Process management, process control

All organisations operate on the basis of the activities carried out by the people who work for them. Process management provides a system and tools to organize, link and manage these activities in a way that is highly efficient and brings benefits to the customers, owners and employees of the organization.

 

Why use procedural management

The fact that organisations work – providing services, delivering quality products and paying the wages of their employees – is the result of a range of activities carried out by the people in those organisations. The best organisations have activities that are perfectly organised. They do nothing unnecessarily, and if mistakes are made, they always identify them accurately and in a timely manner and correct them. Effectively organised activities that provide quality outputs for their customers are called processes. Obviously, achieving an efficient and stable flow of activities in an organization is not possible just by placing people in various branches of the organizational structure and creating individual job descriptions for them. A well-developed job description does not include all the necessary interactions with other employees in various work situations. If the main management tool is the organizational structure and job description, people often resolve competence disputes, demand solutions from their superiors, and endless rows of meeting minutes and operational tasks proliferate. Process management brings order to working relationships between people.

What is the process

A process is usually defined as an orderly sequence of activities that transform inputs into outputs and consume resources(R. Fišer, Process Management for Managers, Grada 2014). The outputs of a process must have a clearly defined recipient – the customer – and it must be clear that these outputs satisfy their specific need.

Functional vs. procedural management

In the vast majority of Czech organisations, functional management prevails. An organisational unit is created and it is filled with functional (work) positions. Each position has defined basic job duties. Organisational units and jobs are hierarchically arranged and managed. As this management method does not allow for a sufficient description of all the working relationships and interactions that a worker in one unit has with workers in other units, conflicts of competence arise and are resolved through supervisors. Problems are often resolved by the creation, dissolution, merger and division of organisational units and jobs. However, this usually does not improve the situation, but rather worsens it. Typical manifestations of functional management:

• recurring competence disputes
• the amount of operational advice
• operational overload of managers
• many organisational changes without the desired result
• solving problems at the level of consequences without understanding and addressing the causes

The goal of process management is to seek the optimal composition and arrangement of activities that must be performed to produce the output of a process. It makes sure that activities that do not add value to the process are not performed, the working relationships in the process are set up directly between the workers who perform them, regardless of which organizational unit they are from. The involvement of managers in executive processes is minimal, they set the process together across the organisation, delegate authority and responsibility to their subordinates and then ensure that the process runs smoothly and efficiently. Thus, in process management terms, the organizational structure is a tool for arranging organizational units and jobs in such a way that the organization’s processes flow efficiently and smoothly.

Benefits of procedural management

Obviously, achieving an efficient and stable flow of activities in an organization is not possible just by placing people in various branches of the organizational structure and creating job descriptions for them. A well-developed job description will not include all the necessary interactions with other employees in a variety of work situations. If the main management tool is the organizational structure and job description, people often resolve competence disputes, demand solutions from their superiors, and endless rows of meeting minutes and operational tasks proliferate. In particular, process management brings the following benefits to the organisation:

• Clear work assignments involving direct interactions with all collaborating colleagues
• Controlled and precise delegation, reducing the operational burden on managers
• Increased ability of the organisation to respond flexibly to changes in customer requirements
• Ability to clearly allocate bottlenecks and constraints and improve them systematically
• Increased organizational efficiency and greater control over resource consumption

Role in the process

Getting the roles right in the process is particularly important to clearly distinguish between the functional relationships resulting from superiority and subordination in the organisational structure and the purely working relationships that are defined in an effective process.

Customer process

The customer of a process is someone (person, group, organization) to whose need the process responds, to whom it provides its outputs. Before we start to describe, analyse and optimise the process, it is necessary to check what requirements the customer has for the process output and whether they will change over time. According to the process customer’s requirements, the process output should be specified – this is always the first step of successful process optimization. Main tasks of the process customer:

• Accurately specify the requirements for the output of the process in terms of quality, volume, cost and delivery dates, including anticipated changes
• Collaborate on verification of compliance during process implementation
• Collaborate on process reviews

Proper identification of the process customer and their needs is crucial, especially where process outputs are provided to external stakeholders.

