Value driven business process management the value switch for lasting competitive advantage

Applying the principles in the book to understand your com­ pany’s processes in a practical and efficient manner—and how the business processes maximize your value chain—is a critical to

E - U I R I V E BUSINESS PROCESS MANAGEMENT

Value

THE VALUE-SWITCH

FOR LASTING COMPETITIVE ADVANTAGE

P r a i S G for Vdlue-Driven Bus in ess P r o c e s s Mdndge men t

"The book goes well beyond a traditional methods-and-tools perspective to present the most current, broadly informed view of BPM as a management discipline Drawing from their extensive experience, Franz and Kirchmer outline the path for using BPM to gain immediate value and benefits across the organization while strengthening strate­ gic capabilities for the long term—arming leaders with both the vision and the practical insights to initiate action Applying the principles in the book to understand your com­ pany’s processes in a practical and efficient manner—and how the business processes maximize your value chain—is a critical tool for maximizing what a company should be doing and eliminating the non-value-add processes It also ensures complete integration

of effort throughout the company to achieve the business objectives."

— PAUL O’FLAHERTY, Finance Director, Eskom

“Franz and Kirchmer go directly to the heart of the role of BPM in business by focus­ ing on value as the driver, management discipline as the requirement, and translating strategy into execution as the measure of success Value-Driven BPM is a long journey but the framework provided by these authors sets a map for the first hundred steps along the way.”

— RICHARD MALTSBARGER, SVP of Strategy & BPM, Lowe’s Companies, Inc.

“If your CEO has delivered a set of strategic imperatives, you are ready for Value Driven BPM This book provides the vision of how to win In the integrated global economy by building a core BPM discipline in your company to simplify the delivery of business strat­ egy This is your roadmap to business governance of your processes to align all levels

of your workforce and business partners and cost-effective application of IT to deliver solutions required in today’s business environment Value-Driven BPM is the approach

to gain full transparency to your operations and will deliver a capability in your organiza­ tion for agile and efficient business transformation Transform at the speed of market changes wrtth Value-Driven BPM."

— KATHLEEN DONAHUE, Sen/or Director o f Business Process Management, Pfizer Inc.

"Business Process Management has continued to evolve as a tool organizations use

to effectively and efficiently meet customer demands What distinguishes this work is the way Franz and Kirchmer draw on their extensive experience and field research to show how BPM can be even more than a tool—with their guidance you can learn how

to make BPM a framework that Integrates and aligns your organization's people and processes with its strategy."

— NATE BENNETT, Ph.D., Wahlen Professor o f Management, Georgia Tech

“Business Process Management (BPM) has to be implemented as a management disci' pline and linked to the strategic imperatives of an organization in order to achieve the best business impact Franz and Kirchmer show how this can be achieved They pres­ ent very practicable approaches which are also from an academic point of view well thought through I recommend the book to top executives, BPM practitioners as well

as the academic world.”

— PROFESSOR DR DRS H.C AUGUST-WILHELM SCHEER, BPM Thought Leader

and Entrepreneur

"Value-Driven Business Process Management can become the new paradigm that takes BPM to the next level The authors provide a compelling argument for the benefits and innovation of a value-driven approach Based on their comprehensive experiences and related research, they share countless examples and guidelines that will inspire BPM professionals around the globe and across all industries.”

— PROFESSOR MICHAEL ROSEMANN, Head o f School, Inforrrtation Systems School,

Science and Engineering Faculty, Queensland Universrty of Technology

yalue-Driven Business Process Management is a game<hanging book Similar to how General Systems Theory improves understanding of the complex nature of organiza­ tions, Franz and Kirchmer have shown how a value-based organizing framework for BPM enables practitioners and scholars to significantly improve how modern organizations can effectively link thinking, planning, strategy and execution.”

— LARRY M STARR, PhD, Executive Director and Academic Chair, Organizational Dynamics Graduate Studies, University o f Pennsylvania

"Franz and Kirchmer provide a strong foundation for readers in every phase of their BPM life cycle."

—ALAN TREFLER, Founder and CEO, Pegasystems Inc.

"ValueKlriven BPM, as defined by Franz and Kirchmer, is an insightful way to use the avai^ able methods and tools to get real business impact through process management It is

a fresh approach to quickly move from strategy into execution."

— DR WOLFRAM JOST, CTO Software AG

BUSINESS PROCESS MANAGEMENT

The Value-Switch for Lasting Competitive Advantage

^ e t e r F ra n z Mathias K i r c h m e r

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To Monica and Judy, with ttianks for your patience and support

CHAPTER 1 V a lu e - D r iv e n BPM: Why You Need it Now 3 CHAPTER 2 The Im p a c t oF V a lu e -D r iv e n BPM 21 CHAPTER 3 The P ro cess of Process M an age m ent 3 3 CHAPTER H D eveloping Your Roadm ap to V a lu e -D r iv e n BPM 57 CHAPTER 5 How V a lu e - D r iv e n BPM Optim izes the Im pact

of P rocess Im p ro v e m e n t Initiatives 81

CHAPTER 6 Building an Organization for V a lu e -D r iv e n BPM 101 CHAPTER 7 Inform ation Technology for V a lu e -D r iv e n BPM 121 CHAPTER 8 Managing Inform ation M odels for V a lu e -D r iv e n BPM 1H5

PA R T 111 The Present and the Future of Value-Driven BPM

CHAPTER 10 Th e Future of V a lu e -D r iv e n BPM 187