ArticlePDF Available

Application of a Holistic Model for Determining BPM Maturity

May 2012

May 2012

Authors:

Tonia de Bruin

Queensland Health

Michael Rosemann

Queensland University of Technology

Business Process Management (BPM), in various forms, has been around for the last 10 to 15 years. During this time BPM has progressed to a holistic management approach that has an inherent level of complexity resulting in part from the myriad of implementation options available. This paper proposes a BPM Maturity model that provides a framework for the detailed evaluation of BPM capabilities and achievements within organisations. The design paradigms of this model and its multi-dimensional structure are discussed. The model has been applied in two case studies and a range of surveys and the findings from these studies are presented. They confirm the understandability, practicality and relevance of the model. Future work in this area seeks the establishment of a global standard for the measurement of BPM maturity, the development of a tool-based assessment kit, the application of this model through international case studies and plans for more comprehensive study into the relationships between (measurable) BPM-related benefits and BPM-maturity.

The BPM Maturity Model – Mark I

…

Sample Survey Results – Radar Diagram

…

Figures - uploaded by Tonia de Bruin

Content may be subject to copyright.

Content uploaded by Tonia de Bruin

Content may be subject to copyright.

BPTrends February 2005 Application of a Holistic Model for Determining BPM Maturity

www.bptrends.com

Application of a Holistic Model

for Determining BPM Maturity

Michael ROSEMANN

Professor

Centre for IT Innovation

Queensland University of Technology

Tonia de BRUIN

Centre for IT Innovation

Queensland University of Technology

Abstract

Business Process Management (BPM), in various forms, has been around for the last 10 to 15 years.

During this time BPM has progressed to a holistic management approach that has an inherent level of

complexity resulting in part from the myriad of implementation options available. This paper proposes a

BPM Maturity model that provides a framework for the detailed evaluation of BPM capabilities and

achievements within organisations. The design paradigms of this model and its multi-dimensional structure

are discussed. The model has been applied in two case studies and a range of surveys and the findings from

these studies are presented. They confirm the understandability, practicality and relevance of the model.

Future work in this area seeks the establishment of a global standard for the measurement of BPM maturity,

the development of a tool-based assessment kit, the application of this model through international case

studies and plans for more comprehensive study into the relationships between (measurable) BPM-related

benefits and BPM-maturity.

Key-words:Business Process Management, Maturity Management, CMM, Case Study

1. Introduction

Business Process Management (BPM) consolidates objectives and methodologies, which have been

proposed in a number of approaches including Business Process Reengineering, Process Innovation,

Business Process Modelling and Business Process Automation/Workflow Management. It is widely

recognised as a foundation for contemporary management approaches as it goes via the analysis of business

processes to the roots of an organisation. The comprehensive nature of BPM triggered a wide variety of

modes of implementing BPM. The popularity and significance of BPM leads to the question of how

advanced different organisations are in their BPM development. The notion of ‘maturity’ has been

proposed in other management approaches as a way to evaluate “the state of being complete, perfect, or

ready” and the “fullness or perfection of growth or development” (Oxford University Press 2004).

Maturity as a measure to evaluate the capabilities of an organisation in regards to a certain discipline has

become popular since the Capability Maturity Model (CMM) was proposed by the Software Engineering

Institute at Carnegie Mellon University for the evaluation of the software development process. BPM is

another potential area for development of such a maturity model.

This paper is structured as follows. The second and third sections provide an overview of the related

literature on BPM and maturity models and a problem statement that outlines the intent of current and

proposed research. The fourth section introduces the proposed BPM Maturity model and discusses its

dimensions. The fifth section reports on the insights of two case studies and an extensive survey, in which

BPTrends February 2005 Application of a Holistic Model for Determining BPM Maturity

www.bptrends.com

the model has been applied and tested. Following this are details of a revised version of the BPM Maturity

model that incorporates the findings of research undertaken to date. The final sections provide a discussion

of limitations and conclusions together with an outlook on future research.

2. Related Work

a) Business Process Management

Definitions of Business Process Management (BPM) range from IT-focused views to BPM as a holistic

management practice. The IT-focused definition characterises BPM from the perspective of business

process automation (Harmon, 2003). The analysis of BPM definitions reveals that the focus is often on

analysing and improving processes (Zairi, 1997), (Elzinga, Horak, Lee, & Bruner, 1995). DeToro and

McCabe (1997) represent a holistic view of BPM. They see Business Process Management as a new way of

managing an organisation, which is different to a functional, hierarchical management approach. This view

is supported by Pritchard and Armistead (1999) whose research resulted in BPM being seen “as a ‘holistic’

approach to the way in which organisations are managed”. Armistead and Machin (1997) state that BPM is

“concerned with how to manage processes on an ongoing basis, and not just with the one-off radical

changes associated with BPR”. Zairi (1997) identifies a guideline for sustainability. Zairi is of the opinion

that BPM does not only rely on good systems and structural change, but, even more important, on cultural

change. The holistic approach requires alignment to corporate objectives and an employees’ customer focus

and involves, besides a horizontal focus, strategy, operations, techniques and people. Beside the need for

measurement, improvement, benchmarking and customer focus, Zairi stresses the importance of a

systematic methodology. Pritchard and Armistead (1999) provide ten “lessons learned” as the outcome of a

case study. Pritchard and Armistead’s factors involve mainly cultural change and strategy aspects.

The varying approaches have shown that the focus of BPM is on processes and process improvement

activities. A BPM approach needs to include on one hand the steps of the process lifecycle as a structured

approach to the implementation of BPM. However, on the other hand a BPM approach needs to have a

sound focus on developing both a culture and strategies receptive to BPM. This classification into two

groups, the act of implementation and the involved and influencing aspects, is reflected within the design of

the BPM Maturity model.

