BPM from a Business Point of View

Scott Cleveland

Strategy Execution Process

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From Robert L. Howie Jr., Managing Director of the Palladium Group...

He mentions a survey that compared two groups, one with and one without a formal strategy execution process in place. A formal process means strategy maps, derived projects and process improvements from it, and associated key performance indicators (KPIs) with targets reported in scorecard dashboards and cascaded down into the organization. Seventy percent of organizations with the formal process were exceeding the performance of their peers in their industry, while in contrast only 27 percent of those without a formal process were.

The key conclusions are for executives to communicate strategy to their workforce in a way they can understand (e.g., a visual strategy diagram), and also involve the employees in identifying the actions and projects while also holding them accountable with appropriate measures and targets for those measures. The executives' primary role is to set direction - leadership. They must answer, "Where do we want to go?" With that done, managers and employees can answer a very different but related question, "How are we going to get there?"

My Thoughts...

This reminds me of Einstein's definition of insanity - 'doing the same thing over and over again and expecting different results.'

Most companies do not generate a formal process. They do not have strategy maps, derived projects, process improvements and associated key performance indicators (KPIs) with targets reported in scorecard dashboards and cascaded down into the organization.

How surprising is it that companies with a formal process are successful 70% of the time while those without are successful only 27% of the time?

Business Process Management [in general] needs a process - a process to manage [improve] business processes. Here is an often used process: Identify high value processes; Document the process as it exists today; Measure [metrics] the time it takes today; Identify potential improvements looking for efficiency and automation; Implement the changes; Measure the new process to see if you were successful; Make changes [improvements]; Implement & Measure; Repeat.

With the economy in its current state, now is the time to look for ways to be more efficient. Why? Efficiency will lower costs which should result in higher profits.

As I have said before - Just do it.

Your Thoughts...

Has your company taken on improving its business processes?

Keeping it Real!

1 Comment

Customers are smart in knowing that a free software product is going to cost them somewhere down the line.Its really true that companies with a formal process are successful 70% of the time while those without are successful only 27% of the time.But I don't know the exact evidence why it is there in regard of formal process.

Scott Cleveland blogs about BPM from a business point of view.

Scott Cleveland

Scott Cleveland is a technical, innovative and creative marketing manager with more than 25 years of experience in marketing, marketing management, sales, sales management and business process consulting aimed at high-tech companies. His areas of expertise include: product marketing, solutions marketing, solution selling, sales maangement, business process management, business process improvement and process optimization. Reach him at RScottCleveland[at]gmail.com.

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