Process Owner

The roles of the process owner can change based on the desired maturity level of the process. The primary role of the process owner is methodological. He or she is decisively involved in the design of the process model, its evaluation and further development. He or she usually manages the process team. The process model that the process owner creates with the team is then appropriately linked to the job descriptions of the process executors. These may not be directly managed by the process owner, especially if more than one organisational unit is involved in the process. Main tasks of the process owner:

• Design optimal process setup in the form of a process model
• Discuss the involvement of process executors with their supervisors and participate in determining their responsibilities and authority in the process.
• Designs resources for the process – for human resources, specific requirements for people’s knowledge, skills and experience.
• Design indicators and metrics for the process, including a system for measuring them
• Continuously evaluate the process, analyze problems and suggestions for improvement, manage the improvement of the process as a whole.

There, the process needs to be managed as a whole in real time the process owner may also have executive authority.

Process performer

Process executors perform specific process activities that result from the process model. The way an executor is involved in a process is defined by the Responsibility Matrix (RACI). The responsibility matrix can define different ways of involvement of the executor in the process, e.g. executes, controls, represents, is informed, etc. The main roles of the process executor:

• Perform activities in the process in accordance with the process model
• Work with other executors to ensure the smooth and efficient running of the process
• Seek and propose opportunities for process improvement
• Develop your knowledge and skills in line with the requirements of the process

Process map and process model

A process map is used to graphically capture the flow of processes and the relationships between them. Since it is usually not sufficient to define processes graphically in a process map, a number of software tools have been developed that allow graphical objects in the map to be supplemented with a range of other necessary information. Process maps thus give rise to complex process models.

What is an organisation’s process model?

A process model is a comprehensive description of the processes and activities that are performed in an organization. It is based on a graphical process map of the organisation’s processes and activities. The graphical objects of the process map are supplemented with a number of other information, for example, about the sources of processes, required external and internal standards, indicators and metrics of the process, links to the requirements of standards and quality management methods, etc. The process model is thus a key tool for creating and managing a process-oriented integrated management system of an organization. Use of the process model:

• Basic definition of processes, activities and resources in the organisation and the relationships between them
• Structured data storage and evaluation for process analysis and process improvement
• Basis for the design of ICT process support
• Effective and clear communication of responsibilities and authorities in the processes of the organisation’s employees
• Support for integrated quality audits
• Support for automated creation of job descriptions in the organization

Definition of the process

Procedural management should eliminate conflicts of competence, inefficiency and inflexibility of the established functional management. Therefore, it is very important that the definition of the process goes beyond the organisational structure of the organisation. A process should include all activities that lead to the desired output for a defined customer. For example, for so-called customer (core) processes, a well-defined process will start with the receipt of an enquiry from the customer and end with the delivery of the desired output to the customer and the collection of payment for the delivery. A number of organisational units will be involved in the process, the process will define their responsibilities and authorities and specify the interface between them. A fundamental mistake, unfortunately repeated endlessly in organisations, is to describe processes in terms of individual organisational units. This approach may bring partial improvements, but it does not solve the problems of functional (line) management. Process definition rules:

• Find the final customer (consumer) of the process output
• Identify what is the real trigger for the process
• Defines the basic inputs and outputs of the process
• Identify which organisational units are involved in the process and then involve them in the process mapping

Keep in mind that the real benefit of process management occurs where the process is carried out across organizational units. Do not waste energy on process modelling of simple activities performed within a single unit.

Building blocks of the process model

We define a process as an ordered sequence of activities that transform inputs into outputs and consume resources(R. Fišer, Process Management for Managers, Grada 2014). The outputs of a process must have a clearly defined recipient – the customer – and it must be obvious that these outputs satisfy their specific need. Thus, the definition of a process implies the basic elements that we will use to create a process model:

• Process – a bounded function of an organization that transforms inputs into outputs
• Activity – a bounded part of a process that is involved in transforming inputs into outputs
• Resource – an object that is consumed or created by a process.

While processes and activities are usually hierarchically arranged (process contains activities), the relationships are more complex for resources. The output of one process can be the input (source) of another process. Some resources are directly consumed by the process-transformed into another resource (sheet metal), others serve to enable the activity to be performed (sheet metal press). A specific resource is people and their skills and capacities. The above basic elements of the process model can be extended with additional objects and attributes. Their composition depends on the purpose of the process model, the chosen modelling convention and the capabilities of the software used to create the model.

