The Frameworks That Organisation Can Use to Integrate BPM along with Organisational Strategy - Assignment Example

The Frameworks That Organisation’s Can Use to Integrate BPM Along With Organisational Strategy Name Institution Tutor Date Introduction Many organizations today experience difficulty in understanding the concept of Business Process Management (BPM). Business Process Management (BPM) can however, be viewed as a straightforward and powerful approach of looking beyond the activities and functional aspects of the organizations and rediscovering the strategic business processes that actually make the business to run. It offers a discipline that enables organizations to find a way of moving from the complexities of the organizational structures and placing more emphasis on organizational processes that are in reality the heart of any business. This paper seeks to undertake a critical review of five publications that highlight the frameworks that organisation’s can use to integrate BPM along with organisational strategy. The articles to be examined include: Hernaus (2012) on the Influence of strategic approach to BPM on financial and non-financial performance; Rinaldo et al (2014) on an analysis of BPM lifecycles: from a literature review to a framework proposal; Štemberger et al (2016) on How to go from strategy to results? Institutionalizing BPM governance within organisations; Wong, (2013) on Business-process management: a proposed framework for future research and Marini, et al (2013) on what affects the extent of business process management implementation? An empirical study of Malaysia's manufacturing. How Organizational Strategy is Defined and Formulated A definition of organization strategy that arises from the publications is that it involves actions that an organization takes in order to attain certain objectives. According to Hernaus (2012) organizational strategy is defined as the intended actions that organizations develop in order to deliver and create value. The strategy adopted by an organization offers a framework for directing behaviour which leads to attaining the set objectives of the organization. Rinaldo et al. (2014) provide a definition of strategy in the sense that it involves the actions taken by the organization in order to accomplish the goals outlined in the business portfolio. It can be stated that a similarity that arises from the definitions provided by the two authors is that organizational strategy involves a course of action taken by an organization in order to achieve the set objectives. In practice, this definition can be perceived as a holistic view of what organizational strategy entails. Nevertheless, contradicting definitions of the concept still exist. Contrasting definitions of organizational strategy are provided by Marini et al. (2013) who defines organizational strategy as the choice of focus among key capabilities. Marini, et al. (2013) also provides another conflicting perspective by highlighting that organizational strategy involves the manner in which an organization deals with the external environment. Similarly, Wong, (2013) also supports the idea that organizational strategy involves an analysis of the external environment as a factor that influences the direction of the organisation. From the various definitions of organisational strategy as provided by the authors, it can be concluded that there is no definite definition for the concept of organizational strategy. However, what is evident is that all the authors provide an insight into the fact that organizational strategy involves certain actions that an organization takes in order to meet the set goals. Whether it’s by conducting an environmental analysis as noted by some authors, organizational strategy aims at directing the behaviour of an organization. According to Hernaus et al (2012) organizational strategy is formulated by measuring performance. In order identify the most appropriate strategy for the organizations, it is imperative to analyze the performance outcomes which later provide the best direction for the alignment and strategy execution. Hernaus (2012) proposes that organizations are to embrace a performance driven approach to management. On the basis of this viewpoint, presented by Marini, et al. (2013) and Wong, (2013), that organizational strategy involves the examination of the business environment, it can be argued that strategy is mainly formulated by assessing the environment in order to select and develop the most suitable long -term objectives and vision for the organization. How BPM Is Integrated Within the Organisational Strategy A number of similarities can be derived from the articles on how to integrate BPM within the organisational strategies. A similarity that arises from the articles is that in order to integrate BPM into the strategies of the organization, it is important to align the processes undertaken by the organization to fit or to be in line with the strategies of the organization. Marini et al. (2013) in their study on what impacts the implementation of BPM, highlight in their findings that the alignment of business process in line with the strategy of the organization has been a major challenge for many firms. Consequently, the study recommends that it is vital to align the procedure of the organisation with the strategies. For instance, in the event that a company uses a differentiation strategy, in most situations the business has to ascertain that the needs of the customers are integrated into the procedures in order to fulfil and handle the requirements of the customers. The Association of Business Process Management Professionals model (ABPMP, 2009), which is a fundamental framework proposed by Rinaldo et al (2014) also supports the analogy of alignment of business process within the strategy of the organization. Rinaldo et al (2014) examined a hypothesis on whether there is an alignment between business processes and strategy. The results of the hypothesis disclosed that it is essential to prioritize processes as a way of integrating BPM in the strategies of the organization. Rinaldo et al (2014) therefore propose the use of the framework proposed by the Association of Business Process Management Professionals model (ABPMP, 2009) as a key approach that can be used to integrate BPM within the organisational strategy. In the model the lifecycle of BPM follows procedures which include; Process definition, process responsibility, sponsorship, measures, awareness and alignment with information technology in order to finally assimilate the organizational strategy. Figure 1.0 Demonstrates the ABPMP Model. Figure 1.0 ABPMP Model. ABPMP (2009) The Second similarity is through strategic BPM commitment by the management. The ABPMP, (2009) model also recommends that in order to incorporate BPM into the strategies of the organization, there is a need for continuous and permanent management commitment to the processes in the organizations. This unceasing and long-lasting commitment transforms into a life cycle model with steps that are well-defined. In addition, feedback is obtained that creates a managerial exercise for the organization, which is