The document introduces the business process management (BPM) life cycle. It discusses that improving BPM efforts requires increasing capabilities in three areas: process maturity, process management maturity, and organizational maturity. The BPM life cycle involves analyzing the organization, designing and modeling processes, implementing processes, monitoring processes, and continually improving processes. Key aspects of the life cycle include setting goals and strategies, defining metrics, identifying bottlenecks, and linking process management to the overall organization's mission and objectives.

1. Introduction to the BPM Life Cycle
Maturing BPM Efforts
Dr. Michael zur Muehlen
Stevens Institute of Technology
Center for Business Process Innovation
April 16, 2011

2. “If it doesn’t make
three people angry,
it is not a process”
Beyond Reengineering (Michael Hammer, 1996)
2

3. Key Takeaways
§ Analysis Frameworks provide context
§ Transactions perform work, Analytics manage work
§ The diagram isn’t everything
§ Improve your capabilities in 3 areas:
§ Process Maturity
§ Process Management Maturity
§ Organizational Maturity
3

4. Analyze

5. “Most businesses have just
3 core processes:
1. sell stuff
2. deliver stuff, and
3. making sure you have stuff to sell and deliver”
Geary Rummler
5
5

6. Enterprise As A System
Enterprise
Management System
Management
Planning and Mgt. Information Information
Control System
System
Custo-
Reporting
Suppliers
Directive
mers
Operational System
Operational Information System
Goods and Services
Money

7. Organizing Content: Framework
Strategy & Governance
Contracting Marketing
Purchasing Sales
Receiving Warehousing Shipping
Invoice
Billing
Auditing
Accounts Accounts
Payable Receivable
Support Processes (Accounting, HR, IT etc.)
7

8. Design

9. The Process Problem
Source: 9
WW Grainger

10. Process Abstraction Levels
Level A
Business Activities Business
Objectives Scorecard
Activities
Level B
Process Groupings
Level C
Process Groupings
What Ownership Services
Core Processes
Core processes Delivery Units Products
Level DProcess
Business
Flows System
Processes Delivery Teams
s
How
Level E
Operational Process Flows
Sub Processes Roles System Functions
Level F
Detailed Process
Flows
Detailed Processes Detailed Roles Transactions
Source: British Telecommunications plc 2006

11. Implement

12. “Vision without execution is hallucination”
Thomas Alva Edison
12
12

13. The Developer’s Perspective
13

14. The Architect’s Perspective
14

15. What the Customer Wants
15

16. Manage

17. “All models are wrong,
some are useful”George P.E. Box
17

18. Process Analytics
Business Process Analytics
Process Business Process
Controlling Activity Monitoring Intelligence
Processing of Event Detection & Dashboards Simulation
Context Events Correlation Historical
Analytics Rule-based Data Mining
Notification
Optimization
Event Bus
External Event EAI
ERP ECM BPM
Sources
Legacy Custom
Enterprise IT Infrastructure

19. Improve

20. Targets
• Improve your Process Performance
• Improve your Process Management Performance
• Improve your Organizational Performance

21. Theory of Constraints
1. Define the goal - performance or compliance?
2. Define key metrics – cycle time, wait time, resource utilization
3. Identify the constraint – find the bottleneck activity/resource
4. Exploit the constraint – maximize use of the bottleneck
5. Subordinate to the constraint – limit upstream throughput
6. Elevate the constraint – invest and improve
7. Avoid inertia – start the process again

22. Process Management Maturity
Business Process Management
Maturity
Strategic
Governance Method IT People Culture
Alignment
Process Process Roles and Process Design & Process Design & Process Skills & Process Values &
Improvement Plan Responsibilities Modeling Modeling Expertise Beliefs
Process Process
Strategy & Process Decision Making Process Education Process Attitudes &
Implementation & Implementation &
Capability Linkage Processes & Learning Behaviors
Executions Executions
Process Metrics & Process
Process Process Control & Process Control & Responsiveness to
Performance Collaboration &
Architecture Measurement Measurement Process Change
Linkage Communication
Process Process Process Leadership
Process Output
Management Improvement & Improvement & Process Knowledge Attention to
Measurement
Standards Innovation Innovation Process
Process Process Project & Process Project & Process
Process Customers Process Social
Management Program Program Management
& Stakeholders Networks
Controls Management Management Leaders
Source: Rosemann & De Bruin 2008

23. Organizational Performance
Value Generates FINANCIAL
Cash Flow Primary Objectives
CUSTOMER
Processes Enable
Value Value Proposition
PROCESS
BPM Coordinates
Processes Regulatory
Operations Customer Innovation
/ Social
BPM shapes and is Strategic
shaped by Strategic Change
Job
organizational IT Agenda
Families
maturity
LEARNING & GROWTH
Maturity is
determined by Human Information Organization
People and Capital Capital Capital
Technology

24. Organizational Performance
MISSION
Organizational
Mission is Mandated Objectives
Paramount
FINANCIAL CUSTOMER
Value and Fiscal
Responsibility are Fiscal Constraints Value Proposition
in balance
PROCESS
BPM Coordinates
Processes Regulatory
Operations Customer Innovation
/ Social
BPM shapes and is Strategic
shaped by Strategic Change
Job
organizational IT Agenda
Families
maturity
LEARNING & GROWTH
Maturity is
determined by Human Information Organization
People and Capital Capital Capital
Technology

25. Goal Specification,
Strategy Definition
BPM Life Cycle
Organizational
Analysis
Strategy
Revision
Process
Design
Process
Modeling and Models
Specification
Improvement
Measures for
Process Process
Evaluation Implementation
Target Metrics
Process Mining / Build Time /
Warehousing Integration
Implemented
Processes
Process
Enactment
Export for other Process
reporting purpose Metrics Run Time / Task
and Resource
Allocation
Measure-
ments
Process
Monitoring
Process
Metrics
Business Activity
Monitoring

26. Key Takeaways
§ Analysis Frameworks provide context
§ Transactions perform work, Analytics manage work
§ The diagram isn’t everything
§ Improve your capabilities in 3 areas:
§ Process Maturity
§ Process Management Maturity
§ Organizational Maturity

27. Thank You!