Value-Driven Business Process Management: The Value-Switch for Lasting Competitive Advantage

Value-Driven Business Process Management: The Value-Switch for Lasting Competitive Advantage

by Peter Franz, Mathias Kirchmer

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Overview

Seize the competitive advantage with BPM at the heart of your strategy

Value-Driven Business Process Management provides the rationale and methods for using business Process Management (BPM) to gain clarity on how your business operates and develop the ability to put new ideas into action quickly. You learn how to redirect your focus from a "method-and-tool" view of BPM to a more broadly informed view of BPM as a powerful management approach.

Peter Franz, Managing Director for Business Process Management at Accenture, is responsible for the global team that helps clients achieve sustainable shareholder and customer value through scalable, efficient and agile business processes.
Dr. Mathias Kirchmer, Accenture's Executive Director for Business Process Management, leads the global BPM-Lifecycle Practice, as well as the program for the development of Accenture's Business Process Reference Models across industries and functional areas.

Product Details

ISBN-13: 9780071791724
Publisher: McGraw-Hill Education
Publication date: 03/16/2012
Sold by: Barnes & Noble
Format: NOOK Book
Pages: 240
File size: 4 MB

About the Author

Peter Franz, Managing Director for Business Process Management at Accenture, is responsible for the global team that helps clients achieve sustainable shareholder and customer value through scalable, efficient, and agile business processes.
Dr. Mathias Kirchmer, Accenture’s Executive Director for Business Process Management, leads the global BPM-Lifecycle Practice as well as the governance organization for Accenture’s Business Process Reference Models. Dr. Kirchmer’s team helps clients to achieve immediate business impact while building sustainable BPM capabilities. Dr. Kirchmer is also an affiliated faculty member of the Program for Organizational Dynamics at the University of Pennsylvania.

Read an Excerpt

VALUE-DRIVEN BUSINESS PROCESS MANAGEMENT

The Value-Switch for Lasting Competitive Advantage


By Peter Franz, Mathias Kirchmer

The McGraw-Hill Companies, Inc.

Copyright © 2012Accenture
All rights reserved.
ISBN: 978-0-07-179172-4


Excerpt

CHAPTER 1

Value-Driven BPM: Why You Need It Now


During our more than four decades of combined experience advising business leaders in the area of business process management, we have had the privilege of meeting with executive teams at companies all over the world. While there are vast differences between industries and countries, we find commonality in the struggle to address a variety of vexing questions. Around the globe, CEOs and senior management teams are asking themselves:

• How can we better align execution with strategy?

• How can we focus our management efforts on the most important problems?

• How can we increase transparency in the most important areas of our business?

• How can we improve our agility in adapting to new market conditions?

• When is incremental improvement enough? When do we need fundamental business transformation?


We have found that, by applying the management discipline we have developed—which we call value-driven BPM—the companies we work with have been able to make immediate and lasting improvements. This approach continuously translates strategy into execution via an organization's processes, delivering sustainable value.

Gradually, the frustration that companies have experienced in the past falls away, replaced by excitement about the increased ability to master complexity.

In this book we cover value-driven BPM from top to bottom, with the goal of helping you improve your organization's game using the power of process. In this first chapter, we set the context for a more advanced way of applying BPM. We discuss:

• The forces that have converged to drive a need for a new approach to BPM; and

• The decades of evolution that have made this new management discipline possible.

The following chapter completes the contextual picture with a discussion of:

• The positive impact value-driven BPM can have on your company; and

• How you can start your journey toward value-driven BPM.


If you look at how BPM is employed today, efforts range from implementing process automation systems to plugging in modeling tools and populating a repository, to performing enterprise application integration or applying principles of enterprise architecture. The most common problem is that BPM, until now, has consisted of bits and pieces. Effectively, value-driven BPM superimposes a framework on top of all the bits and pieces, organizing them into a cohesive whole.

The benefits of applying value-driven BPM have been researched in a study conducted collaboratively between Accenture, the Queensland University of Technology in Brisbane (Australia), and the University of Pennsylvania in Philadelphia (USA). As revealed in the initial report from this joint research, discussed in greater detail in Chapter 2, the first benefit of value-driven BPM is a broad increase in transparency. In other words, it disperses the fog of business so that real problems emerge and can be scrutinized.

The next major benefit of value-driven BPM is the ability to reduce the trade-offs inherent in business. Rather than sacrifice quality for efficiency (or vice versa), successful companies find a way to increase quality while increasing efficiency. Similarly, they find ways to be more agile while maintaining compliance. They find ways to tightly integrate people along with processes while managing large, distributed partner ecosystems. Value-driven BPM is an approach with tremendous power to reduce trade-offs in ways that are differentiating.

