BUSINESS PROCESS MANAGEMENT ENGLISH
Prof. Licda. Anais Valerio
1. – Make a 15 lines summary of the following article.
2. – Search for verbs, adverbs, nouns, adjectives 30 total.
WRITTEN BY ANDREW SPANYI
There are two key reasons why companies must closely monitor their value creating business processes; first, companies need more actionableinsight and visibility on the critical few operating metrics that underlie value creation. Next, stricter global accounting and corporate governance requirements have placed increased pressure on publicly traded corporations to have greater transparency and accuracy in both financial reporting and managerial control.
While the evolution of Business Process Management Systems (BPMS) offers thepromise of delivering operational transparency at the organizational level; generally, it has yet to realize its full potential. Gartner has defined a BPMS as “an integrated collection of software technologies that enables the control and management of business processes,” and a BPMS typically marries BPM software with analytics or Business Intelligence (BI) capability as well as document managementfeatures and collaboration tools such as portals and forums.
There have been a few successful attempts deploying BPMS to install operational transparency. There have been more than a few utter failures. Most attempts fall somewhere in between. There are at least five critical mistakes which explain why the deployment of BPMS has failed to realize its full potential in delivering operationaltransparency at the organizational level.
Mistake # 1: Lack of a systemic Perspective. The effective application of BPMS for operational transparency requires a systemic view of the end-to-end business processes that crate value for both customers and the organization. Far too often, BPMS is applied to address specific points of pain in a specific part of operations frequently in a way that is oflimited scope. While this can produce local optima, it can also lead to sub-optimizing organizational performance and failure to enable the monitoring and management of the firm’s end-to-end business processes.
Mistake # 2: Lack of Customer Focus. Companies fail to view operations from the customers’ point of the view – or the outside-in.’ they emphasize the measurement of volume and cost relatedmetrics and ignore the key processes in the value chain such as developing, selling and delivering products and/or services.
Mistake # 3: Fragmented or Competing technologies. Organizations frequently have BI tools as well as a BPMS. Further, due to mergers, acquisitions and strategic alliances, many organizations now have a mix of legacy systems that are connected together with the “bailingwire” of cumbersome interfaces. The lack of integration of these technologies can lead to redundancies, lack of focus and increased costs.
Mistake # 4: Inadequate or Inconsistent Management Attention. Sustained management attention to the critical few metrics that define operation performance is elusive. Management priorities are constantly changing and operations do not have the needed level ofcrisp definition in a process context. Nor are senior executives incented to pay ongoing attention to operational performance.
Mistake # 5: Too many Metrics. Having too many key performance indicators (KPI) is almost as ineffective ass having none. The “K” in KPI stands for key – that means the critical few. Yet, organizations persist in attempting to monitor far too many metrics and fail tohave a cascading mechanism that guides leaders to pinpointing root causes for red flags on the high-level, critical operating metrics. In part this is due to a legacy where the definition of key metrics is still dominated by a functional or departmental mindset.
So what must organizations do to successfully develop and sustain operational transparency at the organizational level through the...