Ist Ihre Organisationskultur fit für Prozessmanagement?
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1 Ist Ihre Organisationskultur fit für Prozessmanagement? November 23 rd, 2016 Dr. Theresa Schmiedel BPM Group Institute of Information Systems 1
2 BPM Group Liechtenstein Teaching Research Transfer Study Programs - Bachelor-Program - Master-Program - PhD Program BPM-Education.org - Fellowship Programs - Career Programs Publications - over 200 studies, incl. - MISQ, JAIS, BISE, BPMJ,... BPM Tracks - ICIS, ECIS,... Books - BPM Handbook - Green BPM - BPM & Innovation Competence Centers - Business Process Management - Enterprise Content Management - In-Memory Technology - ERP-Systems Global Partners - Hilti, Hoval, Presta, Ivoclar Vivadent, SAP, Accenture, Lufthansa Technik, Oerlikon 2
3 Agenda BPM as an organizational management approach The concept of culture The relation between culture and business process management The concept of BPM culture Assessing and developing an organizational culture 3
4 BPM is the management of organizational processes = steps companies do to generate customer value! 4
5 Ten Principles of Good BPM principles.org Principle of continuity Principle of purpose Principle of holism Principle of context awareness Principle of involvement Principle of institutionalization Principle of enablement Principle of simplicity Principle of joint understanding Principle of technology appropriation vom Brocke, J., Schmiedel, T., Recker, J., Trkman, P., Mertens, W., & Viaene, S. (2014) 5
6 Holistic BPM Business Process Management Core Elements Strategic Alignment Strategic Alignment Governance Governance Methods Information Technology People Information BPM Methods Handbook Sub Elements People (vom Technology Brocke & Rosemann, 2010) Culture Culture Aitken, Stephenson & Brinkworth (2010) Process Improvement Plan Bucher & Winter (2010) Strategy and Burlton (2010) Process Heckl Capability & Moormann Linkage (2010) Kirchmer Process (2010) Architecture Sadiq & Governatori (2010) Process Output zur Measurement Mühlen & Shapiro (2010) Process Customers and Markus Process & Jacobson (2010) Management Rosemann Decision (2010) Making Lederer Antonucci (2010) Process Roles and Responsibilities Scheer & Brabänder (2010) Spanyi Process (2010) Metrics Treagear and Performance (2010) Linkage Process Management Standards Process Aagesen & Krogstie (2010) Process Design Barros, Hettel & and Modeling Flender (2010) Becker, Pfeiffer, Falk Process & Räckers (2010) Implementation Conger and Execution (2010) Hallerbach, Bauer & Reichert Process (2010) Control Koschmider and Measurement & Oberweis (2010) Polyvyanyy, Process Smirnov & Weske Improvement (2010) and Reijers, Innovation Mendling & Recker (2010) van Process der Aalst, Project and Program Cummins (2010) Dreiling Process (2010) Design Dumas and Modeling & Kohlborn (2010) Gulledge Process (2010) Kemsley Implementation (2010) Kumar and Execution & Wang (2010) Process Control Leymann, Karastoyanova and Measurement & Papazoglou (2010) Ouyang, Process Adams, Wynn Improvement & ter and Hofstede Innovation (2010) Zapletal, Schuster, Liegl, Process Huemer, Project Hand f it Program (2010) Harrison Broninski Baumöl (2010) (2010) Process Skills and Karagiannis Responsiveness to Expertise Rosemann & & vom Brocke (2010) Woitsch (2010) Process Change Kokkonen Process & Bandara (2010) Process Values Management Lederer and Beliefs Knowledge Antonucci (2010) Process Attitudes Process Education and Behaviors and Learning Process Collaboration and Communication Process Management Leadership Attention to Process Process Management 6
7 Agenda BPM as an organizational management approach The concept of culture The relation between culture and business process management The concept of BPM culture Assessing and developing an organizational culture 7
8 Cultures determine how we perceive things! 8
9 Twodimensionstobeawareabout 1. Referenced group 2. Manifestation 9
10 Cultural Groups and Cultural Identity Subgroup Organization Nation Profession 10
11 Cultural Groups and Cultural Identity omnipresent every group has a culture overlapping a person can have several cultural identities heterogeneous subcultures of groups can exist 11
12 Two key dimensions to be aware about 1. Referenced group 2. Manifestation 12
13 How does the culture at your organization manifest? Do people work with doors open or closed? Are people on time for meetings? Which communication channels do people prefer? 13
14 above surface The Iceberg Model of Culture architecture interaction clothing rules symbols visible cultural characteristics underneath surface time orientation spacial orientation interpretations gender role social order meaning of individuality invisible cultural characteristics 14
15 Culture actions structures values = concepts of the desirable = shared basic assumptions of a group vom Brocke & Sinnl (2011) 15
16 The Core Element of Culture mission statements publicly expressed values = propagated values = espoused values Congruent with lived values? values = concepts of the desirable = shared basic assumptions Lived values! 16
17 Agenda BPM as an organizational management approach The concept of culture The relation between culture and business process management The concept of BPM culture Assessing and developing an organizational culture 17
