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- Herausgeber: BoD - Books on Demand
- Kategorie: Fachliteratur
- Sprache: Englisch
- Veröffentlichungsjahr: 2024
Process excellence is not a new concept but merely a 'new' buzzword for business process management (BPM) in keeping with the spirit of the times. New and innovative BPM technologies, as well as increasing complexity triggered by global supply chains, increasing digitalisation and regulation, and geopolitical tensions, are reviving business process management and giving this approach a new dynamic. But is it enough to give the child a new name, and what are the reasons why this concept has fallen short of expectations for decades? Aligning and efficiently transforming business processes for sustainable corporate success requires not only new BPM technologies but also fundamental organisational changes. This book is intended to encourage the achievement of process excellence and addresses aspects that go beyond traditional business process management, but without which successful process management and, thus, genuine process excellence will not be possible in the future.
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This book is the result of years of BPM experience. Many thanks to all process management and excellence enthusiasts from various sectors and industries who have maintained an intensive exchange with us over many years and to all friends and colleagues who support and challenge us in establishing excellent process management.
ONE BOOK - ALL BUZZWORDS
Everything follows a process, including this book.
Table of contents
A. Preface
B. Introduction
1. From complexity to 'digital' transformation
Complexity as a driver of change and transformation
The increasing complexity of organisations
When complexity becomes complicated
The complexity of the 'digital' transformation
'Digitisation' is not the same as 'digitalisation'
The development of the 'digital' transformation
2. From enterprise capabilities to organisational structures
Assessment of enterprise capabilities as a business enabler
Capability maturity models as your basis
Enterprise capabilities as a prerequisite for change
Decoding organisational structures
3. From roles to smart processes
The difference between roles and job positions
Roles as a binding agent for cooperation and collaboration
The evolution of roles and professions
The potential of harmonised roles and processes
Processes as the backbone of your organisation
The necessity for process documentation and transparency
Multiplying processes in a globalised world
BPM as the GPS for process transformation
The art of process improvement for customer loyalty and employee satisfaction
Maximising efficiency with an IMS
Business process management system (BPMS) vs. quality management system (QMS)
4. From technologies to valuable platforms
Unlocking synergies with software for BPM
A roadmap for the successful implementation of BPM software
Discover treasures with process mining
Monitoring process performance: functional vs end-to-end
How process mining works together with BPM software
Beyond mining: process intelligence is changing the game
Competition of the intelligences: BI vs. PI
Increase added value with RPA bots
BPMS - RPA partnership: Triumphant synergy
Artificial intelligence revolutionises BPM
Orchestrating technologies for seamless BPM
5. From strategy to reporting
The strategy chessboard: from vision to victory
Dual forces: top-down vs. bottom-up
From corporate goals to meaningful metrics
From strategy to action with cascading metrics
Precise data management for effective and correct metrics reporting
6. The TOM as the basis for a Centre of Process Excellence
Pioneering work for a new kind of operational excellence
The CoPE Masters and architects of transformation
The engine of innovation: the tasks of a CoPE
Breaking chains, breaking records: positioning a CoPE
C. Summary
D. Epilogue
E. List of abbreviations
A. Preface
Hammer and Champy described crises, change, digitalisation and the fast pace of our business world in their book 'REEN-GINEERING THE COOPERATION' in the Early 1990s, calling for a radical change in processes. More than 30 years have passed since then, and a closer look at many organisations shows that neither a transformation nor a process reengineering has occurred. On the contrary, processes have taken on a life of their own and become even more complicated. Software providers and consulting companies have taken advantage of this for decades, have grown enormously and have enriched themselves. In addition, growth and globalisation have become more critical in recent years and have compensated for inadequacies and waste.
