Business Process Change

Business Process Change, 3^rd Edition provides a balanced view of the field of business process change. Bestselling author Paul Harmon offers concepts, methods, cases for all aspects and phases of successful business process improvement. Updated and added for this edition is new material on the development of business models and business process architecture development, on integrating decision management models and business rules, on service processes and on dynamic case management, and on integrating various approaches in a broad business process management approach.

New to this edition:

• How to develop business models and business process architecture
• How to integrate decision management models and business rules
• New material on service processes and on dynamic case management
• Learn to integrate various approaches in a broad business process management approach

• Extensive revision and update addresses Business Process Management Systems, and the integration of process redesign and Six Sigma
• Learn how all the different process elements fit together in this best first book on business process, now completely updated
• Tailor the presented methodology, which is based on best practices, to your organization's specific needs
• Understand the human aspects of process redesign
• Benefit from all new detailed case studies showing how these methods are implemented

1;Front Cover;1 2;BUSINESS PROCESS CHANGE;2 2.1;FEATURES;2 2.2;ABOUT THE AUTHOR;2 2.3;PRAISE FOR BUSINESS PROCESS CHANGE;3 3;Business Process Change: A BUSINESS PROCESS MANAGEMENT GUIDE FOR MANAGERS AND PROCESS PROFESSIONALS;8 4;Copyright;9 5;Dedication;10 6;CONTENTS;12 7;FOREWORD;18 8;PREFACE TO THE THIRD EDITION;20 9;Introduction;24 9.1;LEVELS OF CONCERNS;24 9.2;BUSINESS PROCESS CHANGE AND MANAGEMENT;28 9.3;THE EVOLUTION OF AN ORGANIZATIONS UNDERSTANDING OF PROCESS;30 9.4;THE VARIETY OF OPTIONS;32 9.5;THE VARIETY OF SOLUTIONS;33 9.6;HOW THIS BOOK IS ORGANIZED;34 9.7;NOTES AND REFERENCES;37 10;Chapter One - Business Process Change;38 10.1;ORGANIZATIONS AS SYSTEMS;39 10.2;SYSTEMS AND VALUE CHAINS;39 10.3;THE SIX SIGMA MOVEMENT;44 10.4;BUSINESS PROCESS CHANGE IN THE 1990S;45 10.5;LEAN AND THE TOYOTA PRODUCTION SYSTEM;48 10.6;OTHER PROCESS CHANGE WORK IN THE 1990S;49 10.7;A QUICK SUMMARY;52 10.8;BUSINESS PROCESS CHANGE IN THE NEW MILLENNIUM;53 10.9;WHAT DRIVES BUSINESS PROCESS CHANGE?;54 10.10;NOTES AND REFERENCES;56 11;Part I - Organization-Wide Concerns;60 11.1;Chapter Two - Strategy, Value Chains, Business Initiatives, and Competitive Advantage;64 11.1.1;DEFINING A STRATEGY;65 11.1.2;PORTERS MODEL OF COMPETITION;67 11.1.3;INDUSTRIES, PRODUCTS, AND VALUE PROPOSITIONS;70 