18 Motivation Practice The process culture is an important ingredient & to a successful BPM recipe. Kapil Pant, Consultant The real problems when Research implementing the process orientation approach are of a cultural nature. Kohlbacher, Gruenwald (2011) 18
19 How can we get beyond stating the importance of culture in BPM? 19
20 Relation between Culture and BPM BPM Culture 3. Culture BPM 1. Influence of culture on BPM 2. Influence of BPM on culture 3. Notion of a BPM culture vom Brocke & Sinnl (2011) 20
21 Cultural Context Cultural Context: a specific cultural environment that a BPM initiative faces typically determined by national, organizational and work group cultures vom Brocke & Sinnl (2011) 21
22 Relation between Culture and BPM BPM Culture 3. Culture BPM 1. Influence of culture on BPM 2. Influence of BPM on culture 3. Notion of a BPM culture vom Brocke & Sinnl (2011) 22
23 BPM Culture BPM Culture: a set of values directly supportive of BPM objectives visible in corresponding actions and structures executing efficient processes executing effective processes Schmiedel, vom Brocke, Recker (2013) 23
24 BPM Culture Model Structures Actions Values Structures Actions Values Structures Actions Values Structures Actions Values vom Brocke & Sinnl (2011) 24
25 Cultural Fit Cultural Fit: a basic congruence between the cultural context and the BPM culture critical for a successful BPM implementation vom Brocke & Sinnl (2011) 25
26 Agenda BPM as an organizational management approach The concept of culture The relation between culture and business process management The concept of BPM culture Assessing and developing an organizational culture 26
27 Which values make up a BPM supportive culture? 27
28 Delphi Study Outline around 60 top BPM experts worldwide invited senior scholars and practitioners 27 participants from 13 countries 3 independent coders from 2 continents period of 12 weeks response rate of at least 89% in every round continuously rising level of satisfaction with the codification of the experts input (up to 8.3 out of 10 scores) specific BPM supportive values Schmiedel, vom Brocke, Recker (2013) 28
29 Dimensions of BPM supportive Values CERT values Dimensions Customer orientation external customer internal customer Excellence innovation continuous improvement Responsibility accountability commitment Teamwork formal structures informal structures Schmiedel, vom Brocke, Recker (2014) 29
30 Agenda BPM as an organizational management approach The concept of culture The relation between culture and business process management The concept of BPM culture Assessing and developing an organizational culture 30
31 How can the cultural fitness of organizations for BPM be measured? 31
32 Culture Assessment Tool culture.org 32
33 culture.org 33
34 culture.org 34
35 Scope of a Culture Assessment Potential units of analysis Analysis of entire company Analysis of certain divisions Analysis of certain countries Benchmark analysis 35
36 Benefits of a Culture Assessment Immediate results Understanding of culture perceptions in selected areas Comparison of culture perceptions between selected areas External benchmark of culture perceptions of selected areas Awareness creation for the importance of process thinking Identification of culture development potential Follow up potentials Development of strategies and actions for culture change Conscious long term culture management 36
37 Teamwork formal structures informal structures external customer 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Exemplary Benchmark Result Customer Orientation internal customer continuous improvement Excellence commitment Responsibility accountability innovation Organization X Best in Class Average in Class Worst in Class 37
38 Customer Orientation Exemplary Department Results external customer internal customer Excellence continuous improvement innovation Responsibility accountability commitment Accounting & Finance Engineering IT Procurement Production Quality Research & Development Sales & Marketing Management Board Teamwork formal structures informal structures 30% 40% 50% 60% 70% 80% 90% 38
39 Steps towards Culture Change 1. Assess the organizational culture to identify gaps 2. Determine desired cultural change 3. Align the organizational culture with strategic goals 4. Define strategies for culture development 5. Take actions to fill cultural identified gaps 39
40 Culture Maintenance Regular qualitative reflections and quantitative assessments vom Brocke, Petry, Sinnl, Kristensen, Sonnenberg (2010) 40
41 Hilti s Culture Journey Hilti Manager: I have never seen a corporate initiative that costs millions a year to make sure that everybody is on the same page. And we are not talking about half an hour: The first team camp takes two to three days and we continue in that fashion resulting in two to four days of commitment every year. 41
42 Corporate culture can have a significant impact on a firm s long term performance. 4 times higher revenue, 7 times more expanded work force, 12 times higher stock prices 756 times higher net income Benefits of Organizational Culture ROI Studies by Prof. John Kotter, Harvard 42
43 Dr. Theresa Schmiedel Institute of Information Systems University of Liechtenstein 43
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