Case study and maturity model for Business process management Implementation Michael Rohloff University of Potsdam, August-Bebel-Str. 89. 14482 Potsdam, Germany michael rohloff@wi. uni-potsdam de Abstract. This paper presents the implementation of Business Process Management in a large international company. The business case illustrates the main objectives and approach taken with the BPM initiative. It introduces a process management maturity assessment which was developed to assess the mplementation of Business Process Management and the achievements. The maturity model is based on nine categories which comprehensively cover all aspects which impact the success of Business Process Management. Some findings of the first assessment cycle are pinpointed to illustrate the benefits and Keywords: Business Process Management Implementation, Maturity Model. 1 Introduction Business Process Management is a management practice which encompasses all activities of identification, definition, analysis, design, execution, monitoring measurement, and continuous improvement of business processes. Consequently Business Process Management encompasses not only the analysis and modeling of business processes but also the organizational implementation, leadership and performance controlling [1, 2, p. 7f. ] Although it is a well-known and largely used practice there is an ongoing discussion on how to best implement Business Process Management. Due to the comprehensive nature of BPM a variety of different approaches exist (e.g. Business Process Reengineering(BPR); Continuous Process Improvement, Workflow Management, reference modeling and implementation of tandard enterprise applications) Facing the importance and vital role of Business Process Management for the transformation and organizational change of enterprises the question arise different organizations perform in their development of Business Process Management. The notion of maturity has been proposed in other approaches to assess an organizations state in terms of implementing a specific program or the quality of a process a prominent and widely used model is the Capability Maturity Model developed by the Software Engineering Institute at Carnegie Mellon University [3]. This model was originally developed to assess the maturity of software development processes Over the years it was extended to other domains. Today the Capability Maturity U Dayal et al. (Eds ) BPM 2009, LNCS 5701, Pp. 128-142, 2009. e Springer-Verlag Berlin Heidelberg 2009
U. Dayal et al. (Eds.): BPM 2009, LNCS 5701, pp. 128–142, 2009. © Springer-Verlag Berlin Heidelberg 2009 Case Study and Maturity Model for Business Process Management Implementation Michael Rohloff University of Potsdam, August-Bebel-Str. 89, 14482 Potsdam, Germany michael.rohloff@wi.uni-potsdam.de Abstract. This paper presents the implementation of Business Process Management in a large international company. The business case illustrates the main objectives and approach taken with the BPM initiative. It introduces a process management maturity assessment which was developed to assess the implementation of Business Process Management and the achievements. The maturity model is based on nine categories which comprehensively cover all aspects which impact the success of Business Process Management. Some findings of the first assessment cycle are pinpointed to illustrate the benefits and best practice exchange as a result of the assessment. Keywords: Business Process Management Implementation, Maturity Model. 1 Introduction Business Process Management is a management practice which encompasses all activities of identification, definition, analysis, design, execution, monitoring & measurement, and continuous improvement of business processes. Consequently Business Process Management encompasses not only the analysis and modeling of business processes but also the organizational implementation, leadership and performance controlling [1, 2, p. 7f.]. Although it is a well-known and largely used practice there is an ongoing discussion on how to best implement Business Process Management. Due to the comprehensive nature of BPM a variety of different approaches exist (e.g. Business Process Reengineering (BPR); Continuous Process Improvement, Workflow Management, reference modeling and implementation of standard enterprise applications). Facing the importance and vital role of Business Process Management for the transformation and organizational change of enterprises the question arises how different organizations perform in their development of Business Process Management. The notion of maturity has been proposed in other approaches to assess an organizations state in terms of implementing a specific program or the quality of a process. A prominent and widely used model is the Capability Maturity Model developed by the Software Engineering Institute at Carnegie Mellon University [3]. This model was originally developed to assess the maturity of software development processes. Over the years it was extended to other domains. Today the Capability Maturity
Case Study and Maturity Model for Business Process Management Implementation 129 Model Integration is an approach for the assessment and improvement of product development processes in general. A number of additional maturity models were developed which cover other areas like the CMMI Acquisition Model(CMMI-AM) or the People Capability Maturity Model(P-CMM) for personal management and development to name a few. Today, CMMI is widely used in practice to evaluate and to improve(software)development processes [4, 5, 6,7,8 CMMI uses standardized question catalogues and evaluation criteria to assess an organizations product development process and to work out the strengths and weaknesses. It helps to define improvement measures and to plan the implementation in an organization. The CMMi introduces the concept of five maturity levels defined by special requirements that are cumulative. In recent years a number of maturity models for Business Process Management have been proposed [9, 10, 11, 12, 13, 14, 15, 16, 17]. Most of the models focus on only one dimension for measuring BPM maturity and very few applied studies are known. Exceptions are the Business Process Management Maturity Model(BPMM) of the OMG [9], the Process Audit of Hammer [11 and the maturity model of Rosemann et al. [13, 14, 15, 16 This paper presents the implementation of Business Process Management in a large international company, undertaken as a corporate, company wide project within The next section outlines the