11.1.4;STRATEGIES FOR COMPETING;71 11.1.5;PORTERS THEORY OF COMPETITIVE ADVANTAGE;73 11.1.6;PORTERS STRATEGIC THEMES;77 11.1.7;TREACY AND WIERSEMAS POSITIONING STRATEGIES;79 11.1.8;THE BALANCED SCORECARD APPROACH TO STRATEGY;80 11.1.9;BUSINESS MODELS;84 11.1.10;BUSINESS INITIATIVES;84 11.1.11;SUMMARY;85 11.1.12;NOTES AND REFERENCES;87 11.2;Chapter Three - Understanding Your Organization;90 11.2.1;A COMPREHENSIVE BUSINESS PROCESS METHOD;90 11.2.2;STRATEGY AND ENTERPRISE BPM;93 11.2.3;UNDERSTAND THE ENTERPRISE;94 11.2.4;THE TRADITIONAL VIEW OF AN ORGANIZATIONS STRUCTURE;94 11.2.5;A CASE STUDY OF ORGANIZATION TRANSFORMATION;96 11.2.6;THE SYSTEMS VIEW OF AN ORGANIZATION;99 11.2.7;MODELS AND DIAGRAMS;100
11.2.8;ORGANIZATION DIAGRAMS;101 11.2.9;ORGANIZATIONS AND VALUE CHAINS;103 11.2.10;SYSTEMS AND PROCESSES;106 11.2.11;NOTES AND REFERENCES;108 11.3;Chapter Four - Business Architecture;110 11.3.1;THE SUPPLY CHAIN COUNCILS SCOR FRAMEWORK;113 11.3.2;BUSINESS ARCHITECTURE: THE IT APPROACH;116 11.3.3;BUSINESS PROCESS ARCHITECTURE;121 11.3.4;DEFINING AN ARCHITECTURE USING A FRAMEWORK;132 11.3.5;THE SUPPLY CHAIN COUNCILS SCOR FRAMEWORK;132 11.3.6;DEVELOPING A SUPPLY CHAIN ARCHITECTURE WITH SCOR;133 11.3.7;THE EXTENSION OF SCOR;137 11.3.8;ANOTHER APPROACH;140 11.3.9;SUMMARY;143 11.3.10;NOTES AND REFERENCES;144 11.4;Chapter Five - Measuring Process Performance;146 11.4.1;KEY MEASUREMENT TERMS;146 11.4.2;DEVELOPING A COMPREHENSIVE MEASUREMENT SYSTEM;151 11.4.3;BALANCED SCORECARD AND PROCESS MEASURES;152 11.4.4;ALIGNING PROCESS MEASURES;157 11.4.5;DERIVING MEASURES FROM BUSINESS PROCESS FRAMEWORKS;159 11.4.6;PUTTING IT ALL TOGETHER;162 11.4.7;COMPLETING THE BUSINESS PROCESS ARCHITECTURE WORKSHEET;164 11.4.8;NOTES AND REFERENCES;164 11.5;Chapter Six - Process Management;168 11.5.1;THE PROCESS PERSPECTIVE;168 11.5.2;WHAT IS MANAGEMENT?;170 11.5.3;MATRIX MANAGEMENT;177 11.5.4;THE MANAGEMENT OF OUTSOURCED PROCESSES;180 11.5.5;VALUE CHAINS AND PROCESS STANDARDIZATION;180 11.5.6;MANAGEMENT PROCESSES;183 11.5.7;DOCUMENTING MANAGEMENT PROCESSES IN AN ARCHITECTURE;190 11.5.8;COMPLETING THE BUSINESS PROCESS ARCHITECTURE WORKSHEET;191 11.5.9;NOTES AND REFERENCES;192 11.6;Chapter Seven - An Executive Level BPM Group;194 11.6.1;WHAT DOES A BPM GROUP DO?;194 11.6.2;CREATE AND MAINTAIN THE ENTERPRISE BUSINESS PROCESS ARCHITECTURE;195 11.6.3;IDENTIFY, PRIORITIZE, AND SCOPE BUSINESS PROCESS CHANGE PROJECTS;196 11.6.4;HELP CREATE, MAINTAIN, AND MANAGE THE PROCESS PERFORMANCE SYSTEM;203 11.6.5;HELP CREATE AND SUPPORT THE PROCESS MANAGER SYSTEM;204 11.6.6;RECRUIT, TRAIN AND MANAGE BUSINESS PROCESS CHANGE PROFESSIONALS;205 11.6.7;MANAGE RISK/COMPLIANCE REPORTING AND DOCUMENTATION;205 11.6.8;A CASE
