Success Factors In... - Artigo - 2013 PDF
Success Factors In... - Artigo - 2013 PDF
Success Factors In... - Artigo - 2013 PDF
www.emeraldinsight.com/1463-7154.htm
Success factors
in PPM
477
Abstract
increase of business performance, it has been given only little attention to date. The purpose of this
paper is to provide a better understanding of what constitutes successful PPM and to identify critical
success factors in PPM.
Design/methodology/approach The authors conducted two complementary literature reviews
a representative literature review to get an overview of possible success factors, and an extended
literature review to identify detailed success factor items. To increase the reliability of the success
factors, a multiple case-study was additionally conducted.
Findings In the first literature review the representative one 11 success factors of PPM were
identified, to which several detailed PPM success factor items could be identified in the extended
literature review. Obviously, the success factor information quality is much more mentioned in
literature than factors regarding process quality or system quality.
Research limitations/implications Since there are no standardized terms regarding PPM, it is
challenging to include all important papers into the literature review. The next steps to develop a PPM
success model are to conceptualize a structural equation model and to conduct a worldwide
online-survey.
Practical implications The findings of this research serve as a basis for a PPM success model,
which enables practitioners to focus on what is really important for successful PPM.
Originality/value The application of a multi-methodological research approach resulted in
success factors whose importance was evaluated by their frequency of occurrence in literature, as well
as by experts in real-life enterprises.
Keywords Process performance management, Performance management, Performance measurement,
Critical success factors
Paper type Literature review
1. Introduction
Companies have to increase the efficiency and effectiveness of their business. They are
confronted with the need to reduce costs by improving the performance of their business.
A company-wide performance management is therefore a necessity to preserve a
competitive market position. Process performance management (PPM) is seen as an
essential part of performance management which is focused on a companys processes
and comprises the planning, monitoring, and control of process performance (e.g. output,
processing time, cases of complaints).
In PPM, numerous methods and concepts were developed by researchers and
practitioners helping to manage processes by deriving process performance indicators,
measures, and figures from the companys vision, its strategy and process objectives
(Heckl and Moormann, 2010). Process performance management systems (PPMS)
do not only help to monitor and control the relevant indicators, measures, and figures,
but also help to generate different kinds of reports and to support the analyses
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of the figures. PPMS enable companies to automatically record, control, monitor, and
analyze a multiplicity of figures. Sometimes they are used as the underlying theoretical
concept of PPM, too.
Despite the increased need for the measurement and the coherent management of
processes it is still not clear which factors do influence a successful development,
implementation, and application of PPM in practice. People who are responsible for
measuring and controlling process performance in enterprises and who Martin
characterizes as performance technologists (Martin, 2008) are unsure about what is
really relevant to assure PPM success. Whether established PPM methods or
self-developed and company-specific concepts or the technical support of PPM are the
key factors of the success is still an open question.
The problem in the research field of PPM is the still missing knowledge as to which
success factors for the development, implementation, and application of PPM actually
exist. Therefore, the following central research question is addressed:
RQ. Which success factors contribute to the success of PPM?
The purpose of this paper is to provide a better understanding of what constitutes PPM
success. Hence, we want to identify critical success factors in PPM to develop a PPM
success model in future research.
Our method is based on the multi-method approach by Gable (1994). We discuss the
first five stages of this research method and present the state of the literature by means
of a literature review, which is additionally supported by the findings of a multiple-case
study.
After this short introduction basic concepts and related work will be presented. The
underlying definition of PPM success and research design will be discussed. The next
section deals with the findings of a representative literature review which aims to
identify PPM success factors. The success factors will be verified by means of a
multiple-case study research. Subsequently, detailed PPM success factor items from an
extended literature review will be presented and interpreted. The article ends with a
conclusion and names the implications for future research.
2. Basic concepts and related work
2.1 Process performance management
In general, performance can be understood as a contribution of a company-internal or
company-external individual or group to achieve the goals of a company (Chamoni et al.,
2006). Machines or information systems (IS) can be used as support. In this article,
performance is defined as the degree of achieving company goals or the potential
output of all stakeholder-relevant attributes of an organization (Krause, 2005). The
differentiation between the three views capability, process, and result which focus
on different aspects of performance creation (Pleier, 2008) complements this definition.
Performance management is a company-wide concept which comprises a control
cycle containing the four steps plan, improve, control, and communicate, each of
which affects the performance and underlying mental models of involved protagonists
(Krause, 2005). The recorded data are often financial ones and are used for corporate
controlling supported by management information systems (MIS). When the system
focuses explicitly on process controlling and the collection of process relevant data and
measures, it is called PPM (Melchert et al., 2004).