objectives and the overall a usiness process management. It introduces the process framework reference process house and the overall structure and content BPM implementation process Section 3 gives an overview of the process management maturity assessment model which was developed in order to assess and to derive improvement measures for the Business Process Management in the company. The assessment process and some results of the assessments are presented to illustrate some benefits of the approach 2 Implementation of Business Process Management 2.1 The business process management initiative at siemens ag The Siemens AG is engaged in different business sectors with a very broad and diverse product and service spectrum. It is a global company with regional representations in more than 190 countries(for a short overview see [18). Over the years the process and IT landscape has developed differently in the business units and regions. With the business Process Management activities a redesign alignment and optimization of business processes and a better process standardization and utilization of synergies is intended Central element of the Business Process Management Initiative was the development of a Siemens Process Framework [19] which consists of a reference process house (RPH) and common methods for process management across the company. These activities, with the development of a reference process house(RPh) in its core, are part of a comprehensive process management initiative [18, 2, 241-252]. The initial company wide activities for process standardization started
Case Study and Maturity Model for Business Process Management Implementation 129 Model Integration is an approach for the assessment and improvement of product development processes in general. A number of additional maturity models were developed which cover other areas like the CMMI Acquisition Model (CMMI-AM) or the People Capability Maturity Model (P-CMM) for personal management and development to name a few. Today, CMMI is widely used in practice to evaluate and to improve (software) development processes [4, 5, 6, 7, 8]. CMMI uses standardized question catalogues and evaluation criteria to assess an organizations product development process and to work out the strengths and weaknesses. It helps to define improvement measures and to plan the implementation in an organization. The CMMI introduces the concept of five maturity levels defined by special requirements that are cumulative. In recent years a number of maturity models for Business Process Management have been proposed [9, 10, 11, 12, 13, 14, 15, 16, 17]. Most of the models focus on only one dimension for measuring BPM maturity and very few applied studies are known. Exceptions are the Business Process Management Maturity Model (BPMM) of the OMG [9], the Process Audit of Hammer [11], and the maturity model of Rosemann et al. [13, 14, 15, 16]. This paper presents the implementation of Business Process Management in a large international company, undertaken as a corporate, company wide project within Siemens AG. The next section outlines the objectives and the overall approach for implementing business process management. It introduces the process framework including the reference process house and the overall structure and content of the BPM implementation process. Section 3 gives an overview of the process management maturity assessment model which was developed in order to assess and to derive improvement measures for the Business Process Management in the company. The assessment process and some results of the assessments are presented to illustrate some benefits of the approach. 2 Implementation of Business Process Management 2.1 The Business Process Management Initiative at Siemens AG The Siemens AG is engaged in different business sectors with a very broad and diverse product and service spectrum. It is a global company with regional representations in more than 190 countries (for a short overview see [18]). Over the years the process and IT landscape has developed differently in the business units and regions. With the Business Process Management activities a redesign, alignment and optimization of business processes and a better process standardization and utilization of synergies is intended. Central element of the Business Process Management Initiative was the development of a Siemens Process Framework [19] which consists of a reference process house (RPH) and common methods for process management across the company. These activities, with the development of a reference process house (RPH) in its core, are part of a comprehensive process management initiative [18, 2, pp. 241-252]. The initial company wide activities for process standardization started in
130 M. Rohloff 2000 with the E-Business initiative "Generic Business Processes". The primary focus was on the definition of the Supply Chain Management processes based on the Supply Chain Operational Model(SCOR). In the following years the process activities where extended to the Customer Relationship Management and the Product Lifecycle Management. Finally, the activities were taken up and consolidated under the leadership of corporate CIO and the development of a comprehensive reference process house covering all business processes was accomplished [ 19]. The primary bjective was to leverage synergies and cost potentials with a common organization and process coordination, and the definition of reference processes Reference models are increasingly used in industrial practice and leave the area of research([20, 21], see the overview in [22, pp. 393f. ], for reference modeling projects see [23]). In practice reference models for processes have particular relevance, e.g [24, 25, 26, 27]. For the development of the Siemens Reference Process House the Supply Chain Operational Model [24] was a fundamental basis. The Siemens Process Framework(SPF, figure 1), with its binding set of principles and definitions for the overarching management of processes, provides the basis for a uniform implementation of process management within Siemens. The core component of the SPF is the Reference Process House(RPH). It contains the definitions of all processes and is structured into the following process categories Management processes Customer Relationship Management(CRM) Processes apply Chain Management (SCM) Processes Product Life Cycle Management(PLM) Processes · Support Processes reference process definitions are fundamental for process standardization and ide a stable basis for process management. They are subject to