A number of factors are either crucial for the success of BPM or can complicate or impede its

implementation. Among others, commonly mentioned critical success factors are organisational and

cultural change, aligning the BPM approach with corporate goals and strategy, focus on customer and their

requirements, process measurement and improvement, the need for a structured approach to BPM, top

management commitment, benchmarking, and process-aware information systems, infrastructure and

realignment (Armistead & Machin, 1997; Elzinga et al., 1995; Harrington, 1995; Lee & Dale, 1998; Zairi,

1997; Zucchi & Edwards, 1999). It is interesting to see that “methodology” is not mentioned explicitly as a

critical success factor. Nevertheless, some authors identify the importance of applying a structured

approach, of having process disciplines and fully understood and documented processes that can be

supported by a sound methodology. The structured approaches to BPM presented above substantiate the

need for a methodology, which is explicitly mentioned by Zairi (1997). Beside the critical success factors, a

number of barriers are mentioned which mainly focus on organisational and cultural problems. Commonly

mentioned barriers include resistance to change, lack of understanding of BPM principles, lack of

consistency of the organisation-wide BPM approach, and developing a process-oriented organisation

(Armistead & Machin, 1997; Jarrar et al., 2000; Lee & Dale, 1998; Pritchard & Armistead, 1999; Rainer &

Hall, 2002).

Throughout this work BPM is defined as a holistic organisational management practice, which requires top

management understanding and involvement, process-aware information systems, well-defined

accountability and a culture receptive to business processes. It is based on a process architecture, which

captures the interrelationships between the key business processes and the enabling support processes and

their alignment with the strategies, goals and policies of an organisation.

BPTrends February 2005 Application of a Holistic Model for Determining BPM Maturity

www.bptrends.com

b) BPM Maturity Models

Recently, a number of models to measure the maturity of Business Process Management have been

proposed. The basis for the majority of these maturity models has been the Capability Maturity Model

developed by the Software Engineering Institute at Carnegie Mellon University. This model was originally

developed to assess the maturity of software development processes and is based on the concept of

immature and mature software organisations. The basis for applying the model is confirmed by Paulk et al.

(1993: 5) where it is indicated that improved maturity results “in an increase in the process capability of the

organisation”. The CMM introduces the concept of five maturity levels defined by special requirements

that are cumulative. Among others, Harmon (2004) developed a BPM maturity model based on the

Capability Maturity Model (see also Harmon 2003). In a similar way, Fisher (2004) combines five “levers

of change” with fives states of maturity. Smith and Fingar (2004) argue that a CMM-based maturity model

which postulates well-organised and repeatable processes cannot capture the need for business process

innovation. A shortcoming of these BPM models has been the simplifying focus on only one dimension for

measuring BPM maturity and the lack of actual applications of these models. The Rummler-Brache Group

commissioned a study, which used 10 success factors gauging how well an organisation manages its key

business processes (Rummler-Brache 2004). The results have been consolidated in a Process Performance

Index. Pritchard and Armistead (1999) provide an attempt to divide organisations in groups depending on

their grade and progression of BPM implementation. Maull et al. (2003), whilst trying to define maturity of

BPR programs, encountered problems that they could not use objective measures. They tried to define

BPM using two dimensions, an objective measure (time, team size, etc.) and a “weighting for readiness to

change” (Maull et al., 2003), but this approach turned out to be too complex to measure. Therefore, they

chose a phenomenological approach assessing the organisation’s perception of their maturity, using

objective measures as a guideline. Another example of how to define maturity (or in their case “process

condition”) is provided by DeToro and McCabe (1997), who used two dimensions (effectiveness and

efficiency) to rate a process’ condition.

3. Problem Statement

An extensive review of current literature into BPM has confirmed BPM as a complex management practice

that many organisations find difficult to implement and progress to higher stages of maturity. Benefits to

be gained from the implementation of BPM may therefore not be achieved by organisations and the

potential for BPM to be classified as yet another unsustainable management fad exists. This research is

focused on developing a model that achieves three primary aims: 1) to enable organisations to assess their

current strengths and weaknesses in BPM (i.e. their as-is BPM position); 2) to enable organisations to

determine their desired maturity stage with respect to key factors within BPM (i.e. their to-be BPM

position); and 3) to assist organisations in developing a BPM progress road-map to move from their as-is to

their desired to-be positions. It is expected that a consequence of this research, and the development and

application of the model, will be a significant contribution to the BPM body of knowledge, particularly in

the area of increasing understanding of BPM maturity, benefits and factors and identifying potential

relationships and correlation between these.

This paper discusses a new holistic BPM maturity model, which is more comprehensive than existing

models. It also reflects the current understanding of Business Process Management instead of focusing on

approaches such as Business Process Reengineering. Furthermore, the model presented is one of very few

BPM maturity models, which has actually been tested within case studies.

4. BPM Maturity Model Mark 1

The primary purpose of the model presented in this paper is the evaluation and assessment of an

organisation’s BPM maturity, both current (as-is) and in the future (to-be). The proposed BPM maturity

model has the following value propositions.

1. As a diagnostics tool, it allows the identification of current BPM strengths and shortcomings in

different dimensions such as IT/IS, culture or accountability, i.e. it quantifies as-is maturity. It can also

BPTrends February 2005 Application of a Holistic Model for Determining BPM Maturity

www.bptrends.com

be used to evaluate and compare the BPM capabilities of different organisational entities and support

organisational learning.

