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Business Process Management
VL Assignment 1
Name
Institution
Course Number and Title
Professor
Date
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Business Process Management
VL Assignment 1
Q1
1. What is the typical driver for each type of BPM activity?
The standard driver for BPM activities is the business driver, which represents the
rationale or the reason that triggers an organization to support business goals (Reijers, 2021).
These drivers are suggestive of the fact that there is a demand for improving and managing
business processes so that they may effectively support organizational objectives and
improve upon process performance.
2. What are the advantages and disadvantages of the bottom-up/ top-down approaches?
The bottom-up approach gains the following benefits: It gives management and the
project teams a chance to learn and gain experience by beginning with pilot projects to prove
the concept. It can help generate the internal support and credibility required to advance BPM
beyond a few select divisions (Team Asana, 2024). However, it may not be as valuable in an
organization with low business or process maturity and may not have senior executives' full
support; therefore, large-scale improvements may be difficult to implement. On the other
hand, the advantages of the top-down approach include having back from senior
management, which is typically associated with changes in the target operating models. They
emphasize that it usually starts with a higher level of BPM maturity (Team Asana, 2024).
However, it involves a large capital investment that needs support and endorsement from the
top management and could be unilaterally opposed by the subordinates.
3. Describe the strategy execution void and the relative importance of strategy versus
execution.
Management effectiveness is void of strategy execution, and operational efficiency is
also lacking. Management efficiency is all about improving the decision-making, planning,
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and control concerning management affairs, while operational efficiency views the
organization's everyday activities as its primary focus. Both aspects are required for the
optimal functioning of the organization. A rigorous operating landscape enables the
formation of the right processes that assist in matching planning and executing a laid down
strategy.
4. Differentiate between
i. “Operational efficiency” and “Management effectiveness” processes.
Operation efficiency focuses on the cutting down of all forms of wasteful temporal
activities performed in an organization (Wang et al., 2021). While management efficiency
concerns itself with enhancing productivity to achieve set objectives, management
effectiveness deals with enhancing the decision-making and control systems to facilitate the
achievement of organizational objectives.
ii. “Project execution” and “Operational execution.”
Project management implies the accomplishment of particular projects to facilitate the
realization of strategic goals and, therefore, involves systematic planning and resource
deployment (Wang et al., 2021). On the other hand, operational execution relates to the
activities that sustain and enhance the normal business processes in tandem with the firm's
strategies.
5. Describe each of the three essentials of the framework and why they are important.
The BPM (Business Process Management) framework comprises three essential components:
Leadership, BPM project management, and people change management.
BPM needs leadership since it determines the strategies, objectives, and direction of
the change processes. Strategic leadership in BPM establishes competence in understanding
what needs to be done and ensuring that the BPM activities undertaken are in line with the
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strategic plan of the organization. Managers always encourage and set examples for the team
to follow, especially in the provision of any resource, such as the necessary tools for solving
tough issues and constant enhancement for the better. Despite its benefits, the effectiveness of
BPM projects crucially depends on the leadership of the organization and its employees and
thus may have poor results.
The BPM project management phase concerns the processes of BPM project
development, control, and accomplishment to fulfil the laid down objectives within the
allotted time and cost constraints. Project management can be defined as the practice that
ensures that BPM initiatives are systematically implemented and that all stages in the BPM
lifecycle are properly performed. It assists in controlling risks, correctly distributing
resources and keeping in mind that the project remains in line with the Company's strategic
objectives. It is, therefore, important for a project to have structure as a means of keeping the
project in check and ultimately having the project succeed.
People change management, in particular, relates to change within BPM, which
affects people and the way it is managed. This component makes sure that people are ready,
armed, and backed to embrace new change processes and systems. Also, it encompasses
communicational tactics, educational initiatives, and reinforcement systems for reducing the
level of resistance and increasing the level of acceptance of change. Change management in
people is important because it is the only way the transition and sustaining of a new practice
in the organization can be achieved.
Q2
i. Organization:
1. High growth: difficulty coping with high growth or proactively planning for high growth.
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Driver: Urgent growth is also a reason for an organization to learn about BPM because
processes within an organization must be able to handle the new capacities due to the growth
in demand and complexity.
2. Mergers and acquisitions cause the organization to "acquire" additional complexity or require
rationalization of processes. The need to retire acquired legacy systems could also contribute.