a cascaded rollout refinement in the business groups and regions. Incorporating process definitions, guidelines for documentation and modeling of processes, and a binding decision structure for process standardization, the framework is the basis for Configuration and design of specific business processes(e. g. CRM, PLM, SCM and end-to-end business process chains Redesign of processes based on commonly defined standards for to-be processes Common language and common understanding of processes Realization of the potentials identified through- faster implementation of standard processes-alignment of applications-standardization and cost reduction cross matrix organization(synergy effects) Comprehensive benchmarking and best practice sharing The process management methods of the Siemens Process Framework represent a comprehensive set of tools(including ARIS [27D), concepts, conventions, and guidelines which are needed for any implementation and operation of process management in the Siemens organization. With the description of all roles and responsibilities required for effective process management on strategic and operational levels the SPF provides a blueprint for process management organization in the groups and regions. It ensures clear communication, decision, and escalation
130 M. Rohloff 2000 with the E-Business initiative “Generic Business Processes”. The primary focus was on the definition of the Supply Chain Management processes based on the Supply Chain Operational Model (SCOR). In the following years the process activities where extended to the Customer Relationship Management and the Product Lifecycle Management. Finally, the activities were taken up and consolidated under the leadership of corporate CIO and the development of a comprehensive reference process house covering all business processes was accomplished [19]. The primary objective was to leverage synergies and cost potentials with a common organization and process coordination, and the definition of reference processes. Reference models are increasingly used in industrial practice and leave the area of research ([20, 21], see the overview in [22, pp. 393f.], for reference modeling projects see [23]). In practice reference models for processes have particular relevance, e.g. [24, 25, 26, 27]. For the development of the Siemens Reference Process House the Supply Chain Operational Model [24] was a fundamental basis. The Siemens Process Framework (SPF, figure 1), with its binding set of principles and definitions for the overarching management of processes, provides the basis for a uniform implementation of process management within Siemens. The core component of the SPF is the Reference Process House (RPH). It contains the definitions of all processes and is structured into the following process categories: • Management Processes • Customer Relationship Management (CRM) Processes • Supply Chain Management (SCM) Processes • Product Life Cycle Management (PLM) Processes • Support Processes These reference process definitions are fundamental for process standardization and provide a stable basis for process management. They are subject to a cascaded rollout and refinement in the business groups and regions. Incorporating process definitions, guidelines for documentation and modeling of processes, and a binding decision structure for process standardization, the framework is the basis for: • Configuration and design of specific business processes (e.g. CRM, PLM, SCM) and end-to-end business process chains • Redesign of processes based on commonly defined standards for to-be processes • Common language and common understanding of processes • Realization of the saving potentials identified through - faster implementation of standard processes - alignment of applications - standardization and cost reduction across matrix organization (synergy effects) • Comprehensive benchmarking and best practice sharing. The process management methods of the Siemens Process Framework represent a comprehensive set of tools (including ARIS [27]), concepts, conventions, procedures, and guidelines which are needed for any implementation and operation of process management in the Siemens organization. With the description of all roles and responsibilities required for effective process management on strategic and operational levels the SPF provides a blueprint for process management organization in the groups and regions. It ensures clear communication, decision, and escalation processes
Case Study and Maturity Model for Business Process Management Implementation 131 Process Management Reference Process House eling Tools mplementation Prader Lifecycle 一百出== Fig 1. Siemens Process Framework (SPF) The main objective of the introduction of Business Process Management is to increase the effectiveness and efficiency of all business processes of the organization From an operational point of view, process management is about having defined processes, measuring their performance, and improving them incrementally as part of daily business. It is also about defining performance goals for processes"top-down based on benchmarking results or strategic goals derived from corporate initiatives, and performing major re-engineering activities on processes to close existing performance or cost gaps. Process standards and a common process framework are a fundamental basis for a systematic design and optimization of results, processes, and non-accoency and effectiveness problems in an organization have their origin in processes. A proper implementation leads to the mastery of processes with regard to lower non-conformance, as well as to high reliability and safety, and results in reduction of process costs, process cycle times, and improvement of quality Process standardization affects the strategic levers operational excellence and active management of synergies and supports the vertical and horizontal strategies of Siemens. This is achieved by the cascaded definition and rollout approach of the Process Initiative based on the Reference Process House. The implementation of Business Process Management based on the Siemens Process Framework results in a number of benefits which where pursued with the Process Initiative. Establish a Process Management Community within the business units and regions to coordinate and optimize local, regional, and headquarter process improvement Provide a common reference framework for supporting and coordinating all process related projects in the business units and regions created by different Present a uniform appearance to customers and business partners through Siemens wide standardized process implementation. Provide standard service levels to the global customers
