What is a Process Enterprise Identifying the desired future state and selecting an approach to get there Much of the material in this presentation was drawn from the following sources: Harmon, Paul, “Managing the Process-Centric Organization”, presentation Harmon, Paul, Business Process Change, Second Edition (2007), by Business Process Trends

Types of Management Operational Management (Running the company) Responsible for the ongoing work of the organization In most companies, this is the majority of the work Question: when is this not true? Project Management (Changing things) Responsible for specific projects that have a start and end Example: developing a new laptop (engineering) Example: implementing Vista across the company (IT) As mentioned previously in this class, something that starts as a project is often integrated into the operations of the organization: The new laptop now becomes part of the regular product line The new operating system is now supported by the Help Desk BA 553: Business Process Management2

Approaches to Operational Management There are two main approaches to Operational Management: Functional Management Process Management This course is focused on process management BA 553: Business Process Management3

Enterprise BPM Methodology “Managing the Process-Centric Organization”, presentation by Paul Harmon. BA 553: Business Process Management4 Session 5 Session 7 Sessions 8 & 10 Sess. 4 BA 563: Process Improvement

What is the Most Difficult Part of BPM? Process management is the hardest piece. It will take the longest to change because change is resisted so strongly The organization of a company’s managers is an executive decision that depends on the philosophy of the organization’s executives The key to process management is the managers’ bonus and incentive system, which in turn, depends on the KPIs senior managers care about If the company is organized as a functional organization, there can still be process managers, but the focus will be very different In order to achieve process management, the organization needs to be structured around its processes, to some degree BA 553: Business Process Management5

Organizational Structure This does not have to be an “either-or” decision: matrix management is an approach that enables a focus on function AND a focus on process The approach depends on key decisions such as: Who owns the resources? Who owns the budget? Is there a dedicated group of process managers? BA 553: Business Process Management6 Project Management Institute’s classification of the 5 organizational types

BA 553: Business Process Management7 What is a process enterprise? An organization in which senior executives rely heavily on process concepts and techniques to manage the organization An organization in which senior executives rely heavily on process performance measures It’s an evolving concept. Some organizations are completely organized around their business processes but most process- centric organizations have a mix of functional and process structures The key is the interest and commitment on the part of corporate executives to the use of process concepts Harmon, Paul (2007), Managing the Process-Centric Organization, presentation, BPMTrends.

Focus of Functional vs. Process Management BA 553: Business Process Management8

Coordinating the Management of Processes BA 553: Business Process Management9