Lecture 02 - BPM Frameworks and Models
MPHACMS Business Process Management
Michal Krcäl
Department of Corporate Economics 23. 9. 2013
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Michal Krcäl (KPH ESF MU)
Lecture 02 - BPM Frameworks and Models
• < i ► « -00.0 23.9.2013      1 /28
Table of contents
Q Unfinished business
%y BPM Conceptualization
Discussion
IDMaMlMll      1 -OO.0
Michal Krcäl (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 2/28
Repetition is the mother of all learning
• Can you summarize the content of the last lecture
4 □ ►  4 S
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models
Repetition is the mother of all learning
Can you summarize the content of the last lecture? Say something about BPM and make comment on it.
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models
Repetition is the mother of all learning
Can you summarize the content of the last lecture? Say something about BPM and make comment on it. Recapitulation and intra for today's lecture
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models
First article - Hammer
• Principles of Process Management:
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models
First article - Hammer
• Principles of Process Management: ► All work is process work.
Michal Krcäl (KPH ESF MU)
Lecture 02 - BPM Frameworks and Models
First article - Hammer
• Principles of Process Management:
► All work is process work.
► Any process is better than no process.
Michal Krcäl (KPH ESF MU)
Lecture 02 - BPM Frameworks and Models
First article - Hammer
• Principles of Process Management:
► All work is process work.
► Any process is better than no process.
► A good process is better than a bad process.
□
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models
First article - Hammer
• Principles of Process Management:
► All work is process work.
► Any process is better than no process.
► A good process is better than a bad process.
► One process version is better than many.
□
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models
First article - Hammer
• Principles of Process Management:
► All work is process work.
► Any process is better than no process.
► A good process is better than a bad process.
► One process version is better than many.
► Even a good process must be performed effectively.
4 □ ►  4 S
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models
First article - Hammer
• Principles of Process Management:
► All work is process work.
► Any process is better than no process.
► A good process is better than a bad process.
► One process version is better than many.
► Even a good process must be performed effectively.
► Even a good process can be made better.
4 □ ►  4 S
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models
First article - Hammer
• Principles of Process Management:
► All work is process work.
► Any process is better than no process.
► A good process is better than a bad process.
► One process version is better than many.
► Even a good process must be performed effectively.
► Even a good process can be made better.
► Every good process eventually becomes a bad process.
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 4/28
First article - Hammer
• Principles of Process Management:
► All work is process work.
► Any process is better than no process.
► A good process is better than a bad process.
► One process version is better than many.
► Even a good process must be performed effectively.
► Even a good process can be made better.
► Every good process eventually becomes a bad process.
• Pay attention to the Enterprise Process Model (will come handy in projects).
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 4/28
Second article - CIO
• The article is strictly from the POV of ClOs => IT perspective
Michal Krrjäl (KPH ESF MU)
Lecture 02 - BPM Frameworks and Models
• < * ► « -00.0 23.9.2013 5/28
Second article - CIO
• The article is strictly from the POV of ClOs => IT perspective
• Try to go back to this text - it covers brief intros into other lecture topics (BPMS, BPM implementation etc.)
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 5/28
Second article - CIO
• The article is strictly from the POV of ClOs => IT perspective
• Try to go back to this text - it covers brief intros into other lecture topics (BPMS, BPM implementation etc.)
• Difference between workflow and BPM?
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 5/28
Second article - CIO
• The article is strictly from the POV of ClOs => IT perspective
• Try to go back to this text - it covers brief intros into other lecture topics (BPMS, BPM implementation etc.)
• Difference between workflow and BPM?
• Why is BPM so important for managers?
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 5/28
Second article - CIO
• The article is strictly from the POV of ClOs => IT perspective
• Try to go back to this text - it covers brief intros into other lecture topics (BPMS, BPM implementation etc.)
• Difference between workflow and BPM?
• Why is BPM so important for managers?
• What kind of processes are suitable for BPM implementation?
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 5/28
Second article - CIO
• The article is strictly from the POV of ClOs => IT perspective
• Try to go back to this text - it covers brief intros into other lecture topics (BPMS, BPM implementation etc.)
• Difference between workflow and BPM?
• Why is BPM so important for managers?
• What kind of processes are suitable for BPM implementation?
• Which are not suitable?
