Process management
PV215 - 7 2
Strategic
frame
Business
hypothesis
Vision
Mission
Values and
Rules
Strategy
(C) J. Plamínek
  Performance Indicators
  Change Vector
  Balance Scorecard
  Processes and Projects
  Case study: Mycroft Mind
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PV215 - 7 4
Products, Services, Processes & Projects, Resources, Tasks,
Competencies, Feedbacks, Feedforwards, HR development, ...
Goals & Objectives
Strategic Frame
Processes & Projects
Strategi
c frame
Busines
s
hypothe
sis
Vision
Mission
Values
and
Rules
Strategy
PV215 - 7 5
I ... intention (goal, objective)
Strategi
c frame
Busines
s
hypothe
sis
Vision
Mission
Values
and
Rules
Strategy
I
I
II
I
I
I
I
I
I
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  To know WHAT to do is not enough
  It is important to know WHETHER and HOW
we are doing
  Therefore MbC operates with system of
indicators on every level of management
  In accordance with development of company
and people, the target values for indicators
are determined which enables continuous
monitoring and management of improvement
parameter p
a) difference between parameter
and target value
PV215 - 7 7
target value P of p
b) target definition
p2
p1
P2
P1
c) change vector
definition
p2
p1
Q2
Q1
SQ
SQ ... status quo
P1
P2
T
T ... target
  Strategic frame is a call for change
◦  change vector derivation
  Change vector is specific submission for
managers
◦  if it is not specified by leaders it ought to be specified by
managers
  Managers plan and act to make the change
◦  Pyramid of vitality utilization
  To succeed the system of appropriate indicators
and its target values has to be defined, evaluated
and adjusted
◦  Balanced Scorecard utilization
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PV215 - 7 9
D
S
E
U
Subjects
• Who may need
us?
Needs
• What they may
need?
Services
Products
• How we can
satisfy the
needs?
Processes
• What procedures
will lead to
services and
products?
Resources
• What resources
will these
procedures
consume?
Structures
• How we organize
keeping up these
procedures and
resources?
Activity
• What will
exactly
happen
within
activity?
Demands
• What exactly
will one have
to do?
Requirements
• What abilities
and its level
will one have
to posses?
Person
• Who fits the
demands and
requirements
the best?
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TOP management
financial indicators
revenues -> profit/loss <- costs
customer indicators
number of new customers
average size of order
new products ratio
number of loyal customers
...
internal processes
indicators
average time to market
number of complaints – quality
product cost
service innovation pace
...
learning and growth
indicators
competencies/resources
abilities attitudes qualities
all managers
managementof
sales
andmarketing
managementof
primaryprocess,
logistics,
development,
IT,...
  Processes and projects
◦  defined sets of procedures, activities or actions
transforming inputs to outputs
  Processes
◦  repeatable, easy to monitor, subject of continual
improvement
◦  deterministic, predictable
◦  focused on outputs
  Projects
◦  unique, have to be attentively planned and executed,
continuously monitored and managed
◦  uncertain
◦  focused on impact, benefits and goals of its outputs
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D
S
E
U
  How can projects benefit from process
management?
◦  projects may involve processes; for partial design of
project the process design techniques may be
utilized
  How can processes benefit from project
management?
◦  process definition may be extended to define
desired impact of process outputs; then
performance indicators may be defined more
appropriately
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D
S
E
U
Reasonable process specification granularity
Structure as a consequence of process specification
Top-down approach
Suitable tools
Process domain reflection
Continuous improvement
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D
S
E
U
  MM executes Project Program to achieve its
business goals
◦  Project Program is the set of projects sharing goals
and resources
◦  The set of projects which share resources only is
called Project Portfolio
  Projects within program are differentiated by
several categories
◦  each category stands for crucial aspect of MM
business
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• research & development
• 1 projectTechnology
• application and solution development
• 5 projectsApplication
• market research, marketing and sales
• 2 projectsBusiness
• methodology development
• 9 projectsFlow
• leadership and management
• 1 projectOrganization
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Ortoprocesses Paraprocesses Metaprocesses
ManagementProcess
Adapts to satisfy
the needs
Management Process
Development
Methodology
Execution
Generates new
needs
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Management Process
Execution
Methodology
Defines
• Introspection
• Evaluation
• Revision
Performs
• Introspection
• Evaluation
• Revision
M
E
of
M
E
of
17PV215 - 7
Task
Categories
Research
Specification
Implementation
Production
Organization
Business
Education
Flow Projects
R-FLOW
S-FLOW
I-FLOW
P-FLOW
O-FLOW
B-FLOW
E-FLOW
Provide methodological
and environmental
support for tasks of
respective kind
Consequently, evaluate
and improve the
effectiveness of entire
program
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  Are executed in accordance with the
methodology
  Change the methodology in accordance with
the needs and requirements emerging in the
execution of all projects
  Distributively performs introspection,
evaluations and revision, i.e. feedbacks and
feedforwards
  Example
◦  OFLOW: “for every flow project there is a meeting
held at least every 2 weeks”
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PV215 - 7 20
Management In Large Project
Technology
Projects
Application
Projects
Business
Projects
Flow Projects
Principle we have applied
• Principle of work with unknown: ICT support
of business has to be done in a way it can
easily support also such requirements that
business owners are not aware of today
Tools we have used
• Mind Manager – flexible mind mapping editor
• Project Explorer – flexible tool for reporting
and analysis
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Mind Maps (Mind Manager)
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Project Explorer (proprietary tool)
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  Performance Indicators are necessary to know
WHERE we are and WHERE are we going
  Balance Scorecard is an strategic performance
tool working with complete set of indicators
◦  financial, customer, processes, learn and growth
  Processes and projects are two kinds of what
can happen in companies
  Case study
◦  flow projects as a tool for sustainable development
PV215 - 7 24