Trigger: Mergers and acquisitions are considered triggers because they need immediate
changes to the organization, like new processes and standards, to make sure that changes will
not affect the operation of the new entity.
3. Change in strategy: deciding to change direction to operational excellence, product
leadership, or customer intimacy.
Trigger: Change in the strategic direction is a trigger since the new strategy should be
aligned quickly with the operational process with the help of BPM.
4. Organizational objectives or goals still need to be met, such as introducing process
management linked to organizational strategy, performance measurement, and people
management.
Trigger: A failure to achieve an organizational aim or goal necessitates BPM as a reactive
technique that corrects processes to align with strategic direction.
ii. Management
1. Lack of reliable or conflicting management information: Process management and
performance measurement and management will assist.
Trigger: This is a trigger since detecting weak or inconsistent data requires an effective
process and performance management system.
2. There is a need to provide managers with more control over their processes.
Driver: This need is a driver since it gives the organization enough reason to implement
BPM to help managers better manage processes through improved tools.
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3. There is a need to create a culture of high performance.
Driver: Promoting a high-performance culture is pegged as a strategic driver for improved
BPM practices to reinforce best practices and sustain improvements.
4. There is a need to gain the maximum return on investment from the existing legacy systems.
Driver: The pursuit of achieving higher ROI from existing systems emphasizes the BPM
methodologies to enhance and expand the functionality of core systems.
iii. Employees
1. High turnover of employees, perhaps due to the mundane nature of the work or the degree of
pressure and expectations upon people without adequate support.
Trigger: Higher employee turnover becomes a signal showing hidden inefficiencies in the
processes or problems with the working climate that require intervention from the BPM
model.
2. Training issues with new employees.
Trigger: This is a trigger as it points to the need to enhance the training activities within the
BPM so that the organization can have enhanced onboarding and training.
3. Low employee satisfaction.
Trigger: When employees express low satisfaction levels, it is time for process improvement
regarding work conditions and increased employee motivation.
4. The expectation of a substantial increase in the number of employees
Driver: An increased number of employees is expected in the future, which puts pressure on
BPM to manage growth by implementing efficient processes.
Q3
Business Drivers
1. Customer Service Improvement
oClassification: Opportunity
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oRationale: Delivering better customer service within six months was
another objective set in the strategy aimed at increasing customer
satisfaction and commitment.
2. Increased Job Satisfaction
oClassification: Opportunity
oRationale: Management thought that introducing the line of client-focused
orientation would increase the level of staff satisfaction at the workplace,
which may result in an increase in performance and staff turnover reduction.
3. Greater Accountability
oClassification: Opportunity
oRationale: The implementation of a client-focused structure was expected to
raise staff responsibility levels and, thus, the quality and efficiency of the
service rendered.
4. Cost Savings
oClassification: Opportunity
oRationale: Potential cost savings, for instance, could be in the region
of a conservative 39%, and this led the project to cut its costs and
optimize operations.
Business Triggers
1. Merger of Two Business Units
oClassification: Problem
oRationale: It is correct that the merger had been a problem because of the
different concepts of working and generated problems such as replicated work
and inequality in service delivery.
2. High Expense Ratio
oClassification: Problem
oRationale: The business unit had endured an unacceptably poor expense ratio,
which required proper scrutiny of all activities to establish how to cut costs yet
achieve the same degree of effectiveness.
3. Work Duplication
oClassification: Problem
oRationale: The overlapping of tasks emerged as a critical problem and raised
operation complexities and costs.
4. Increasing Error Rates
oClassification: Problem
oRationale: High error rates in transaction processing required extensive QA
checking, consuming 17.5% of staff time and reducing overall efficiency.
5. Different System Application Platforms
oClassification: Constraint
oRationale: Legacy application platforms in the original and the newly
acquired business units were different, making operation and
integration challenging.
6. Failure to Achieve Service Standards
oClassification: Problem
oRationale: This meant that the business unit was not able to realize its set
service standards, which pointed to the need to invest in process efficiency and
employee training.
7. Customer Service Decline
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oClassification: Problem
oRationale: The earlier positive customer service interaction in the original
business unit declined, and the newly incorporated unit’s service did not meet
the anticipated improvement.
8. Enquiries and Complaints Costs
oClassification: Problem
oRationale: The largest share of costs (23%) was incurred in responding to
customers’ enquiries and complaints, which revealed areas of waste.