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 5/28
Third article - Harmon
• Three business process traditions:
Michal Krrjäl (KPH ESF MU)
Lecture 02 - BPM Frameworks and Models
Third article - Harmon
Three business process traditions:
► Management tradition = Rummler's Performance framework -> Porter's value chain (more in week 3)
Michal Krrjäl (KPH ESF MU)
□
Lecture 02 - BPM Frameworks and Models
9
Third article - Harmon
• Three business process traditions:
► Management tradition = Rummler's Performance framework -> Porter's value chain (more in week 3)
► Quality control tradition = Taylor (work simplification) -> TQM -> Lean -> Six Sigma -> CMM
Michal Krrjäl (KPH ESF MU)
□
Lecture 02 - BPM Frameworks and Models
9
Third article - Harmon
• Three business process traditions:
► Management tradition = Rummler's Performance framework -> Porter's value chain (more in week 3)
► Quality control tradition = Taylor (work simplification) -> TQM -> Lean -> Six Sigma -> CMM
► IT tradition
Michal Krrjäl (KPH ESF MU)
□
Lecture 02 - BPM Frameworks and Models
9
Management Tradition
Fi£. fr The managernen! tradition
Michal Krcäl (KPH ESF MU)
Lecture 02 - BPM Frameworks and Models
23.9.2013 7/28
Quality Tradition
The Scope and Evolution of Business Process Management 1980s
Total Quality Management iTQM> ^>
Six Sigma
x Sigma ^>
Shewhart. Cemings. Juran. Ohno. Womack...ASQ. ISSSP
Capability Maturity Models fCMMI. BP MM)
Fi£. 2 The quality control tradition
Michal Krčál (KPH ES F MU)
Lecture 02 - BPM Frameworks and Models
23.9.2013 8/28
Capability and Maturity Model
O Initial: Processes are not defined.
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models
Capability and Maturity Model
O Initial: Processes are not defined.
O Repeatable: Basic departmental processes are defined and are repeated more or less consistently
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013
Capability and Maturity Model
O Initial: Processes are not defined.
O Repeatable: Basic departmental processes are defined and are repeated more or less consistently
O Defined: The organization, as a whole, knows how all their processes work together and can perform them consistently
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models
Capability and Maturity Model
O Initial: Processes are not defined.
O Repeatable: Basic departmental processes are defined and are repeated more or less consistently
O Defined: The organization, as a whole, knows how all their processes work together and can perform them consistently
O Managed: Managers consistently capture data on their processes and use that data to keep processes on track
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 9/28
Capability and Maturity Model
O Initial: Processes are not defined.
O Repeatable: Basic departmental processes are defined and are repeated more or less consistently
O Defined: The organization, as a whole, knows how all their processes work together and can perform them consistently
O Managed: Managers consistently capture data on their processes and use that data to keep processes on track
O Optimizing: Managers and team members continuously work to improve their processes
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 9/28
Tradition
1990'S
í kocass
IT Architectures (Zachman)
3:'üc:Lred SoftwareMethodologi
Martin. Davenport, Hammer, Ciampy, Smilh & Fingar...BPMI, IrVfMC, DMG, IIBA, Gartner
^ j E rilaipriae Architectures (FEAFQy-Business Procass Modeling, Tools ^
00 Software
>
I Enterpnsa App :s:Í'-tV I   It. e gig! ion [Erl) ^ ľ
^■rog-sd Software. (ERP.CRMl
3l3 reas Rües
Business nte lirjence
Fig. 7 The information technology tradition
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 10/28
Table of contents
0 Unfinished business
Q BPM Conceptualization
0 BPM Life-cycle
0 Discussion
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013      11 /28
• Definition vs. Model (framework) - what's the difference?
a Framework = A basic structure underlying a system, concept, text: "the theoretical framework of political sociology".
• Definition vs. Model (framework) - what's the difference?
• Framework = A basic structure underlying a system, concept, or text: "the theoretical framework of political sociology".
• Two perspectives:
► Business perspective (from practise) = BPM (process) Life-Cycle
► Academical perspective = BPM Framework from Rosemann and van. Brocke
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 12/28
Table of contents
0 Unfinished business
Q BPM Conceptualization
0 BPM Life-cycle
Q Discussion
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 13/28
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 14/28
Process Life-cycle 2
Michal Krrjäl (KPH ESF MU)
Lecture 02 - BPM Frameworks and Models
Process Life-cycle 3
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 16/28
Design/Model
• Main content of this course.
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 17/28
Design/Model
• Main content of this course.
• You have to analyze processes and design them.
► As-is and To-be
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 17/28
Design/Model
• Main content of this course.
• You have to analyze processes and design them.
► As-is and To-be
• Then, you have to define them (i.e. to model them).
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 17/28
Design/Model
• Main content of this course.
• You have to analyze processes and design them.
► As-is and To-be
• Then, you have to define them (i.e. to model them).
• Business people heavily involved.
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 17/28
Design/Model
• Main content of this course.
• You have to analyze processes and design them.
► As-is and To-be
• Then, you have to define them (i.e. to model them).
• Business people heavily involved.
• Usually models are on quite high level abstraction.
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 17/28
Implement/Execute
• Adding more (changing some) details to the model in order to make executable processes.
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 18/28
Implement/Execute
• Adding more (changing some) details to the model in order to make executable processes.
• More IT than business but consulting with business people needed.