Case Study and Maturity Model for Business Process Management Implementation 131 Fig. 1. Siemens Process Framework (SPF) The main objective of the introduction of Business Process Management is to increase the effectiveness and efficiency of all business processes of the organization. From an operational point of view, process management is about having defined processes, measuring their performance, and improving them incrementally as part of daily business. It is also about defining performance goals for processes “top-down”, based on benchmarking results or strategic goals derived from corporate initiatives, and performing major re-engineering activities on processes to close existing performance or cost gaps. Process standards and a common process framework are a fundamental basis for a systematic design and optimization of results, processes, and resources. Most efficiency and effectiveness problems in an organization have their origin in non-mastered processes. A proper implementation leads to the mastery of processes with regard to lower non-conformance, as well as to high reliability and safety, and results in reduction of process costs, process cycle times, and improvement of quality. Process standardization affects the strategic levers operational excellence and active management of synergies and supports the vertical and horizontal strategies of Siemens. This is achieved by the cascaded definition and rollout approach of the Process Initiative based on the Reference Process House. The implementation of Business Process Management based on the Siemens Process Framework results in a number of benefits which where pursued with the Process Initiative. • Establish a Process Management Community within the business units and regions to coordinate and optimize local, regional, and headquarter process improvement initiatives. • Provide a common reference framework for supporting and coordinating all process related projects in the business units and regions created by different initiatives. • Present a uniform appearance to customers and business partners through Siemens wide standardized process implementation. • Provide standard service levels to the global customers. Reference Process House Process Management Roles & Responsibilities Level concept Convention & Modeling handbook Modeling Tools & Services Implementation Guide Maturity Assessment Roles Committees Process Management Methods
M. Rohloff Enable best practice sharing across all business units and regions Provide opportunity for shared services and an improved lean IT landscape through rocess standardization 2.2 BPM Process and Implementation Topics Experience shows that business transformations are often a consequence of good process management. Thus, the implementation of process management itself has to be organized as a business transformation program covering all relevant aspects of an organization's development. These aspects have to be addressed by implementation topics which are dependent on each other with regard to their contents. All theses issues are addressed by Business Process Management implementation guidelines (see Process Management Implementation Guide [28]). The following gives a short overview on the different implementation topics Process Management Organization: Establish process management roles& bodies ccording to the Siemens Process Framework and assign the responsible persons Process Documentation Standardization: Develop consistent and organization- wide valid process definitions at least for the portfolio processes. Drive the standardization and alignment of business processes. Establish a process house based on the Reference Process House and where necessary more detailed process definitions addressing at least the portfolio processes. Initiate process improvement initiatives for relevant processes of the process portfolio covering: visualization of derivation of im als design implementation of to-be processes. Process Portfolio Optimization: Select, assess, and prioritize the processes hich have to be standardized and optimized. Target Setting d Incentives: Check and amend target setting and incentive systems. Define process harmonization/ standardization and process performance als Implement process target agreements, define related incentives methods Tools: Provide standard methods and tools required for the operation of ess management and according to the Siemens Process Framework guidelines a rPh database and ARiS tools) Qualification Training: Derive competency development measures for the persons involved in process management. Define and conduct target group specific qualification programs. Verify the success. Communication: Provide target group specific information about objectives content, roles responsibilities, and progress of process management to create awareness and support the implementation Process Performance Controlling: Define key performance indicators(KPI)and metrics for the portfolio processes derived from business goals and strategies Introduce a continuous KPI-based performance measurement and assessment for Process Management Maturity Assessment: Conduct process management maturity assessments of the organization. Derive implement improvement measures Repeat process management maturity the objectives assessments periodically
132 M. Rohloff • Enable best practice sharing across all business units and regions. • Provide opportunity for shared services and an improved lean IT landscape through process standardization. 