Process Management: A Guide for the Design of Business Processes

346 Pages·2003·20.644 MB·English

by  Jörg Becker, Dieter Kahn (auth.), Prof. Dr. Jörg Becker, Dr. Martin Kugeler, Prof. Dr. Michael Rosemann (eds.)

Process Management
A Guide for the Design of Business Processes
Springer-Verlag Berlin Heidelberg GmbH
Jorg Becker· Martin Kugeler
Michael Rosemann
Editors
Process
Management
A Guide for the Design
of Business Processes
With 83 Figures
and 34 Tables
Springer
Prof. Dr. J6rg Becker (E-Mail: [email protected])
Westfălische Wilhelms-Universităt Miinster
Institut fiir Wirtschaftsinformatik
Leonardo-Campus 3
48149 Miinster, Germany
Dr. Martin Kugeler (E-Mail: [email protected] )
Am Steintor 31a
48167 Miinster, Germany
Prof. Dr. Michael Rosemann (E-Mail: [email protected])
Queensland University of Technology
School of Information Systems
2, George Street
Brisbane QLD 4001, Australia
Translated by
EDV-Studio Kortheuer GmbH (WWW:http://www.edvkort.del)
Haus Gravener StraBe 100
40764 Langenfeld, Germany
ISBN 978-3-642-07800-2 ISBN 978-3-540-24798-2 (eBook)
DOI 10.1007/978-3-540-24798-2
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Preface
Managing business processes is a necessity for every organisation. Since the early
work of Adam Smith, this challenge caught the interest of organisations as well as
that of the academic world. However, it wasn't until the fundamental contribution
of Michael Hammer, that an entire new paradigm for process management was
created. The proposed radical focus on business processes led to new organiza
tional structures and IT- related solutions.
From an organizational viewpoint, new areas of responsibilities have been de
signed. The classical job enrichment and job enlargement have been applied along
business processes. As a consequence, process owners, process managers and most
recently even Chief Process Officers (CPO) have been institutionalized as an ap
proach to appropriately acknowledge the requirements of process-oriented organi
zation.
IT- related developments include the uptake of workflow management systems
that automate the execution of business processes. Moreover, the worldwide focus
on implementing Enterprise Systems was often motivated by the intention to pro
vide an integrated application for the business processes of an organization. How
ever, many of these IT-focused approaches towards process management failed be
cause they were dominated by the complexity of the selected software solution
rather than concentrating on the challenge of true business I IT alignment.
The academic progress in all these areas is well-advanced. Nevertheless, until
today publications that translate the elaborated scientific state of the art into infor
mation that addresses the requirements of practitioners are still the exception. On
the one side, most of the related literature simply states the perceived advantages of
business process management without sufficiently describing ways for the opera
tional implementation of this approach. On the other side, many challenges of prac
tical process management projects, such as dealing with hundreds of process mod
els or the efficient communication of project results, are still not comprehensively
discussed from a more academic viewpoint.
It is the aim of this book to further fill this gap. Our aim is to present a compre
hensive procedure model with high practical applicability. A main feature of this
model is its focus on business process modeling. This book discusses the main pro
ject phases covering the goals of process management, project management, the
design of company-specific modeling guidelines, as-is and to-be modeling, proc
ess-oriented re-design of the organizational hierarchy, process implementation and
change management. A final chapter elaborates on specific application areas such
as benchmarking, knowledge management or Enterprise Systems.
VI Preface
The overall design of this book is based on the guideline "As much practical rele
vance as possible, as much theory as required." A pivotal role is played by a con
sistent case study which can be found throughout the book and which rounds up
the more academic discussions of each chapter.
Thus, we are very grateful to DeTe Immobilien, the organisation which was
willing to share its journey towards a more process-oriented organisation with us.
For more than four years we have been collaboratively working in this area. The
support of this organisation is allowing us to report not only on the successes, but
also on the constraints and errors of this project. Members of the underlying project
were also willing to actively contribute as co-authors to the single chapters of this
book. This was a main factor for the practical relevance of the ideas that are dis
cussed in this book.
Editors of a book always carry a consolidating role. The actual success, how
ever, depends on the contributions of the author. Consequently, we would like to
express our appreciation to each author not only for the chapters, but for the careful
integration in the overall context of this book. Mr Patrick Delfmann significantly
supported this book project with his detailed work on the final design of the manu
script. We are especially grateful to the detailed work of Mrs Roswitha Kortheuer
and Ms Is lay Davies for their translation of this publication.
We hope this book will be inspirational for a wide audience and provides a con
vincing statement for the idea of business process modeling.