2. The model and the findings derived from its application can be used to identify and direct necessary

BPM-related activities, i.e. it can be used to define intended to-be maturity. It enables organisations to

focus on less mature areas and to develop a structured and specific improvement plan for progressing

to the determined to-be situation. For example, a low maturity in BPM methodologies can be a

motivation to identify and utilise richer methodologies (e.g. for business process modelling).

3. The model facilitates informed decisions about prioritising areas for BPM development. The model

provides a framework for understanding the relative cost-benefits of investing in proposed changes and

the impacts of those changes on the realisation of the organisation’s strategic objectives.

4. The model can be applied over time and supports, as a longitudinal study, the measurement of actual

progress in the BPM capabilities, i.e. it can serve as a continuous monitoring tool in the process of

moving from as-is maturity to to-be maturity.

5. Finally, the application of the model in a number of organisations will allow benchmarking studies

within and across organisations, industries and countries.

Besides these benefits, which are oriented more towards the actual application of the model in practice, the

development and application of the model also makes a significant contribution to the body of BPM

knowledge. In particular, the establishment of a generally accepted BPM maturity model will contribute to

a shared understanding of the relevant facets of BPM. Such an understanding will be beneficial for the clear

differentiation of BPM from other management approaches.

It has to be stressed that the proposed model measures BPM maturity, and not the maturity of business

processes. Whilst the factors included in the model can apply equally to both BPM and individual

processes the model includes quantitative measures of “coverage” and “proficiency” to ensure that it is

BPM maturity that is assessed.

In addition, the identified dimensions of BPM included in the model can be seen as independent variables.

The underlying assumption is that an increased maturity in these dimensions will have a positive impact on

actual business process performance, i.e. the dependent variable. The focus is on measuring these

independent factors rather than actual individual process performance for two reasons. First, it provides

insights into how process performance can be improved rather than just reporting on outcomes. Second, a

number of models and solutions are already available for the measurement of process performance. The

model can however, easily be linked to tools such as the IDS Process Performance Measurement, which are

focused on capturing metrics such as processing time and costs of a business process execution.

Measuring the dependent variable (i.e. actual business process performance) includes measuring the impact

of BPM on operational outcomes (cost, time, and quality), customer satisfaction, competitive

benchmarking and financial results.

It also has to be emphasised that the researchers are of the view that not all organisations will necessarily

aim to maximise BPM maturity but rather that they may seek to maximise the effectiveness of BPM. In

other words, an organisation might aim to achieve a stage of maturity that is most appropriate to achieving

its goals and objectives across a range of possibly competing issues.

The model also has to find the right trade-off between complexity and simplification. A simpler model

typically is easier to understand and leads to higher user acceptance. A complex model tends to depict

reality more appropriately. In the context of maturity models, simple models provide only one maturity

stage, while more complex models provide differentiated insights into various maturity stages. The latter

approach has been chosen by the researchers in this instance. A number of maturity stages can be derived

for different BPM components, different business process lifecycle stages, different organisational entities

and different points in time. This allows a deeper understanding of varying maturity stages and depicts the

fact that an organisation does not necessarily have one homogeneous and consistent approach towards

BPTrends February 2005 Application of a Holistic Model for Determining BPM Maturity

www.bptrends.com

1. Initial State

2. Defined

3. Repeatable

4. Managed

5. Optimised

Low Maturity High Maturity

Un-coordinated, isolated projects Co-ordinated BPM Activities

Low BPM Skills High BPM Expertise

Key Personnel Organisational Wide Coverage

Reactive Proactive

Manual (Meaningful) Automation

Internally Focused Extended Organ isation

Low Resourcing Efficient Resourcing

Naive Comprehensive Understanding

Static Innovative

BPM. However, it is possible to consolidate the maturity stages of the four dimensions (factors,

perspectives, organisational scope and time) to one maturity stage, if this is desired.

The proposed BPM maturity model enables the identification and assessment of the maturity of BPM

policies and practices within organisations. The comparison of low and high maturity in Figure 1 helps to

understand the comprehensiveness and range of BPM maturity. The idea of comparing low and high

maturity derives from the work from Paulk et al. (1993), who presented such a comparison to facilitate the

understanding of the concept of process maturity. The concept of maturity is similar to CMM where five

BPM maturity stages are defined as: (1) Initial State, (2) Defined, (3) Repeatable, (4) Managed, and (5)

Optimised. The BPM maturity definitions however differ greatly from those used in CMM. More

comprehensive definitions have been used in order to better reflect the specific requirements of BPM

maturity on a factor by factor basis. When applying these stages it is assumed that each stage of maturity

includes, as a pre-requisite, the requirements of lower stages.

Figure 1: Comparison of Low and High Maturity

a) Criteria to Measure BPM Maturity

In the scope of the proposed model, BPM maturity is defined as a combination of coverage and proficiency,

which is similar to the notion of effectiveness and efficiency in the model by DeToro and McCabe (1997).

Coverage refers to the capability within the organisation and the level of implementation of BPM

principles, whereas proficiency measures the quality and effectiveness of BPM within the organisation. In

other words, coverage asks how far through the organisation BPM activities extend and proficiency asks

how well BPM activities are conducted. Attaining a higher maturity stage requires improvement in both

“coverage” and “proficiency”. A set of criteria derived from the key elements of BPM maturity presented

above and the comparison of low and high maturity is used to characterise each stage consistently.

Three criteria have been defined to measure the coverage of BPM within an organisation:

(i) The number of processes included in BPM practices.

(ii) Staff involvement / level of staff undertaking BPM activities.

(iii) Links to other management tools (such as budgets, KPI, organisational charts, etc).

