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Business Process Change

A Business Process
Management Guide for
Managers and Process
Professionals

FOURTH EDITION

Paul Harmon
Executive Editor, www.BPTrends.com, Senior Consultant, AI
Technology, Cutter Consortium

Forewords by Michael Rosemann and Thomas Davenport

Table of Contents

Cover image

Title page

Copyright

Dedication

Foreword to fourth edition by Michael Rosemann

Foreword to third edition by Thomas Davenport

Preface to the fourth edition

Introduction

Levels of Concerns

Business Process Change and Management

The Evolution of an Organization’s Understanding of Process

The Variety of Options

The Variety of Solutions

How This Book Is Organized

Notes and References

Chapter 1: Business process change

Abstract

Organizations as Systems

Systems and Value Chains

The Six Sigma Movement

Business Process Change in the 1990s

Lean and the Toyota Production System

Other Process Change Work in the 1990s

A Quick Summary

Business Process Change in the New Millennium

What Drives Business Process Change?

Notes and References

Part I: Organization-wide concerns

Introduction

Chapter 2: Strategy, value chains, business initiatives, and

competitive advantage

Abstract

Defining a Strategy

Porter’s Model of Competition

Industries, Products, and Value Propositions

 Strategies for Competing

Porter’s Theory of Competitive Advantage

Porter’s Strategic Themes

Treacy and Wiersema’s Positioning Strategies

The Balanced Scorecard Approach to Strategy

Business Models

Business Initiatives

Summary

Notes and References

Chapter 3: Understanding your organization

Abstract

A Comprehensive Business Process Method

Strategy and Enterprise BPM

Understand the Enterprise

The Traditional View of an Organization’s Structure

A Case Study of Organization Transformation

The Systems View of an Organization

Models and Diagrams

Organization Diagrams

Organizations and Value Chains

Systems and Processes

 Notes and References

Chapter 4: Business architecture

Abstract

The Supply Chain Council’s Supply Chain Operations

Reference Framework

Business Architecture: The IT Approach

Business Process Architecture

Defining an Architecture Using a Framework

The Supply Chain Council’s SCOR Framework

Developing a Supply Chain Architecture With a SCOR

The Extension of a SCOR

Another Approach

Summary

Notes and References

Chapter 5: Measuring process performance

Abstract

Key Measurement Terms

Developing a Comprehensive Measurement System

Balanced Scorecard and Process Measures

Aligning Process Measures

Deriving Measures From Business Process Frameworks

 A Process-Driven Approach to Defining Measures

Putting It All Together

Notes and References

Chapter 6: Process management

Abstract

The Process Perspective

What Is Management?

Matrix Management

Management of Outsourced Processes

Value Chains and Process Standardization

Management Processes

Documenting Management Processes in an Architecture

Completing the Business Process Architecture Worksheet

Notes and References

Chapter 7: An executive-level business process management

group

Abstract

What Does a BPM Group Do?

Create and Maintain the Enterprise Business Process

Architecture

Identify, Prioritize, and Scope Business Process Change

Projects
 Help Create, Maintain, and Manage the Process Performance
System

Help Create and Support the Process Manager System

Recruit, Train, and Manage Business Process Change

Professionals

Manage Risk/Compliance Reporting and Documentation

A Case Study: Boeing’s GMS Division

Summary

The BPM Group

Notes and References

Part II: Process-level concerns

Introduction

Chapter 8: Understanding and scoping process problems

Abstract

What Is a Process?

Process Levels and Levels of Analysis

Simple and Complex Processes

Business Process Problems

The Initial Cut: What Is the Process?