Process modelling standards (conventions)

For a comprehensive description of processes within the process model creation, it is always necessary to define a “language” that we will use to represent and describe the model elements, their relationships and attributes. There are a number of generally accepted standards such as BPMN, UML, TOGAF or ArchiMate. These standards are often used in combination with each other to provide highly complex and sophisticated models of processes and the entire Enterprise Architecture. When selecting a specific convention for creating a process model, it is absolutely necessary to specify who will be the user of the model and what are their competencies (limits) for working with the model. If we want to make process management a generally shared management approach in the organization, it is necessary to choose a modeling language (convention) that can be intuitively understood by the majority of the organization’s employees, ideally without the need for extensive training. The process model should also be easily used, for example, to familiarize new employees with the organization and their job responsibilities, so working with it should be simple and as intuitive as possible. Most standard conventions are too complex for this purpose. Sw tool for creating a process model should therefore allow the creation of its own simple notation for publishing the model to ordinary employees. If it is necessary to create process models for a specific use – for example as a detailed basis for process automation – a convention created for this purpose (UML, BPMN…) can be used, but its use will always be the domain of a small group of specialists.

Process modelling procedure

In terms of management level, the process model is a tactical management tool. It should define tactics (rules, procedures) to achieve the set strategic goals. This means that before starting process modelling, a clear corporate strategy should be laid out, which defines the markets, customers, products, strategic competitive advantages and strategic competencies of the company. Such a formulated strategy is then an essential input for the development of the competency model. Process management theories often recommend to first create an existing state (AS-IS) model, analyze it, and then design and implement a future state (TO-BE) model. In practice, this approach is rarely feasible; in functionally managed firms it is often virtually impossible to identify existing processes on which managers and executors agree. A much more effective approach is to create a top-level process model based on a strategic brief and then gradually put it into practice and continuously improve it. Experience has shown that process management does not have to revolutionise and bring dramatic changes to an organisation. Very often the same or very similar activities are carried out in an organisation. They are just better organised, without unnecessary duplication and with efficient use of resources. Most employees can then appreciate the benefits of process management very quickly. Recommended process modelling procedure:

• Define a clear strategy that defines the organization’s markets, customers, products, strategic competitive advantages and strategic competencies
• Spend enough time on a top-level process model that will maximally support your strategy. At this stage, forget the organisational structure altogether; map out processes across the organisation. Focus mainly on the processes that create products and services for the organisation’s customers
• Define the interrelationships (inputs and outputs) between processes and the final outputs to external and internal customers of the processes.
• Prioritise the processes to be mapped and modelled.
• Verify the modelling methodology on the selected pilot process. Identify problems and suggestions for improvement of the selected process and solve them in the model.
• It tests managers’ and employees’ understanding of the model. Involve them in the development of the model, aim for clear improvements that are obvious to all.
• Introduce a model process into the life of the company. Encourage “process thinking”.
• Translate the experience from the pilot model into a methodology for modelling other processes.
• Gradually model and implement other processes, communicate, test and “sell” the benefits.
• Support the role of process owners. Monitor processes, evaluate and continuously improve.

In practice, it turns out that it is not necessary to manage all activities of the company in a procedural way. The book Process Management for Managers (R. Fišer, Grada 2015) is a detailed and practical guide to the implementation of process management in Czech organizations.

 

Human Resources in Process Management

Human resources – i.e. the attitudes, skills and capacity of an organisation’s people – are the limiting factor in the successful implementation of process management. Process models, which define in detail the job responsibilities of people in processes, must respect the existing skills and capacities of people and the possibilities of their development during the implementation of the models in practice.

Relationship between processes and organisational structure

Processes, or process models, define the rules for performing activities in an organization. In doing so, they monitor the flow, efficiency and quality of the process as a whole. The organisational structure, on the other hand, is a tool for organising human resources for processes. The human resource carriers are the people of the organisation. They have their competences, made up of knowledge and skills, and their capacities, influenced by their involvement in the organisation’s processes and projects, as well as by the level of operational tasks with which they are burdened by their superiors. When creating a process model, it is necessary to link each process step (activity in a process) to a specific job in the organizational structure that is involved in the execution of that process step. This linkage enables the automated generation of process-oriented job descriptions and employee job descriptions. Process optimization often involves modifying the organizational structure to minimize the number of organizational units involved in the process. The goal is to eliminate so-called organizational breaks, where a process moves from one organizational unit to another.

A job in a process-driven company

In a process-driven company, a detailed Job Description also contains comprehensive information about the job’s involvement in processes. This information includes specific involvement in processes and activities – this involvement can vary and is usually defined in the form of Responsibility Matrices. The job may include the role of process owner and other specific roles. The linking of jobs to processes and the automatic generation of process job descriptions is a standard feature of modern process management software. The ATTIS software publishes information about job involvement in processes via a personalized interface – the employee’s personal page. At the same time, it helps to communicate process changes and other information.