Three criteria have been defined to measure the proficiency of BPM within an organisation:

(i) Response to BPM issues and initiatives.

(ii) Frequency of conducting BPM activities and initiatives.

(iii) Suitability of BPM tools, resources and practices.

For each criterion a five-point scale is defined, which corresponds with the five maturity stages. As a result,

the combination of the six criteria and the five maturity stages defines a matrix, which lists for each

criterion its special characteristic at a certain maturity stage (e. g. if 20-40% of all processes are designed

using software accepted as BPM best practice, this may represent a component of IT/IS maturity of Stage

BPTrends February 2005 Application of a Holistic Model for Determining BPM Maturity

www.bptrends.com

2). Separate maturity stages are defined for each of the 5 factors. The researchers feel that the benefit of

providing this comprehensive definition of maturity stages is twofold. Firstly, it enables organisations to

better understand their maturity and makes it possible to better target BPM improvement strategies and

secondly, it will reduce individual interpretation of stage meanings and enable the development of a

meaningful and consistent application of the model across time, industry and geographic location.

b) BPM Maturity Dimensions

Aside from the maturity stages, the major components that form the framework for the BPM Maturity

model assessment are: factors, perspectives, organisational scope and time.

A factor is defined as a specific, measurable and independent element which reflects a fundamental and

distinct characteristic of BPM. Based on an extensive literature review, five factors have been identified

which are perceived as covering and characterising BPM completely. The following five factors derive

from a number of identified critical success factors or barriers to the successful implementation of BPM.

(i) Information Technology and Systems (IT/IS): The use of IT/IS resources (aka process-aware

Information Systems) in the implementation and conduct of BPM practices.

(ii) Culture: The acceptance, practice and promotion of BPM by personnel related to the organisation’s

processes.

(iii) Accountability: The assignment of responsibility and accountability for BPM practices to personnel

related to the organisation’s processes.

(iv) Methodology: The adoption of formal, well-defined and repeatable methodologies for conducting

BPM.

(v) Performance: The measurement, assessment and actioning of BPM related performance, including

individual processes and personnel related to the organisation’s processes.

The initial sources providing BPM critical success factors and barriers are detailed in Table 1.

Factor Initial Source

Culture Elzinga et al., 1995; Llewellyn and Armistead, 2000; Pritchard and

Armistead, 1999; Spanyi, 2003; Zairi, 1997; Zairi and Sinclair, 1995; Zucchi

and Edwards, 1999

Performance Gulledge and Sommer, 2002; Jarrar, Al-Mudimigh and Zairi, 2000; Pritchard

and Armistead, 1999; Zairi and Sinclair, 1995, Zairi, 1997

Alignment Elzinga et al., 1995; Jarrar, Al-Mudimigh and Zairi, 2000; Pritchard and

Armistead, 1999; Puah K.Y. and Tang K.H, 2000; Zairi, 1997; Zairi and

Sinclair, 1995

Accountability Gulledge and Sommer, 2002; Jarrar, Al-Mudimigh and Zairi, 2000; Pritchard

and Armistead, 1999

Methodology Pritchard and Armistead, 1999; Zairi, 1997

IT/IS McDaniel, 2001

Table 1: Initial Source of Factors

A perspective is defined as a high-level repeatable phase that applies to BPM in general as well as to

individual business processes. In a functional sense, a perspective may represent an area of expertise or

responsibility already existing within the organisation. The perspectives within the model have been

derived from established business process lifecycle models and are similar to the plan-do-check-act cycle

or the DMAIC (define, measure, analyse, improve, control) methodology used in Six Sigma. The 5

perspectives include: Align, Design, Execute, Control and Improve.

BPTrends February 2005 Application of a Holistic Model for Determining BPM Maturity

www.bptrends.com

A perceived benefit of the model is its flexibility and the possibility of cascading implementation.

Therefore, the organisational scope, defined as the entity to which the model is applied, is one dimension

of the model. The entity can be an entire organisation or a sub-set of an organisation such as a geographical

location, a division, a business unit or a subsidiary, or even a project or a process. The organisational scope

increases the flexibility of the application of the model. Despite BPM being defined as a holistic

organisation-wide approach, the use of organisational scope within the model reflects the reality that

organisations might not start the implementation of BPM principles with a corporate top-down approach

but rather bottom up, at business units or with isolated projects. Furthermore, the application of the model

across the organisation helps to gain a detailed view of the current situation. An organisation that is striving

for a company-wide balanced BPM approach can compare and assess entities identifying more mature

entities for use as internal benchmarks and guiding examples whilst enabling a focus on less mature entities

by systematically supporting their improvement.

Within the model, time refers to the actual point in time at which the model is applied. In its initial

application, the BPM Maturity model is contributing to the first step of a BPM maturity improvement

project. An organisation’s maturity is assessed, whereupon a desired maturity stage and an improvement

roadmap can be determined. Having completed the project, the model can be re-applied to compare the

maturity over time and identify the results achieved following the implementation of the roadmap. This

dimension will enable the assessment of the relative success of selected strategies.

The combination of factors, perspectives and organisational scope combined with time lead to a multi-

dimensional BPM Maturity model. Factors and perspectives build a five-by-five-grid, resulting in 25

assessment fields or cubes. A “cube” is a factor/perspective combination, and can be defined as the smallest

measurable entity within the model. The assessment of 25 cubes enables organisations to identify and

understand their current stage of BPM maturity (i.e. their as-is position). The BPM Maturity Model is

depicted in Figure 2.