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 18/28
Implement/Execute
• Adding more (changing some) details to the model in order to make executable processes.
• More IT than business but consulting with business people needed.
• Implement and execute the processes using some BPMS.
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 18/28
Monitor/Control
• Measure KPIs and defined metrics.
• Examples of KPIs or metrics?
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 19/28
Monitor/Control
• Measure KPIs and defined metrics.
• Examples of KPIs or metrics?
• Making reports about process performance.
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 19/28
Monitor/Control
• Measure KPIs and defined metrics.
• Examples of KPIs or metrics?
• Making reports about process performance.
• Analyze exceptions and process efficiency.
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 19/28
Optimize/Improve
• Optimize processes according to data and analyzes from Monitor/Control phase.
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 20/28
Optimize/Improve
• Optimize processes according to data and analyzes from Monitor/Control phase.
• Simulate different scenarios and business rules.
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 20/28
Optimize/Improve
• Optimize processes according to data and analyzes from Monitor/Control phase.
• Simulate different scenarios and business rules.
• Assess an economical impact of different scenarios.
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 20/28
And back on the start
Start a new loop - continue with design and model the new process.
ichal Krcäl (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23. 9. 2013      21 / 28
And back on the start
• Start a new loop - continue with design and model the new process.
• The lectures in this course should cover the whole life-cycle.
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013      21 /28
BPM Life-cycle conclusion
• Is this model sufficient?
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 22/28
BPM Life-cycle conclusion
• Is this model sufficient?
• Isn't there anything missing?
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 22/28
BPM Life-cycle conclusion
Is this model sufficient?
Isn't there anything missing?
Rosemann and vom Brocke: ► The framework to be identified has to comprehensively structure those elements of BPM that need to be addressed when following a holistic understanding of BPM, i.e., BPM as an organizational capability and not just as the execution of the tasks along a process lifecycle (identify, model, analyze, improve, implement, execute, monitor, and change).
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 22/28
Table of contents
0 Unfinished business 0 BPM Conceptualization
Q Discussion
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 23/28
The Six Core Elements of Business Process Management
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 24/28
The Six Core Elements of Business Process Management
O Strategic Alignment O Governance O Methods
O Information Technology O People O Culture
□ ►   4 fiP
Capability Areas
1 Strateg ic Alignment	Governance	j   Methods j	Information Technology	1   >°°><° 1	J    Culture J	Factors:
Process Planning	Process Ma nage-me-nt Decision Making	|-=sr|	Process Design S Modelling		Responsiveness to Process Changs	
Strategy & Process Capability Linkage	Process Roles and Responsibilities		Implementation & Execution		Process Values ä Beliefs	n 73
Process Architecture	Process Metrics & Performance Linkage	i. I Control	Process Monitoring & Control		Process Attitudes & Behaviors	ability A
Process Measures	Process Related Standards	p™ I Impiovement & Innovation	Process Improvement S	1 ~ j	Leadership Attention to Process	j
Customers £ Stakeholders	Process Management Compliance	Process Program & Project Management	Process Program S Project Management		Management Social Networks	
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 25/28
The Six Core Elements of Business Process Management - in detail
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 26/28
The Six Core Elements of Business Process Management - in detail
O Strategic Alignment
Michal Krcal (KPH ESF MU)
The Six Core Elements of Business Process Management - in detail
O Strategic Alignment
► When something does not fit the strategy, it is wrong.
The Six Core Elements of Business Process Management - in detail
O Strategic Alignment
► When something does not fit the strategy, it is wrong.
► Which processes to improve should be derived from strategy.
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 26/28
The Six Core Elements of Business Process Management - in detail
O Strategic Alignment
► When something does not fit the strategy, it is wrong.
► Which processes to improve should be derived from strategy.
► Enterprise Process Architecture and Strategy Maps.
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 26/28
The Six Core Elements of Business Process Management - in detail
O Strategic Alignment
► When something does not fit the strategy, it is wrong.
► Which processes to improve should be derived from strategy.
► Enterprise Process Architecture and Strategy Maps. *■ Stakeholders of BPM (processes) are very important.
O Governance
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 26/28
The Six Core Elements of Business Process Management - in detail
O Strategic Alignment
► When something does not fit the strategy, it is wrong.
► Which processes to improve should be derived from strategy.
► Enterprise Process Architecture and Strategy Maps. *■ Stakeholders of BPM (processes) are very important.
O Governance
► 'Day-to-day' work on BPM = operative desicion-making perspective.
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 26/28
The Six Core Elements of Business Process Management - in detail
O Strategic Alignment
► When something does not fit the strategy, it is wrong.
► Which processes to improve should be derived from strategy.
► Enterprise Process Architecture and Strategy Maps. *■ Stakeholders of BPM (processes) are very important.
O Governance
► 'Day-to-day' work on BPM = operative desicion-making perspective.