STUDY: BOEINGS GMS DIVISION;206 11.6.9;SUMMARY;217 11.6.10;THE BPM GROUP;218 11.6.11;NOTES AND REFERENCES;218 12;Part II - Process Level Concerns;220 12.1;Chapter Eight - Understanding and Scoping Process Problems;222 12.1.1;WHAT IS A PROCESS?;222 12.1.2;PROCESS LEVELS AND LEVELS OF ANALYSIS;223 12.1.3;SIMPLE AND COMPLEX PROCESSES;225 12.1.4;BUSINESS PROCESS PROBLEMS;228 12.1.5;THE INITIAL CUT: WHAT IS THE PROCESS?;230 12.1.6;REFINING AN INITIAL PROCESS DESCRIPTION;232 12.1.7;CREATING A BUSINESS CASE FOR A PROCESS CHANGE PROJECT;243 12.1.8;NOTES AND REFERENCES;246 12.2;Chapter Nine - Modeling Business Processes;248 12.2.1;PROCESS FLOW PROBLEMS;248 12.2.2;DAY-TO-DAY MANAGEMENT PROBLEMS;250 12.2.3;PROCESS FLOW DIAGRAMS;251 12.2.4;FLOW DIAGRAMMING BASICS;253 12.2.5;MORE PROCESS NOTATION;258 12.2.6;AS-IS, COULD-BE, AND TO-BE PROCESS DIAGRAMS;265 12.2.7;CASE MANAGEMENT;271 12.2.8;NOTES AND REFERENCES;275 12.3;Chapter Ten - Human Performance Analysis, Automation, and Decision Management;278 12.3.1;ANALYZING A SPECIFIC ACTIVITY;279 12.3.2;ANALYZING HUMAN PERFORMANCE;283 12.3.3;MANAGING THE PERFORMANCE OF ACTIVITIES;288 12.3.4;AUTOMATING THE ENTER EXPENSE REPORTS ACTIVITY;289 12.3.5;EMPOWERING EMPLOYEES;292 12.3.6;ANALYZING A COMPLETELY AUTOMATED ACTIVITY;295 12.3.7;DECISION MANAGEMENT;297 12.3.8;KNOWLEDGE WORKERS, COGNITIVE MAPS, AND DECISION MANAGEMENT;301 12.3.9;NOTES AND REFERENCES;311 12.4;Chapter Eleven - Managing and Measuring a Specific Business Process;314 12.4.1;REPRESENTING MANAGEMENT PROCESSES;315 12.4.2;THE MANAGEMENT PROCESS;317 12.4.3;PLAN WORK;318 12.4.4;ORGANIZE WORK;321 12.4.5;COMMUNICATE;321 12.4.6;CONTROL WORK;322 12.4.7;EVALUATING THE PERFORMANCE OF THE PROCESS MANAGER;325 12.4.8;CONTINUOUS MEASUREMENT AND IMPROVEMENT;325 12.4.9;MANAGEMENT REDESIGN AT CHEVRON;327 12.4.10;NOTES AND REFERENCES;328 12.5;Chapter Twelve - Incremental Improvement with Lean and Six Sigma;330 12.5.1;SIX SIGMA;330 12.5.2;THE SIX SIGMA CONCEPT;333 12.5.3;THE SIX SIGMA APPROACH T
O PROCESS IMPROVEMENT;336 12.5.4;PHASES IN A SIX SIGMA IMPROVEMENT PROJECT;337 12.5.5;LEAN;352 12.5.6;SUMMARY;359 12.5.7;NOTES AND REFERENCES;360 12.6;Chapter Thirteen - The BPTrends Process: Redesign Methodology;364 12.6.1;WHY HAVE A METHODOLOGY?;368 12.6.2;HOW DOES IT ALL BEGIN?;368 12.6.3;WHAT HAPPENS?;369 12.6.4;WHO MAKES IT ALL HAPPEN?;369 12.6.5;PHASE 1: UNDERSTANDING THE PROJECT;371 12.6.6;PHASE 2: ANALYZE BUSINESS PROCESS;374 12.6.7;PHASE 3: REDESIGN BUSINESS PROCESS;379 12.6.8;PHASE 4: IMPLEMENT REDESIGNED PROCESS;382 12.6.9;PHASE 5: ROLL OUT THE REDESIGNED PROCESS;384 12.6.10;SUMMARY;388 12.6.11;NOTES AND REFERENCES;388 12.7;Chapter Fourteen - The Rental Cars-R-Us Case Study;390 12.7.1;RENTAL CARS-R-US;390 12.7.2;PHASE 