Figure 2: The BPM Maturity Model – Mark I

Similar to CMM, the BPM Maturity model is designed to be both a self-assessment and a third-party

assessment tool. The self-assessment is done in the form of a survey. The questions are quantitative and

based on a five-point scale. The scale corresponds to the generic stage requirement descriptions.

Consequently, the answers can be related back to a maturity stage. All questions are clustered following the

25 cubes. The third-party assessment is conducted in form of a case study including the survey. In addition,

this case study includes a number of semi-structured interviews with relevant stakeholders as well as

studying relevant documents such as process models, job descriptions of process owners or process

performance reports. The advantage of a third-party assessment is seen to be twofold. First, the scope of the

study is more comprehensive as it goes beyond the survey. The conduct of a case study allows triangulation

between the data gained through the survey, from the interviews and the document studies and increases the

reliability of the outcomes. Secondly, the research team gains experience with the model that can be used

Ali

Desi

Execute

Control

rove

IT/IS

Culture

Accountability

Methodology

Performance

Factor

Perspective

Organisation

Scope

Time

Organisation X Time X

Organisation Y Time Y

… …

BPTrends February 2005 Application of a Holistic Model for Determining BPM Maturity

www.bptrends.com

for improving it and contributing to the BPM body of knowledge.

The assessment of 25 cubes leads to a comprehensive picture of an organisation’s BPM approach. This

assessment reveals specific areas of strength and weakness because one maturity stage is defined for each

cube. This approach is similar to the continuous representation of the CMMI model (Ahern, Clouse, &

Turner, 2004) whereby a method of mapping metrics needs to be identified to map the 25 cube maturities to

one overall BPM maturity. It is assumed that a pattern exists to identify the overall maturity (Maull et al.

2003). However, it is suggested that this pattern can vary from case to case, which indicates that the

importance and the weighting of the factors and perspectives might vary across industries or countries.

Another viewpoint on this model can be formed by taking a slice through the model to see how a factor or a

perspective varies across the organisation or over time.

5. Practical Application

a) Case Study Design

In addition to developing a theoretical model, the researcher’s aim was to create a model that had wide

practical application and acceptance. Since initial development, the model has been tested in two

Australian organisations by conducting both case studies and surveys.

A range of tools were used to gather data during the case study. A detailed case study protocol was used to

ensure consistency between case study questions and data gathering. Questions were coded on the basis of

the “Coverage” and “Proficiency” of both factors and perspectives. A Feedback Survey collected data

from participants to assess the design of the model and the appropriateness of the structure, factors,

perspectives, scope and its overall application. An Establishment Survey was used to gather background

information about the selected organisation and their motives and expectations with respect to BPM. This

survey was completed by the key contact due to their extensive knowledge of both the organisation and

their BPM approach. In addition, the researchers conducted in-depth interviews with the organisation’s key

personnel with respect to each of the model factors. Specific case study questions used in these interviews

were designed to be broad, open-ended questions used to gather a range of information as opposed to

specific, pre-defined answers. To ensure validity of data collected during the interviews the same two

researchers conducted each of the sessions. Each researcher collected individual records of the interviews

which were then translated and compared to ensure completeness and accuracy of data and subsequent

interpretation. Each organisation participating in the case study was provided the option of having the

sessions recorded however this option was declined by both organisations. Each of the tools used is being

improved based on the feedback received during the conduct of the case studies.

The organisations selected for participation in the case studies were chosen for a number of reasons:

(i) Prior relationship with the research centre and involvement in previous research projects resulting in

an understanding of research processes and potential outcomes;

(ii) Demonstrated commitment to BPM principles and practices with primary contact being well-known.

In fact, the two key contacts have conducted presentations at commercial BPM conferences;

(iii) Willingness to participate and to invest time in attending presentations, case studies and surveys; and

(iv) Geographical location that was readily accessible to the researchers.

The two organisations selected each have a recognised BPM initiative being undertaken that is driven from

a centralised area within the organisation. Both organisations operate within the public sector. Within each

organisation the case study participants were selected by the key contact following a presentation by the

researchers detailing what would be involved. Both organisations chose to have the model applied to their

business lines. For one organisation there are two business lines. One is considered to be more

commercially based due to the nature of transactions and the need to be more competitively structured

whereas the other is represented by long-term assets with less commercial focus and more government

support and intervention. The other organisation is represented by four lines of business that represent the

BPTrends February 2005 Application of a Holistic Model for Determining BPM Maturity

www.bptrends.com

high level value chain processes that have been defined for the organisation.

b) Case Study Results

Relevance of Factors

The factors used within the model were initially derived by identifying critical success factors and barriers

to implementation within BPM approaches following an extensive review of literature in the BPM area.

During the conduct of the case studies the researchers sought to confirm the relevance and suitability of the

factors selected. This confirmation was sought by first asking participants to grade the factors used on a 1

to 5 scale with 1 being Not Important and 5 being Very Important. Secondly, participants were asked to

nominate any other issue they considered sufficiently important to include as a factor within the model.

The factors were rated as follows: Culture and Performance were both 5, Accountability 4, Methodology

3.75 and IT/IS 3. Leadership was the only other potential factor raised by case study participants. The

researchers considered Leadership to be contained within the factor Culture.

Factor – Culture

The organisations selected for the case studies were both from the public sector. One organisation was

only 5 years old and is the result of combining 6 organisations into 1. The other organisation has been

around for more than 100 years and consists of a worker demographic that includes “mostly male over 45

with 22 years of service on average”. In one case the organisation described the culture as consisting of 3

distinct groups – “the coalition of the willing”, “the coalition of the unwilling” and “the innocent

bystanders”. The other organisation said that there was “opposition”, “avoidance” and “conventional”

cultural divisions. Both organisations, whilst implementing BPM, operate using a traditional functional

structure to their business and have no immediate plans to modify this structure. One organisation however

is in the process of implementing a new business plan that squarely focuses on 4 core processes that

correspond to business lines.