One of the reasons for this is that fundamental changes and transformations in human evolution have always taken place over long periods, and the acceptance and understanding of these fundamental changes take time. But what happens when growth and globalisation can no longer bear the resulting costs and, at the same time, supply chains and regulations become ever more demanding? In addition, artificial intelligence and many other innovative technologies are creating new opportunities that will have an even more significant impact on the transformation and collaboration between humans and technology. Unfortunately, this will make it even more difficult for some organisations to drive change, as they have missed at least one stage of organisational and process evolution in recent decades and now need to make more giant leaps.
But what exactly is the next step? Ultimately, it is about connecting and expanding competencies and skills, especially those that do not relate to the traditional areas of direct value creation. It's about overcoming departmental boundaries and silos that stand in the way of genuine and honest collaboration. The more humans share and interconnect their experience and knowledge, the more they work towards common goals and allow different perspectives, and the more innovative, customer-oriented and efficient organisations will become.
In reality, however, such cross-functional collaboration rarely occurs, and where it is claimed, it is more lip service than real collaboration. As a result, many organisations believe they collaborate internally across all areas and are surprised that their desired improvements have yet to be achieved. This collaboration is an illusion that requires a change in culture and organisational structures. One of the hopes of process excellence is to improve this very collaboration. However, process excellence is not a magic pill, and of course, the introduction of process excellence is not an easy journey without ups and downs, bumps, and pains. Consistent and tough decisions need to be made that benefit everyone. Responsibilities, competencies and processes must be adapted and, in most cases, transformed. Furthermore, resistance must be endured until a change in thinking sets in.
Change strategies as we know them will only be partially justified because we need much more to tackle the complex problems of our time. Ultimately, it is about transformation, not just change and optimisation.
Crises and other challenges are still being dealt with using traditional change strategies such as repair and patching. This is how traditional change management takes place, but not transformation, because transformation follows a different logic from conventional change. Therefore, reorganising processes and business models will require new strategies and approaches across all sectors.
Transformation is like the journey of a caterpillar turning into a butterfly. It is a profound process of fundamental change and growth. It is a complete metamorphosis where the old form is shed, and a new form emerges. Just as a caterpillar transforms into a butterfly, transformation in life is often about shedding old habits, beliefs or limitations and embracing new perspectives, opportunities and personal growth. If nature used traditional change strategies for this process, it would attempt to attach wings to the caterpillar, and we would never witness the emergence of beautiful, colourful butterflies. Neither the caterpillar nor the butterfly is better or worse because both are necessary and part of the transformative process. So you always have to realise where you come from, where you are and what has ultimately made or will make you a butterfly.
The transformation process usually starts very slowly. We encounter anomalies daily and realise that things can't go on like this, so we question things. The path of transformation is not mapped out and is associated with uncertainties. Radical change, therefore, requires strong determination, diverse perspectives and ideas, and an open culture of discussion and debate. Even though the transformation process is a long journey that cannot be fully predicted, it involves several crucial factors that make such a journey much more efficient and cost-effective and avoid detours.
This book only claims to detail some aspects of this paradigm shift. It provides an overview of the interrelationships, ideas, initial approaches, and suggestions so everyone can begin their transformation process.
'As machines become better machines, enterprises need to start becoming better enterprises!'
Etienne and Simon
B. Introduction
Let'sstart with an analogy. In the infinite vastness of the cosmos, where the stars sparkle like scattered diamonds, there was a spaceship like no other, the 'Enterprise'. It was a marvel of technology and human ingenuity. For years, it had travelled through the galaxies, venturing into the unknown and searching for answers to the mysteries beyond our reach. With a crew of brilliant minds and fearless explorers, the spaceship Enterprise embarked on countless missions, each more daring than the last. The Enterprise was a beacon of hope and a testament to the limitless potential of humanity.
The reputation of the spaceship Enterprise grew with every successful expedition, and its crew became legendary. They were pioneers who pushed the boundaries of what was possible and made discovery after discovery in the universe. Their names were whispered in awe and reverence, and their stories were immortalised in the annals of space exploration. The spaceship's success inspired generations and ignited a passion for exploration and discovery that would shape the future of humanity. The Enterprise had explored and conquered the universe, igniting curiosity and wonder.