Process roles

Process roles express the identical involvement of people/jobs in an organisation’s processes or projects. For example, the Employee role involves involvement in the processes of the organisation that is the same for all employees, whether they are a production worker or a member of senior management. In particular, the Employee role is linked to a number of processes about human resource management. Any change in this role or the processes to which it is linked is then automatically reflected in the job descriptions of all jobs that include this role. Competency or performance models can also be defined for process roles. Each job is then made up of a set of process roles. Examples of system roles in an organization:

• Employee – processes common to all employees (HR, OHS, training, employee evaluation…)
• Manager – (planning, managing and evaluating subordinates, conducting meetings…)
• Process owner (design, evaluation and improvement of the process…)
• Project Manager (Project Management)

The use of process roles contributes to the systematisation of jobs. In conjunction with process management, it brings simplification of the process model and greater flexibility in implementing changes.

Responsibility Matrix (RACI Matrix)

The Responsibility Matrix is a tool that allows specifying the form of human involvement (process role) in a process or process activity. One type of responsibility matrix is the so-called RACImatrix. In this case divided into R – responsible (those who perform), A – accountable (those who are responsible for the result), C – consulted (those who should comment on the result), I – informed (those who should be informed about the activity). For accountability matrices, it is always necessary to specify exactly what a given relationship to a process means – otherwise there is a risk of inconsistent perceptions and competence disputes. The use of a responsibility matrix should always be part of the process modelling methodology. Some other frequently used relationships in accountability matrices

• Retrieved from
• Represented by
• Controlled by
• Approved by
• Coordinated by
• Collaborated by

Process modelling programs such as ATTIS allow the creation of user-defined sets of responsibility types in a matrix.

Competence models in process management

Competence (competence) represents a person’s overall ability to perform a required task. The competency model then represents a set of human resources – knowledge and skills, the acquisition of which will give a person the required competence. The competency model of a person is always created for a specific task or set of tasks (process role). In process management, this set of roles is defined by the involvement of the person in the processes of the organisation. Therefore, the process design should always include the definition of the knowledge and skills that are required for the successful execution of the process. Developing competencies through appropriate learning activities is one of the most effective tools for process improvement.

Process optimization

The goal of process optimization is to fine-tune the relationship between the quality of process outputs and the consumption of resources needed to produce the desired outputs. Process quality can then be defined as the sustained ability of a process to deliver outputs that meet customer expectations in terms of value provided, timing and capacity. Therefore, process optimization must always include a review of the process customer requirements and process output parameters.

Process analysis

Process analysis is a set of activities designed to identify opportunities for process improvement. Before analysing specific processes, it is necessary to review the top-level process model and answer the question of whether the processes are well defined and whether they have clearly defined links to their customers and the inputs and outputs they provide to each other. A very common mistake is to labouriously analyse the sub-processes carried out within organisational units instead of analysing and developing the complex process of the organisation that runs through these units. Process analysis is done in steps:

• Definition of the process in the context of the customer’s process requirements and the link to other processes
• Assessment of process outputs in terms of customer process requirements
• Assessment of required internal process requirements including performance indicators
• Assessment of activities performed within the process Identification of non-value adding activities, identification of duplications and interruptions in the process
• Assessment of process resources in terms of quality and capacity
• Comprehensive process evaluation and improvement proposal

Due to the amount and interrelationships of process analysis information, it is advisable to perform process analysis with the support of a specialized tool that supports the analysis itself, improvement design and implementation support. ATTIS includes all these functions.

Purpose, objectives and process indicators

Before starting the process analysis, it should be clear against which desired state the process is being analyzed. Are we going to assess the current state and look for improvements or are we analyzing the process because of a change in strategy or customer requirements?

• The definition of the purpose of a process is closely related to its proper definition. We are always looking for an answer to the question whether the process under consideration is not just a part (sub-process) of a broader process.
• The setting of process objectives should define the parameters of the desired change. Do we want to increase the efficiency of the existing process, its flexibility or, for example, do we introduce modified process outputs and need to adapt the process to them?
• Process Performance Indicators (PPIS) define the performance and quality parameters that a process should repeatedly achieve, or what key strategic indicators (KPIs) the process supports.