Refining an Initial Process Description

Creating a Business Case for a Process Change Project

 Notes and References

Chapter 9: Modeling business processes

Abstract

Process Flow and Process Management Problems

Day-to-Day Management Problems

Process Flow Diagrams

Flow Diagramming Basics

More Process Notation

As-Is, Could-Be, and To-Be Process Diagrams

Case Management

Notes and References

Chapter 10: Modeling activities

Abstract

Analyzing a Specific Activity

Analyzing Human Performance

Managing the Performance of Activities

Automating the Enter Expense Reports Activity

Empowering Employees

Analyzing a Completely Automated Activity

Decision Management
 Knowledge Workers, Cognitive Maps, and Decision
Management

Notes and References

Chapter 11: Managing and measuring a specific business process

Abstract

Representing Management Processes

The Management Process

Plan Work

Organize Work

Communicate

Control Work

The Project Management Institute’s Approach

Evaluating the Performance of the Process Manager

Continuous Measurement and Improvement

Management Redesign at Chevron

Notes and References

Chapter 12: Incremental improvement with Lean and Six Sigma

Abstract

Six Sigma

The Six Sigma Concept

The Six Sigma Approach to Process Improvement

 Phases in a Six Sigma Improvement Project

Lean

Summary

Notes and References

Chapter 13: A comprehensive redesign methodology

Abstract

Why Have a Methodology?

How Does It All Begin?

What Happens?

Who Makes It All Happen?

Phase 1: Understanding the Project

Phase 2: Analyze Business Process

Phase 3: Redesign Business Process

Phase 4: Implement Redesigned Process

Phase 5: Roll Out the Redesigned Process

Summary

Notes and References

Chapter 14: Rental Cars-R-Us case study

Abstract

Rental Cars-R-Us
 Phase 1: Understand the Project

Phase 2: Analyze the Business Process

Phase 3: Redesigning the Rental Process

Phase 4: Implement the Redesigned Business Process

Phase 5: Roll Out the New Rental Process

Notes and References

Part III: Implementation-level concerns

Introduction

Chapter 15: Software tools for business process work

Abstract

Why Use Business Process Software?

Variety of Business Process Tools

Professional BP Modeling Tools

Modeling and Management Screens

Business Process Management Suites

Process Diagrams and BPMS Engines

What Features Might a BPM Suite Include?

BPMS, SOA, and the Cloud

Choosing a BPMS Product

Some Leading BPMS Vendors

 Creating a BPMS Application

Notes and References

Chapter 16: Enterprise resource planning–driven redesign

Abstract

Processes, Packages, and Best Practices

A Closer Look at SAP

Implementing an ERP-Driven Design

Case Study: Nestlé USA Installs SAP

Using BPMS to Improve ERP Installations

Enterprise Resource Planning and Business Process

Management Suite

Notes and References

Chapter 17: AI-driven process change

Abstract

Artificial Intelligence

AI Technologies

Developing and Deploying AI-Based Processes

Notes and References

Chapter 18: The future of business process management

Abstract
Appendix 1: Business problem analysis checklist

Output Problems

Input Problems

Guide Problems

Enabler Problems

Process Activity and Flow Problems

Problems With the Management of a Process

Appendix 2: Core business process modeling notation

Overview of a BPMN Diagram Used for Business Process

Analysis and Redesign

An Activity

An Event

A Gateway

A Sequence Flow

A Message Flow

A Data Object

An Association

A Pool With Swimlanes

A Few Extensions of the Activity Rectangle

A Few Extensions of the Event Circle

A Few Extensions of the Gateway Diamond

 Some Other Notations That We Occasionally Use

BPTrends Special Notation

Appendix 3: Business process standards

Organization-Level Business Process Standards

Process-Level Business Process Standards

Business Process Standards for Implementation

The Future of Standards

Appendix 4: Processes and capabilities

Some Corollaries

Processes, Capabilities, and Business Architecture

Appendix 5: Process analysis diagrams used in this book

Index
Copyright
Morgan Kaufmann is an imprint of Elsevier
50 Hampshire Street, 5th Floor, Cambridge, MA 02139, United
States

Copyright © 2019 Paul Harmon. Published by Elsevier Inc. All

Rights Reserved.

No part of this publication may be reproduced or transmitted in

any form or by any means, electronic or mechanical, including
photocopying, recording, or any information storage and retrieval
system, without permission in writing from the publisher. Details
on how to seek permission, further information about the
Publisher’s permissions policies and our arrangements with
organizations such as the Copyright Clearance Center and the
Copyright Licensing Agency, can be found at our website:
www.elsevier.com/permissions.

This book and the individual contributions contained in it are

protected under copyright by the Publisher (other than as may be
noted herein).

