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Summary
Summary
Business Process Change: A Business Process Management Guide for Managers and Process Professionals, Fourth Edition, provides a balanced view of the field of business process change. Bestselling author and renowned expert in the field Paul Harmon offers concepts, methods, cases for all aspects, and phases of successful business process improvement. Students and professionals alike will benefit from the comprehensive coverage and customizable, integrated approach to broad business process management that focuses on improving efficiency and productivity. In this updated Edition, particular attention is paid to the impact of disruptive technology on business and the need for agile transformation.
Author Notes
Paul Harmon is the editor of the "Component Development Strategies" newsletter & Senior Consultant with the Cutter Consortium. He has coauthored many books, including "Understanding UML: The Developer's Guide", "The Object Technology Casebook" (Wiley), & the international bestseller "Expert Systems: Artificial Intelligence for Business" (Wiley).
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Table of Contents
Foreword to fourth edition | p. xv |
Foreword to third edition | p. xvii |
Preface to the fourth edition | p. xix |
Introduction | p. xxiii |
Chapter 1 Business process change | p. 1 |
Organizations as Systems | p. 2 |
Systems and Value Chains | p. 2 |
The Six Sigma Movement | p. 6 |
Business Process Change in the 1990s | p. 7 |
The Role of IT in BPR | p. 9 |
The Misuses of BPR | p. 10 |
Lean and the Toyota Production System | p. 11 |
Other Process Change Work in the 1990s | p. 11 |
The Internet | p. 13 |
A Quick Summary | p. 14 |
Business Process Change in the New Millennium | p. 15 |
What Drives Business Process Change? | p. 17 |
Notes and References | p. 18 |
Part I Organization-wide concerns | |
Chapter 2 Strategy, value chains, business initiatives, and competitive advantage | p. 27 |
Defining a Strategy | p. 28 |
Porter's Model of Competition | p. 30 |
Industries, Products, and Value Propositions | p. 33 |
Strategies for Competing | p. 34 |
Porter's Theory of Competitive Advantage | p. 36 |
Porter's Strategic Themes | p. 39 |
Treacy and Wiersema's Positioning Strategies | p. 41 |
The Balanced Scorecard Approach to Strategy | p. 43 |
Business Models | p. 47 |
Business Initiatives | p. 47 |
Summary | p. 47 |
Notes and References | p. 49 |
Chapter 3 Understanding your organization | p. 51 |
A Comprehensive Business Process Method | p. 51 |
Strategy and Enterprise BPM | p. 54 |
Understand the Enterprise | p. 55 |
The Traditional View of an Organization's Structure | p. 55 |
A Case Study of Organization Transformation | p. 57 |
The Systems View of an Organization | p. 60 |
Models and Diagrams | p. 61 |
Organization Diagrams | p. 62 |
Organizations and Value Chains | p. 63 |
Systems and Processes | p. 67 |
Notes and References | p. 68 |
Chapter 4 Business architecture | p. 69 |
The Supply Chain Council's Supply Chain Operations Reference Framework | p. 72 |
Business Architecture: The IT Approach | p. 74 |
Business Process Architecture | p. 79 |
Creating a Business Process Architecture Model | p. 82 |
Step 1 Kickoff Meeting | p. 83 |
Step 2 Scope the Project | p. 84 |
Step 3 Define Life Cycle Processes | p. 85 |
Step 4 Organizing and Consolidating the Level 2 Processes | p. 86 |
Defining an Architecture Using a Framework | p. 90 |
The Supply Chain Council's SCOR Framework | p. 91 |
Developing a Supply Chain Architecture | |
With a SCOR | p. 92 |
The Extension of a SCOR | p. 95 |
Another Approach | p. 98 |
Summary | p. 101 |
Notes and References | p. 102 |
Chapter 5 Measuring process performance | p. 103 |
Key Measurement Terms | p. 103 |
Internal and External Measures | p. 105 |
Leading and Lagging Indicators | p. 107 |
Developing a Comprehensive Measurement System | p. 108 |
Balanced Scorecard and Process Measures | p. 109 |