Over time, other civilisations and spacefaring peoples were inspired by the spaceship's remarkable achievements, and soon, attempts were made to replicate their successes. Countless experts and researchers from various planets and star systems dedicated their lives to exploring and understanding the intricacies of the spaceship. They tried to unlock its secrets, hoping to replicate its capabilities in their ships. But despite their efforts, they could not match the ingenuity and technical skills of the original.
Nevertheless, these experiments were not in vain. They may not have reached the original level of innovation, but they brought significant progress in their own way. Many new spaceships were created, each incorporating elements of the original ship. These spaceships were characterised by higher speed, improved manoeuvrability and increased efficiency and effectiveness.
The space industry saw a growing number of emerging competitors, making it increasingly difficult for established players to retain their competitive edge. These new entrants brought new perspectives, innovative approaches and often significant financial support, posing a threat to the traditional giants of the space industry. In addition, difficulties arose in dealing with new technologies and regulations. Progress in space technology was happening at an incredible pace. There were breakthroughs in propulsion systems, materials science and automation. While these advancements have opened up exciting opportunities, integrating them into existing technologies has been a major challenge.
While improving the original spaceship, the crew of engineers and scientists encountered various challenges. Everyone focused on their respective areas and worked tirelessly to improve the ship's performance. However, as more and more deviations and errors emerged, the task of integrating all the improvements became increasingly complex. Investment increased by leaps and bounds, and the crew realised that tackling these issues required significant resources. The improvements that had been expected to progress quickly began to slow down and stutter in their implementation. The crew needed help to keep up with the increasing technical difficulties and the evergrowing opportunities.
With each new technology and capability that was introduced, the crew faced enormous new problems. A change in one area often let to unforeseen consequences in another. The spaceship became a complex puzzle whose pieces were constantly shifting and evolving. It became increasingly difficult to accurately predict the effects of each change. That was the moment when it echoed through the halls: 'Houston, we have a problem!' It's a challenging and complex situation for everyone, but with so much experience and ambitious crew members, there has to be a solution! .... So let's get on with it.
Thousands of organisations are struggling with the challenges of the spaceship Enterprise. They are looking for a recipe that describes how the individual new and old ingredients can be ideally combined and processed because the (digital) transformation will significantly change the way organisations work and function.
As new technologies reshape industries and business models, organisations must overcome complex challenges and find innovative solutions in a disruptive world. Traditional siloed and function-oriented organisations are replaced by more agile, dynamic, and process-oriented structures focusing on cross-functional collaboration and integration. To succeed and keep pace in the digital age, profound changes to an organisation's skills and capabilities and the introduction of new technologies are required.
By recognising the potential of 'digital' transformation, they can increase operational efficiency, improve the customer experience and gain a competitive advantage. Successful organisations, therefore, deal proactively with complexity and use it as an opportunity to drive growth and revolutionise their digital development. However, this can only be done with restructuring and reorganisation and can (or will) lead to resistance to change, which an organisation must withstand!
This paradigm shift, therefore, requires careful change management strategies that effectively address the human and technical aspects of organisational change. Organisations must also find the right balance between people, structure, process, and technology to do justice to the complexity of their ecosystems.
The success of organisations lies in their ability to continuously adapt their business processes.
The success of organisations in a world of digitalisation and increasing global competition ultimately lies in their ability to continuously and flexibly adapt their DNA, i.e. the organisational structures and business processes. Breaking down silos and fostering collaboration enables organisations to effectively leverage their resources, skills and capabilities to drive growth and keep pace with technological development. When used correctly, technologies such as business and process intelligence tools provide valuable insights that enable organisations to quickly and accurately identify areas for improvement and make data-driven decisions.
