Process Management Levels -- Analysing and Monitoring Business Processes -- © Josef Schiefer, IBM Watson

Process Management Levels

Measures varying according to the Organization Level

Real-time Level Characteristics Examples Time horizon: instantly (real-time); response time for decision making can be guaranteed (within seconds); the period of time during which the decision has an effect is very short. Financial impact: Consequences of a wrong decision are small Transaction scope: Decisions can be made within the transaction of the source system User groups: Customers, Users of the system (process performers) Frequency: Decisions are made very frequently and instantly when the events are raised Data for the decision making: Event data Examples Decision about whether a customer can register for a service or not

Operational Level Characteristics Examples Rational: Rapid and objective feedback of business process performance. Evaluation of effectiveness of process handling changes. Time horizon: Decisions are made very regularly (from hours to days) Financial impact: The scope of very limited. Decisions are limited very often to a certain activity. Transaction scope: Decisions can not be made within the transaction of the source system User groups: Users of the system (process performers), Operational Management Frequency: Decisions are made very frequently and when an activity is performed Data for the decision making: Activity / work item data (e.g. processing time, waiting time) Examples Decision about how to perform an activity of a process Resource assignment decisions

Tactical Level Characteristics Examples Rational: Comparison of actual performance data with planned values and data from previous periods. Benchmarks with other companies. Monitoring and tracking of process targets (throughput time, process quality, costs...). Time horizon: Decisions are made periodically (from days to months). Financial impact: High. Transaction Scope: Decisions can not be made within the transaction of the source system User groups: Operational Management, Process Owners. Frequency: Decisions are made periodically when measures for the executed processes are available. Data for the decision making: Process instance data (e.g. process cycle time, sum of processing time, sum of waiting time) Examples Analysis of the development of the process cycle times Resource capacity planning and budgeting

Strategic Level Characteristics Examples Rational: Formulating strategic objectives for the core business processes. Objectives must be translated into concrete measures in coordination with area managers (Balanced Scorecard). Time horizon: month – years. A decision is made only once. Financial impact: The scope is wide and the financial impact is very high. Transaction scope: Decisions can not be made within the transaction of the source system User groups: Process Owners, Executives Data for the decision making: Quantitative and qualitative process performance measurement values (customer satisfaction, profitability/ROI targets...) are defined and communicated throughout the company. Examples Analysis of the process design Analysis of the resource types