Management by Business Process: A Managerial Perspective of People, Process, and Technology

Description

This textbook presents an integrated view of three themes relevant to the operationalization of Management by Business Process (M-B-BP): people, process, and technology. Whereas most Business Process Management (BPM) textbooks focus on software technology issues and ontological standards for the integration of various software layers, this book focuses on the managerial perspective, managerial decisions regarding the configurations of the company's structural variables that are most favorable to the best operationalization and evolution of the M-B-BP approach. Among the structural variables of the scope of managerial choices that support the discussion are: work specialization, work grouping, the chain of command, the extent of control, the decision process, and work formalization. To support businesses managed through an organizational structure oriented by business processes, it is essential that the manager has a set of knowledge, technical skills, and professional demeanor. This text focuses on these aspects, presenting: a) the theoretical foundation, describing the central concepts of the M-B-BP approach; b) the set of necessary techniques from different areas, describing and exemplifying those skills; and c) the required behaviors of managers and employees for structuring, operation, management, and continuous improvement of the organization's business processes. For students of M-B-BP, there are examples and cases that discuss business situations and themes to aid in grasping the material while at the end of the chapters there are reflection questions as well as lists of complementary material (articles, videos, web sites). They will gain an understanding of how to create a culture of improvement. Foreword Contents List of Figures List of Tables 1 Introduction to the Management by Business Process Approach 1.1 Terminology: Management by Business Process Versus Business Process Management 1.2 Its Origin: The Introduction of the Business Process in Organizations 1.3 Its Central Entity: The Business Process 1.4 Its Foundation: The General Systems Theory 1.5 Its Challenge: To Be an Alternative to the Functionalist Approach References 2 Discerning Between Functional Management and Business Process Management 2.1 Distinctive Characteristics Related to People 2.1.1 People Allocation 2.1.2 Operational Autonomy 2.1.3 Performance Assessment 2.1.4 Chain of Command 2.1.5 Empowerment of Individuals 2.2 Distinctive Characteristics Related to Process 2.2.1 Organizational Structure 2.2.2 Performance Measures 2.2.3 Nature of Work 2.2.4 Organization of Work 2.2.5 Scale of Organizational Values 2.3 Distinctive Characteristics Related to Technology 2.3.1 Utilization of Technology 2.3.2 External Relationship 2.4 Consolidation of the Differential Characteristics Between the Two Approaches 2.5 Business Architecture According to the Management Approach 2.5.1 Evolutionary History of Business Architectures 2.5.2 Initiatives to Change Companies’ Business Architectures References 3 Management by Business Process Technical Vocabulary 3.1 Importance of the Common Dialect for Process Management 3.2 Levels of Abstraction of Work Performed by the Business Process 3.2.1 Activity 3.2.2 Subprocess 3.3 Scope and Resource Lifecycle Management Associated with the Business Process 3.4 Products and Customers 3.5 Instance of a Business Process 3.6 Resources Associated with the M-B-BP Approach 3.7 Business Event and States that Characterize It 3.8 Data, Information, Knowledge, and Intellectual Capital 3.9 Business Rule and Its Exceptions 3.10 Organizational Unit, Functional Area and Their Roles in Relation to the Processes 3.11 Employees and Their Skills 3.12 Throughput, Lead Time, and Other Performance Indicators 3.13 Best Practices and Benchmarking 3.14 Process Losses References 4 Ontologies and Techniques for Business Process Specification 4.1 Objects 4.2 Associations 4.3 Properties 4.4 Contextualized Techniques for Understanding the Process 4.4.1 Business Process Diagram References 5 Approach to Management by Business Process 5.1 Development of the Business Process Culture 5.2 Identification of Business Processes 5.3 Process Modeling 5.4 Process