2.2 BPM Process and Implementation Topics Experience shows that business transformations are often a consequence of good process management. Thus, the implementation of process management itself has to be organized as a business transformation program covering all relevant aspects of an organization’s development. These aspects have to be addressed by implementation topics which are dependent on each other with regard to their contents. All theses issues are addressed by Business Process Management implementation guidelines (see Process Management Implementation Guide [28]). The following gives a short overview on the different implementation topics. • Process Management Organization: Establish process management roles & bodies according to the Siemens Process Framework and assign the responsible persons. • Process Documentation & Standardization: Develop consistent and organizationwide valid process definitions at least for the portfolio processes. Drive the standardization and alignment of business processes. Establish a process house based on the Reference Process House and where necessary more detailed process definitions addressing at least the portfolio processes. Initiate process improvement initiatives for relevant processes of the process portfolio covering: visualization of as-is processes as required, derivation of improvement potentials & measures, design & implementation of to-be processes. • Process Portfolio & Optimization: Select, assess, and prioritize the processes which have to be standardized and optimized. • Target Setting & Incentives: Check and amend target setting and incentive systems. Define process harmonization/ standardization and process performance goals. Implement process target agreements, define related incentives. • Methods & Tools: Provide standard methods and tools required for the operation of process management and according to the Siemens Process Framework guidelines (e.g. a RPH database and ARIS tools). • Qualification & Training: Derive competency development measures for the persons involved in process management. Define and conduct target group specific qualification programs. Verify the success. • Communication: Provide target group specific information about objectives, content, roles & responsibilities, and progress of process management to create awareness and support the implementation. • Process Performance Controlling: Define key performance indicators (KPI) and metrics for the portfolio processes derived from business goals and strategies. Introduce a continuous KPI-based performance measurement and assessment for the processes. • Process Management Maturity Assessment: Conduct process management maturity assessments of the organization. Derive & implement improvement measures. Repeat process management maturity the objectives assessments periodically
Case Study and Maturity Model for Business Process Management Implementation 133 Only if each of these topics are planned and implemented to a certain degree and in a coordinated way, the effects necessary for overall success are achieved. The overall maturity degree of a process management implementation is therefore directly linked to the maturity degree of each of the implementation topics(see next section). Of course, the business situation, the cultural environment, and the readiness of an organization are additional boundary conditions which have to be considered in the setup of the contents and the timeframe of the implementation program 3 A Maturity Model for Business Process Management 3.1 Process Management Maturity Assessment The assessment of the maturity of all activities related to Business process Management is an essential element of the BPM implementation process. The so- named""Process Management Maturity Assessment"(PMMA) has its focus on the assessment of the organizational implementation of all Business Process Management activities. In contrast most maturity models solely focus on the performance assessment of a specific business process. The process performance of a business process is addressed as a separate category in the implementation process. In this respect the business process performance measurement is one category among others to be addressed in a BPM maturity assessment The Process Management Maturity Assessment [29] provides a methodology for a structured analysis and objective assessment of the achieved implementation status of process management(process management maturity) and the compliance with the Siemens Process Framework (SPF [19) standards [18, p. 107 f, 2, p. 337 f ] The major objective of the PMMa is the identification of need for action and derivation of measures for process management improvement, as well as the identification of requirements for further support. It serves as a driver for the process initiative. The following objectives are pursued with the PMMA approach assess the maturity of Business Process Management and the processes monitor the advancement of the process initiative and to derive further fields of actions to reveal the potential for best practice sharing to motivate and increase the awareness for process management among the involved parties like management, process drivers, and users At the time of implementing the Process Initiative no holistic process management maturity model existed which would cover all relevant BPM implementation issues outlined in section 2. 2. The BPMM model of the OGM, the maturity model of Rosemann et al. and the Process Audit of Hammer evolved in parallel to the own development of the Process Management Maturity Assessment. The PMMa follows the principle structure of the Capability Maturity Model Integration Method of the Software Engineering Institute at Carnegie Mellon University(CMMi) but provides a holistic assessment of all areas relevant for BPM based on a comprehensive set of criteria. As an indicator for process maturity, a five step model is applied in the same fashion as the CMMi model
Case Study and Maturity Model for Business Process Management Implementation 133 Only if each of these topics are planned and implemented to a certain degree and in a coordinated way, the effects necessary for overall success are achieved. The overall maturity degree of a process management implementation is therefore directly linked to the maturity degree of each of the implementation topics (see next section). Of course, the business situation, the cultural environment, and the readiness of an organization are additional boundary conditions which have to be considered in the setup of the contents and the timeframe of the implementation program. 3 A Maturity Model for Business Process Management 3.1 Process Management Maturity Assessment The assessment of the maturity of all activities related to Business Process Management is an essential element of the BPM implementation process. The sonamed “Process Management Maturity Assessment” (PMMA) has its focus on the assessment of the organizational implementation of all Business Process Management activities. In contrast most maturity models solely focus on the performance assessment of a specific business process. The process performance of a business process is addressed as a separate category in the implementation process. In this respect the business process performance measurement is one category among others to be addressed in a BPM maturity assessment. The Process Management Maturity Assessment [29] provides a methodology for a structured analysis and objective assessment of the achieved implementation status of process management (process management maturity) and the compliance with the Siemens Process Framework (SPF [19]) standards [18, p. 107 f., 2, p. 337 f.]