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BPM Summit Survey: Results Emphasize the Importance of Measuring BPM Project Goals Published: 17 August 2012 Analyst(s): Samantha Searle

Organizations that struggle to measure the business value of BPM projects risk losing credibility and further funding, and therefore often fail. Business process directors should use these findings to learn best practices and avoid project pitfalls and missing desired, improved business outcomes.

Key Findings


There is a clear discrepancy between how organizations rate the importance of a particular business process management (BPM) project goal and their success in achieving that goal. Fifty-one percent of organizations established formal measurement criteria prior to the start of the project, as opposed to doing so at the midpoint or on project completion. Only 15% said that they had no formal measurement program in place. Organizations that do establish a formal measurement program achieve a higher rate of success compared to those that don't have formal measures. Sixty-four percent of organizations didn't know the average ROI on their BPM projects, but those that had a formal measurement program in place achieved an average ROI of 65%.







Recommendations


Baseline the process involved to determine its current process performance before starting a BPM project that will change it. Use this information to quantify how much you aim to improve it and validate whether those improvements are achieved. Verify that current metrics are valid, visible and aligned to key enterprise business goals. Where possible, display the relevant set of metrics to the appropriate stakeholders. Establish staged goals at regular time intervals during the project to ensure that incremental improvements are positively impacting process performance. These should be in addition to tracking project progress — for example, ensuring that the current-process-state analysis is completed in two weeks. This approach will improve the likelihood of meeting that goal because





This research note is restricted to the personal use of nasim@gwu.edu

This research note is restricted to the personal use of nasim@gwu.edu

it will be apparent if process improvements are not having the desired effect, and action can then be taken to remedy this, revising goals if necessary. ■

It is equally important to set up postimplementation metrics to validate process improvements, communicate project success to the business and justify any further improvement action on that process. Determine how often these metrics will be collected and reported. In the long term, consider implementing a balanced scorecard to set up metrics at each hierarchical management level. This has the advantage of increased visibility of metrics, which makes it easier to track process performance. Another option is to establish an enterprisewide metrics framework that ensures the delivery of business outcomes.



Table of Contents
Survey Objective.................................................................................................................................... 3 Data Insights.......................................................................................................................................... 3 Identify the Right BPM Project Goals That Drive Business Goals or Fail to Deliver Business Value .........................................................................................................................................................3 Absence of a Formal Measurement Program Damages BPM Project Success................................. 5 The Lack of an Identifiable ROI Jeopardizes the Enterprise's View of BPM Project Success........... 10 Establish Meaningful Metrics Aligned to Key Business Goals to Avoid BPM Project Failure............. 11...
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