1: UNDERSTAND THE PROJECT;391 12.7.3;PHASE 2: ANALYZE THE BUSINESS PROCESS;398 12.7.4;PHASE 3: REDESIGNING THE RENTAL PROCESS;408 12.7.5;PHASE 4: IMPLEMENT THE REDESIGNED BUSINESS PROCESS;411 12.7.6;PHASE 5: ROLL OUT THE NEW RENTAL PROCESS;411 12.7.7;NOTES AND REFERENCES;412 13;Part III - Implementation Level Concerns;414 13.1;Chapter Fifteen - Software Tools for Business Process Analysis and Design;416 13.1.1;WHY USE BUSINESS PROCESS SOFTWARE?;416 13.1.2;THE VARIETY OF BUSINESS PROCESS TOOLS;417 13.1.3;A PROFESSIONAL BP MODELING TOOL;422 13.1.4;NOTES AND REFERENCES;430 13.2;Chapter Sixteen - Business Process Management Suites;432 13.2.1;PROCESS DIAGRAMS AND BPMS ENGINES;434 13.2.2;WHAT FEATURES MIGHT A BPM SUITE INCLUDE?;437 13.2.3;BPMS AND BAM;439 13.2.4;BPMS, SOA, AND THE CLOUD;442 13.2.5;CHOOSING A BPMS PRODUCT;443 13.2.6;THE CURRENT BPMS MARKET;444 13.2.7;SOME LEADING BPMS VENDORS;445 13.2.8;MARKET TRENDS;446 13.2.9;PROCESS MODELING TOOLS VS BPMS SUITES;450 13.2.10;CREATING A BPMS APPLICATION;450 13.2.11;NOTES AND REFERENCES;451 13.3;Chapter Seventeen - ERP-Driven Redesign;454 13.3.1;PROCESSES, PACKAGES, AND BEST PRACTICES;455 13.3.2;A CLOSER LOOK AT SAP;456 13.3.3;IMPLEMENTING AN ERP-DRIVEN DESIGN;464 13.3.4;CASE STUDY: NESTLÉ USA INST
ALLS SAP;467 13.3.5;USING BPMS TO IMPROVE ERP INSTALLATIONS;469 13.3.6;ENTERPRISE RESOURCE PLANNING AND BUSINESS PROCESS MANAGEMENT SUITE;473 13.3.7;ERP VS BPMS APPLICATIONS;475 13.3.8;NOTES AND REFERENCES;480 13.4;Chapter Eighteen - The Future of Business Process Management;482 14;Appendix 1 - Business Problem Analysis Checklist;492 14.1;OUTPUT PROBLEMS;493 14.2;INPUT PROBLEMS;493 14.3;GUIDE PROBLEMS;494 14.4;ENABLER PROBLEMS;495 14.5;PROCESS ACTIVITY AND FLOW PROBLEMS;497 14.6;PROBLEMS WITH THE MANAGEMENT OF A PROCESS;498 15;Appendix 2 - Core Business Process Modeling Notation;502 15.1;AN OVERVIEW OF A BPMN DIAGRAM USED FOR BUSINESS PROCESS ANALYSIS AND REDESIGN;503 15.2;AN ACTIVITY;504 15.3;AN EVENT;504 15.4;A GATEWAY;505 15.5;A SEQUENCE FLOW;505 15.6;A MESSAGE FLOW;505 15.7;A DATA OBJECT;505 15.8;AN ASSOCIATION;505 15.9;A POOL WITH SWIMLANES;506 15.10;A FEW EXTENSIONS OF THE ACTIVITY RECTANGLE;506 15.11;A FEW EXTENSIONS OF THE EVENT CIRCLE;507 15.12;INITIAL OR START EVENT;507 15.13;INTERMEDIATE EVENT;507 15.14;TERMINAL OR END EVENT;507 15.15;A FEW EXTENSIONS OF THE GATEWAY DIAMOND;508 15.16;SOME OTHER NOTATIONS THAT WE OCCASIONALLY USE;508 15.17;BPTRENDS SPECIAL NOTATION;509 16;Appendix 3 - Business Process Standards;510 16.1;ORGANIZATION LEVEL BUSINESS PROCESS STANDARDS;512 16.2;PROCESS LEVEL BUSINESS PROCESS STANDARDS;514 16.3;BUSINESS PROCESS STANDARDS FOR IMPLEMENTATION;515 16.4;THE FUTURE OF STANDARDS;516 17;INDEX;518