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Posted on Sunday, August 23rd, 2009 at 3:31 am

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The Integration of Business Process Architecture and Business Governance

The simple relationship Y=f(x) describes the output of a process as being a function of its inputs and what is done in the process. In an organization, high-level process Y’s are the result of the catenation of lower level organizational process Y’s.

How do organizations typically manage operational Y’s. To stay in business companies must improve. It seems logical to simply establish and track the performance of their Y’s against goals throughout the organization. We might think that this is an appropriate approach, right? But is it really? Will this approach indentify the best behaviors?

Let's think about how organizational goals are often factored. For the enterprise as a whole to financially benefit was the entire organization evaluated to determine what goals were appropriate for each function? Functions that are not the organizational constraints may be given the goal of only maintaining their current level of performance if this form of analysis were done; i.e., , showing no improvements at all.

However, it has been my experience that this rigor is not typically done. A more common procedure is that goals are negotiated with the understanding that improvements should be made everywhere. These goals can then be tracked throughout the company using a red-yellow-green scorecard, for example, where red means that a target is not being met and action needs to be taken, while green indicates that the target is being met and no action needs to be taken.

Lloyd Nelson stated, “If you can improve productivity, or sales, or quality, or anything else, by (e.g.,) five percent next year without a rational plan for improvement, then why were you not doing it last year?" This statement makes a lot of sense. Red-yellow-green deployments often do not have a structured plan for improvement. Common cause metric variability can cause a metric to oscillate in a red-yellow-green scorecard even when no improvements have been made. Goal management to the Y’s in this form could be considered management by hope.

In business process architecture timely management to important process x’s can be essential to get the desired Y’s; however, managing to the Y’s can lead to much firefighting. What is needed is an enterprise measure-analyze-improve-control framework that leads to the 3 Rs of business; i.e., everyone doing the Right things, and doing them Right, at the Right time.

An enterprise analysis system is needed to determine where business process architecture improvement efforts should focus with a roadmap for structurally creating projects that make long-term improvements. Organizations are now seeing the benefits of an Integrated Enterprise Excellence (IEE) system to fulfill these needs.

In IEE top consideration is given to how we track and assess whether a organization's goal has been met, or not met as the case may be. If we measure success by meeting our quarterly numbers, then this can drive numerous sorts of destructive behaviors at quarter-end. In the case of Enron, this policy created very destrutive behaviors. In Integrated Enterprise Excellence (IEE), as part of determining goal attainment a statistical validated time series shift in a 30,000-foot-level operational process metric is what should be used.

“… (Integrated Enterprise Excellence or IEE is) the most complete and effective operational management system available.” Keith Moe, Group Vice-President, 3M (retired). Integrated Enterprise Excellece (IEE) provides an enhanced, unified system approach to business improvement, balanced scorecards and strategic planning.

IEE was developed by Forrest Breyfogle, III. He is a Professional Engineer and ASQ Fellow who founded Smarter Solutions in 1992. As a management thought leader and innovator, he recently completed a four-volume set of books that provides radical management advancements in the utilization and integration of scorecards, strategic planning, and process improvement and business process architecture.

The volume, Integrated Enterprise Excellence – The Integrated Enterprise Excellence System: An Enhanced, Unified Approach to Balanced Scorecards, Strategic Planning, and Business Improvement is an overview of a three volume hardcover set (Integrated Enterprise Excellence, Volumes I-III). It discusses how the application of IEE methods, tools, and techniques can overcome the enterprise management challenges of the twenty-first century and the limitations of traditional business measurement systems. You can also visit www.ieeblackbelt.com for more information.

Lil Wayne - Green and Yellow Freestyle