Transformation, Measurement and Process Performance Indicators

The general who wins the battle makes many calculations in his temple before the battle is fought. The general who loses makes but few calculations beforehand. [SUN TZU]

Have you participated in Business Process Management (BPM) and been going from a AS-is to a TO-be situation without measurement, then you are not the only one. In my opinion, measurement is one of the most important areas when implementing a BPM strategy. If you do not measure what you are doing, are you then sure that the transformation which is performed is for the better or worse? This area is often neglected. But why! Do you know? I don’t!

For the last year I have heard the word transformation mentioned again and again – Until I almost became sick of it! Isn’t transformation just going from AS-is to TO-be (and hopefully using BPM while doing it)? If transformation is going from “something” you don´t know to “something” you “think” you know, then you are in trouble…! And if you at the same time don’t measure the “something” then you are in a really bad situation.

But why do we measure – because it enables us to do the following:

  • Minimize cost
  • Improve timeline – e.g. time to costumer
  • Compare our business against others – seen from best practice
  • Set target(s) – and improve or change process if target(s) aren’t met
  • See if changes to processes have had the wished effect
  • Discover when action is needed

And I could go on for pages….!

If you do this the correct way – your measurement from the process level will be connected to the balanced scorecard – > the following way:

  1. Strategic Business Objective [SBO]
  2. Business Planning Goal [BPO]
  3. Critical Success Factors [CSF]
  4. Key Performance Indicator [KPI]
  5. Process Performance Indicator [PPI] – the process level

Please tell if you have done this already – it would make my day! This isn’t easy – it sounds easy but is complicated – especially when the business has to agree upon what to measure!

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By Anders Bang Christoffersen @ Process Wizard | July 4, 2012

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