The key cultural obstacles that were identified as impacting on BPM by these organisations were:

(i) Granularity of processes including a lack of understanding between process and procedure;

(ii) Ownership of existing processes and a resistance to change including a “knowledge is power”

attitude;

(iii) Silo mentality leading to a limited focus on cross-functional processes;

(iv) High degree of duplication, wastage of resources and bottlenecks within identified processes;

(v) Poor resource and budget allocation;

(vi) Unionisation of work-force;

(vii) Little association between reward/compensation and process related performance;

(viii) Poor communication of process related issues; and

(ix) Lack of clarity and understanding of what is required with respect to process management.

Both organisations felt that leadership was critical to overcoming these obstacles and felt that a top-down

approach that works it way through the layers of an organisation was essential to success. In addition, a

natural reaction to previous overcompensation has been a groundswell of support for process change as

workers feel inhibited and unable to work in the overly restricted environment that has been created. Both

organisations also commented that increasing commercialisation of particular business units was having a

positive affect on process management. In both cases identifying and addressing process-related cultural

issues was 12 to 18 months old and the feeling was that things were only just beginning to change. The

general expectation was that improvements were more likely to be seen over a 3 to 5 year timeframe.

In both organisations process management is co-ordinated from a centralised area with process change

generally undertaken as discrete projects. The operation of these projects, their resourcing, budgets and

priority, is often the result of the perceived importance of the project outcome. In most cases however, the

BPTrends February 2005 Application of a Holistic Model for Determining BPM Maturity

www.bptrends.com

outcomes of these projects are not assessed based on value-add to the organisation. In both organisations

changes in the way projects are being approved is being addressed and the value-add and alignment aspect

is becoming more consistently implemented. At this stage it was felt that the outcomes were not being

mapped back to goals and objectives and that as long as the project did not run dramatically over time or

budget the degree to which outcomes where met was not really assessed. In some instances external

consultants and contractors are utilised but this was felt to inhibit successful process management as there

was the tendency not to look outside the project and consider the broader needs of the organisation.

Overall, despite the importance of culture and the recognition of its impact on BPM success indicated by a

consistent rating of 5, it was the most immaturely applied factor within both organisations.

Factor – Performance

Similarly to culture, performance appeared to be the most immaturely applied with respect to both process-

oriented management and individual processes. Whilst overall performance measures were present in some

instances they were completely absent or ignored in others. In both organisations performance was

functionally based and rarely aligned to processes. Both organisations were using balanced score card

(BSC) to set goals and objectives and to cascade these through the organisation but again this was done

within (not across) functional areas. End-to-end processes were rarely recognised least of all measured.

There was little if any measurement of process outcomes or assessment of value-add of suggested process

improvements. In addition, the achievement of goals and objectives in process related projects was rare. In

some instances post-implementation reviews, audits and benchmarks were beginning to be used. Within

processes performance was measured using a range of methods such as cycle time, availability, through-put

and so on however this was only applied to discrete, functionally based portions of the process and not to

the process in its entirety. In addition, when these measurements were taken little thought was given to

other areas within the process and the impact that results may have on these.

A range of tools including, benchmarking, competitive pricing, spreadsheets, BSC, statistical software,

forecasting software and financial packages were used to measure and assess performance. In many

instances information and data used by these tools was not collected by the tool itself but required manual

intervention. In addition, little (if any) capacity planning and/or simulation was conducted to identify areas

of improvement based on current performance. Individual performance was most notable in both

organisations with Performance Management plans being developed and individuals having KPI’s. In both

instances however the organisations rarely linked individual performance or reward and remuneration to

process related outcomes. In both organisations some ground was being made in this area at a senior

executive/manager level although this was seen as being slow to take hold and in its very early stages.

Both organisations raised concerns over the ability of the organisation to relate individual performance

measures to reward and remuneration due to the heavy unionisation of their workforces. For both

organisations financial measurement appears to be the area most consistently reported on. This is possibly

due to existing external and governmental funding controls that influence gathering and maintaining

financial performance data. With respect to process oriented management approaches both organisations

indicated that the biggest issue with being able to measure this was their current ability to benchmark their

present position. Participants felt unable to measure the success of strategies as an understanding of their

starting point was not available. In addition they did not know where they were doing things well. In both

instances, this was one of the motivators for the organisations participating in this research. A range of

feedback measures were being used, including forums and surveys, to measure the relative success of

process oriented management initiatives. One organisation had experienced significant positive results from

a major process-improvement project and this success was assisting in pushing process oriented approaches

through the organisation. Similarly the other organisation felt that over time, more visible and measurable

wins would assist in promoting process related issues. Both organisations felt that the more commercially

aware and focussed areas tended to be better at measuring and understanding the performance of processes

and the impact and consequences of this performance.

BPTrends February 2005 Application of a Holistic Model for Determining BPM Maturity

www.bptrends.com

Factor – Accountability

Within each organisation levels of accountability for individual processes were most evident within the

finance area. Generally speaking, accountability had begun to be assigned to broader process related issues

at the top level but was yet to make its way down the hierarchy. Each organisation has implemented a form

of performance agreement at a senior level that linked accountability for outcomes with processes however

it was felt that these did not necessarily carry any weight at this time. Both organisations commented on a

“blameless society” and “looking for someone to blame”. In addition, both organisations raised questions

over the ability of the organisation to change this due to the heavily unionised environment. What

accountability had been assigned has generally only been done within existing silos and does not consider

end-to-end processes resulting in issues when functional boundaries are crossed. Little (if any)

accountability has been assigned at an operational level. Both organisations displayed little sign of linking

process accountability to strategic goals and objectives.