. The major objective of the PMMA is the identification of need for action and derivation of measures for process management improvement, as well as the identification of requirements for further support. It serves as a driver for the process initiative. The following objectives are pursued with the PMMA approach: • to assess the maturity of Business Process Management and the processes • to monitor the advancement of the process initiative and to derive further fields of actions • to reveal the potential for best practice sharing • to motivate and increase the awareness for process management among the involved parties like management, process drivers, and users. At the time of implementing the Process Initiative no holistic process management maturity model existed which would cover all relevant BPM implementation issues outlined in section 2.2. The BPMM model of the OGM, the maturity model of Rosemann et al. and the Process Audit of Hammer evolved in parallel to the own development of the Process Management Maturity Assessment. The PMMA follows the principle structure of the Capability Maturity Model Integration Method of the Software Engineering Institute at Carnegie Mellon University (CMMI) but provides a holistic assessment of all areas relevant for BPM based on a comprehensive set of criteria. As an indicator for process maturity, a five step model is applied in the same fashion as the CMMI model
M. Rohloff The Pmma consists of nine categories with one to three sub-categories each. The PMMA categories and sub-categories correspond to the implementation topics of the Process Management Implementation Guide Process Portfolio& Target Setting Process documentation Process Performance Controlling Process Optimization Methods tools Process Management Organization Program Management, Qualification, Communication Data Management IT-Architecture For every sub-category, each maturity level 1-5 is clearly defined in a to-be status by a set of criteria. These descriptions, as well as examples for questions and possible deliverables, are combined in worksheets. A tool based on MS-Office products was developed to support the assessment process Figure 2 outlines the five overall PMMA maturity levels which consolidate the detailed maturity levels of the categories For a sub-category, all defined criteria of a maturity level must be met to achieve the respective level. The overall result of a PMMa will be stated in a maturity level the criteria of level 3(bottleneck is the lowest value for a sub-category ). The decimal place states the percentage of fulfilled sub-categories of the successive level(e. g. 20%0 of level 4). The achievement of higher levels in sub-categories(. g. 5)is not reflected in the overall grade aturity Level Criteria Catalogue Processes are analyzed, optimized and adjusted to changes in m Benchmarking and Best Practice Sharing are used continuously in order to identify improvemen s Methods for mistake avoidance are used Implementation controlling of initiatives with top+ degrees of implementation ajor components of the value sessment and pionization of the ed and strategically relevant processes ind. KHs are d harmonized/standard ized Deployment of pro nt as needed Stuation-and/or event-driven approach 1 capp Success depends on certain special Fig. 2. Overall PMMA maturity levels
134 M. Rohloff The PMMA consists of nine categories with one to three sub-categories each. The PMMA categories and sub-categories correspond to the implementation topics of the Process Management Implementation Guide: • Process Portfolio & Target Setting • Process Documentation • Process Performance Controlling • Process Optimization • Methods & Tools • Process Management Organization • Program Management, Qualification, Communication • Data Management • IT-Architecture For every sub-category, each maturity level 1-5 is clearly defined in a to-be status by a set of criteria. These descriptions, as well as examples for questions and possible deliverables, are combined in worksheets. A tool based on MS-Office products was developed to support the assessment process. Figure 2 outlines the five overall PMMA maturity levels which consolidate the detailed maturity levels of the categories. For a sub-category, all defined criteria of a maturity level must be met to achieve the respective level. The overall result of a PMMA will be stated in a maturity level grade (e.g. 3,2). The pre-decimal position states that 100% of all sub-categories fulfill the criteria of level 3 (bottleneck is the lowest value for a sub-category). The decimal place states the percentage of fulfilled sub-categories of the successive level (e.g. 20% of level 4). The achievement of higher levels in sub-categories (e.g. 5) is not reflected in the overall grade. 1 “Initial” 2 “Managed” 3 “Defined” 4 “Quantitatively managed” 5 “Optimizing” Processes are not defined – ad-hoc approach Success depends on certain specialists Schedule, quality and costs are not predictable Maturity Level Criteria Catalogue Need for action identified/project manager entitled particular processes in the GROC are harmonized/standardized Deployment of process management as needed Situation- and/or event-driven approach The process landscape is derived from systematically ascertained major components of the value chain, business strategy and binding internal/external guidelines. In order to compile a process portfolio, a comprehensible assessment and prioritization of these processes is conducted The systematically ascertained and strategically relevant processes incl. KPIs are documented according to the SPF in the reference process house of the GROC, a KVP is established Responsibilities for processes are established (roles, committees) Rules and methods of the process management are defined and implemented Continuous measurement and adjustment of process performance (quality & quantity) Process management is subject to a systematic maturity assessment (continuous PMMA) Implementation controlling of initiatives with top+ degrees of implementation Processes are analyzed, optimized and adjusted to changes in market requirements systematically Benchmarking and Best Practice Sharing are used continuously in order to identify improvement potential Methods for mistake avoidance are used Fig. 2. Overall PMMA maturity levels