The purpose, objectives and indicators of the process will also indicate what the process change will be. Will we be doing a major process reengineering or will we be implementing incremental process improvements?

Process bottleneck

The Theory of Constraints, formulated by Eliyahu M. Goldratt, states that every process has just one constraint that defines its performance. At the same time, it says that improving the process outside of this bottleneck is likely to yield only local improvements often at the expense of the performance of the process as a whole. Thus, part of process optimization should include knowing where the process bottleneck is and using that knowledge to drive controlled improvement of the process as a whole.

Causes of process inefficiency(according to R. Fišer, Process management for managers, Grada 2015)

Process inefficiency can have a number of causes, which may be unnecessary activities, faulty process organisation or excessive consumption of resources. When increasing process inefficiency, we should first get rid of redundant activities and then address the next steps of process optimization. The most common sources of inefficiency in the process:

• Duplication of activities that are carried out at multiple locations in the organisation
• Non-value-adding activities – their execution has no impact on the sequential transformation of inputs into outputs
• Organizational interruption – transition of a process between multiple organizational units
• Control interruptions – activities in a process that require a supervisor’s decision or other control acts that are not directly subject to the process mode
• Physical interruptions – the process takes place at different locations in the organization, includes transport activities
• Inadequacy of resources – higher/lower than necessary allocation of resources to the process, use of resources whose potential does not match the requirements of the process – e.g. use of qualified staff in administrative activities,

Generally, in functionally managed organizations, activities are managed to meet the requirements of the organizational unit that performs the activity in the process, often to the detriment of the process as a whole. This leads to apparent greater efficiency in terms of individual resource use, but from a process perspective there can be significant interruptions that slow the process down significantly and limit its flexibility.

Process change tools

At the heart of every process are the activities that are performed by people. In an effective process, these activities are well organised, flow smoothly into each other and are carried out efficiently. Once people get used to the way their activities are carried out, they do not like to change these habits. It is therefore necessary for managers to know and use the appropriate tools to achieve and consolidate the desired changes in the way people work in processes.

• Motivation for change – explaining the purpose and need for change and the benefits for the people involved and for the organisation as a whole. Involving people in the preparation and implementation of the change
• Setting rules for process execution
  • Process model – defines requirements for process performance in the form of a process map, process description and responsibility matrix
  • Internal management documentation – directives, templates of documents and records
  • Organisational structure and job descriptions
• Definition and development of competences
  • Definition of the knowledge and skills needed to perform the process
  • Competence assessment
  • Training and development programmes
• Stimulation – setting and evaluating targets and process indicators
  • Setting overall process indicator targets and translating them into individual benefits
  • Setting individual goals and indicators that support the process as a whole and translating them into individual benefits.
  • Performance evaluation with an emphasis on progression and consolidation of process changes

For partial process changes, one tool or a suitable combination of tools can be used. Large-scale complex changes should be dealt with through project management. Modern process management software supports the use of the whole set of tools. ATTIS also supplies sample complex change management solutions to enable the client to manage changes quickly.

Process measurement and evaluation

One of the basic principles of process management is continuous improvement of the process based on its measurement and evaluation(see for example Deming’s PDCA cycle). Measurement and evaluation of a process must provide information about whether the process is doing the right things right. Doing the right things means that the process is delivering the outputs required by the customer and doing things right then expresses that the process is running efficiently in accordance with the internal rules of the organisation and external legislation. Basic components of process measurement and evaluation:

• Objectives – express the desired target state of process performance that we want to achieve over the required period. Objectives are parameterized by indicators and metrics. Objectives should be linked to the company’s strategy; a suitable tool for linking overall and process objectives is, for example, the Balanced Scorecard method.
• Indicators show the overall status of a process or a complete area of a process (capacity, quality, flexibility)
• Metrics – are specific measured variables used to evaluate indicators. An indicator can have multiple metrics, based on which the evaluation of the indicator as a whole is algorithmically performed. For example, metrics can be used for the process quality indicator:
  • the number of mismatches in the process inputs,
  • number of disagreements within the process
  • number of non-conformities at the output of processes – output control
  • number of justified customer complaints

For each metric, the required values and thresholds for the management alert system are set and at the same time the algorithm according to which the evaluation of the indicator as a whole is carried out. Ideally, the metrics are based on exact and easily measurable data. However, for many processes, subjective ratings are also used to express the level of satisfaction of the customer, manager or process owner. Different types of scales are used for these evaluations. For all system components, it must be determined what the desired values are, who is responsible for meeting them, and who reports the primary data. For indicator targets, it is appropriate to define the role of the Guarantor, who sets the target values and evaluates their overall performance. Equally important is to establish a timeline for measuring and evaluating each metric and indicator. This expresses the interval at which the measurement and evaluation is carried out – e.g. week, month, quarter… year. ATTIS supports the complete agenda of process evaluation and measurement and allows it to be linked to other elements of the integrated management system.