One organisation commented that there was both a formal and an informal process of assigning

accountability. Where individuals adopted a self-assigning role the outcomes from process related

initiatives tended to be more positive. In addition, both organisations felt that the lack of direct link

between reward and remuneration and the achievement of goals and objectives related to process outcomes

was compounded by the lack of formal accountability. This was also evidenced by a lack of accountability

for delivery of project/process outcomes. Both organisations indicated that a stronger alignment between

process accountability and organisational goals and objectives would likely result in employees being more

willing to accept responsibility for process outcomes.

Factor – Methodology

The two organisations displayed a mix of in-house and readily available methodologies in the broader BPM

arena. When considering the alignment of processes, BSC was prevalent in both organisations. In addition,

benchmarking with competitors and surveys were commonly used. Again, the focus of these methodologies

tended to be functionally based or outcome focused rather than being applied to well-defined and

understood processes. One organisation also used the Supply Chain Operations Reference (SCOR) model

and service level agreements with suppliers indicating that their application of alignment applies to the

extended organisation. In looking at the design of process-oriented management and individual processes

both companies used a combination of internally developed and readily available methodologies. In both

instances, internally developed methodologies were utilised in the design of BPM activities rather than the

design of individual processes. Both organisations use readily available methodologies for designing

individual processes including Six Sigma, as-is and to-be modelling and plan-do-check-act cycles. Few

formal methodologies are used in the execution of processes and process management practices. The

execution of process management is done through a centralised team in both cases. Internal methodologies

have been developed to assist in this process in a similar manner to the design of process management. The

execution of individual processes was seen to be more “the way things got done”.

In both organisations process management practices are being driven out of a centralised unit. This

structure in itself assists in controlling the methodologies used. In one organisation additional use of

methodologies relating to providing governance and advice is evident. This is done using informal

communication and previously has not included much in the way of consultation. The intranet features

strongly as a control methodology as it is the means by which staff access process related documentation

and information. The other organisation uses a combination of reviews following the management cycle

and governance structures. It was suggested that a past focus by the organisation on governance as a

consequence of broader environmental issues (such as Enron and HIH) has resulted in an over reliance on

governance related methodologies which are beginning to act as a hindrance to process management and its

application. Consistency of process management is ensured using a combination of formal and informal

channels including linkages to performance agreements and informal networks and reviews. The control

and consistency of individual processes is attained using such methods as internal auditing, feedback

mechanisms and reporting processes. Similarly to execution, control was seen as being integral to the basic

working of the organisation. Little (if any) automated process control was used by either organisation

when looking at individual processes. In the main what was used focused on quality, cost and time. This

BPTrends February 2005 Application of a Holistic Model for Determining BPM Maturity

www.bptrends.com

was applied to discrete sections of processes with little regard to the suitability or value-add of interim

outcomes to the overall outcomes of the end-to-end process. One organisation commented that the focus

on quality actually had a negative impact on the control of processes within the organisation as, when

combined with the current culture and lack of accountability, it provided staff with someone to blame and

inhibits the overall adoption of more mature process management practices.

In both organisations a project-based approach to process improvement was used. As a result internal

project management methodologies were heavily used. One organisation also used Six Sigma and their

internally developed BPM framework when analysing automation possibilities. The other used audit

functions to identify possible areas of improvement. Overall both organisations thought that the use of

methodologies was leading to improvements in both process management and individual processes.

However both organisations, whilst using a range of methodologies, were relatively immature in their

approach to executing, controlling and improving both process management and processes. A common

starting point for applying methodologies was in the alignment and design areas of both individual process

and process management practices. Having said this, methodologies used in process-related alignment

tended to be more focused on discrete functional components rather than a holistic approach – again

indicating a relatively immature approach with respect to methodology application. This was supported by

comments by members of both organisations that indicated that they were still at “early stages of maturity”

and “time would tell”.

Factor – IT/IS

IT/IS plays a vital role for both organisations in the conduct of their business however in one organisation,

there is a large number of staff that do not use PC’s for the operation of their day-to-day activities.

In both organisations IT/IS figured heavily as a means of communicating BPM practices. Both

organisations had intranet sites with dedicated BPM areas used to inform staff of the latest projects and

provide access to policies and process information such as details of process owners and individual process

models. Email was also a major means of communicating process management information and factored

strongly in the operation of processes within the organisations. Both organisations had specific systems to

assist with the design of processes with one organisation currently considering an upgrade to a system such

as ARIS. The use of IT/IS in searching on the process management area of the intranet has also shown to

be an instigator of change for one organisation as it has revealed the extent of duplication in current process

related content and led to an initiative to reduce these levels. In both cases there was little (if any) direct

alignment between IT funding and functionality and process related requirements. This was supported by

comments like “mismatch between requirements”, “requirements systems developed to are not the same as

what the business test to” and “there is no mapping of business solutions to system”. One organisation said

that sometimes using a business analyst to define requirements was “skipped for urgency”. It was felt that

the poor alignment of functionality with requirements derived (at times) from a poor understanding of the

overall process for which the system was being sought.