MOnster I Brisbane, March 2003 Jorg Becker
Martin Kugeler
Michael Rosemann
Contents
Preface .................................................................................................................... V
Contents ............................................................................................................... VII
Figures ................................................................................................................ XIII
Tables ............................................................................................................... XVII
The Process in Focus
Jorg Becker, Dieter Kahn ................................................................................ 1
1.1 Environment ........................................................................................... I
1.2 From function orientation to process orientation .................................... 2
1.3 The term of process ................................................................................ 4
1.4 Consequences for management-six theses for process orientation ...... 5
1.4.1 Every organizational business structure
has its own efficiency relation ..................................................... 5
1.4.2 The survival pressure in competition causes
sensible adaptation processes to develop ..................................... 6
1.4.3 People and their environment determine the process changes .... 6
1.4.4 Flexibility guarantees a top position ............................................ 7
1.4.5 High Innovation potential and its effective use
lead to top positions ..................................................................... 8
1.4.6 The ability to integrate all participants in the process
secures the success ...................................................................... 8
1.5 The case study-DeTe Immobilien ........................................................ 9
1.5.1 Corporate culture ....................................................................... IO
1.5 .2 Products ..................................................................................... 11
1.6 Objective and structure of this book ..................................................... 11
Project Management
Jorg Becker, Dieter Kahn, Clemens Wemsmann ............................................. 13
2.1 Project goals ......................................................................................... 13
2.2 Projectplan ........................................................................................... 16
2.3 Project organization .............................................................................. 19
2.4 Project controlling ................................................................................ 27
VIII Contents
2.5 Critical success factors ......................................................................... 34
2.6 Checklist ............................................................................................... 38
Preparation of Process Modeling
Michael Rosemann ....................................................................................... 41
3.1 Relevant perspectives .......................................................................... .41
3.1.1 Multi-perspective process modeling ......................................... .41
3.1.2 Potential perspectives on process models ................................. .42
3 .1.3 Identification of the relevant perspectives ................................ .49
3 .1.4 Differentiation of perspectives .................................................. 50
3.2 Relevant modeling techniques .............................................................. 53
3.3 Relevant modeling tools ....................................................................... 57
3.4 Modeling conventions .......................................................................... 53
3.4.1 Guidelines of modeling ............................................................. 58
3.4.2 Intention of modeling conventions ............................................ 60
3.4.3 Subject of modeling conventions .............................................. 61
3.5 Technical term modeling ...................................................................... 66
3.5.1 Intention of technical term modeling ........................................ 66
3.5.2 Method for technical term modeling ......................................... 68
3.5.3 Distribution and maintenance .................................................... 75
3.6 Checklist ............................................................................................... 76
From Strategy to the Business Process Framework
Jorg Becker, Volker Meise ............................................................................ 79
4.1 Organization design in strategic context ............................................... 79
4.2 Strategic business fields and units ........................................................ 82
4.3 Market-based view ofstrategy .............................................................. 83
4.3.1 Low-cost leadership .................................................................. 84
4.3.2 Differentiation ........................................................................... 85
4.3.3 The value chain ......................................................................... 86
4.4 Resource-based view of strategy .......................................................... 86
4.4.1 Core competencies .................................................................... 88
4.4.2 Management of core competencies ........................................... 91
4.5 Combination ofviews ........................................................................... 93
4.6 From structure to core processes .......................................................... 95
4.6.1 Use of efficiency criteria ........................................................... 96
4.6.2 Example: Business Process Reengineering ...............................9 6
4.6.3 Derivation of core processes ..................................................... 97
4. 7 Business process framework as guiding principle ................................ 99
4.8 Checklist ............................................................................................. l04
Contents IX
As-is Modeling and Process Analysis
Ansgar Schwegmann, Michael Laske ........................................................... 10 7
5.1 Objectives of as-is modeling .............................................................. ! 07
5.2 Procedure of as-is modeling ............................................................... 10 9
5.2.1 Preparation of as-is modeling .................................................. l09
5 .2.2 Identification and prioritizing of problem areas ...................... 111
5 2..3 Collection and documentation of as-is models ........................ 115
5.2.4 Consolidation of as-is models ................................................. 119
5.3 Analysis of as-is models ..................................................................... 122
5.3.1 Criteria for the evaluation of as-is models ............................... 122
5.3.2 Support of as-is anaysis by reference models .......................... 125
5.3.3 Support of as-is analysis by benchmarking ............................. 127
5.3.4 Identification and documentation of weaknesses
and potential improvements .................................................... 128
5.3 .5 Execution of immediate actions to eliminate weaknesses ....... 130
5.4 Checklist ............................................................................................. 131
To-be Modeling and Process Optimization
Mario Speck, Norbert Schnetgoke ................................................................ 135
6.1 Objectives of to-be modeling .............................................................. 135
6.2 Procedure of to-be modeling .............................................................. 137
6.2.1 Preparation of to-be modeling ................................................. 137
6.2.2 To-be process identification and rough draft ........................... 143
6.2.3 Design and documentation of to-be models ............................ 151
