Business process

[Link]
SGH - WSE

• A collection of linked tasks which find their end in the

delivery of a service or product to a client.
• A series of steps performed by a group of stakeholders
to achieve a concrete goal.
• A series of logically related activities or tasks (such as
planning, production, or sales) performed together to
produce a defined set of results.
• A business process is an event-driven, end-to-end
processing path that starts with a customer request
and ends with a result for the customer.
• A set of activities that add value to a customer.

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Process
[Link]
SGH - WSE

• A process is an instance of a program

running in a computer.
• A series of operations on a set of data.
• A sequence of interdependent and linked
procedures which, at every stage, consume
one or more resources (employee time,
energy, machines, money) to convert inputs
(data, material, parts, etc.) into outputs.

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The basic components of a business process
Model IGOE (Input, Guide, Output, Enabler) [Link]
SGH - WSE

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 The categories of business [Link]
processes SGH - WSE

• Primary processes (operational processes, core

processes) deliver value to the customer by
producing a product or service.
• Supporting processes (secondary processes)
support the core processes. They are necessary to
keep an organization running. They do not provide
value to customers directly.
• Management processes enable to control and
govern an organization

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Process Characteristics
Sheet
[Link]
SGH - WSE

It defines:
• a process type
• a client
• objectives
• an owner
• resources required
• process inputs
• process outputs
• controls and metrics for a process (KPI)
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Process Objectives
[Link]
SGH - WSE

• Process objectives are specific targets to

be hit by the process, some positive
effects you are going to achieve

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 Process Owner
[Link]
SGH - WSE

• A person who has the ultimate responsibility for the

performance of a process in realizing its objectives
measured by KPIs, and has the authority and ability to
make necessary changes.
• Process Owner Responsibilities:
• the governance of process performance and process change
• defines the process mission, vision, tactics, goals, objectives,
KPIs, and the measures that are aligned with the
organization strategies
• monitors and reports process performance
• ensures appropriate process designs, including the correct
business requirements
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 Process metrics
[Link]
SGH - WSE

• standard measurements that are used to

evaluate the performance of business
processes
• Examples:
• cost, profit
• time to complete task, timeliness (punctuality)
• product quality
• customer satisfaction

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 Business process
management (BPM)
[Link]
SGH - WSE

• It is a systematic approach to making an

organization more effective, more efficient and
more capable of adapting to an ever-changing
environment by improving an organization's
business processes.
• It is a disciplined approach to identify, design,
execute, document, measure, monitor, and control
both automated and non-automated business
processes to achieve consistent, targeted results
aligned with an organization’s strategic goals.
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BPM – life cycle [Link]
SGH - WSE

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A process in the functional [Link]
strucure of an organization SGH - WSE

Customer

Production Sales &

Procurement
Distribution
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 Process redesign (1)
[Link]
SGH - WSE

Version I

Customer Customer

Version II

Customer

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Process redesign (2)
[Link]
SGH - WSE

Version III

Customer

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Process redesign (3)
[Link]
SGH - WSE

DSS

Customer Customer

Version IV Version V

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Process redesign (4)
[Link]
SGH - WSE

Company Company

Customer Customer

Version VI Version VII 15

Process redesign (5)
[Link]
SGH - WSE

Customer Company

Internet

Version VIII
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 The role of process approach [Link]
in public administration SGH - WSE

• The process improvement is not solely a business domain, it also

applies to public institutions, and non-profit organizations.
• The e-administration should not be viewed only as the
implementation of information technologies in public
administration. It should lead to the organizational changes.
• Both types of criteria which are typical evaluation criteria of the
effectiveness in public authorities: cost and time are also typical
performance indicators commonly used in the business process
management.
• A typical public administration office performs a wide variety of
complementary and sometimes even overlapping functions using
different software application - is an argument for the
implementation of SOA.
The barriers to the implementation of [Link]
process approach in public administration
SGH - WSE

• Public administration units are characterized by

hierarchical, functional structures.
• The performance and the effectiveness of an
administration unit are evaluated in relation to
its narrowly defined functional tasks.
• Large cross-functional processes are rarely
properly defined. Instead, the large number of
small processes, which are in fact subprocesses,
are identified.
 [Link]
The barriers to the implementation of SGH - WSE
process approach in public administration

• Classification into primary and support

processes raises controversy among public
administration officials.
• From their point of view, the most important are
support processes: informing and reporting to
the superior bodies - when properly done, they
can secure the peace of bureaucratic existence.
 [Link]
The barriers to the implementation of SGH - WSE
process approach in public administration

• Occasionally, public administration units

reorganize their activities in order to improve
their services to customers. However, those
actions are often superficial.
• E.g., they create customer service points, or
allow the submission of documents and
communication with officials in electronic form
but they do not improve internal processes.
 [Link]
The barriers to the implementation of SGH - WSE
process approach in public administration

• Avoidance or wrong identification of performance indicators

- indicators that can be reduced to the verification of
compliance with procedures, rules, or legal regulations:
• the performance indicator of a procurement process was
defined as follows: “The ratio of accepted appeals or protests
to the total number of appeals or protests” - measures the
correctness of office activities and documents in accordance
to the regulations concerning public tenders
• the primary process “The execution of the construction
project” had the following performance indicator:
“Participation in the project councils” – addressed to superiors
controlling the routine duties of public officials
 Conclusions
[Link]
SGH - WSE

• The implementation of the process approach is essential in

order to improve the effectiveness of public administration,
particularly in the utilization of information technology.
• The main barriers are not technical but are related to
organizational culture.
• Public administration does not promote effectiveness typical
for commercial organizations, but concentrates on
bureaucratic relations and procedures.
• Only profound changes in the organizational culture and the
promotion of business attitude towards tasks and the growth
of professionalism of public officials can provide the basis for
the real implementation of the process approach in public
administration.