The Process of Process Management: Enabling High Performance in a Digital World

Business strategies and operations are driven by scores of ever-shifting factors: from legal regulations to technological innovations and an all present digitalization. Companies need a powerful management approach to achieve high performance in today’s d

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BPM-D, 475 Timberline Trail, West Chester, PA 19382, USA University of Pennsylvania, Organizational Dynamics, Philadelphia, USA [email protected]

Abstract. Business strategies and operations are driven by scores of ever-shifting factors: from legal regulations to technological innovations and an all present digitalization. Companies need a powerful management approach to achieve high performance in today’s digital world. In effect, they must know how and when to enhance their business processes, which processes are optimal candidates for intervention, and how to move rapidly from strategy to execution. That’s where the Business Process Management-Discipline (BPM-Discipline) helps. It delivers significant business value by converting strategy into people and IT based execution at pace with certainty. The BPM-Discipline is implemented through the “process of process management”. An efficient and effective implementation of this management process is achieved using a holistic framework and reference model as well as related tools and templates. Keywords: Agility  ARIS  BPM  BPM-Discipline  Business process management  Compliance  Digitalization  Execution  Innovation  Management discipline  Reference model  Standardization  Strategy  Value-driven BPM

1 The Challenge: High Performance in a Digital World In today’s business environment organizations’ strategies and operations are driven by scores of ever-shifting factors: from demographic changes, capital availability, legal regulations and customers who require something new every day to technological innovations and an all present digitalization. Static business models are no longer able to keep pace with such dynamic change. Companies need a management approach that makes them successful in this volatile environment. Organizations need to achieve high performance by mastering this “new normal” and deal proactively with the opportunities and threats of our “digital world” [1]. Companies need to become “Exponential Organizations” who achieve a significant higher output than peers through the use of new organizational techniques and related technologies [2]. In effect, organizations need to know how and when to modify or enhance their business processes, which processes are optimal candidates for intervention, and how to move rapidly from idea to action. However, organizations are not sufficiently prepared to meet those challenges to reach high performance in our digital world. According to a study of The Gartner © Springer International Publishing Switzerland 2016 B. Shishkov (Ed.): BMSD 2015, LNBIP 257, pp. 171–189, 2016. DOI: 10.1007/978-3-319-40512-4_10

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M. Kirchmer

Group, only 13 % of businesses meet yearly their strategic goals [20]. Hence, 87 % of organizations define strategies and goals but don’t really execute on them. This trend is accelerated through the current wave of digitalization. According to the same study only 1 % of organizations have business processes in place that are agile enough to realize the full business potentia