Process Enterprise Overview

Enterprise Process Management Definition

Enterprise Process Management (EPM) assures alignment of the portfolio of end-to-end business processes and process architecture with the organization’s business strategy and resource allocation. It provides a governance model for the management and evaluation of initiatives.

It involves the deliberate, collaborative and increasingly technology-aided definition, improvement, innovation, and management of end-to-end business processes that drives business agility.

Source: ABPMP BPM CBOK Version 2.0

The Foundation of a Process Enterprise

The foundation of a Process Enterprise is:

  • a comprehensive understanding by the leadership team of Business Process Management (BPM)
  • a recognition within the leadership team that utilizing BPM is the most effective approach by which the organization can achieve high performance in today’s marketplace
  • a commitment by the leadership team to sustain and build the organization’s BPM capability

There are many variations of a Process Enterprise. Some organizations are completely organized around their business processes, but most have a mix of functional and process structures.

The following are key capabilities required to manage and operate a Process Enterprise.

Establishing the Organization’s Process Network

The capability to develop a process network diagram and document of key information important to the successful integration of the organization’s key processes. A process network diagram is a top-level process map that illustrates the interrelationships between the organization’s key processes. Resources include:

  • An electronic database has been established of the organization’s process network.
  • Information is available on the process network database of critical process interfaces and process performance measures.
  • The process network has been expanded to show interfaces with applicable processes of suppliers and customers.

Linking Process Measures to Organizational Performance Measures

The capability to define the linkage between specific organizational performance measures and measures of the performance of the processes upon which organizational performance depends. This area also involves analyzing and understanding how changes in process measures impact organizational performance.

  • Key processes have been selected from the organization’s process network to track against performance, and KPI’s for those key processes have been defined.
  • The relationship between KPI’s and process measures has been defined for key processes
  • A system is in place and is being used to collect and analyze data and regularly provide reports on how changes in process measures impact KPI’s and performance
  • Scorecards are tied to process measures rather than KPI’s

Monitoring the Network of Processes

The capability to track the performance of processes over time, and to track the performance of the network of processes as a whole. This area involves undertaking regular reviews of processes, identifying variances in the processes, recommending corrective actions as needed, and completing process monitoring documentation and reports. It also includes monitoring the health of the entire network of processes based upon the process measures and their associated performance measures.

  • An electronic database has been established, covering the reviews of key processes and results obtained.
  • The electronic database includes information on lessons learned, nonconformance and corrective actions.
  • The database is used to support improvement activities, including improvements in the procedures for process monitoring.

Aligning Improvements with the Organization’s Strategy

The capability to deploy the organization’s strategy, goals, and objectives so that improvement efforts at all levels support their achievement. This area involves the organization’s capability to utilize participative strategic planning methods like Hoshin / Key Objectives Planning to enable organizational members to understand how their improvements directly support achieving the organization’s strategy. It also involves the ability of improvement teams to analyze how their improvement efforts will impact the organization’s ability to achieve its near-term goals and longer-term strategy.

  • Organizational members understand how their improvement activities help achieve the organization’s goals and objectives
  • Most major improvement projects are normally identified during the organization’s strategic planning cycle
  • When proposing new projects or recommending improvements, people are required to include an analysis of how the project will help achieve the organization’s goals and objectives.
  • An integrated approach to strategic planning and process improvement planning has been established and implemented.

Improving the Organization’s Process Network

The capability to identify opportunities to improve the organization’s performance by improving the integration of the organization’s key processes and the efficiency and effectiveness of the operation of the process network as a whole.

  • Comprehensive documentation exists on the organization’s process network and its performance.
  • Case examples are included in the database on activities that have been undertaken to improve the process network.
  • Process network improvement activities have been expanded to include improving the interface between the organization’s process network and external suppliers and organizational customers.