6.2.4 Documentation of to-be models .............................................. 156
6.2.5 The benefits of process simulation .......................................... 157
6.2.6 Use of reference models for to-be modeling ........................... 158
6.2.7 Model optimization and consolidation .................................... 159
6.3 Editing of results ................................................................................. 162
6.4 Checklist ............................................................................................. 163
Design of a Process-oriented Organizational Structure
Martin Kugeler, Michael Vieting ................................................................. 165
7.1 Subject and goal of a process-oriented organization .......................... 165
7 .1.1 Process organization and organizational structure from the
process-oriented point of view ................................................ 165
7 .1.2 Interfaces in the organizational structure -
the most important joints ......................................................... 168
7.2 Comparison of organization types ...................................................... I7 1
7 .2.1 Efficiency criteria of organization ........................................... 171
7.2.2 Traditional types of organization ............................................. 174
X Contents
7 .2.3 Process-oriented organization-path or goal? ......................... 177
7.3 Modeling of the organizational structure view
and its integration into the process view ............................................. 17 8
7.4 Process model to design a process-oriented
organizational structure ...................................................................... 187
7 .4.1 Traditional method: Analysis-synthesis concept.. ................... l87
7.4.2 Process model-aided procedure based on a reference model .. 189
7.4.3 Process model sampled by DeTe Immobilien ......................... 199
7.5 Checklist ............................................................................................. 204
Process Implementation - Process Roll-out
Michael Laske, Redmer Luxem ................................................................... 207
8.1 Position of implementation in total project.. ....................................... 207
8.2 Roll-out strategy ................................................................................. 208
8.2.1 Implementation sequence of organizational structure and
processes ................................................................................. 208
8.2.2 Step-by-step versus big-bang .................................................. 209
8.3 Project marketing and information ..................................................... 212
8.3.1 Target: Acceptance .................................................................. 212
8.3.2 Communication concept .......................................................... 214
8.3.3 Training concept ...................................................................... 219
8.4 Measures for personnel transfer .......................................................... 221
8.5 Technical realization. .......................................................................... 224
8.5.1 Realization by proprietary methods ......................................... 225
8.5.2 Realization by groupware ........................................................ 227
8.5.3 Realization by Intranet concepts ............................................. 228
8.5.4 Realization by hybrid methods ................................................ 230
8.5.5 Comparison ofmethods ........................................................... 230
8.6 Checklist ............................................................................................. 231
Continuous Process Management
Stefan Neumann, Christian Probst, Clemens Wernsmann ............................... 233
9.1 From process-oriented reorganization to
continuous process management ........................................................ 233
9.2 Goal and operation .............................................................................. 236
9.3 Phase and process model for continuous process management.. ........ 238
9.3.1 Implementation phase ............................................................. 239
9.3.2 Analysis phase ......................................................................... 241
9.3.3 Goal redefinition phase ........................................................... 242
9.3.4 Modeling and implementation phase ....................................... 243
9.4 Institutional anchorage of process responsibility ................................ 244
9.4.1 Process responsible ................................................................. 245
Contents XI
9.4.2 Process owner .......................................................................... 246
9.4.3 Process manager ...................................................................... 247
9.5 Checklist ............................................................................................. 249
Additional Application Areas and Further Perspectives -
Beyond Re-engineering
Michael zur Miihlen .................................................................................... 251
10.1 Certification ........................................................................................ 251
10.2 ERP-software ...................................................................................... 254
10.2.1 To-be modeling based on an ERP-reference mode1 ................ 256
10 .2.2 Modeling the perfect case ........................................................ 257
10 .2.3 Generation of to-be models based solely
on current as-is models ............................................................ 258
10 .2.4 Design recommendations ........................................................ 258
10.3 Development of in-house software ..................................................... 260
10 .3.1 In-house and off-the-shelf software ......................................... 260
10.3.2 Design of in-house software with process models .................. 262
10.4 Workflow management ...................................................................... 263
10 .4.1 Motivation for workflow management systems ...................... 263
10 .4.2 Related Definitions .................................................................. 264
10 .4.3 Transfer of business process models into workflow models ... 266
10 .4.4 Identification of business processes suitable
for workflow management ...................................................... 268
10.4.5 Execution of workflow models ............................................... 270
10 .4.6 Potential benefits from workflow management systems ......... 270
10.5 Knowledge management .................................................................... 272
10.5.1 From process management to knowledge management.. ........ 272
10 .5.2 Data, information and knowledge ........................................... 272
10 .5.3 Process of knowledge creation ................................................ 273
10 .5.4 Organizational support ............................................................ 275
10 .5.5 Information-technological support .......................................... 275
10.5.6 Implications for company management .................................. 276
10.6 Model-based benchmarking ................................................................ 276
10 .6.1 Procedure model for benchmarking projects ........................... 277
10.6.2 Benchmarking within a company ............................................ 278
10 .6.3 Benchmarking beyond organizational limits ........................... 278
10 .6.4 Comparable parameters ........................................................... 279
10 .6.5 Measurement and strategic influence of activities for
reorganization .......................................................................... 280
10.7 Internet-based process modeling ........................................................ 281
10 .7.1 Motivation of decentralized process modeling ........................ 281
10 .7.2 Scenario 1: Modeling on centralized server
by decentralized clients ........................................................... 283