KPIs – Key Performance Indicators, PPIs – Process Performance Indicators

Sets of indicators are used to evaluate the performance of the organisation. In practice, the term “cape” is used as a synonym for all types of indicators and metrics. However, the abbreviation KPIs stands for Key Performance Indicators, the important word being “Key”. Indeed, these indicators should express the most important strategic metrics of the organization. Therefore, there should not be many of them – the authors of the Balanced Scorecard method, Norton and Kaplan, recommend that there should be no more than 20 of them. If we want to stick to English in measuring processes, it is better to use the term Process Performance Indicators – PPIs. The English terms are Strategic Indicators for KPIs and Process Indicators for PPIs.

Reporting

If we have defined a set of appropriate indicators and process metrics, we need to ensure that these indicators and metrics are measured and evaluated according to the set timelines. We can include activities under the term reporting:

• Measurement – obtaining data on metrics performance
• Interpretation of deviations – verbal explanation of the reasons for deviations of the measured values from the required values.
• Correction – the design of measures to achieve or maintain desired values
• Prediction – estimation of future development of measured values

The measurement itself, or the acquisition of data on the achieved values, can be carried out automatically by importing data from various components of the information system. However, other reporting tasks are an important role of the people who report. Their opinions and recommendations are intended to be the basis for management decisions at all levels of management. Therefore, reporting cannot be completely automated; the measured value always needs additional comments from the reporting person. Modern tools that support process management make it possible to link indicators and metrics directly to processes or specific process steps. In addition, ATTIS also supports reporting that is entered by the reporting person via a web interface.

Review of the process

The purpose of a process review, which is usually performed by the process owner, is to demonstrate that the right things are being done within the process. That is, it should first assess whether the process is providing outputs that satisfy the process customer and whether the customer’s expectations will change in the near future(doing the right things). Subsequently, it is reviewed whether the process is implemented efficiently(doing things right). This area includes an assessment of the cost-effectiveness of acquiring resources for the process as well as the efficiency of resource consumption in the process. The process owner should evaluate the incentives to improve the process as well as the success of the changes that have been implemented within the process. A key input to the process review is the achievement of the required qualitative and quantitative process parameters, which are continuously measured and reported. A full process review is typically conducted 1-2 per year. The outcome should be a clear statement that the process is fulfilling its purpose and all required parameters or specific recommendations for further process development. The process review can be substantially facilitated by specialized process control software. ATTIS software effectively supports the creation and management of the process model, the setting and reporting of indicators and metrics, as well as process change management. The process owner thus has all the information needed for process evaluation.

Supporting the introduction of process management

Procedural management is a good servant but a bad master. In order to implement and maintain it, we need to clearly define what we expect from process management, how it will help us deliver our strategy and to what extent we will deploy it in the organisation. Before the actual implementation, it is always necessary to educate managers and other key personnel who will be involved in the implementation of process management – they will be the ones who will “sell” the processes to the selected parts of the organization. Another necessity is the selection of appropriate software to support process management or, better, to support an integrated management system.

Goals and expectations

The first step in implementing or revitalizing process management should always be to set realistic goals and expectations that process management will bring. It should be remembered that the transition from functional management to process management is not just a technical matter. Above all, managers need to understand that processes are not just a matter for their departments, but for the whole organisation. The paradigm of competition and negotiation over competences and resources must be replaced by one of cooperation and common goals whose common denominator is the success of the whole organisation and its people.

Mistakes and pitfalls of introducing procedural management

Procedural proceedings have been used to a greater extent in the Czech Republic since the 1990s. For more than 10 years, there have also been richly subsidized efforts to introduce procedural management in public administration. During this time, it is possible to trace the main mistakes made by organisations when introducing process management.

• Incorrect definition of processes

One of the most frequent reasons for introducing process management is to eliminate competency disputes endlessly discussed in operational meetings and to increase the smooth flow of processes across the company. However, contrary to this goal, organizations often start mapping and describing sub-processes within their organizational units without clarifying what important processes flow across the entire company.

