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Corporate Performance Management: ARIS in Practice PDF

277 Pages·2006·14.163 MB·English
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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 Cataloging-in-Publication Data Library ofCongress Control Number:2005936459 ISBN-10 3-540-30703-6 Springer Berlin Heidelberg New York ISBN-13 978-3-540-30703-6 Springer Berlin Heidelberg New York This work is subject to copyright.All rights are reserved,whether the whole or part of the material is concerned,specifically the rights of translation,reprinting,reuse of illustrations,recitation,broadcasting,reproduction on microfilm or in any other way, and storage in data banks.Duplication ofthis publication or parts thereofis permitted only under the provisions ofthe German Copyright Law ofSeptember 9,1965,in its current version,and permission for use must always be obtained from Springer-Verlag. Violations are liable for prosecution under the German Copyright Law. Springer is a part ofSpringer Science+Business Media springeronline.com © Springer-Verlag Berlin Heidelberg 2006 Printed in Germany The use of general descriptive names, registered names, trademarks, etc. in this publication does not imply,even in the absence ofa specific statement,that such names are exempt from the relevant protective laws and regulations and therefore free for general use. Cover design:design & production GmbH Production:Helmut Petri Printing:Strauss Offsetdruck SPIN 11594000 Printed on acid-free paper – 43/3153 – 5 4 3 2 1 0 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 From Process Documentation to Corporate Performance Management August-Wilhelm Scheer Institute for Economic Information Technology, University of the Saarland Wolfram Jost IDS Scheer AG Summary Since its emergence in the early nineties as an innovative tool for corporate reorganization, Business Reengineering has evolved considerably, and even now its tenets are experiencing something of a renaissance. In the last few years, additional, dynamic methods such as activity-based cost calculation, the process- based Balanced Scorecard, or Process Mining have been introduced for use together with static process analysis. In this context, the term Corporate Performance Management is used to denote all the long-term, process-oriented modes of action and approach that have been adopted in companies. Specifically with regard to the ARIS methodology, a number of proven method-based and software solutions have been developed over the years, which enable perform- ance-based company controlling. Keywords Process documentation, ARIS, EPC, SAP R/3, reference model, ERP, key performance indicators, metrics, performance management, balanced scorecard, simulation, process cost analysis, target process, actual process, optimization measures.

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