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“The content and description of this course was very appealing because many processes in Payroll and Benefits are data and systems dependent requiring consistent application of policies and procedures. Two aspects of the course— standardization and cellular teams— were most relevant to us. We do many things in teams; but, we don’t always do them the same way. Already, we are seeing results in standardizing our work processes and reducing waste. For example, we found that some of our teams calculated the company’s pay equalization for military duty differently, using slightly different assumptions. Together, the teams looked at the different methods and rationales, found common ground and built new standard operating procedures for everyone that achieved the best results for the employee and company.”

Tim Muffly
Director, Payroll Administration


Setting up a BPM Measurement System - Part 2 of 3

Screen Shot 2014-09-08 at 12.06.04 PMIf you’re working on a single business process improvement project or many processes across the enterprise, you need a measurement system.  But how do you build one that is comprehensive, efficient and effective?  Part 1 covered Level 1 and 2 measurement elements based on the process maturity graphic below.  This part covers Level 3. 

By Level 3, the organization should have already modeled and improved many processes (mostly within functions, but also some cross functionally.)  Now they are ready to work with larger enterprise processes and to set up governance at the organizational level.   What that means for measures is standards need to be agreed for how many and what type of quantitative data needs to be collected, analyzed and monitored for each process. One of the challenges is to choose the right process measures–measures that give insight toward the improvement targets for the process and measure what the company will use to make decisions and take action.  I suggest these data elements are required for each process – baseline and goal data for each improvement target, in process measures for critical waste areas, voice of the customer, and other categories (time, quality, cost, productivity, or volume) depending on the focus of the goals.

Measures in CMMI graphic

Three other aspects of a measurement system become important at Level 3- automating measures, a process portfolio, and process measurement ownership. (1) It is necessary to start thinking about how to collect the measures and move toward automating that data gathering. This means the company will probably be using a BPM suite or have data mining capabilities. 

(2) Additionally since this level is about the organization as a whole, there needs to be a process inventory and process portfolio.  The process portfolio shows all the core processes, management processes, and infrastructure processes.  This is a picture of the processes enterprise-wide, what I call a macro map. (See “Macro Maps Help You Choose Processes.”)

A business architecture graphic will reveal even more than the macro map – adding related information systems, business strategy, and technology systems.  What’s important with both the process portfolio and business architecture is that the company is looking at all its processes, noting duplications, and seeing which processes are important from a company perspective vs. a single leader or business unit need.   

(3) The Process Owner is designated as the person responsible for continuing to monitor a process and follow the measures.  A Process Owner was identified for each process at Level 2, but now at Level 3 this role is recognized at an organizational level.  It should become part of job descriptions where appropriate.  Also Process Owners will probably be part of a Steering Committee looking at measures across processes and the organization.   Level 3 is really about moving from individual projects to organizational process maturity.

Part 3 of this blog will cover Level 4 and Level 5 and provide a table summarizing all the measurement elements at each process maturity level.





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