DMR: How would you define the “TOP 5 best practices” of process management?
L. Brecht: First of all, you need quantitative process control, i.e., you must measure goals, management variables, financial and non-financial performance indicators, then integrate them into the management cycle.
Second, you need to understand reference processes, including those from areas which are perhaps not exactly decisive in competition.
Third, you need analytical skills within the company so that process improvements can be initiated through quantitative decision models and you must not limit the improvement of processes to procedural and structural-organizational considerations. This is a capability topic with respect to quantification and quantitative decision models.
Fourth, I regard the management of the transition from strategic considerations, from requirements based on the business strategy, to the implementation of the process landscape to be decisive. In my opinion, this is realized far too little.
Fifth, it is decisive for the redefinition of processes that you have a vision of what the process should look like in the next two to three years. This is the only way you can break free from the current situation and, moreover, identify competitive potential.
I believe these are the five best practices that a company should concentrate on.
DMR: Are there pioneer and latecomer industries when it comes to process management? Where has process management established itself especially well?
L. Brecht: It is not possible to make a general statement in this respect. I would start by breaking it down according to company size: some midsize companies are lagging extremely far behind in some areas in comparison with large companies. This may be because the companies do not have the resources or capacities to take on the task. But once they commit to this effort, they catch up extremely quickly.
I don’t think you can have a clear prioritization according to industry. For example, I know a lot of companies in the insurance business which are highly advanced and which truly cover these functions and realize design, control, and development. But this cannot be considered the case for the entire area. Large insurance companies or bank corporations always have departments which are highly advanced and departments which are still dragging their feet.
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