Analysis 5.4.1 Causal Map and the Externalization of Systemic Archetypes 5.5 Process (Re)Design 5.6 Process Transformation 5.6.1 Knowledge Management 5.6.2 Knowledge Management Applied to M-B-BP 5.6.3 Functionalities Supporting the Internalization of Knowledge 5.6.4 Features Supporting the Socialization of Knowledge 5.6.5 Features Supporting the Externalization of Knowledge 5.6.6 Knowledge Combination Support Functionalities 5.7 Process Evaluation and Monitoring 5.7.1 Indicators in the Time Perspective 5.7.2 Typical Output Measurement Indicators 5.7.3 Typical Quality Management Indicators 5.7.4 Typical Maintenance Indicators References 6 Process Management and the Attractiveness of Jobs 6.1 The Challenge of “Attitude” in the Modern Company 6.2 Motivational Practices and Their Effects on Attitude 6.2.1 Motivational Theories: Job Design 6.2.2 Template for Analysis of Motivational Aspects Associated with the Jobs 6.3 Motivational Characteristics Present in the M-B-BP Approach 6.4 Multifunctionality as an Instrument for Flexibility References 7 Technologies in Support of Management by Business Processes 7.1 Main Components of the Business Process Management System (BPMS) Solution 7.2 Functionalities Required for the Business Process Management (BPM) Solution 7.2.1 Resources for Optimizing Process Operation and Making It More Flexible 7.2.2 Resources for Process Operation Management 7.2.3 Resources for Process Planning and Design 7.3 Culture and Organizational Climate for the Development of the Business Process Management System (BPMS) Solution 7.4 Business Ontology References 8 Analysis of the Components of Business Process Management System (BPMS) Technology from the Perspective of a Practical Case 8.1 The Business Process Management System (BPMS) Architecture 8.2 Analysis of the BPMS System Implementation Case 8.2.1 Activities of the Subprocess “Notify the Occurrence of a Claim to the IRB” 8.2.2 Activities of the Subprocess “Claiming Reinsurance Value” 8.3 Gains Provided by the “Handling of Claims with Reinsurance” Process 8.4 Exemplifying the Components of the BPMS System from the Case Analyzed 8.5 Critical Aspects to Be Considered When Implementing BPMS Technology References 9 Office Focused on Business Process Management 9.1 Functions Performed by BPO Professionals 9.1.1 Ensure Business Processes Aligned to the Organizational Strategy 9.1.2 Ensure Integrated and Cooperative Work Fronts (Projects) 9.1.3 Ensure Sharing of Human Resources (Skills) 9.1.4 Develop Dynamic Specification of the Contents of Business Processes 9.1.5 Develop and Maintain the BPMS Platform 9.1.6 To Define and Provide Indicators to Support the Development of Business Processes 9.1.7 Define Method (Activities and Techniques) in Support of the M-B-BP Approach 9.1.8 Transfer Knowledge About the M-B-BP Approach and BPMS Tools 9.2 Dynamics of BPO Interaction with Other Professional Groups in the Organization 9.2.1 IT Area 9.2.2 Human Resources Area 9.2.3 Strategy Area 9.2.4 Legal Area 9.2.5 Quality Area 9.2.6 Intellectual Capital Area 9.2.7 Project Office 9.3 Current Stage and Trends for BPO References 10 Organization as a Business Process 10.1 Techniques for Structuring Organizations 10.2 Key Resources as Stable Substantives (Entities) 10.3 Entification and the Balancing Between Verbs (Processes) and Nouns (“Things” or Entities) 10.4 Techniques That Balance and Integrate Processes and Data 10.5 M-B-BP Training 10.6 Organizational Culture References 11 Maturity Models for Business Process Analysis 11.1 Culture 11.2 Persons 11.3 Strategy 11.4 Project Management 11.5 Information and Communications Technology (ICT) 11.6 Measurements 11.7 Methods References 12 New Technologies and New Business Demands in the M-B-BP Context 12.1 Process Mining 12.2 Robotic Process Automation 12.3 Mixed Reality 12.4 Green Business Process Management 12.5 Customer Journey Map References 13 Impact of the Management by Business Processes on the Structural Variables of the Organization 13.1 Work Scope (“Specialization”) 13.2 Decision Making (“Centralization-Decentralization”) 13.3 Representation of Rules and Procedures (“Formalization”) 13.4 Grouping of Jobs for Operation and Management Purposes (“Departmentalization”) 13.5 Chain of Command 13.6 Span of Control References Index