Case Study and Maturity Model for Business Process Management Implementation 135 While the maturity levels of figure 2 document the overall assessment and onsolidate the maturity assessment of the different categories, a more detailed look n each of the categories is provided by radar screens(see figure 4). Detailed criteria and a set of questions exist to assess the maturity level for each of the categories. Table I summarizes on what needs to be accomplished for a maturity level 3 in each category In general, most CMMI based maturity models define five maturity levels and associate a higher level with a higher maturity and a better performing organizatio Crawford [30] argues that this can be a misleading interpretation. An organization should aim for a particular maturity level in relation to its organizational strategies and objectives. a detailed view on the implications of the current matur irity level based on the identified shortcomings and weaknesses is proposed in order to derive strategies for improvement. Table 1. PMMA categories and maturity level 3 achievements PMMA Scope PMMA Content of Maturity Level 3 Process portfolio target Setting assessment and prioritization of these processes is sible In order to compile a process portfolio, a comprehe onducted Process documentation The systematically ascertained and strategically relevant processes incl. KPIs are documented according to the SPF Process performance A systematic procedure to identify KPIs out of the merous metrics is defined Process Optimization Benchmarks are defined and improvement levers identifie The process landscape is derived from systematically ascertained major components of the value chain, business Process Management bilities for processes and process management are The activities for introduction and further development of Qualification process management are coordinated systematically by a Data management Harmonization/ standardization of data content and formats clearly defined responsibilities for data definition, content Requirements from process management are definitive for IT target architecture. The migration requirement for the IT architecture is derived from deviations between as-is and 3.2 Maturity Assessment: Initial Study and Findings In addition to the workout of the PMMA, a qualification and training program wa up to build a pool of certified assessors who can conduct the PMMA. A roadmap was
Case Study and Maturity Model for Business Process Management Implementation 135 While the maturity levels of figure 2 document the overall assessment and consolidate the maturity assessment of the different categories, a more detailed look on each of the categories is provided by radar screens (see figure 4). Detailed criteria and a set of questions exist to assess the maturity level for each of the categories. Table 1 summarizes on what needs to be accomplished for a maturity level 3 in each category. In general, most CMMI based maturity models define five maturity levels and associate a higher level with a higher maturity and a better performing organization. Crawford [30] argues that this can be a misleading interpretation. An organization should aim for a particular maturity level in relation to its organizational strategies and objectives. A detailed view on the implications of the current maturity level based on the identified shortcomings and weaknesses is proposed in order to derive strategies for improvement. Table 1. PMMA categories and maturity level 3 achievements PMMA Scope PMMA Content of Maturity Level 3 Process Portfolio & Target Setting In order to compile a process portfolio, a comprehensible assessment and prioritization of these processes is conducted Process Documentation The systematically ascertained and strategically relevant processes incl. KPIs are documented according to the SPF in the reference process house. Process Performance Controlling A systematic procedure to identify KPIs out of the numerous metrics is defined. Process Optimization Benchmarks are defined and improvement levers identified. Methods & Tools The process landscape is derived from systematically ascertained major components of the value chain, business strategy and binding guidelines. Process Management Organization Responsibilities for processes and process management are established Program Management, Qualification, Communication The activities for introduction and further development of process management are coordinated systematically by a program and project management. Data Management Harmonization/ standardization of data content and formats, clearly defined responsibilities for data definition, content and consistency. IT Architecture Requirements from process management are definitive for IT target architecture. The migration requirement for the IT architecture is derived from deviations between as-is and target architecture. 3.2 Maturity Assessment: Initial Study and Findings In addition to the workout of the PMMA, a qualification and training program was set up to build a pool of certified assessors who can conduct the PMMA. A roadmap was
M. Rohloff defined when to assess each organizational unit, eventually covering the entire organization. It is planned to repeat the PMMA once a year to track and drive the improvement. Between two and three days are required to prepare, conduct, and evaluate the process management assessment for a particular unit under review. The PMMa will be conducted based on interviews with the management of the units, the Process Owners/ Process Executives for the Business-, Management Support Processes, and the process framework executive The initial assessment analyzed 22 organizational units in the business groups and 29 in the regions in 2006. The PMMa result can be documented in a radar chart showing the level achievement for each category. Moreover, with the help of PMMA highlights and lowlights for each category and suitable actions can be derived and initiated to improve the implementation status of process management(process management maturity). The results for the analyzed units of the business groups in figure 4 show an overall maturity level ranging below maturity level 3. Although all units participated in the Process Initiative and have implemented Business Process Management it shows that it is quite some effort in terms of time, resources, and people involved to achieve organizational performance. Also, one has to keep in mind that due to the method of measurement the overall maturity level cannot be higher than the lowest aturity level a more detailed by a radar chart showing achievement for each category. Figure 3 shows the assessment for two selected units providing insights in strengths and shortcomings; e.g. one organizational unit is quite strong in Process Portfolio Target Setting(level 4) and in Process Management Organization(level 5)and the other in Process Documentation(level 5) PM Maturity PMMAs in Groups: A&D PTD CoM 17 Fig 3. PMMA assessment for analyzed units(consolidated excerpt)