Aligning Process Measures | p. 112 |
Deriving Measures From Business Process Frameworks | p. 115 |
A Process-Driven Approach to Defining Measures | p. 118 |
Putting It All Together | p. 122 |
Notes and References | p. 123 |
Chapter 6 Process management | p. 125 |
The Process Perspective | p. 125 |
What Is Management? | p. 127 |
Functional Managers | p. 127 |
Process Managers | p. 131 |
Functional or Process Management? | p. 134 |
Matrix Management | p. 135 |
Management of Outsourced Processes | p. 137 |
Value Chains and Process Standardization | p. 138 |
Setting Goals and Establishing Rewards for Managers | p. 140 |
Management Processes | p. 141 |
PMI's Project Management Maturity Model | p. 141 |
SEI's CMMI Model | p. 141 |
SCC's SCOR Framework | p. 145 |
The ITGI's COBIT Framework | p. 146 |
Documenting Management Processes in an Architecture | p. 148 |
Completing the Business Process Architecture Worksheet | p. 149 |
Notes and References | p. 149 |
Chapter 7 An executive-level business process management group | p. 151 |
What Does a BPM Group Do? | p. 151 |
Create and Maintain the Enterprise Business Process Architecture | p. 152 |
Identify, Prioritize, and Scope Business Process Change Projects | p. 153 |
Help Create, Maintain, and Manage the Process Performance System | p. 160 |
Help Create and Support the Process Manager System | p. 161 |
Recruit, Train, and Manage Business Process Change Professionals | p. 162 |
Manage Risk/Compliance Reporting and Documentation | p. 162 |
A Case Study: Boeing's GMS Division | p. 163 |
Senior Management's Commitment | p. 163 |
Starting With a Vision and a Plan | p. 164 |
Modeling the Company and Its Processes | p. 165 |
Process Owners | p. 167 |
Defining Process Measures | p. 169 |
Boeing GMS Process-Based Management System | p. 170 |
PBM, Process Redesign, Six Sigma, Lean, and Balanced Scorecard | p. 171 |
ISO 9000, CMMI, and Sarbanes-Oxley | p. 172 |
The Success of the Transition to Process-Based Management | p. 173 |
Summary | p. 174 |
The BPM Group | p. 174 |
Notes and References | p. 174 |
Part II Process-level concerns | |
Chapter 8 Understanding and scoping process problems | p. 179 |
What Is a Process? | p. 179 |
Process Levels and Levels of Analysis | p. 181 |
Simple and Complex Processes | p. 182 |
Business Process Problems | p. 185 |
The Initial Cut: What Is the Process? | p. 187 |
Stakeholders | p. 189 |
Refining an Initial Process Description | p. 189 |
Output Problems | p. 192 |
Input Problems | p. 193 |
Problems With Controls | p. 194 |
Problems With Enablers | p. 195 |
Creating a Business Case for a Process Change Project | p. 199 |
Notes and References | p. 201 |
Chapter 9 Modeling business processes | p. 203 |
Process Flow and Process Management Problems | p. 204 |
Day-to-Day Management Problems | p. 205 |
Process Flow Diagrams | p. 206 |
Flow Diagramming Basics | p. 208 |
More Process Notation | p. 214 |
As-Is, Could-Be, and To-Be Process Diagrams | p. 221 |
Case Management | p. 225 |
Notes and References | p. 229 |
Chapter 10 Modeling activities | p. 231 |
Analyzing a Specific Activity | p. 232 |
Analyzing Human Performance | p. 236 |
Activity Standards | p. 237 |
Activity Support | p. 237 |
Consequences | p. 238 |
Feedback | p. 239 |
Skill, Knowledge, and Capability | p. 240 |
Managing the Performance of Activities | p. 241 |
Automating the Enter Expense Reports Activity | p. 241 |
More Complex Activity | p. 243 |
Empowering Employees | p. 246 |
Analyzing a Completely Automated Activity | p. 247 |
Decision Management | p. 249 |
Knowledge Workers, Cognitive Maps, and Decision Management | p. 253 |
Business Rules and Knowledge Rules | p. 258 |
Business Rules for Software Development | p. 258 |
Rule-Based Systems for the Capture of Expertise | p. 260 |
Risk Management and Compliance Issues | p. 260 |
Business Rules Used in Business Processes | p. 261 |
Notes and References | p. 262 |
Chapter 11 Managing and measuring a specific business process | p. 267 |
