Corporate Performance Management: ARIS in Practice

278 Pages·2006·13.57 MB·English

by  August-Wilhelm Scheer

Corporate Performance Management
August-Wilhelm Scheer
Wolfram Jost · Helge Heß
Andreas Kronz
Editors
Corporate
Performance
Management
ARIS in Practice
With 145 Figures
and 5 Tables
123
Professor Dr.Dr.h.c.mult.August-Wilhelm Scheer
E-Mail:[email protected]
Dr.Wolfram Jost
E-Mail:[email protected]
Dr.Helge Heß
E-Mail:[email protected]
Dr.Andreas Kronz
E-Mail:[email protected]
IDS Scheer AG
Postfach 101534
66015 Saarbrücken
Germany
Original German edition published by Springer,2005
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ISBN-13 978-3-540-30703-6 Springer Berlin Heidelberg New York
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Preface
Over the years, the discipline of process management has been discussed in terms
of a wide range of issues and approaches. When the concept was first mentioned
in the media 12 years ago, discussions initially centered on whether sweeping
changes along the lines of Business Reengineering or smaller, incremental steps
would prove more successful, or the optimum form of the notation for document-
ing workflow sequences.
Since these beginnings, Process Management has become an important control in-
strument in many companies, because its practitioners realized that optimizing a
company's capacity to create value in the form of processes has a direct and im-
mediate effect on the bottom line. While process optimization is undoubtedly a
highly effective method of cutting costs, over the last few years much greater sig-
nificance has been attached to the subject of customer orientation.
If you think about the last time you were dissatisfied with your supplier or pro-
vider, and why this was so, you will very probably agree that the reason for your
dissatisfaction had nothing to do with the product itself, but instead was related to
the quality of service or processes: delivery dates that were not met, slow response
times, the need to speak with multiple contacts etc.
The oft-quoted adage "If I can't measure it, I can't optimize it" applies equally to
processes. It is therefore essential for companies to formulate their process objec-
tives for times, costs, and quality in terms of concrete, measurable performance
indicators. Then, the latent synergies in the company can be exploited to the full
with benchmarking and process comparisons, and best practices can be identified.
This understanding has been called "Corporate Performance Management" by the
Gartner Group, and it refers to the use of "Processes, Methodologies, Metrics, and
Technologies" in order to create an inextricable link between corporate strategy,
planning, implementation and controlling. In order to assure a company's agility,
its management must use tools and methods that enable the consequences of deci-
sions to be evaluated quickly, so that the company can respond with flexibility.
Synonyms for "Corporate Performance Management" are "Business Performance
Management" and "Enterprise Performance Management".
Besides its direct use for optimization purposes, the importance of monitoring
processes has also increased as a result of initiatives and statutory regulations re-
garding corporate governance and risk management. For example, the Sarbanes
Oxley Act requires that companies present proof of the effectiveness of their in-
ternal control systems as part of their periodic company reporting programs. This
means that essential process checks and the associated processes must be docu-
mented and the suitability and effectiveness thereof must be tested regularly.
Even the trend towards outsourcing processes is predicated on a clear definition of
what is expected of the service provider in terms of process performance, and ne-
VI Preface
cessitates the implementation of appropriate monitoring measures for testing com-
pliance with service level agreements.
Disproving the old saw that builders' homes are the most in need of repair, IDS
Scheer can demonstrate the remarkable success of implementing this process-
oriented approach in its own house using ARIS Process Platform: among its other
achievements, consistent process-orientation by a committed support team at the
Customer Helpdesk cut enquiry processing time by more than half, and for this the
team was honored with the "Helpdesk Award 2004", awarded by an independent
technical panel at the end of 2004.
But have we reached the point where we can make sense of all these numbers,
alerts and benchmarks and make the right decisions? What good is a whistling ket-
tle if no-one knows how to turn the heat off? Process Mining methods have been
developed and patented to ensure the consistent application of data mining tech-
niques to process data, and which are available as part of the ARIS Controlling
Platform, provide guidance in finding the important cause-and-effect relationships
among millions of discrete items of process information.
Against this background, the trend towards attaching more and more importance
to organizational knowledge and the analysis of organizational relationships, be-
yond pure key performance indicator systems, is entirely logical. In companies
with flat hierarchical structures and knowledge-intensive processes, success de-