136 M. Rohloff defined when to assess each organizational unit, eventually covering the entire organization. It is planned to repeat the PMMA once a year to track and drive the improvement. Between two and three days are required to prepare, conduct, and evaluate the process management assessment for a particular unit under review. The PMMA will be conducted based on interviews with the management of the units, the Process Owners/ Process Executives for the Business-, Management & Support Processes, and the Process Framework Executive. The initial assessment analyzed 22 organizational units in the business groups and 29 in the regions in 2006. The PMMA result can be documented in a radar chart showing the level achievement for each category. Moreover, with the help of PMMA highlights and lowlights for each category and suitable actions can be derived and initiated to improve the implementation status of process management (process management maturity). The results for the analyzed units of the business groups in figure 4 show an overall maturity level ranging below maturity level 3. Although all units participated in the Process Initiative and have implemented Business Process Management it shows that it is quite some effort in terms of time, resources, and people involved to achieve organizational performance. Also, one has to keep in mind that due to the method of measurement the overall maturity level cannot be higher than the lowest maturity level in any category. A more detailed view is provided by a radar chart showing the level of achievement for each category. Figure 3 shows the assessment for two selected units providing insights in strengths and shortcomings; e.g. one organizational unit is quite strong in Process Portfolio & Target Setting (level 4) and in Process Management Organization (level 5) and the other in Process Documentation (level 5). PMMAs in Groups: A&D PTD COM SFS I&S PG TS Conducted PMMAs 2 4 1 23 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 1 3 5 PM Maturity Level 21 22 PMMAs in Groups: A&D PTD COM SFS I&S PG TS Conducted PMMAs 2 4 1 23 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 1 3 5 PM Maturity Level 21 22 Fig. 3. PMMA assessment for analyzed units (consolidated excerpt)
Case Study and Maturity Model for Business Process Management Implementation 137 Process Portfolio Target setting Data Managemen rogram Managemen Process Manageme Methods Tools Fig 4. Detailed PMMA of different categories(example for two units The assessment provides a detailed analysis which helps to identify strength and weaknesses and allows comparing the performance of organizations. Thus, it provides a sound basis for best practice sharing. Table 2 summarizes some strengths and weaknesses for the different categories revealed across the assessed organizational units Experiences with the first assessment cycle are promising in terms of acceptance, ease of use, and coverage of BPM impact factors. The Process Management Maturity Assessment is regarded by management and employees as an important part of the overall BPM implementation process in the company. It underlines the importance of coherent Business Process Management activities for company performance The assessment results gained with limited effort provided a reasonable ansparency on the BPM activities and performance of the assessed organizational units. In general the assessment helps organizations to learn from one another in terms of good and poor performance by understanding the performance of an organization and the underlying reasons. In the case of Siemens it helped to identify best practices in BPM within the company which could be adopted by other organizational units in order to improve performance. 3.3 Comparison of Maturity Models The proposed Management Maturity Assessment advances most of the maturity model are based on a limited set of criteria, Only the business Process Maturity Model of the OMG, the Process Audit of Hammer, and the maturity model of rosemann et al. cover also a broader range of bpm factors. All three models were in progress of development at the time of PMMa development
Case Study and Maturity Model for Business Process Management Implementation 137 Program Management, 0 1 2 3 4 5 Process Portfolio & Target setting Process Documentation Process Performance Controlling Process Optimization Methods & Tools Process Management Organization Qualification, Communication Data Management IT-Architecture Fig. 4. Detailed PMMA of different categories (example for two units) The assessment provides a detailed analysis which helps to identify strength and weaknesses and allows comparing the performance of organizations. Thus, it provides a sound basis for best practice sharing. Table 2 summarizes some strengths and weaknesses for the different categories revealed across the assessed organizational units. Experiences with the first assessment cycle are promising in terms of acceptance, ease of use, and coverage of BPM impact factors. The Process Management Maturity Assessment is regarded by management and employees as an important part of the overall BPM implementation process in the company. It underlines the importance of coherent Business Process Management activities for company performance. The assessment results gained with limited effort provided a reasonable transparency on the BPM activities and performance of the assessed organizational units. In general the assessment helps organizations to learn from one another in terms of good and poor performance by understanding the performance of an organization and the underlying reasons. In the case of Siemens it helped to identify best practices in BPM within the company which could be adopted by other organizational units in order to improve performance. 3.3 Comparison of Maturity Models The proposed Process Management Maturity Assessment advances most of the maturity models which are based on a limited set of criteria, Only the Business Process Maturity Model of the OMG, the Process Audit of Hammer, and the maturity model of Rosemann et al. cover also a broader range of BPM factors. All three models were in progress of development at the time of PMMA development