Q4:
Questions:
1. Determine the responsible department for each stage in the upper part of the graph.
The Research stage is headed mainly by the Research Department, whose target is to boost
the volume and quality of the publications. The Course Development stage is within the
purview of the Academic Affairs or Curriculum Development Department, which is
responsible for designing the University's course curriculum. The Promotion stage, in this
case, falls under the Domain of the Marketing and Communications Department since the
University's marketing and advertising activities fall under this department. At the Student
Administration stage, the management and support of the students are handled by the
Registrar's Office or the Office of Student Services. Last, the course delivery stage is
implemented by the teaching faculty or academic departments, which are the agents that
impart knowledge and education to the students.
2. What key information did you require during this phase, and what source did you use?
The Key information I required includes the process's current performance, stakeholders'
expectations, business process management benchmarks, and technological necessities,
respectively. The Sources I used include internal reports regarding the business processes
employed by the organization, interviews and surveys of different stakeholders and
workshops with BPM experts, BPM literature and relevant industry standards, and the
requirements of the IT department for the new integrated system.
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3. How did you resolve the challenge of ensuring all key stakeholders attended the
workshop to determine the components of the TOM?
To guarantee stakeholders’ presence at the given workshop, the value of the given activity
was explained, the proposal of a convenient time was given, and top management support
was achieved (admin, 2023). This approach brought out the correlation between the project
and the firm's strategic plans and was flexible to the stakeholders’ tight schedules.
4. How did you approach this project? —using Table 5.1 and the below Figure (BPM
activity width)
To approach this project, I utilized a combination of the bottom-up and top-down BPM
strategies outlined in Table 5.1. I started by identifying the type of BPM activity needed,
ranging from simple, low-impact projects to enterprise-wide transformation programs. This
involved considering who would initiate the projects (e.g., BPM-passionate individuals,
business managers, senior executives, or the CEO) and the specific activities and drivers or
triggers for each type. Additionally, I referred to the BPM activity width figure to determine
the scale and impact of the projects, from small improvements and process redesigns to
business transformation and industry value chain disruption. This comprehensive approach
ensured that the chosen BPM activities were aligned with the organization's strategic goals
and tailored to its specific needs and triggers.
While undertaking this project, I applied a blend of the bottom-up and top-down BPM
strategies listed in Table 5.1. To undertake BPM, I first determined the nature of the activity
required on the BPM spectrum, which can include low-impact business process mapping
initiatives all the way to cross-company transformation projects. This included thinking about
who would be driving these projects (for instance, BPM-passionate individuals, business
managers, senior executives, or the CEO) and activities alongside drivers or triggers of each
type. Also, to establish the size and effect of the BPM projects on the business environment, I
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consulted the BPM activity width figure to depict the projects in terms of small
improvements, process redesigns, business transformations, and disruption of the industry
value chain. It provided a more extensive perspective to make sure that only the appropriate
BPM activities were introduced into the organization and the chosen ones corresponded to
the organization’s strategic objectives and needs and identified triggers.
5. What components did you decide to include in your TOM and why?
I included strategic drivers, process improvements, organizational transformation, value
chain innovation, governance and management, technology and tools, and performance
metrics in the Target Operating Model (TOM). These components intensify direction to
achieve the organizational strategy, increase efficiency and effectiveness, and foster
progressive changes that can transform all the facets of an organization, adapt innovative
business models in the nature of industry value system, provide a clear governance structure,
capitalize on technological advancement to advance outcomes, and incorporates performance
measures to foster the spirit of continual enhancements (admin, 2023). It serves the purpose
of maintaining the ever-expanding and escalating BPM activities in a systematic manner.
References
Reijers, H. A. (2021). Business Process Management: The evolution of a discipline.
Computers in Industry, 126, 103404.
https://www.sciencedirect.com/science/article/pii/S0166361521000117
Team Asana. (2024, February 24). Top-Down Approach vs. Bottom-Up Approach: What’s
the Difference? • Asana. Asana. https://asana.com/resources/top-down-approach
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Admin. (2023, June 30). Target Operating Model: Definition, Design, and Example - The
Strategy Story. https://thestrategystory.com/blog/target-operating-model-definition-
design-and-example/#google_vignette
Wang, T., Wu, J., Gu, J., & Hu, L. (2021). Impact of open innovation on organizational
performance in different conflict management styles: based on resource dependence
theory. International Journal of Conflict Management, 32(2), 199-222.
https://www.emerald.com/insight/content/doi/10.1108/IJCMA-09-2019-0165/full/
html
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