Notices
Knowledge and best practice in this field are constantly changing.
As new research and experience broaden our understanding,
changes in research methods, professional practices, or medical
treatment may become necessary.

Practitioners and researchers must always rely on their own

experience and knowledge in evaluating and using any
information, methods, compounds, or experiments described
herein. In using such information or methods they should be
mindful of their own safety and the safety of others, including
parties for whom they have a professional responsibility.

To the fullest extent of the law, neither the Publisher nor the
authors, contributors, or editors, assume any liability for any injury
and/or damage to persons or property as a matter of products
liability, negligence or otherwise, or from any use or operation of
any methods, products, instructions, or ideas contained in the
material herein.

Library of Congress Cataloging-in-Publication Data

A catalog record for this book is available from the Library of
Congress

British Library Cataloguing-in-Publication Data

A catalogue record for this book is available from the British
Library
ISBN: 978-0-12-815847-0

For information on all Morgan Kaufmann publications visit our

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Dedication

To my friends who have made my life so much more enjoyable:

Roger Addison, Michael Cullen, Jim Eilers, Fred Goldsmith, Bob
and Ana Harmon, Paul Heidt, Remco Kobus, Garfield Moore,
Cheri Murrell, Willem Smit, and David Sutton
Foreword to fourth edition by
Michael Rosemann
Michael Rosemann, Professor, School of Management, Queensland
University of Technology, Brisbane, QLD, Australia

Business processes continue to be one of the most important assets

of an organization. Like blood vessels, they fill it with life and
determine its way and speed of value creation as well as the cost
to serve its customer base. Thus processes reflect not only
organizational productivity, effectiveness, and efficiency, but also
its reliability, complexity, and ultimately its culture. Internally,
processes orchestrate the internal system of value creation and,
externally, they are an important source of competitive advantage.
A well-designed process is the runway for new products and
services, but equally process innovation can be a source of new
revenue potential when products and services have plateaued.
Processes put work, man, and machine into context.
Traditionally, this meant that roles and resources are guided to
ultimately arrive at a valuable contribution as the overall process
outcome. As such, processes are the recipe for converting
organizational resources into guided action. Ensuring compliant
process executions is essential to organizations, and the lack
thereof has had dramatic consequences for a number of
corporations over recent years.
Over time processes have expanded beyond the boundaries of a
firm, and we have witnessed the emergence of entire value chains
and networks leading to complex, multistakeholder process
interdependencies. Fueled by increased digital literacy of our
society and ubiquitous computing capabilities, this has allowed
citizens to become process participants leading to what could be
labeled the democratization of processes.
Nowadays and into the future, processes play an essential role
in considering and positioning the possible impact of quickly
emerging digital technologies. No longer is the narrative of
Business Process Management purely driven by reactively
analyzing those parts of a process that are broken (pain points).
Rather, technologies such as Artificial Intelligence, advanced data
analytics, robotics, or blockchain have expanded the set of process
design options and provided companies with new opportunity
points. Instead of focusing on optimized processes, economics of
scale, and mass production, processes are increasingly aiming
toward mass personalization and change more frequently leading
to the notion of minimum viable processes.
For all these reasons it is impossible to consider organizations,
their operations, the change they undergo, and their ultimate
well-being without their processes. In light of this, it is surprising
to witness that organizations vary substantially in the extent to
which they manage their processes explicitly and with priority.
The ongoing and increasing significance of business processes
requires related organizational and technical capabilities and an
overall process mindset. This is exactly where this book by Paul
Harmon continues to make its significant contribution. In times of
rapid technological changes, demographic shifts, and new
business model opportunities, this book provides a stable point of
reference to comprehend, appreciate, and benefit from the
importance of business processes. The breadth and depth of this
book has provided a variety of stakeholders, executives,
academics, project managers, and process analysts, across the
globe and in all industries with the essential frameworks and
architectures, life cycles, guidelines, best practices, and case
studies needed to approach their very own process challenges and
opportunities.
I have no doubt that this fourth edition of Business Process
Change will again guide countless architects of value and remain a
long-lasting source of process knowledge in a fast-changing
environment.
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