• Inadequate scope of the project

Another common mistake is the attempt to map all processes and activities of an organization at once. Tens or even hundreds of process maps are quickly created, which are practically impossible to implement in a coordinated way. The solution is to have a good discussion of the company’s top-level process model and gradually map and optimize those processes that have the greatest potential to bring improvements to the entire company. Successfully implemented processes can then serve as a pilot model for further action.

• Unclear methodology

A process management methodology should be established prior to the implementation of process management. This should define the place of process management in the integrated management system, define process roles and establish modelling conventions. At the same time, it should define the process of process implementation and subsequent change and improvement management. The methodology should be defined with a link to the specific software that will be used for process modelling and management.

• No or inappropriate software

If the process model is to be used as an effective management tool, it must be linked online to the organisational structure and job descriptions. At the same time, it must be able to capture and interpret hundreds and thousands of links between processes, between processes and resources, links between processes and risks, indicators, standards and norms and many others. Obviously, none of the “office” or purely graphical software will provide this functionality. The ideal tool is a sw that is designed to provide comprehensive support for an integrated management system. Comprehensive methodological and software support is provided by ATTIS software, which has dozens of successful implementations in the Czech Republic.

Process maturity of the organisation

Process maturity scales are an effective tool for assessing the status and setting target parameters for process management in an organization. One of them is the process maturity pyramid, which is part of the methodological framework Process Maturity Orchestration – ^PROMO®(R. Fišer, Process Management for Managers, Grada 2015). This pyramid lists 5 stages of process maturity, which are developed sequentially:

• 0 – Procedural blindness

A state in which an organization is managed functionally through functions (responsibilities, activities) delegated directly to organizational units and individuals. A view of the processes taking place across the organisation is completely missing.

• 1 – Connectivity

The organization has created a top-level process model that defines the basic set of processes and their mutual and external links. The process model is not derived from the organizational structure, but shows how processes flow across the organization.

• 2 – Efficiency

Selected processes of the organisation are described to the activity level, free of duplications, non-value adding activities and discontinuities. Process roles are defined, attached to processes and activities through responsibility matrices and reflected in staff job descriptions. The company is still functionally managed, but work assignments have been refined, competency conflicts have been eliminated and process efficiency has been improved.

• 3 – Flexibility

Control mechanisms are introduced over selected 2nd stage processes to enable control of the process as a whole. Common process objectives, indicators and metrics are defined and are overridden by the objectives of organisational units and individuals. A collaborative organizational culture is fostered. The ability to respond flexibly to change and risk – for example, changes in customer requirements, supply issues, etc. – is significantly increased for processes at this maturity level.

• 4 – Dynamics

This maturity level represents the interface between process and project management. Selected processes that have reached maturity level 3 are complemented by control mechanisms that allow each process cycle to be fully adapted to the customer’s requirements. The process team and the process model – i.e. the process flow – can be adapted for each cycle. Processes managed in this way are suitable for creative industries, where the output of the process is always unique to the requirements of the specific customer. Perfect teamwork is a prerequisite for success. It is important to understand that it is neither necessary nor possible to achieve a level 3 or 4 in all processes of an organisation. For established processes that do not extend beyond the boundaries of a single organizational unit and are functioning satisfactorily, we are satisfied with maturity at level 1. Where we are seeking a one-time increase in efficiency and resolution of competency conflicts, but do not want to fundamentally change the culture and management system of the organization, the target state will be at level 2. We will aim for higher levels for selected processes where we need to respond very quickly to change. This is likely to be mainly customer-facing (core processes) or processes that significantly impact the success of the organisation – product development, marketing, but also strategic management of the organisation for example.

Process management in the context of other management disciplines

The proverb says: “he who holds the hammer sees the nail in everything”. The same is often true of the implementation of various management techniques and approaches. Nor is process management a panacea for all managerial ills. It is always necessary to consider the context in which process management will be deployed and what the downstream management disciplines will be.

Strategy, tactics, operations

There are often discussions in organisations about levels of management and what to expect from them. In terms of setting up an integrated management system, it is useful to talk about three levels of management:

• Strategic management

It defines the direction and the main objectives that the organisation will follow. Some organisations prefer a comprehensive strategic framework, including a mission, vision, strategy and a set of strategic objectives, while others make do with a brief one-page document or a simple statement of expected economic results.

