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Resolved What Are the Most Appropriate KPI's for BPM Measurements You Typically Pull From the APQC' PCF (Process Classification Framework)?

  1. Peter Schooff
    Peter Schooff
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From Kay Winkler (https://www.linkedin.com/in/kaywinkler/): What would you say are the most appropriate KPI’s for BPM measurements you typically pull from the APQC’ PCF (process classification framework)?
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Neil Ward-Dutton
Neil Ward-Dutton
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<sound of wind whistling through empty corridors>
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Bogdan Nafornita
Bogdan Nafornita
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<sound of BPM / internal controls theory books pages being turned furiously>

frankly, nothing sophisticated (because target customers and whatnot) - average approval times / task durations, percentage of exceptions, total volume of transactions - all sliceable dynamically per user / group / period / other controlling dimensions as relevant to the customer.

PCF is a good start for brain hygiene, but I usually end up with serious simplifications in order to be useful to my customers.
CEO, Co-founder, Profluo
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Kay Winkler
Kay Winkler
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I personally see multiple advantages of applying the PCF to real life BPM implementations - to begin with, the framework is a standardized approach to process categorizations and associated indicators, as well as their specific determinations, which is being kept up to date (latest version from August, last year).
It's freely available, vendor independent and intuitive enough to not only start applying sensible measurements on a BPMS level to each process but to also engage in enterprise/industry wide process benchmarking.
In that sense, in our own region, metric id 101998 (Percentage of external ideas from clients/customers), for customer feedback processes, Cycle Time indicators in general and 100148 (Cycle time in days from reporting of a control violation until investigation is completed and remediation steps/control changes are developed) for financial compliance processes (FATCA/BASEL/KYC/OFAC) in particular have been very relevant.
While the PCF is not required by any means to measure business processes, I do believe it saves time and allows for enhanced, long term transparency when one can rely on a longstanding, established and up-to-date framework.
References
  1. https://www.apqc.org/pcf
NSI Soluciones - ABPMP PTY
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John Morris
John Morris
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With all the talk of business transformation, it's not surprising that KPIs are front-and-centre. And the APQC framework is a comprehensive place to start -- if a bit overwhelming. But why re-invent the art and science of business?

Where business transformation is concerned, BPM champions are not far behind with architecture. Because transformation needs to have concrete deliverables, which in organizational terms show up as the artefacts of business architecture.

So now we have business transformation realized in business architecture -- and key performance indicators (KPIs) too to help us understand and manage the work which is the subject of all this architecture. (One way of looking at KPIs is as signals; this perspective opens up all sorts of interesting opportunities, including the problem of signal overload. Badly designed KPIs can be worse than useless.)

Here's a timely data point on exactly this combination: a December 2017 Deloitte ad for a Manager, Technology, Technology Strategy & Architecture, IT Mergers & Acquisitions. KPIs are part of the job description. Interestingly the word process appears six times in the lengthy narrative, KPIs only once. (Per Mr. Ward-Dutton's comment above, perhaps this is telling.) (For link, see URL below.)

Also, here's a 2011 primer, by frequent BPM.com contributor @Samarin, on the basics of business architecture: http://www.improving-bpm-systems.com/pubs/Explaining-EA-BA-basics_v7.pdf. Again, KPIs show up as an integral part of the programme of business architecture.

So what KPIs are best for any given inventory of processes? How about anything that might be a leading indicator of that on which you depend to live another day. How else are you going to manage?
References
  1. https://jobs2.deloitte.com/lu/en/job/DELOA004X173644/Manager-Technology-Technology-Strategy-Architecture-IT-Mergers-Acquisitions
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John Morris
  1. John Morris
  2. 1 year ago
  3. #4966
SHORT VERSION: Field service war story where Soviet-style KPIs added up to more than 100% -- or "why I think a good inventory of KPIs are important".
tl;dr
While on the subject of KPIs, here's a war story. Consider a $ 2B field service business and all the KPIs that are needed run the operational part. And also consider the part of the services business where field operations meets sales and marketing. In other words, your field inventory (a.k.a. "your installed base") is a very important foundation for targeting marketing and sales (especially on the well-known principle that the NPV of existing customers is multiples of the NPV of new customers, which are typically very expensive to acquire). In the situation I'm describing, managing information on installed base was not fully managed. There were all sorts of statistics -- and KPIs -- that enabled us to track the evolution of the installed base, and on which basis important operational and sales and marketing decisions were made. Here's the fun part: the KPIs did not add up to 100% (depending how you added them, they were mostly over 100%). These measures were almost "Soviet-style". Not wildly out-of-whack, but when profit margins are eroding, reporting errors can have bad effects of decision making.
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David Chassels
David Chassels
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Other than KPI not terms I have heard of. However related is the impact on performance implementation of Digital Business Platform driven by BPM discipline. With the real time feed back and full accountability at front line operational activity will come empowerment of the workforce. This supports Dr W Edwards Deming in his "systems thinking" the bottom up approach to enhance the activity and make for a better workplace. A bit ironic the use of tag systems today with the mess of the silo systems in legacy but never the less the concept sound and intuitively supported by the next generation no/low code enterprise software focusing on user support. With this new transparency in activity and automatically delivering time measurement linked to actions then meaningful KPIs can evolve to help everyone not just a box ticked by management?
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Karl Walter Keirstead
Karl Walter Keirstead
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Best not to get me started on KPIs.

Without taking the time to figure out what APQC and PCF are all about, it seems to me the only "process classification" needed is

a) best practices.
b) processes needing attention.
c) operational areas where the organization should have processes.

With regard to the organization of processes, this is best done in a free-form-search knowledgebase that supports aliases such that the same process can be parked under any number of trees at any level in each particular tree hierarchy.(i.e. multiple hierarchies), where all processes can be viewed/accessed at one computer screen.

On KPIs, I wrote a series of 5 articles on KPIs in 2014.

Our experience with KPIs is it is all too easy for a corporation to get to where it fixates on a simplistic set of KPIs that may not currently allow governance.

https://wp.me/pzzpB-xG

What senior management needs are ways and means of challenging operational statistic summaries and a free-form-search Kbase allows this to a fair extent.

The overall rule is "you cannot manage what you cannot see".
References
  1. http://www.kwkeirstead.wordpress.com
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David Chassels
  1. David Chassels
  2. 1 year ago
  3. #4965
Karl to add to your rule. "What gets measured get done" and "Empowerment without measurement is risky"
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Boris Zinchenko
Boris Zinchenko
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Alas, I never worked with APQC' PCF and cannot judge on relevance of its KPIs. In general, process frameworks are essential assets crucial for the success of any BPM initiative. Process frameworks represent natural enclosure to essential BPM implementation experience, which was already accumulated by other organizations in the course of their BPM journey. Process frameworks are composed of best practices collected by BPM visioners to facilitate and accelerate adoption of BPM. By using process frameworks organizations utilize the power of pattern modeling through adoption of existing process standards and quick adjustment of them to their specific needs.

This important initiative in usage and accumulation of process patterns should not stop on just formal adoption of any given framework. Any organization should establish its own process library, which will accumulate its individual BPM implementation experience and should serve as a base for systematic process improvements. Process frameworks should not be considered as a sacred final knowledge but should serve as an inspiration for creative development of custom process base in every company.
Boris G. Zinchenko, Ph.D.
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