GBS: Governance Challenges

Hats off to governance professionals for their refreshing candour. Just 4% of them say that they are certain about the value that they bring to their business according to The Future of Governance,  recently published by KPMG’s Shared Services and Outsourcing Institute.

It’s not difficult to see why. First off, there’s the perennial challenge of explaining how governance adds value. As Julie Hutchins, formerly a leader of Nestlé Business Services (and now with KPMG), put it in a separate  case study:

“My biggest struggle was to explain what I did every day, and why it added value. How do you assess the value of not letting things fall apart?”

There’s the impact too on governance best practices of the ‘traditional’ disruptors – cloud, social, mobile, and analytics.

But, beyond these, there are other significant developments impacting governance. The onward march of global business services often mashes up shared services and outsourcing silos, requiring redefinitions of governance.  Risk management and compliance are also more embedded in business operations than ever before.  The demands for faster cycle times, increased agility, faster innovation and continuous improvement are also challenging how governance is conceived and delivered.

All of which surely re-confirms the strategic value of an enterprise platform for managing change; one that is owned and embraced by the business because it’s written in the everyday language of end-to-end process, and deployed within a governance wrapper that meets the needs of all the stakeholders.

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Review: The Process Improvement Handbook

Don’t be misled by the modest title. In ‘The Process Improvement Handbook’, Tristan Boutros and Tim Purdie  are attempting something very ambitious. They want to found the Process Improvement discipline.

From their Process Improvement manifesto to the detail of their Process Improvement methodology, they attempt to rise above the ideological fray, to transcend the conflicting orthodoxies and to propose a new framework and an ‘all-encompassing guide’ for Process Improvement professionals.

Lamenting the manifold ways in which Process Improvement typically underperforms, or outright fails, they set out to re-cast Process Improvement so that it is ‘an enabler and not a hindrance’:

“With the huge growth in spending on Process Improvement by enterprises and the strong evidence that significant investment in this domain can lead to costs savings and better business decision-making, the time has come to make the Process Improvement discipline professional.”

You might ask whether the world needs another Process Improvement (PI) methodology. Continue reading

What’s The Best Process Maturity Model?

Excuse my blatant crowdsourcing but I’m working on an evaluation of Process Excellence (PEX) Maturity Models – and need to be sure that I’ve rounded up the complete set.

This is the follow-on to my earlier post on what we mean by Process Excellence. The questions I’m asking now are:

  • How do PEX Maturity Models compare?
  • How might an organization decide which one is best?

I’m focussing on models or frameworks which purport to measure PEX from an enterprise-wide and holistic perspective.

So I’m excluding models which may cover PEX, and which some might therefore consider should be in scope, on the grounds that:

  • they are IT-centric (examples would be the ITIL and COBIT frameworks, the IVI’s IT Capability Maturity Framework, Gartner’s IT Maturity Models and Forrester’s e-Business Maturity Model)
  • they have a functional focus (such as the COSO framework, Forrester’s GRC Maturity Model, the HfS Global Business Services Maturity Model and the numerous supply chain models)
  • they are not currently intended to be enterprise-wide frameworks (which, possibly controversially, excludes the CMMI Acquisition, Development and Services Models)
  • they may be part of PEX heritage but are not used in practice today (examples would be the Business Process Maturity Model (BPMM) developed by Curtis and Weber, which formed the foundation for the OMG’s BPMM, and the University of Queensland’s Holistic BPM Maturity Model).

All of which leaves just nine wholegrain enterprise-wide PEX Maturity Models in scope:

APQC’s Business Process Management Maturity Assessment Tool (BPM MAT)

Baldrige Criteria for Performance Excellence

Deloitte’s Business Maturity Model

EFQM Excellence Model

Global Process Innovation’s Business Process Management Maturity Assessment Tool

Hammer and Company’s Process and Enterprise Maturity Model (PEMM)

MWD Advisors’ Business Process Management Capability Benchmark Tool

OMG’s Business Process Maturity Model v1.0 (BPMM)

Shingo Model for Operational Excellence

I think this is complete. And I’ve checked it against the University of Ghent’s Business Process Maturity Model Smart Selector (here) which is an awesome idea – and lists 60+ BPMMs.

But have I missed anyone?  Your thoughts and comments much appreciated, as ever.  The results will be reported here, hopefully later this month.

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