pends to an ever increasing degree on ensuring that the right employees – often
separated by time and geography – work together and communicate efficiently.
Rigid supervisory responsibilities and reporting paths are losing their former pri-
macy; adhoc interaction, collaboration and working in communities merge with
well structured workflows.
It is here that exhilarating challenges await today's managers, as they are called
upon to combine new levels of freedom and motivation for the individual with a
results-oriented approach to meet their own expectations for effectiveness and ef-
ficiency.
This volume continues the "ARIS in Practice" series of articles published by the
Springer Verlag. Contributions will focus on the use of the ARIS Controlling Plat-
form in visualizing, evaluating and analyzing "actively lived" business processes
in sectors such as the chemicals industry, telecommunications, energy manage-
ment, logistics, and also banking and insurance. When these tools are combined
with the requisite industry knowledge, they can be used to monitor company per-
formance and set up a program of continuous optimization based on process-
oriented key performance indicators.
Preface VII
The editors wish to express their sincere thanks to all the contributing writers,
without whose technical skills and efforts this book would not have been written.
All contributors are named in alphabetical order at the end of the book.
The editors also wish to thank Mr. Michael Linke, IDS Scheer AG, for his con-
summate management of the compilation of this book, and for his organizational
support.
Saarbrücken, October 2005
August-Wilhelm Scheer Wolfram Jost
Helge Heß Andreas Kronz
Table of Contents
From Process Documentation to
Corporate Performance Management ……….....................................................1
August-Wilhelm Scheer, Institute for Economic Information
Technology, University of the Saarland
Wolfram Jost, IDS Scheer AG
Part 1: Conception and Methodology of Corporate Performance
Management Solutions from IDS Scheer
From Corporate Strategy to Process Performance –
What Comes after Business Intelligence? ...........................................................7
Helge Heß, IDS Scheer AG
Managing of Process Key Performance Indicators
as Part of the ARIS Methodology ..................................................................... 31
Andreas Kronz, IDS Scheer AG
Operational, Tool-Supported Corporate Performance Management
with the ARIS Process Performance Manager……………………………… 45
Markus von den Driesch, IDS Scheer AG
Tobias Blickle, IDS Scheer AG
Part 2: Corporate Performance Management in Practice
Successful Process and Performance Controlling in the
Power Supply Industry at SÜWAG Energie................................................... 65
André Dreißen, IDS Scheer AG
Rainer Heinrichs, Süwag Energie AG
No Business Intelligence Without Process Intelligence.................................... 77
Helmut Kruppke, IDS Scheer AG
Tino Bauer, IDS Scheer AG
X Table of Contents
Monitoring with Key Performance Indicators
at E.ON Bayern AG Sales Service …………………………………………… 99
Robert Reif, E.ON Bayern AG
Andreas Kronz, IDS Scheer AG
Klaus Miksch, IDS Scheer AG
Performance Management Based on ITIL in the
IDS Scheer Customer Interaction Center (CIC) ………………………….. 125
Gregor Loes, IDS Scheer AG
Process Performance Management in Securities Operations
at CREDIT SUISSE ………………………………………………………….. 135
Olaf Klein, Credit Suisse
Dirk Kogelschatz, Credit Suisse
Closing the Cycle – Measuring, Analyzing and Improving
Processes, Performance and Workflows in the Insurance Sector ………… 153
Herbert Oberländer, IDS Scheer AG
Frank Ossig, IDS Scheer AG
Michael Linke, IDS Scheer AG
Performance Management in Power Stations -
with openJET, openBMS and ARIS PPM ………………………………….. 161
Bernd Heselmann, GIS mbH
Peter Stängle, GIS mbH
Andreas Kronz, IDS Scheer AG
Klaus Miksch, IDS Scheer AG
More than Figures – Performance Management of
HR-Processes at Vodafone Greece ………………………………………... 179
Petros Panagiotidis, Vodafone Greece
Phillip Knirck, IDS Scheer AG
Andreas Kronz, IDS Scheer AG
Corporate Performance Management in Logistics
and Procurement - Focused Identification of Weak Points
with Supply Chain Controlling ……………………………………………… 191
Steffen Drawert, IDS Scheer AG
Table of Contents XI
Continuous Measurement and Analysis of Operations
Management Processes – ARIS PPM at E.ON Kernkraft GmbH ………... 203
Karl Ramler, E.ON Kernkraft GmbH
Jürgen Schwarzin, E.ON Kernkraft GmbH
Andreas Kronz, IDS Scheer AG
Klaus Miksch, IDS Scheer AG
Analysis and Optimization of the Credit Application Process
at DaimlerChrysler Bank ……………………………………………………. 219
Lars Müller, DaimlerChrysler Bank
Frank Gahse, IDS Scheer AG
Increasing Customer Satisfaction with Visualized
Root-Cause Analysis – CPM Success in the Mass Market
at British Telecom …….…………………………………….....................…... 233
John Bird, IDS Scheer UK Limited
Monetary Assessment of Performance Management
in the Health Care System – Process Cost Analysis at
Marienhospital Herne …………………………………………………….….. 247
Holger Raphael, Marienhospital Herne
Hendrik Schenk, Marienhospital Herne
Monitoring ITIL Process Performance at DAB Bank …………………….. 263
Simone Sulzmann, iET Solutions GmbH
Annex: The Authors …………………………………………………………. 273