Governance is Key to BPM Success

Author(s)

Faculty Member, DBizInstitute.org and Managing Director, Spanyi International

If all you want to do is execute a one-time improvement to a small business process then governance issues may not be high on your agenda. But if you wish to fully leverage the power of BPM and apply the key principles and practices to your company’s large business processes, you will soon discover that governance is the cornerstone to sustainable BPM success.

Any broad-based effort to improve and manage a company’s large business processes relies on measuring what matters to customers and assigning accountability for the ongoing improvement and management of the firm’s cross-functional processes. Measurement and ownership – that’s what governance is about. While the need for process governance is fairly widely recognized, precisely how to do it can be much more problematic.

Many companies unnecessarily complicate the topic of measurement. Customers have well-known needs. They want what they ordered, received complete and defect free when it is delivered. They want the delivery to be when it is expected, an accurate, user-friendly invoice, and pleasant, responsive service to inquiries and problems. That’s what you need to measure to assess the performance of the ‘order to delivery’ process. What’s so hard about that?

But only about one third of process-oriented firms measure what matters to customers in any disciplined way. Even fewer can correlate improvement in customer-centric measures to improvements in financial performance.

Approaches to Governance

Measuring the performance of a company’s key end-to-end business processes such as ‘order to delivery,’ ‘idea to launch,’ and ‘procure to pay’ is a necessary but not sufficient condition for effective governance. Assignment of accountability for the improvement and management of these business processes is required for sustainable results. While there are various approaches to assigning accountability or ownership, the two most common might be called the ‘two hats line’ and the ‘one hat staff’ approach. In the ‘two hats line’ approach, a senior line executive assumes responsibility for an end-to-end process and retains accountability for their functional area. This approach relies upon ‘matrix management’ principles. In the ‘one hat staff’ approach, a senior executive is appointed to a staff position of ‘process owner’ or ‘process steward’ for an end-to-end business process.

Role clarity and aligned recognition and reward systems are essential to both approaches. The former involves clearly defining the scope of the associated end-to-end processes, being clear on the size of the gap between current and desired performance, broadly communicating improvement goals, and investing in a common methodology for process improvement and management. Modifying compensation such that some significant part of the discretionary component of executives’ and managers’ bonus compensation becomes directly related to the performance of end-to-end processes is equally important.

The customer-centric measurement practices and the assignment of ownership for a company’s end-to-end business processes are arguably the two most important aspects of governance. The combined effect is to shift company culture so people begin to assign their loyalty to serving customers via the key business processes. Process management and process governance is not intended to dominate or replace a business unit focus or the need for functional excellence. Instead, it represents an additional and valuable management practice that emphasizes the way in which a company creates value for customers.

Similar Resources

Enhancing Your Team’s BPM Capabilities: The Value of External Expertise

Enhancing Your Team’s BPM Capabilities: The Value of External Expertise

Author(s):

Editor & Founder, BPMInstitute.org, BAInstitute.org and DBIZInstitute.org

Enhancing Your Team's BPM Capabilities: The Value of External Expertise In today’s dynamic business environment, managing and improving business processes is critical for any organization aiming to maintain a competitive edge. Many companies consider handling Business...

Exploring Shared Data Model and Notation (SDMN) and Its Role in BPM+

Exploring Shared Data Model and Notation (SDMN) and Its Role in BPM+

Author(s):

Editor & Founder, BPMInstitute.org, BAInstitute.org and DBIZInstitute.org

Exploring Shared Data Model and Notation (SDMN) and Its Role in BPM+ Introduction In the evolving landscape of Business Process Management (BPM), the introduction of Shared Data Model Notation (SDMN) marks a significant advancement. As businesses increasingly seek to...

Embracing the Future: Low-Code and No-Code Platforms in BPM+

Embracing the Future: Low-Code and No-Code Platforms in BPM+

Author(s):

Editor & Founder, BPMInstitute.org, BAInstitute.org and DBIZInstitute.org

Embracing the Future: Low-Code and No-Code Platforms in BPM+ Introduction In the realm of business process management (BPM), low-code and no-code platforms have emerged as transformative tools, reshaping how organizations develop applications and manage workflows....

Featured Certificate: BPM Specialist

Everyone starts here.

You're looking for a way to improve your process improvement skills, but you're not sure where to start.

Earning your Business Process Management Specialist (BPMS) Certificate will give you the competitive advantage you need in today's world. Our courses help you deliver faster and makes projects easier.

Your skills will include building hierarchical process models, using tools to analyze and assess process performance, defining critical process metrics, using best practice principles to redesign processes, developing process improvement project plans, building a center of excellence, and establishing process governance.

The BPMS Certificate is the perfect way to show employers that you are serious about business process management. With in-depth knowledge of process improvement and management, you'll be able to take your business career to the next level.

Learn more about the BPM Specialist Certificate

Courses

  •  

 

Certificates

  • Business Process Management Specialist
  • Earning your Business Process Management Specialist (BPMS) Certificate will provide you with a distinct competitive advantage in today’s rapidly evolving business landscape. With in-depth knowledge of process improvement and management, you’ll be able to take your business career to the next level.
  • BPM Professional Certificate
    Business Process Management Professional
  • Earning your Business Process Management Professional (BPMP) Certificate will elevate your expertise and professional standing in the field of business process management. Our BPMP Certificate is a tangible symbol of your achievement, demonstrating your in-depth knowledge of process improvement and management.

Certification

BPM Certification

  • Make the most of your hard-earned skills. Earn the respect of your peers and superiors with Business Process Management Certification from the industry's top BPM educational organization.

Courses

 

Certificates

  • Operational Excellence Specialist
  • Earning your Operational Excellence Specialist Certificate will provide you with a distinct advantage in driving organizational excellence and achieving sustainable improvements in performance.
 

 

OpEx Professional Certificate

  • Operational Excellence Professional
  • Earn your Operational Excellence Professional Certificate and gain a competitive edge in driving organizational excellence and achieving sustainable improvements in performance.

Courses

Certificate
  •  

  • Agile BPM Specialist
  • Earn your Agile BPM Specialist Certificate and gain a competitive edge in driving business process management (BPM) with agile methodologies. You’ll gain a strong understanding of how to apply agile principles and concepts to business process management initiatives.  
 

Business Architecture

 

Certificates

  • Business Architecture Specialist
  • The Business Architecture Specialist (BAIS) Certificate is proof that you’ve begun your business architecture journey by committing to the industry’s most meaningful and credible business architecture training program.

  • Business Architecture Professional
  • When you earn your Business Architecture Professional (BAIP) Certificate, you will be able to design and implement a governance structure for your organization, develop and optimize business processes, and manage business information effectively.

BA CertificationCertification

  • Make the most of your hard-earned skills. Earn the respect of your peers and superiors with Business Architecture Certification from the industry's top BPM educational organization.

Courses

 

Certificates

  • Digital Transformation Specialist
  • Earning your Digital Transformation Specialist Certificate will provide you with a distinct advantage in today’s rapidly evolving business landscape. 
 

 

  • Digital Transformation Professional
  • The Digital Transformation Professional Certificate is the first program in the industry to cover all the key pillars of Digital Transformation holistically with practical recommendations and exercises.

Courses

Certificate

  • Agile Business Analysis Specialist
  • Earning your Agile Business Analysis Specialist Certificate will provide you with a distinct advantage in the world of agile software development.

Courses

Certificate
  • DAS Certificate
  • Decision Automation Specialist
  • Earning your Decision Automation Certificate will empower you to excel in the dynamic field of automated decision-making, where data-driven insights are pivotal to driving business innovation and efficiency.