of objective 3

SummaryHow does it work?Where did it come

from?What is BPM?

SummaryHow does it work?Where did it come

from?What is BPM?

Where did it come from?

Scientific Management

Taylor

Quality Management & TQM

Deming, Juran, Crosby

BPR

Hammer

BPM

Spanyi, Towers, Fingar, McGregor and others

Six Sigma

SummaryHow does it work?

(Process modelling)Where did it come

from?What is BPM?

Process ModellingCurrent Processes Ideal Process

Step 1

Step 2

Step 3

Step 4

Step 5

Customer

Process Owners and KPIs

SummaryHow does it work?(Process Owners)

Where did it come from?

What is BPM?

Example taken from Coors beer publication

SummaryHow does it work?

(Available Frameworks)Where did it come

from?What is BPM?

Available Frameworks

SummaryHow does it work?

(Available Frameworks)Where did it come

from?What is BPM?

Available FrameworksAPQC http://www.apqc.org/

Summary

SummaryHow does it work?Where did it come

from?What is BPM?

• Business activities aligned with strategic objectives• Process centric view of organisation developed (from

customer perspective)• “AS-IS” processes mapped• Improved “TO-BE” processes determined• Input and output KPIs used to monitor and improve

process performance• Senior executives nominated as Process Owners• Business Process Management frameworks available

More Info

SummaryHow does it work?Where did it come

from?What is BPM?

• Business Process Management Group (BPMG)www.bpmg.org

• American Productivity & Quality Centerwww.apqc.org

• QUT BPM round tablewww.bpm.fit.qut.edu.au/roundtable