• Tactical management

Tactical management can be defined as the setting of internal rules by which an organisation will follow in achieving its strategy. This includes all governing documents (directives), organisational structure, sub-objectives and indicators, job descriptions but also processes and projects. Processes should form the backbone of the whole integrated management system of the organisation. The requirements for the organisational structure, job descriptions and staff competences should be derived from them. The guidelines should then only specify the general conditions for the functioning of the processes. Project management is also an important part of the tactics – these define specific rules and tasks that apply only for the duration of the project. Well-managed tactical management provides people with long-term work assignments that allow them to plan, reflect on and improve their work. Improvement and change management is also a key part of tactical management.

• Operational management

Operational control controls and corrects the procedure within the rules that have been set up in tactical control. This includes routine work meetings, management of short-term tasks, etc. When people complain about operational overload, it very likely indicates deficiencies at the tactical level. If the competence disputes between managers and organisational units are resolved at every meeting, it is time to think about introducing process management. As the text shows, higher level deficiencies always manifest themselves in lower level problems. Without a clear strategy, it is impossible to set up processes in a meaningful way, and without well-adjusted processes, the operational workload of managers and other employees of the organisation cannot be significantly reduced.

Processes and projects

Processes and projects have the same basis. They are made up of interrelated activities and result in a specific output for a specific customer. A project can therefore be said to be a specific type of process. Processes and projects generally share the same resources in an organisation. Therefore, it makes sense to use the same or linked tools to manage both disciplines. This eliminates the widespread planning into unlimited capacities, where the most capable people are assigned to more and more projects in addition to their core workload, without anyone investigating whether they still have the capacity to do so. If the same types of projects are recurring in the organisation – they have the same type of outputs, the same phases and share the same resources, it is probably efficient to start managing them as normal processes. ATTIS is one of the tools that can support both disciplines – process and project management, including control over the appropriate workload of people.

Change Management

Many visions, strategies for partial improvements remained unfulfilled due to poor change management. People just don’t like to change their working habits, especially if we want them to learn new knowledge and skills and then use them routinely in practice. Process management, especially when it is part of a comprehensive integrated management system, can be an important aid to change management. The rationale for change alone can effectively present the dysfunction of a particular process or part of a process. Process modelling tools will make it easier to both name the problem and design a future arrangement that includes the impact of the change on specific employees. The process model will then enable them to explain the change clearly, identify the knowledge and skills and other resources needed, and set parameters for measuring the progress of the change.

Delegation

Delegation is always an important part of management work. A manager who does not know how to delegate is overloaded with constant assigning and verifying tasks even in trivial areas that should be handled routinely and completely independently by his subordinates. Process modelling, a precise description of activities and their interrelationships, allows the manager to determine exactly what work activities his people are to perform, how they relate to their colleagues and how their performance is evaluated. At the same time, he can identify the places in the process where his presence is absolutely necessary when making decisions or approving procedures. In general, the more often a manager enters the process, the more vulnerable the process is to meeting time standards – managers are invited to regular and emergency meetings, they are dealing with immediate problems and as a result their involvement in the process can be very irregular and difficult to predict. Process management allows delegation very accurately in a variety of work situations. A very useful tool here can be the Responsibility Matrix, which allows to define precisely the degree of delegation and the degree of control. The manager then has a precise overview of the authority he delegates and the tools that help him to check whether his subordinates comply with the delegation conditions.

Balanced Scorecard

The Balanced Scorecard method (abbreviated as BSC) introduces a system of balanced scorecard indicators that creates a link between strategy and operational activities with an emphasis on performance measurement. The authors of the method, which was published in 1992, are Robert S. Kaplan and David P. Norton(source Wikipedia). In its basic form, the BSC method introduces four indicator perspectives:

• Financial perspective defining economic performance
• Customer perspective mapping customer behaviour in corporate markets
• An internal process perspective focused on process performance and its ability to meet customer requirements
• A learning and growth perspective focused primarily on the development of human potential

From the perspective of process management, the Balanced Scorecard can be a very useful framework that on the one hand provides processes with a comprehensive assignment (customer, process and financial indicators) and on the other hand supports the development of human resources to enable continuous process improvement (learning and growth perspective). Software to support the integrated management system supports the use of the Balanced Scorecard method and at the same time allows its indicators to be directly linked to the measurement and evaluation of the organisation’s processes. This functionality is also included in the ATTIS software.