What is the ultimate vision for a process-oriented company?

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Expanding business process management performance when pursued not as a tactical issue but as a cultural and philosophical change is more valuable. BPM shifts the focus to processes, not organizational units, individuals, products, or metrics. The emphasis on processes is because it is the most effective way to articulate what each person must do in a way that connects the highest strategic level to individual actions. Well-defined processes that are widely integrated within the organization require less management. Individual decision-making occurs within the framework of what is happening and what will happen. The power of BPMN in illustrating processes at various levels of detail allows each management level to model and manage processes at an appropriate level.

Creating a program-oriented vision

In most companies, the starting point for transformation towards BPM is organizing departments, meaning a program-oriented vision is used in company management. Until suitable organizational programs are developed that automate standard processes in a highly configurable way, management's focus is on the effective use of these programs. In many ways, these applications strengthen the company's subsystem structure. The CFO and CCO benefit from ERP , the sales manager from CRM, the supply chain manager from SCM, and the production manager from PLM. However, shortly after the emergence of these applications, the need for end-to-end process integration and optimization quickly became apparent. The figure below briefly describes the change in mindset.

From Program-Oriented Thinking to Process-Oriented Thinking

Before the emergence of BPM thinking, many activities within a company focused on compensating for weaknesses from a program-oriented perspective using techniques such as business intelligence to consolidate data or performance metrics to discover what is happening within the organization. Unstructured collaborations and interactions are used to fill many gaps where organizational programs were not performing well.

In a process-driven company, the focus is on processes, and applications are connected to processes through web services. The role of applications shifts to providing information and supporting performance for end-to-end processes defined using BPM. The focus on metrics is replaced by a more comprehensive approach to performance management that keeps processes at a more detailed level.

Stages of Transition to Process-Centric Approach

Moving to a comprehensive BPM view involves several stages. Each stage enhances capabilities and techniques, improving performance and preparing the company for a higher level of process maturity. This transition and the maturity stages have been defined in many ways by numerous observers and analysts. One of the clearest ways to understand this transformation is by using the stages outlined in the figure below, which are based on the capability maturity model developed by the Software Engineering Institute at Carnegie Mellon for software development. CMMI has found wide application in many places.

Transition to process orientation

Most companies begin their journey to BPM at process maturity level 1. Processes are not individually defined within applications. At this level, individuals are trying to do their best.

In level 1, most companies focus on gaining new capabilities from applications.

At process maturity level 2, processes start to be defined at the department or workgroup level. The goal is to gain control and a clear understanding of what happens through documented processes. The benefits include reduced IT costs (as an optional capability), faster time-to-market, and other ways of accelerating work. For a company, discovering BPM benefits usually occurs when one or more departments demonstrate advantages.

At process maturity level 3, process definitions take shape across the organization. End-to-end processes that cover departments and provide key input and output access to suppliers are aligned and analyzed. The resulting awareness highlights changes that could improve efficiency. Starting from a well-defined baseline, further optimization can occur more rapidly. The ability to modify processes paves the way for a responsive business that can better adapt to market dynamics.

At process maturity level 4, performance management not only captures the processes used to measure results but also tracks inputs. By monitoring the relationships between inputs and outputs of various processes, analysis becomes more predictable. This increased real-time transparency, especially with information needed for early risk and issue detection, helps problems be identified and addressed in a timely manner. Strategic goals can be expressed as precise metrics at a high level of detail.

At process maturity level 5, the company can build on the first four levels to participate in continuous improvement and business optimization. IT is now more focused on supporting organizational processes rather than just maintaining applications. Increased transparency and a proper understanding of the big picture improve decision-making.

Maturity models like this can help assess a company's current state and plan various activities that will benefit progress most. Attention to the stages gradually advancing the company prevents moving too quickly and overextending.

The final stage of BPM is a world where a company begins to think processually about everything. This does not mean that everything is automated or fully documented and defined. It means that start points, end points, inputs, outputs, and goals are well-defined and reviewed so that each individual knows their role and the expected results.