the foundation for the businesses to constantly be in a continuous improvement process and to develop procedures that are aligned with the strategic objectives of the organization. Similarly, Štemberger (2016) argues that in order to offer valuable contributions to the long-term corporate priorities, it is imperative to link BPM to the strategy of the organization. BPM should be integrated within the strategy of the firm through several strategic approaches. Some of the proposed approaches involve strategically aligning activities that are process related, providing operational discipline and a top management approach to the process. Among the highlighted approaches, Štemberger (2016) outlines operational responsibility by the management as a critical element in Integrating BPM within the organizational strategy. This is because somebody has to be operationally responsible for obtaining the outcomes. However, operational responsibility is not adequate if the other levels of the organization do not possess strategic commitment. The articles also disclose differences in the manner in which BPM can be integrated into the strategy of the organization. Wong (2013) introduces a framework that involves the integration of IT systems to manage business process as a major approach to integrating BPM into the strategy of the organization. According to this framework or perspective, BPM incorporates IT into the strategic decision making of the organization as demonstrated in figure (2.0) below. The emphasis on IT therefore becomes a complete theme that runs the entire process in the organization. The approach supports innovation as opposed to automation. A case in point is the increasing use of the web technology and cloud computing which has forced many companies to reconsider the manner on which their business processes work and the type of strategies applied in order to meet the objectives of the organization. Figure 2 .0 Wong (2013) Another difference also disclosed by Wong (2013) involves a framework that involves the use of management concepts as depicted in Figure (1.0) above. In order to integrate BPM into the strategy of the organization, management concepts such as Total Quality Management, Six Sigma, Flexible manufacturing, Performance improvement, BPR and Lean, can be used. The use of this management techniques creates a process- oriented framework. According to Wong (2013) the approach goes beyond the traditional functional perspectives such as Taylorism and Fordism. Implications of the Differences to the Practice of Management As a manager, the differences in approaches and frameworks proposed by the various authors would definitely influence the manner in which I implement BMP into the organization. Foremost, a key difference that can be noted in the frameworks is that most authors propose a framework that involves aligning the processes undertaken by the organization to fit the strategies of the organization. Wong (2013) on the other hand proposes an approach that primarily involves the use of management concepts and the integration of IT. As a manager as specified earlier, implementing and even understanding what BMP entails is a challenge for many organizations today. In the previous year, classical approaches of management such as Taylor’s principles governed the processes of the business world. However, I believe that with the changing dynamics in the business environment, it is imperative to adopt approaches that meet the needs of the customers in the current environment. I would therefore, adopt a framework that can ascertain that the processes of the organizations meet the demands of the external business environment. I think that the framework presented by Wong (2013) is the most suitable approach that I would adopt in my practice of management. The framework is prolific in the sense that the adoption of a BPM approach that integrates IT systems is suitable for the current business environment. In addition, the application of management concepts such as Total Quality Management is very relevant to the current business context because the concept of quality is vital in maintaining and gaining a competitive advantage. Although it is practical that organizations should align the processes of the organization with the strategies as proposed by a majority of the authors, it is also vital to acknowledge the changing nature of the business environment. What is evident is that organizations have to embrace change even in their approach to implementing BPM into the strategies of the organisation. In addition, due to the dynamic nature of the business environment it is vital to look at organizational strategy in terms of how the business deals with the external environment. The most suitable framework is one that is able to meet the demands of the external environment. Consequently, as a manager, I would adopt the framework processed by Wong (2013). Conclusion A number of key issues have been raised by this paper. Foremost, a key finding is that the concept of organizational strategy is defined differently by many practitioners in the field of management. As noted from the analysis, many scholars perceive the aspect as a set of actions that direct the behaviour of the organization. On the other hand, there are those who view organizational strategy through an environmental lens. The differences that arise in the definition of organizational strategy result to diverse approaches when it comes to its formulation. Consequently, the definition adopted will influence the approach of framing/ formulating the strategy. The paper has also identified the fact that different perspectives exist in the framework of integrating BPM into the strategies of the organization. As a manager, I believe that adopting a framework that deals with the dynamic nature of the business environment is the most suitable. Indeed the implementation of BPM is reliant on the interaction between the processes and strategies of the organization. However, it is imperative to acknowledge that businesses do not operate in a vacuum but rather within an environment. The external environment is therefore a very essential factor in determining the best Framework of integrating BPM into the strategies of the organization. References Hernaus, T, Bach, M and Bosilj, V 2012, The Influence of strategic approach to BPM on financial and non-financial performance, Baltic Journal of Management , 7 ( 4); p 376-396. Marini, N, Nasurdin, A, Noor, A 2013, What affects the extent of business process management implementation? An empirical study of Malaysia's manufacturing organizations. Management Research, 6.3-4 (Dec 2013): 91-104. Rinaldo, M, Kazan, S, Silvia, I 2014, An analysis of BPM lifecycles: from a literature review to a framework proposal. Process Management Journal 20.3 (2014): 412-432. Štemberger, M, Hernaus, T, Vuksic, V 2016, How to go from strategy to results? Institutionalizing BPM governance within organisations, Business Process Management Journal 22 (1), pp. 173-195. Wong, W 2013, Business-process management: a proposed framework for future research, Total quality management & business excellence, 24(4-6), p 719-730. Read More