► Collecting metrics. 0 Methods
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 26/28
The Six Core Elements of Business Process Management - in detail
O Strategic Alignment
► When something does not fit the strategy, it is wrong.
► Which processes to improve should be derived from strategy.
► Enterprise Process Architecture and Strategy Maps. *■ Stakeholders of BPM (processes) are very important.
O Governance
► 'Day-to-day' work on BPM = operative desicion-making perspective.
► Collecting metrics. 0 Methods
► Tools and techniques to make things work.
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 26/28
The Six Core Elements of Business Process Management - in detail
O Strategic Alignment
► When something does not fit the strategy, it is wrong.
► Which processes to improve should be derived from strategy.
► Enterprise Process Architecture and Strategy Maps. *■ Stakeholders of BPM (processes) are very important.
O Governance
► 'Day-to-day' work on BPM = operative desicion-making perspective.
► Collecting metrics. 0 Methods
► Tools and techniques to make things work.
► 'Compatible with lifecycle'
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 26/28
The Six Core Elements of Business Process Management - in detail
O Strategic Alignment
► When something does not fit the strategy, it is wrong.
► Which processes to improve should be derived from strategy.
► Enterprise Process Architecture and Strategy Maps. *■ Stakeholders of BPM (processes) are very important.
0 Governance
► 'Day-to-day' work on BPM = operative desicion-making perspective.
► Collecting metrics. 0 Methods
► Tools and techniques to make things work.
► 'Compatible with lifecycle'
O Information Technology 0 People
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 26/28
The Six Core Elements of Business Process Management - in detail
O Strategic Alignment
► When something does not fit the strategy, it is wrong.
► Which processes to improve should be derived from strategy.
► Enterprise Process Architecture and Strategy Maps. *■ Stakeholders of BPM (processes) are very important.
O Governance
► 'Day-to-day' work on BPM = operative desicion-making perspective.
► Collecting metrics. 0 Methods
► Tools and techniques to make things work.
► 'Compatible with lifecycle'
O Information Technology O People
► People are the core element of BPM.
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 26/28
The Six Core Elements of Business Process Management - in detail
O Strategic Alignment
► When something does not fit the strategy, it is wrong.
► Which processes to improve should be derived from strategy.
► Enterprise Process Architecture and Strategy Maps. *■ Stakeholders of BPM (processes) are very important.
O Governance
► 'Day-to-day' work on BPM = operative desicion-making perspective.
► Collecting metrics. 0 Methods
► Tools and techniques to make things work.
► 'Compatible with lifecycle'
O Information Technology O People
► People are the core element of BPM. O Culture
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 26/28
The Six Core Elements of Business Process Management - in detail
O Strategic Alignment
► When something does not fit the strategy, it is wrong.
► Which processes to improve should be derived from strategy.
► Enterprise Process Architecture and Strategy Maps. *■ Stakeholders of BPM (processes) are very important.
0 Governance
► 'Day-to-day' work on BPM = operative desicion-making perspective.
► Collecting metrics. 0 Methods
► Tools and techniques to make things work.
► 'Compatible with lifecycle' 0 Information Technology
0 People
► People are the core element of BPM. 0 Culture
► The 'softest' part of BPM (management in general).
Michal Krrjäl (KPH ESF MU)
Lecture 02 - BPM Frameworks and Models
23.9.2013 26/28
The Six Core Elements of Business Process Management - in detail
O Strategic Alignment
► When something does not fit the strategy, it is wrong.
► Which processes to improve should be derived from strategy.
► Enterprise Process Architecture and Strategy Maps. *■ Stakeholders of BPM (processes) are very important.
0 Governance
► 'Day-to-day' work on BPM = operative desicion-making perspective.
► Collecting metrics. 0 Methods
► Tools and techniques to make things work.
► 'Compatible with lifecycle' 0 Information Technology
0 People
► People are the core element of BPM. 0 Culture
► The 'softest' part of BPM (management in general).
Michal Krrjäl (KPH ESF MU)
Lecture 02 - BPM Frameworks and Models
23.9.2013 26/28
Summary
• The framework is some kind of collage from BPM perspective and is dona from all things that are important in management
• We will cover all parts of framework in next few weeks.
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 27/28
Summary
• The framework is some kind of collage from BPM perspective and is dona from all things that are important in management
• We will cover all parts of framework in next few weeks.
• BPM is not (only) modeling and IT! Even when it will look like that in this course :)
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models 23.9.2013 27/28
• Governance of BPM versus strategy
• Reading (mandatory):
► Delivering Business Strategy Through Process Management (HoBPM 2, p. 5)
► Business Process Governance (HoBPM 2, p. 201)
• Reading (voluntary):
► Porter: What is business strategy (IS)
Michal Krčál (KPH ESF MU) Lecture 02 - BPM Frameworks and Models