Part 8: Enterprise BPM framework; The bigger the company, the lower the BPM maturity
In my previous blog post I have discussed the principles of BPM maturity models and the definition of BPM maturity levels. A BPM maturity check can analyze your current BPM capabilities. The goal can be to benchmark with other companies within the industry segment in order to assess the quality of the BPM project portfolio and define the BPM strategy.
During the last two years IDS Scheer has performed BPM maturity assessments by means of an online check (www.BPMmaturity.eu) and direct customer interviews and assessments.The results of more than 1000 assessments have been aligned with the CMMI BPM maturity levels and have been interpreted using the enterprise BPM framework.
The following charts give an overview of the BPM maturity level relative to the organization size (number of employees) and company revenue.
These charts show that:
1. The BPM maturity level decreases when company size or revenue pass a certain threshold (more than 1000 employees or more than 500 Million Euro revenue)
2. The average BPM maturity level is 2, this means that every department is using its own BPM methodology and process models.
Apparently the most difficult step for organizations is to pass maturity level 2 and become an end-to-end process driven company instead of a functional oriented organization. By climbing up the ladder of BPM maturity, companies have the opportunity to gain efficiency, be more effective, and achieve competitive advantage.
Because data from various industry segments and various company sizes and characteristics has been combined, the average maturity level is approximately 2.
An in-depth analysis of an industry segment is required to determine the challenges to reach a higher maturity level. Large companies seem to have difficulties with the standardization of processes across divisions, because they seem to act as independent organizations.
This issue can be overcome by setting up BPM governance at corporate level and assigning a Chief Process Officer. By doing so, BPM can be leveraged across divisions and stakeholders. The following charts give an overview of the BPM maturity level relative to the country and industry segments.
1. Switzerland has the highest average maturity level, companies from the UK seem to have the lowest.
2. The automotive and banking industries have the highest BPM maturity level, whereas the public and healthcare sectors seem to be at the lower end.
Different countries have different average BPM maturity levels. Apparently cultural factors influence the acceptance of BPM.
Some examples of influencing cultural factors:
1. Discipline of the employees to work according to documented process descriptions and architectures.
2. Ability to reach consensus, required for acceptance of BPM governance by key stakeholders.
3. Acceptance of integrating BPM information within day to day operations and operational excellence programs.
4. Readiness to make processes measurable by implementing process performance indicators.
If not already done so, it would be an interesting scientific research project to analyze the influence of culture on BPM adoption.
The healthcare sector is one of the industries where BPM maturity seems to be the lowest. Therefore I have performed multiple BPM maturity checks within the healthcare sector.
In my next blog post I will elaborate on some of the reasons why the healthcare sector has difficulties accepting and implementing BPM. I think these reasons will also be valid for other industry segments with low BPM maturity.