Both organisations saw IT/IS as providing a means of overcoming the silo mentalities that exist within the

organisations and present an obstacle to the adoption of BPM. However, neither had seen a great deal of

improvement in the suitability of IT/IS functionality since beginning to implement process related

initiatives. It was felt that this would change over time but that attitudes such as “high level talking process

and low level thinking function” and “more expensive the better” are impeding such improvement. In both

cases the climate and culture of the organisation and the general lack of understanding of processes was felt

to impede improvements in IT/IS suitability. In both organisations IT funding and budget processes were

strong although primarily conducted at a senior management level. Budgets themselves however tended

not to be associated with specific processes but rather with financial and functional objectives of the

organisations. Both organisations were able to provide examples of IT/IS being used to automate and/or

improve processes resulting in increases in both efficiency and effectiveness. This included reduction in

safety issues, improved compliance, reduced cycle times, ability to monitor performance, capacity planning

and improved accuracy of data and information. Despite this, both organisations also felt that they had

BPTrends February 2005 Application of a Holistic Model for Determining BPM Maturity

www.bptrends.com

some way to go with improving in this area.

c) Survey Design

In addition to the case studies, an extensive survey was conducted to fully apply the model within one of

the organisations. The survey contained over 300 questions that were used to evaluate the maturity of BPM

within the organisation with respect to each factor and perspective. The results of the survey were then

analysed and reported back to the organisation on the basis of ‘coverage’ and ‘proficiency’ within each

factor and perspective.

One of the difficulties with constructing the survey was to have, in terms of quality and quantity, the right

questions to obtain relevant and useful information for meaningful analysis without having so many

questions that individuals were deterred from completing it. For this reason, the survey was developed

primarily on the basis of the 5 factors. The relevance of the factors identified in the case studies indicated

that this would enable the recognition of individual specialists within an organisation who could be used to

complete the survey. Each question was also coded on the basis of the perspective they related to and also

based on whether they were measuring ‘coverage’ or ‘proficiency’. This additional coding was not seen by

the individual/s completing the survey questions but was used by the researchers when analysing the data

collected and formed the basis of reporting back to the organisation.

d) Survey Results

Originally it was intended to conduct the survey with each organisation that had participated in the case

study. One of the organisations had identified 4 business lines which could be independent units of

analysis for a BPM maturity study, the other two. Within the one organisation specialists for each factor

were selected within each business line. In the other organisation one individual who was familiar with all

five factors was selected from each business line. In the end, results were received from 3 of the 4 business

areas in the one organisation and not at all from the other organisation. In total 15 employees from the

participating organisation were involved in the completion of 3 surveys. The reasons provided for non-

completion of additional surveys was lack of time, competing work priorities, insufficient interest by the

individuals chosen to complete and the inability of BPM co-ordinators to influence individuals chosen to

participate. This highlights one of the difficulties for researchers and organisations attempting to gather

data regarding BPM maturity being the ability to successfully gather sufficient meaningful and complete

data to enable desired analysis. Additional factors that may have contributed to the non-completion of the

survey include:

(i) The voluntary nature of participation in the case study and survey research. Neither organisation had

a vested financial commitment to the outcome of the research. Both were participating purely on the

grounds of an active interest in the BPM area and an existing relationship with the researcher body.

As a result there was little or no leverage for the co-ordinators to exert within the organisation.

(ii) The timing of completion was the result of progress made to date by the researchers rather than

necessarily identifying the optimal time for the organisation. The survey was conducted in the final

quarter of the financial year with both organisations having existing regulatory reporting requirements

which may have been a competing factor on individual’s time.

(iii) At lower stages of BPM maturity process-orientation is not a part of how things are done but seen as

an additional burden on top of other priorities. On the basis of the case study results, both

organisations were considered to be at low stages of BPM maturity.

Despite these difficulties and the relatively small number of complete surveys received, there was a

significant amount of relevant and useful information obtained by the researchers through the conduct of

the surveys. The researcher’s intention is that, following review of the model and it’s toolset to include

enhancements from research conducted to date, the survey will be made available on-line and conducted

with a much wider sample data-set.

Individuals that completed the various sections of the survey for each of the business lines fell into three

BPTrends February 2005 Application of a Holistic Model for Determining BPM Maturity

www.bptrends.com

groups: those that had been briefed on the model and also participated in the case study sessions, those that

had been briefed on the model and not participated in the case study sessions and those that had neither

been briefed on the model nor participated in the case study sessions. This process enabled the researchers

to gain valuable feed-back on the survey design in addition to gathering data for analysis and presentation

to the organisation.

Following collection of the survey results analysis was undertaken by the researchers with the results being

reported back to the organisation.

e) Outcomes

For the organisation that completed both the case study and the survey, the results obtained from the survey

supported those obtained from the earlier conduct of the case study. Following analysis of the results from

the survey a final presentation was conducted with participants of the case study and survey from the

organisation. During this presentation, participants indicated that the results were substantiating their

existing perceptions of their own BPM initiatives. They were also of the opinion that receiving validation

of this from an external source was particularly useful as it provided a level of independence that would be

useful for progressing BPM within the organisation.

The survey results indicated that the organisation was at low stages of maturity for all factors and

perspectives. This was particularly noticeable for the factors culture (i.e. “How much do individuals

appreciate and think in business processes?”) and performance (i.e. “How well does the organisation

continuously control and interpret the performance of their business processes?”) across all business lines.

Performance maturity tended to be higher for the business lines that were more commercially focussed

whereas methodology tended to be higher in the business line that incorporated the BPM implementation

unit. The difference between the coverage and proficiency of each of the factors was interesting in that

again the proficiency of BPM was higher within the commercially focused business lines and the coverage

of BPM was higher in the business line that include the BPM implementation unit.

The results of applying the model in the case studies and the survey provided valuable insights into how the

model could be improved to make it more useful for organisations and to assist future research initiatives.

f) Impact on Model

The initial BPM Maturity model had the following value propositions.