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PROCESS MANAGEMENT What is process management?

January 31, 2012

What is process management? Process management is the method used to implement and continuously improve how products or services are deliv- ered. The function is performed at a predictable level of




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What is process management? Process management is the method used to
implement and continuously improve how products or services are deliv-
ered. The function is performed at a predictable level of service, support,
time, and cost. Process management organizes a group of functional
activities into steps that are measurable, repeatable, and reliable. A process
management mentality is a fundamental change or transcendence from the

firefighting mode found in many Information Systems organizations.
The principles of process management and Total Quality Management
(TQM) are shown in Figure 1.1 and include:
Continuous improvement. Continuously improve the goods and
services produced by the Information Systems organization; con-
tinuously expand and grow to create a new future. This is a
continuous process as new technologies and approaches become
available.
Management commitment. Top management must be committed
to the improvement of processes. According to Dr. W. Edwards
Deming, 85 percent of quality problems lie within management

control. Management must change the culture of the organization
and create an environment where continuous improvement can
flourish. Management must also continually communicate their
commitment, support, and interest.
Customer focus. Keep a customer focus at all times. Informa-
tion Systems customers could be the internal customer or even
the external customer. See the process through the eyes of the
customer, not from the vantagepoint of Information Systems.
The Internet and movement toward e-business are bringing
information systems closer to the external customer. The objec-

tive is to establish a common definition of quality with the
customer (either internal or external). Many different aspects
and interfaces that the customer may have with Information
Systems influence value and satisfaction. Some of the aspects a
customer may consider when judging the quality of Information
Systems include:
Time to get a request completed
Time to resolve a Help Desk call
System availability and up-time
System response time
Friendliness of personnel
Knowledge of personnel
Quality of the new system developed

Accuracy of the information the systems produce
Ability to utilize technology for a competitive advantage
Right work, right first time. The goal for all activities is to do
the right work and to do the work right the first time. Doing the
right things includes obtaining the customers’ true requirements.
Doing the work right the first time includes both efficiency (little
waste) and effectiveness (producing the desired results which
include meeting or exceeding customer expectations).
Error prevention. Errors can actually be prevented. Error-free

work is always organized and planned with every activity, as it is
always cheaper to do it right the first time. Rather than rewarding
the heroic firefighter, reward those who actually prevent the fires
from beginning in the first place. Ensure that processes have the
necessary checks and balances to prevent errors. Anticipate that
errors are going to happen before they actually happen. Analyze
how you might be contributing to your own problems.
Metrics. Processes and performance results are measured with
specific metrics and targets. Positive trends exist for all measures.

Corrective action. Problem solving is begun and corrective action
is taken. The root cause of problems is determined, rather than
just fixing the symptoms. When errors occur, rather than determin-
ing who made the error, the focus is on the problem correction
and how the issue can be prevented in the future.
Teamwork. Full teamwork is required to achieve improvements.
Employee involvement, group brainstorming, and team efforts are
common practices.
Process improvement includes technical aspects such as the tools,
techniques, methodologies, and training. However, the behavioral

aspects of process improvement must also be considered. These aspects
include organizational issues, job responsibility changes, performance
rewards, and culture as shown in Figure 1.2. Implementing a process
mentality is a culture change for most Information Systems organizations.
When working on processes, focus on both behavioral aspects and
technical aspects
BENEFITS OF PROCESS MANAGEMENT
Why is information systems process management important? What are the
benefits? There are many benefits of implementing process improvement,
such as: Processes strengthen business partnership and improve cus-

tomer service. Improving information systems processes can
result in a significant improvement of customer (or user) satisfac-
tion, which in turn improves the relationship between the business
and Information Systems. In this environment, Information Systems
will be aligned with what is important to the business, and the
priorities will be reflected in the day-to-day operations. The imple-
mentation of a quality initiative, or TQM, in the Information Systems
organization can increase the value-added contribution to the
organization. The Information Systems leader who speaks and

embraces quality concepts can build bridges to other areas of the
organization that have been using these techniques for years. Top
management confidence in Information Systems will improve as
the organization measures and improves the value it adds to the
company.
Processes improve efficiency and communication. Docu-
mented processes will clearly define roles and responsibilities of
project team members. Knowing their job responsibilities and
expectations will allow them to be more effective. Communication
will be improved as responsibilities and expectations are clear and

understood by everyone involved.
Processes improve productivity of the Information Systems
organization. For years, many businesses claimed that their Infor-
mation Systems organizations were not responsive enough to
changing business needs as they watched their backlog continue
to grow. There are many examples of failed projects in the industry.
Many executives allege they spend too much money and time on
projects that never meet business expectations. Information Systems
is continually asked to do more with less. We all have limited

budgets, limited headcount, and limited hours in a day. Rather
than working harder, we need to find ways to work more produc-
tively. Process improvement can significantly improve and sustain
new levels of performance and productivity.
Processes improve effectiveness of project management.
Improved processes will assist Information Systems in consistently
meeting commitments through better planning, estimating, costing,
tracking, and reporting of project progress. Statistics from the
Standish Group that studied 23,000 projects in companies of all

sizes showed that in 1998 only 26 percent of projects were suc-
cessful. They defined successful as completed on time, on budget,
with the promised functionality. 46 percent of the remaining
projects were challenged and 28 percent cancelled. As an industry,
Information Systems professionals must improve the success rate
of project development and project management. Becoming a
process-based organization is one condition for consistently deliv-
ering successful projects.
Processes reduce defects and improve quality. Having a con-
sistent and reliable process with metrics will provide the vehicle

to improve and to increase the quality of service provided. Typi-
cally, the root cause of failure or defects is due to process and
organizational failure, not failure of people.
Processes help avoid bad publicity. Today, system failures and
system quality issues are highly publicized events that can impact
the financial performance of a company. A 1996 survey of 240
Fortune 1,000 companies in North America and Europe was com-
missioned by CenterLine Software, Inc., a company in Cambridge,
Massachusetts that developed a software testing tool. The survey

found that 12 percent of the companies contacted had faced liability
or litigation issues with regard to direct or consequential damages
from lack of software quality. With the movement toward e-
business and putting software even closer to the customer, we can
expect this number to increase in the future. Although process
improvement cannot guarantee the elimination of events that could
cause bad publicity, improved quality of products and services
would reduce the likelihood of such issues.
Processes improve consistency. Although the heroes of the

Information Systems organization may produce high-quality results
quickly, the entire organization may have difficulty producing
heroic results consistently. Improving processes ensures a consistent
at that time because the computer is down. In addition to affecting
customer satisfaction, it could also impact customer loyalty and
market share. Customers unable to wait for technical issues to
be resolved will gravitate to another supplier to fill their needs
more rapidly.
Processes improve business quality. Since information is often
tightly integrated with how the organization does business with its

customers, it is difficult for a company to implement a total quality
methodology without including the Information Systems organiza-
tion. For example, a company may have successfully implemented
quality concepts in parts of the organization, but not on a com-
panywide basis. If a customer calls to find the status of an order,


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