Representing Management Processes | p. 268 |
The Management Process | p. 269 |
Plan Work | p. 271 |
Organize Work | p. 273 |
Communicate | p. 274 |
Control Work | p. 275 |
The Project Management Institute's Approach | p. 277 |
Evaluating the Performance of the Process Manager | p. 278 |
Continuous Measurement and Improvement | p. 278 |
Management Redesign at Chevron | p. 280 |
Notes and References | p. 281 |
Chapter 12 Incremental improvement with Lean and Six Sigma | p. 283 |
Six Sigma | p. 283 |
The Six Sigma Concept | p. 286 |
The Six Sigma Approach to Process Improvement | p. 289 |
Six Sigma Teams | p. 290 |
Phases in a Six Sigma Improvement Project | p. 290 |
Define | p. 291 |
Measure | p. 295 |
Analyze | p. 299 |
Improve | p. 303 |
Control | p. 303 |
Lean | p. 304 |
Flow Kaizen | p. 306 |
Process Kaizen | p. 307 |
Management, Teams, and A3 Pages | p. 308 |
Summary | p. 310 |
Notes and References | p. 312 |
Chapter 13 A comprehensive redesign methodology | p. 315 |
Why Have a Methodology? | p. 319 |
How Does It All Begin? | p. 319 |
What Happens? | p. 320 |
Who Makes It All Happen? | p. 320 |
Phase 1 Understanding the Project | p. 322 |
Major Activities | p. 323 |
Outcome | p. 325 |
Phase 2 Analyze Business Process | p. 325 |
Major Activities | p. 326 |
Outcome | p. 330 |
Phase 3 Redesign Business Process | p. 330 |
Major Activities | p. 330 |
Outcome | p. 332 |
Phase 4 Implement Redesigned Process | p. 333 |
Major Activities | p. 333 |
Outcome | p. 335 |
Phase 5 Roll Out the Redesigned Process | p. 335 |
Major Activities | p. 336 |
Outcome | p. 337 |
Agile Methodologies | p. 337 |
Summary | p. 340 |
Notes and References | p. 342 |
Chapter 14 Rental Cars-R-Us case study | p. 343 |
Rental Cars-R-Us | p. 343 |
Phase 1 Understand the Project | p. 344 |
Phase 2 Analyze the Business Process | p. 352 |
Start With a Second Look at the Customer Process | p. 356 |
Does It All Flow Smoothly? | p. 361 |
Phase 3 Redesigning the Rental Process | p. 361 |
Phase 4 Implement the Redesigned Business Process | p. 364 |
Phase 5 Roll Out the New Rental Process | p. 365 |
Manage the New Rental Process | p. 365 |
Notes and References | p. 366 |
Part III Implementation-level concerns | |
Chapter 15 Software tools for business process work | p. 369 |
Why Use Business Process Software? | p. 369 |
Variety of Business Process Tools | p. 370 |
Professional BP Modeling Tools | p. 374 |
Modeling and Management Screens | p. 376 |
Business Process Management Suites | p. 376 |
Process Diagrams and BPMS Engines | p. 381 |
What Features Might a BPM Suite Include? | p. 383 |
BPMS, SOA, and the Cloud | p. 385 |
Choosing a BPMS Product | p. 387 |
Some Leading BPMS Vendors | p. 387 |
Creating a BPMS Application | p. 389 |
Notes and References | p. 390 |
Chapter 16 Enterprise resource planning-driven redesign | p. 393 |
Processes, Packages, and Best Practices | p. 394 |
A Closer Look at SAP | p. 395 |
Implementing an ERP-Driven Design | p. 402 |
Case Study: Nestle USA Installs SAP | p. 405 |
Using BPMS to Improve ERP Installations | p. 407 |
Enterprise Resource Planning and Business Process Management Suite | p. 412 |
Notes and References | p. 414 |
Chapter 17 Al-driven process change | p. 417 |
Artificial Intelligence | p. 417 |
IBM's Watson Plays Jeopardy! | p. 420 |
Google's AlphaGo | p. 422 |
AI Technologies | p. 426 |
Knowledge-Based Approaches | p. 426 |
Neural Networks | p. 429 |
Combined Approaches | p. 431 |
Developing and Deploying AI-Based Processes | p. 432 |
The Analysis and Redesign Phases of a Project | p. 435 |
A Quick Review | p. 437 |
Notes and References | p. 438 |
Chapter 18 The future of business process management | p. 441 |
Appendices | |
Appendix 1 Business problem analysis checklist | p. 457 |
Appendix 2 Core business process modeling notation | p. 467 |
Appendix 3 Business process standards | p. 475 |
Appendix 4 Processes and capabilities | p. 483 |
Appendix 5 Process analysis diagrams used in this book | p. 489 |
Index | p. 491 |