However, all of this is associated with fundamental changes, and change requires strong leadership, determination and resilience because change is always a counter-movement to rigid and existing systems and structures that vehemently resist change. As long as such changes are not driven forward holistically and with a strong will, there is a risk that the existing structures will swallow them up over time. This does not mean you cannot start small, nor do you have to implement new approaches with a big bang effect or via the back door. But it means that without a holistic approach and the courage to tackle manifested realities and structures, many endeavours will fail, or such initiatives will be on the verge of burnout.
In this book, we highlight organisational aspects of an entrepreneurial organisation that go beyond pure process management but are essential for achieving process excellence. With this book, let's build the 'Process Excellence Enterprise' and examine the necessary aspects for efficient and effective process reengineering or organisational transformation.
'The truth is rarely pure and never simple.'- Oscar Wilde -
1. From complexity to 'digital' transformation
A spaceship is complex because it comprises many interconnected components, systems, and processes. The complexity results from the multidimensional relationships and interactions between these elements. For example, a spaceship has advanced propulsion systems, life support systems, navigation systems, communication systems, and much more. Each of these systems requires a high level of expertise to operate. This complexity is then increased by the fact that all these highly specialised systems communicate with each other in networks and have interrelationships.
Furthermore, countless details complicate the spaceship if the underlying principles and interrelationships are not sufficiently understood. The complicated aspects of a spaceship can include the design of the individual components, specific and defined operation procedures, and the crew's organisational structure. These make the management of the spaceship more difficult if responsibilities are unclear and too fragmented in detail or remain in encrusted structures.
Complexity as a driver of change and transformation
The term complexity is generally used to describe the dimensionality, degree of difficulty, level of expertise or effort required to understand a system, problem, concept, process or situation. Complexity can also be quantified by factors such as the number of elements, the connections between them, the degree of uncertainty or unpredictability and the amount of information or data involved. Complexity occurs in various fields, e.g., mathematics, biology, sociology, and everyday life situations. Managing complexity consists of breaking down the whole into smaller, more manageable parts, understanding their relationships and interactions, and developing strategies to understand, control and/or solve problems within the complex system.
More than ever, complexity will drive change and transformation because as systems, technologies, regulations and organisations become more complex, they will encounter challenges that can no longer be overcome with traditional structures, methods, competencies and skills. Uncontrolled, complex environments lead to inefficiencies, communication barriers and difficulties if they are not addressed proactively. To navigate and evolve in the ‘new’ complexity, organisations often need to make fundamental changes, introduce structural innovations and redesign their structures and processes to remain effective and competitive.
The increasing complexity of organisations
Organisations are complex ecosystems comprising various interconnected components, such as locations, departments, teams, processes, technologies, data, regulations, expertise, languages, cultures and people. These components all interact with each other daily on multidimensional levels and influence an organisation's overall functioning and culture.
For various reasons, this will become even more acute in the future:
Globalisation: As organisations expand their operations geographically, they have to deal with different languages and cultures, flows of goods and market dynamics.
Technological progress: The rapid pace of technological progress introduces new tools, platforms and systems into organisations that must be integrated and managed.
Further specialisation with simultaneous diversification: Organisations specialise and diversify to make their product portfolio even broader and more customer-oriented, thus meeting the requirements of different markets.
Changing market and customer expectations: With increasing digitalisation, customers expect personalised and seamless experiences just in time. Organisations need to operate a new (digital) form of customer relationship management to fulfil these expectations.
Regulatory and compliance requirements: Organisations must comply with a growing number of laws, standards, and other regulations that vary from market to market and require sophisticated reporting, extensive control systems, and documentation.
Mergers and acquisitions: To speed up competition, mergers and acquisitions will continue to increase, which requires an equally rapid integration of different languages, cultures, systems, processes, and data.
All these factors and more turn organisations into highly complex ecosystems. But please let us differentiate between complex and complicated at this point. Different measures are required to transform organisations and processes depending on whether something is complex or complicated.
