McKinsey has noted that most organizations don’t manage global processes well. Many are in denial that there is a problem. They define process variants as an IT issue and talk of ‘vanilla’ system implementations as solutions. And if variants are addressed, it’s in a one-off Inquisition, as though things would stand still thereafter.
The truth is that every global process requires local variants of some sort. But global processes continually evolve, and local circumstances continually change. So what’s really needed is the capability to continually re-optimize the mix of global process and local variants. And, of course, to continually re-deploy these changes to the workforce in a way that ensures adoption.
McKinsey noted that many multinationals don’t have the collaborative (and governance) framework in place to pull this off. They suffer a ‘globalization penalty’.
It’s the same problem for global business controls, except more complex. Three case studies at IP11 showed how an enterprise process management platform can pay huge dividends:
- Rene Nibbelke from BAE Systems highlighted in his keynote the value of visualization in enabling a Finance team to transform and deliver 280 processes with 230 business controls.
- In one workshop case study, an investment bank showed 15,000 business controls embedded in its processes in Nimbus. Many were local variants so there was a need to continually re-optimize the mix of global controls and local variants.
- In another case study – another investment bank – the client had created a single source of truth: an integrated process map, covering its activities in 28 functional areas and across 3 regions of the world, complete with 10,000 business controls embedded in the operational processes – in just six months.
10 Jul 2011 Managing The Downside of Global Processes