Some other key findings of our research:

• BPM initiatives without firm support from senior executives and a sense of urgency often focus on methodological and technical issues and become activity-based programs. Value-driven BPM moves the conversation to a higher, more strategic level. The approach first focuses on value and outcomes, then provides the linkages between these strategic imperatives and a company's processes.

• BPM initiatives tend to be executed based on a general methodology and are often not tailored to specific values that matter. Value-driven BPM helps identify those values and connect them to supporting processes quickly and accurately.


In his book Winning, former CEO of General Electric Jack Welch describes how he chose to adopt the Six Sigma quality improvement methodology. After 14 years as CEO, Welch was famous for his aggressive stance against stifling bureaucracy and inefficiency. Welch chose Six Sigma as a way to continue and accelerate his war to eliminate waste, foster innovation, and create more value.

Today you may find yourself in the same position Welch was in then. You have tried many ways to improve performance. Some have worked, some have failed, but none has been widely applicable and consistently effective. You may lead a complex organization born from organic growth and an amalgam of mergers and acquisitions. You may have spent significant time and resources developing strategy, only to find it difficult to get the organization to execute that strategy. This frustration is evident at both a macro and micro level, in large companies and small, all around the globe.

If Welch were a CEO today—if he had spent 14 years making his organization better, but still wanted to increase performance—we believe that the comprehensive approach to value-driven BPM outlined in this book would be the right management discipline to achieve those goals and move to a higher level. Value-driven BPM is valid whether you are starting the journey or are at a more advanced stage.


THE PERFECT STORM: FORCES THAT DEMAND A NEW APPROACH

A "perfect storm" of forces is driving executives to undertake the same search for a new way forward. Business conditions are increasingly complex and risk-prone, demanding more sophisticated forms of optimization. The pace of change has accelerated to the extent that stable equilibrium is an anachronism. Constant change is the new normal. Technology offers choice that has expanded by orders of magnitude. Keeping track of this continuously evolving portfolio of technology capabilities while meeting changing business needs is a fundamental requirement for CIOs. After two decades of research and practice, BPM methods and technology are now ripe to be orchestrated to support a new management discipline that meets these challenges.

When competing in world-class sailing, the seasoned sailor would see more turbulent weather as an opportunity to excel—thus, our use of the contradictory phrase "the perfect storm." In business, too, it is those who can weather turbulent change who will rise to create sustainable advantage.


Business Forecast: Accelerating Change, Increased Risk, Greater Complexity

The first force demanding a new management discipline is the roiling seas of the modern business world. At Accenture we are constantly surveying the landscape for forces that are going to have a long-term impact on strategy. As we do so, we are often asked, "When will things get back to 'normal'?" If "normal" means "the way things were before the last big economic downturn," the answer is, "never." The latest Accenture analysis has identified seven distinct forces that promise to keep life interesting for executives throughout the next decade:

• Population growth

• Changes in technology

• Challenges in energy markets

• Environmental concerns

• Health and terrorism risks

• Uncertain financial markets

• Globaliz
(Continues...)


Excerpted from VALUE-DRIVEN BUSINESS PROCESS MANAGEMENT by Peter Franz, Mathias Kirchmer. Copyright © 2012 by Accenture. Excerpted by permission of The McGraw-Hill Companies, Inc..
All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
Excerpts are provided by Dial-A-Book Inc. solely for the personal use of visitors to this web site.

Table of Contents

Contents

Preface          

PART I Strategy and Planning for Value-Driven BPM          

CHAPTER 1 Value-Driven BPM: Why You Need it Now          

CHAPTER 2 The Impact of Value-Driven BPM          

CHAPTER 3 The Process of Process Management          

CHAPTER 4 Developing Your Roadmap to Value-Driven BPM          

CHAPTER 5 How Value-Driven BPM Optimizes the Impact of Process Improvement
Initiatives          

PART II Building a Value-Driven Organization          

CHAPTER 6 Building an Organization for Value-Driven BPM          

CHAPTER 7 Information Technology for Value-Driven BPM          

CHAPTER 8 Managing Information Models for Value-Driven BPM          

PART III The Present and the Future of Value-Driven BPM          

CHAPTER 9 Value-Driven BPM in Practice          

CHAPTER 10 The Future of Value-Driven BPM          

Abbreviations          

Bibliography          

Index          

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