The term PPM (He, 2004; Jeston and Nelis, 2008; Heckl and Moormann, 2010;
Cleven et al., 2010) narrows the view of performance management on the process level.
It can be seen as the active management of business processes through planning,
monitoring and controlling using process key performance indicators (KPIs) (Blasini et al.,
2011). PPM provides a detailed understanding of how a process can be designed and
redesigned to improve the performance, and focuses on identifying performance outcome
measures (Martin, 2008). The main goal is to identify optimization potentials in business
processes (Chamoni et al., 2006). Even though formal modeling of these processes is not a
mandatory requirement, it is strongly recommended for transparency reasons (Oehler,
2006). Although the term PPM is still not very popular, neither in research nor in practice,
the concept is nonetheless being developed (Cleven et al., 2011).
2.2 PPM success
Numerous empirically validated models for measuring the general IS success were
proposed (Urbach et al., 2009) which lead to a common understanding of success and of
possible success specifications. Several success and acceptance models were developed
over the last few decades to make the success of methods, IS or the acceptance of
technologies measurable. The DeLone and McLean (2003) IS success model is still the
dominant basis of IS success measurement (Urbach et al., 2009). Several empirical
studies confirmed the significance of this success model (Petter and McLean, 2009)
which comprises information quality, system quality, service quality, and
especially the dependent success variables (intention to) use, user satisfaction, and
net benefits (DeLone and McLean, 2003).
Another well-known and intensively used model is the technology acceptance model
(TAM) by Davis (1989). It consists of two main categories: perceived usefulness and
perceived ease of use, which lead to increased actual system use. The re-specified
version of the IS success model by Seddon (1997), who integrates both approaches, adds
expectations about net benefits and emphasizes the different levels of IS success
measurement individual, organization and society.
Performance and success are often connected to efficiency and effectiveness
(Budaus and Dobler, 1977). The benefit from the use of information is the maintenance or
change of mental models. This leads to both higher efficiency and higher effectiveness,
and therefore to a higher organizational and financial performance of the company
(Barr et al., 1992).
Since our research needs a clear definition of the dependent variables in order to
identify related independent success factors, we will use the following understanding
of PPM success: PPM success represents the successful development, implementation,
and application of PPM in practice and is characterized according to the IS success
model of DeLone and McLean (2003) and to the understanding of Budaus and Dobler
(1977) by a high usage of PPM, high efficiency and effectiveness of the underlying
business processes, and high user satisfaction, which relates on PPM users like
decision makers or employees who execute the monitored processes.
2.3 Related work
Although it is generally discussed in BPM how business process performance can be
increased (Rosemann et al., 2004), the narrower focus on PPM and its success factors
is relatively new and so far not a very intensely discussed topic in literature.
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Table I.
Literature resources
Domain
Literature resources
Information systems
Management accounting
Business process management
Performance measurement/
management
Process performance management
Period of
time
Case
Sector/department
Researcher
Case I
Service sector
Case II
Case III
Case IIIa
Energy industry
Manufacturing sector
Human resource
management (HRM)
Quality management
(QM)
Financial services
Author 1
Author 2
2010
Author 2 and
students
Author 2
2010-2011
Case IIIb
Table II.
Cases of the case study
and data collection
Case IV
Winter
2010
Data collection
extensively (by title, abstract and content), 33 of them contained at least one critical
success factor with regard to applying PPM. Therefore, these 33 contributions were
selected to undergo further evaluation, 24 of them from journals (21 different journals),
four from books and five come from other sources (reports, etc.). Eight contributions
follow an empirical research design, ten can be assigned to case study design and the
remaining 15 relate to literature review and/or design science. Table III lists the
literature resources of each of the three categories.
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Success factor
Literature resources
Expertise/
competence
Process models
Corporate strategy
Information quality
System quality
Service quality
Process quality
Ease of use
Usefulness
Management
support
Incentive system
Table III.
Literature resources to
identify PPM success
factor items
Table IV.
Literature review of
success factors
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(Krause, 2005), flexibility, and integration (Bandara, 2007), this success factor sums up
all desirable properties of the PPM system.
Service quality
This relatively new measurement instrument uses the dimensions of tangibles,
reliability, responsiveness, assurance, and empathy to measure service quality (DeLone
and McLean, 2003). It represents the overall user support that has become more and
more important over the last decades.
Process quality
Urbach et al. (2010) added this success factor to make a measurement of the quality of
process support possible. Items of this success factor are methodological support in
the implementation phase (Krause, 2005) as well as process quality in the application
phase (process efficiency, reliability, regularity, etc.) (Bucher and Winter, 2006;
Gleich, 2001; Krause, 2005).
