Transformation Model

Keep the following measures in mind to transform the existing organization for a suitable control logic:

Define a business process model: Customer-to-customer processes are the basis of a business process model. They run from establishing contact with the customer through to provision and approval by the customer. What is specific about these processes is continuous and complete processing of customer matters by means of several individual processes in each case. Examples of these matters are request to contract, order to cash, usage to cash, fault to restoration, and complaint to resolution. As a change in performance of any one of these processes has a direct impact on customer satisfaction, monitoring and controlling on the basis of clearly defined KPIs is most important. Support processes such as procurement, human resources, and quality management are important preconditions for supporting the business processes. Control processes serve corporate planning, finance, and controlling.

Ensure top-level management attention: Management must define a control logic for the business processes by defining strategic goals, defining KPIs that measure process performance and success, defining business processes at detailed levels, including measuring points, and developing a transparent method to calculate KPIs. Strategic goals for each customer-to-customer process based on identified leverages for turnaround must be defined, such as improvement quality of proposals as a request to contract objective.

Develop a consistent measurement scheme: Define a KPI for achieving this goal such as hit rate stages. Develop quantitative criteria to establish threshold values and traffic light controls to identify the right time to initiate counter-measures if the process is not on target.

Why is measurement of process performance important?The aim of process performance measurement is to obtain objective process performance data. These key performance indicators (KPIs) are the basis for analyzing and optimizing processes. Applying this continuous improvement cycle increases efficiency and strengthens market position. As a consequence, process optimization is essential for the company.In addition, all processes should be examined from different viewpoints to gain a full picture of process performance, such as customer or availability perspectives, and highly aggregated data can be broken down to several levels to supply process managers and others with deeper and diversified information.