Governance

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No More "Wait States" -- BPM Opportunity Puts Pressure On Business Executives

Waiting In Line GraphicOn his ebizQ blog, Peter Schooff, asks (September 2012) "what is the number one reason a BPM project fails?"

Asking this question is audacious. But important.

Here's the short answer: BPM projects fail at a rate higher than tolerable (thus the question) because BPM projects, being fundamentally different than all other IT projects, are not yet sufficiently supported culturally, organizationally and economically.  

In particular, a BPM projects puts pressure on business executives for detailed process leadership, a time-based pressure without precedent and for which many or even most executives are not ready.

The first response to ebizQ's question, from Emiel Kelly, alludes to these issues with the statement that BPM is seen as "a project, not as daily business". Subsequent comments by other contributors elaborate in worthwhile ways. But it's worth making Kelly's "not as daily business" explanation more explicit.

Specifically, from the original answer above, what does it mean that BPM projects are "fundamentally different", and why is this difference important? And what is "cultural, organizational and economic" support?

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Gorillas On A Slimming Plan - Five Limits To Bigness - Including A New "Deficit of Trust"

Geoffrey Moore of "Crossing The Chasm" fame, asked a question on his LinkedIn page concerning possible limitations to the growth of market gorillas ("Why Gorillas Don't Rule Everything").  Understanding the effect of corporate size and concentration is important for both individuals and organizations that must operate in a world defined by monster organizations.   The purpose of this note is to identify the top five factors limiting the optimum size of organizations.

Note that that your host is not making any assumption that corporate size is necessarily a bad thing.  Although it's a separate topic, and acknowledging that there are clearly many downsides to large organizations, there are all also examples, supported by research, showing that large organzations can also have many positive attributes, and that by

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Contingent Workforce Management & BPM Technology - Another Opportunity For Leverage

According to the analysts at Aberdeen Group, on average 26% of world workforce headcount is considered "contingent", including contract and temporary staff.  Clearly contingent labour-force outlays account for a huge portion of total spend.  But Aberdeen asks if this spend is well-managed. 

There are in fact very significant differences between best-in-class and laggard organizations concerning how contingent work is managed.  Best-in-class managers get much better results (over 50% higher reporting program objectives achieved), better contingent workforce cost control and most important, significantly better overall organizational efficiency.  This last benefit gets to the heart of the whole contingent workforce business case. 

Why bother with all the effort and management time to organize contingent workforce scaling if your organization does enjoy overall improved efficiency as a result?

In a world of intense competition, contingent workforce scaling makes intuitive sense, and it's not surprising the Aberdeen Group has identified characteristics of the organizations that "do contingent" better.  But why highlight these insights in this Decision Models forum on business process management technology?

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Accounts Payable & BPM - Aberdeen Group on Best Practices, Governance, Process Capabilities

BPM software advocates need look no further than the regular reports from the analysts at Aberdeen Group for terrific examples of BPM in action.  The latest example, by Analyst William Jan, is AP Invoice Management in a Networked Economy (you can acquire this report without charge for a limited time via the embedded URL; registration is required).

The world of business process is about the processes at the core of any business.  And for this reason unless you are an insider in any given function or vertical market, it's difficult to acquire in-depth knowledge about business processes in real life.  Organizations tend to be reticent about revealing the secrets about how they do business; and as well, in any given function the processes reflect the complexity of corporate life and one is not likely to master that complexity over night. 

So, for these reasons, the work by Aberdeen Group is very welcome.  Their analysis work focuses especially on identifying best practices in various corporate functions, such as sales, accounts payables, inventory management, and so on.  And although Aberdeen Group includes technology in its analyses, their work is refreshingly "business first".

The case of Accounts Payable is a nice example of an end-to-end process analysis of an important corporate function.  Using A/P practices as a measure, and compared to "laggards", best-in-class organizations manage their A/P to deliver much better cash flow, which can have a huge impact on bottom lines. 

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Two Challenges: The Promise Of Social BPM Depends On Better Governance & Better Technology

On his ebizQ blog, Peter Schooff asked an important question (June 2012): "Has social BPM fallen short of expectations so far?"  If you are exploring the promise of social BPM, the answers to Peter's questions are worth reading.  Your host believes there are two key challenges before we will realize the promise of social BPM: (1) a technology challenge and (2) a governance challenge.  Here are your host's comments, mirrored from ebizQ:

Some of the challenge around social BPM is associated with expectations and hype contrasted with the immaturity of social BPM software technology. There is a huge amount of research around "work", "narrative", "story" and "annotation", but that research has not truly been engineered yet into social BPM products.  The result is that most current social products are not built on a solid model of how narrative works in the human mind and as communication transactions between actors. And typically, a model of "work", i.e. what should be the subject of conversation, is also missing. But, over time we should see these challenges addressed, and surely the result will be very exciting.

However, I believe there's another challenge beyond technology, which may be more difficult to solve. This is the challenge of "social technology governance".

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How Many Business Analysts Does It Take . . .

Some of my best friends are BPM-istas!  And evangelists-of-BPM as the second coming of application development.  I say bravo!  But then I have a few questions, such as . . .

1.       How many managers does it take to build a business process in BPM?  

“None.  Managers aren’t allowed to build a process in BPM.” . . . read more

Will 2012 Be "The Year Of Living BPM"? MDM, Governance & Validation Challenges

Your host started his IT career at IDC, in the previous millennium.  Working for IDC gives one a perspective on analyst relations with vendors and end-users.  Analysts are little bit like movie reviewers -- they like technology as much as movie reviewers like movies.  And the economics of the technology analysis business is such that it's difficult for analysts not to be cheerleaders for technology, in the same way that movie reviewers find it difficult not to be cheerleaders for movies, or, considering the subject of this website, cheerleading for BPM software. . . . read more

Zachman @ IRMAC – Charisma Versus Chaos

 Is it possible to more completely grasp the idea of “enterprise”? 

And thereby submit that enterprise to the will of executive leadership?

John Zachman, well-known evangelist for enterprise architecture and originator of the Zachman “Framework for Enterprise Architecture”, says “yes”.

Canada’s DAMA affiliate IRMAC scored a coup last week by hosting Mr. Zachman on his road show for an update of the famous Zachman Framework.   Mr. Zachman gave a comprehensive tour of the Framework, the reasoning behind it and the advantages that adopting organizations might enjoy.

Mr. Zachman’s key message was that the application of normalization and ontological modeling to low-order, high-entropy organizations – i.e. organizations which are failing due to high cost structures and sclerotic inflexibility -- would reverse that state.  The sciences of organizational normalization and ontological modeling, defined by the Zachman Framework, unlock enormous benefits for organizational stakeholders

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