Ease of use
This success factor represents freedom from difficulty or great effort (Davis, 1989) in
the application of PPM. Davis proved empirically that ease of use (ease of learning,
controllability, understandability, etc.) can lead to increased usage. Bandara (2007)
confirmed that modeling aids are critical in process modeling. In general, aids (tools,
techniques and guidelines) which are perceived as being closely related to one another
can improve the ease of use of methods, systems and technologies.
Usefulness
This is the second of the two essential key factors for the acceptance of information
technology identified by Davis. Usefulness is defined as the degree to which a person
believes that using a particular system would enhance his or her job performance
(Davis, 1989). Transferred to the topic of this article, PPM methods and systems can only
be successfully applied if their usefulness (effectiveness, ease of work, increase of
productivity, etc.) is guaranteed.
Management support
Regardless of the unit of analysis, the support of (top) management is one of the most
mentioned success factors for IS. Bandara (2007) identified top management support
as one of the essential project specific success factors in process modeling. Wixom and
Watson (2001) also confirmed a high significance of management support concerning
data warehousing success. Bucher and Winter (2006), in particular, stress the
importance of top management support and of professionalizing process management
in the organization.
Incentive system
Gleich (2001) identified performance incentives and performance standards which
directly influence the corporate profitability as one of the key subsystems of a performance
measurement system. Schreyer (2007) collected success factors for implementing
performance measurement systems identified by scientists and practitioners. An essential
and often mentioned success factor is the employee compensation on the basis of the
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To obtain reliable evidence as to whether all three success factors which could not be
verified in the case study are PPM-critical or not, further case studies will have to be
conducted in the ongoing research.
6. Results of the extended literature review
6.1 Resulting success factors and items
Since the selected literature is very heterogeneous, the contingency table is sparsely
filled. The representation of the success factors is concept-centric, again (Table V).
Although the findings of the representative literature review implied that the
success factors process quality and ease of use are important, rather none of these
success factors were mentioned in the literature analyzed in the extended review which
had a rather narrower focus (PPM) than the representative review before which
included general success factors of IS. In summary, a low number of mentions is
tantamount to a less strong impact on PPM success than other success factors.
While collecting the PPM success factors items, the previously identified success
factors appeared to be a helpful framework for structuring and ordering the collected
items. However, we changed the description of the first three success factors due to the
findings of the literature review:
.
To point out the differentiation between the individual knowledge of someone
(business, company, product, project management, etc.) and the knowledge of the
business processes (process flow and design) within the enterprise, we changed the
description of both success factors. Expertise/competence was specified to
individual knowledge and competence, whereas process models was generalized
to process knowledge which includes process models.
.
Connection to the corporate strategy was changed to integrated performance
management, which emphasizes the overall goal to integrate different views on
performance (profitability, processes, etc.) into one comprehensive perspective of
the companys performance. The connection to controlling, risk or quality
management completes this view.
6.2 Discussion of the success factors and items
There are fewer success factor items mentioned in the selected literature than expected
(Table V). On average, only approximately 6.5 mentions in the literature could be
identified for each success factor. Information quality shows the highest number of
mentions (26). Taking a closer look at the underlying items of information quality,
two items emerge, in particular:
(1) Communication is mentioned by most of the selected literature resources
(eight explicit mentions). Thus, successful PPM seems to depend mainly on the
communication of the information gained through process monitoring.
Communication includes different objects of the entire PPM lifecycle,
especially the communication of process goals, of the effectively achieved
process output, and of the performance of the critical business processes (actual
and future). Thus, in our study communication is revealed to be one of the
most promising items to measure high information quality.
(2) Inclusiveness which represents the measurement of all related aspects shows
five explicit mentions. Thus, the success of PPM depends on the degree of
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Table V.
Mention of success
factors and items
Ease of use
Usefulness
Usefulness
Mgmt. support
Top management support and
commitment
Incentive system
Extrinsic motivation (performance
reward/punishment)
Categories of selected
literature; no. of mentions
Emp (8) CS (10) L/D (15) S
2
1
1
1
1
1
1
2
14
1
2
2
1
1
3
8
1
1
1
1
1
1
26
1
1
1
1
1
1
1
1
1
2
1
3
1
3
1
1
1
1
1
1
1
2
3
1
10
0
0
2
1
1
1
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Zairi, M. and Sinclair, D. (1995), Business process re-engineering and process management:
a survey of current practice and future trends in integrated management, Management
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Further reading
Eisenhardt, K.M. (1989), Building theories from case study research, Academy of Management
Review, Vol. 14 No. 4, pp. 532-550.
Corresponding author
Josef Blasini can be contacted at: [email protected]
Success factors
in PPM
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