Learning Task 6: Week?

(October 26-30, 2020)

TOPIC

TOPIC OVERVIEW
DESIRED LEARNING OUTCOMES

At the end of this task, the students should be able to:

1. explain corporate level strategy;
2. discuss the effective leadership; and
3. identify several service attributes have particular significance for the design of service
operations.
……………………………………………………………………………………………………………….
PRE-ASSESSMENT 6
Answer the following questions in a separate long bond paper.
1. How corporate strategy help a business company?
2. What are the Components of Corporate Strategy? Explain each.

Content Development
Corporate Level Strategy:
Corporate Strategy takes a portfolio approach to strategic decision making by looking across all
of a firm’s businesses to determine how to create the most value.  In order to develop a
corporate strategy, firms must look at how the various business they own fit together, how they
impact each other, and how the parent company is structured, in order to optimize human
capital, processes, and governance.  Corporate Strategy builds on top of business strategy,
which is concerned with the strategic decision making for an individual business.
What are the Components of Corporate Strategy?

There are several important components of corporate strategy that leaders of organizations
focus on.  The main tasks of corporate strategy are:

1. Allocation of resources
2. Organizational design
3. Portfolio management
4. Strategic tradeoffs

1. Allocation of resources

The allocation of resources at a firm focuses mostly on two resources: people and capital.  In an
effort to maximize the value of the entire firm, leaders must determine how to allocate these
resources to the various businesses or business units to make the whole greater than the sum
of the parts.

Key factors related to the allocation of resources are:

 People
o Identifying core competencies and ensuring they are well distributed across the
firm
o Moving leaders to the places they are needed most and add the most value
(changes over time, based on priorities)
o Ensuring an appropriate supply of talent is available to all businesses
 Capital
o Allocating capital across businesses so it earns the highest risk-adjusted return
o Analyzing external opportunities (mergers and acquisitions) and allocating capital
between internal (projects) and external opportunities
2. Organizational design

Organizational design involves ensuring the firm has the necessary corporate structure and
related systems in place to create the maximum amount of value.  Factors that leaders must
consider are the role of the corporate head office (centralized vs decentralized approach) and
the reporting structure of individuals and business units – vertical hierarchy, matrix reporting,
etc.

Key factors related to organizational design are:

 Head office (centralized vs decentralized)

o Determining how much autonomy to give business units
o Deciding whether decisions are made top-down or bottom-up
o Influence on the strategy of business units
 Organizational structure (reporting)
o Determine how large initiatives and commitments will be divided into smaller
projects
o Integrating business units and business functions such that there are no
redundancies
o Allowing for the balance between risk and return to exist by separating
responsibilities
o Developing centers of excellence
o Determining the appropriate delegation of authority
o Setting governance structures
o Setting reporting structures (military / top-down, matrix reporting)

3. Portfolio management

Portfolio management looks at the way business units complement each other, their
correlations, and decides where the firm will “play” (i.e. what businesses it will or won’t enter).

Corporate Strategy related to portfolio management includes:

 Deciding what business to be in or to be out of
 Determining the extent of vertical integration the firm should have
 Managing risk through diversification and reducing the correlation of results across
businesses
 Creating strategic options by seeding new opportunities that could be heavily invested in
if appropriate
 Monitoring the competitive landscape and ensuring the portfolio is well balanced relative
to trends in the market

4. Strategic tradeoffs

One of the most challenging aspects of corporate strategy is balancing the tradeoffs between
risk and return across the firm.  It’s important to have a holistic view of all the businesses
combined and ensure that the desired levels of risk management and return generation are
being pursued.

Below are the main factors to consider for strategic tradeoffs:

 Managing risk
o Firm-wide risk is largely depending on the strategies it chooses to pursue
o True product differentiation, for example, is a very high-risk strategy that could
result in a market leadership position or total ruin
o Many companies adopt a copycat strategy by looking at what other risk-takers
have done and modifying it slightly
o It’s important to be fully aware of strategies and associated risks across the firm
o Some areas might require true differentiation (or cost leadership) but other areas
might be better suited to copycat strategies that rely on incremental
improvements
o The degree of autonomy business units have is important in managing this risk
 Generating returns
o Higher risk strategies create the possibility of higher rates of return. The
examples above of true product differentiation or cost leadership could provide
the most return in the long run if they are well executed.
 o Swinging for the fences will lead to more home runs and more strikeouts, so it’s
important to have the appropriate number of options in the portfolio. These
options can later turn into big bets as the strategy develops.
 Incentives
o Incentive structures will play a big role in how much risk and how much return
managers seek
o It may be necessary to separate the responsibilities of risk management and
return generation so that each can be pursued to the desired level
o It may further help to manage multiple overlapping timelines, ranging from short-
term risk/return to long-term risk/return and ensuring there is appropriate
dispersion
o
Global Strategy
• Globalization = product design and advertising strategies are standardized around the world.
• Multi-domestic = adapt product and promotion for each country.
• Transnational = combine both globalization and national responsiveness.
Competitive Strategy (often called Business Level Strategy): This involves deciding how the
company will compete within each line of business (LOB) or strategic business unit (SBU).
Functional Strategy: These more localized and shorter-horizon strategies deal with how each
functional area and unit will carry out its functional activities to be effective and maximize
resource productivity.
Effective Leadership
Some management teams have broken away from the traditional style of management; they
have made a ‘managerial breakthrough’. Their approach puts their organization head and
shoulders above others in the fight for sales, resources, funding and jobs. Many public service
organizations are beginning to move in the same way, and the successful quality-based strategy
they are adopting depends very much on effective leadership.
Effective leadership starts with the chief executive’s and his top team’s vision,
capitalizing on market or service opportunities, continues through strategy that will give
organization competitive or other advantage, and leads to business or service success. It goes
on to embrace all the beliefs and values held, the decisions taken and the plans made by
anyone anywhere in the organization, the focusing of them into effective, value-adding action.
Together, effective leadership and total quality management result in the company or
organization doing the right things, right first time.
The five requirements for effective leadership are the following.
1. Developing and publishing clear document corporate beliefs and purpose – vision
Executives should express values and beliefs through a clear vision of what they want their
company to be and its purpose – what they specifically want to achieve in live with the basic
beliefs. Together, they define what the company or organization is all about. The senior
management team will need to spend some time away from the ‘coal face’ to do this and
develop their program for implementation.
2. Develop clear and effective strategies and supporting plans for achieving the vision
The achievement of the company or service vision requires the development of business or
service strategies, including the strategic positioning in the market place. Plans can be
developed for implementing the strategies. Such strategies and plans can be developing by
senior managers alone, but there is likely to be more commitment to them if employee
participation in their development and implementation is encouraged.
3. Identify the critical success factors and critical processes
The next step is the identification of the critical success factors (CSFs), a term used to mean the
most important sub-goals of a business or organization. CSFs are what must be accomplished
for the mission to be achieved. The CSFs are followed by the key, core business processes for
the organization- the activities that must be done particularly well for the CSFs to be achieved. It
is also critical for each goal that has been set.
4. Review the management structure
Defining the corporate vision, strategies and CFs might take it necessary to review the
organizational structure. Directors, managers and other employees can be fully effective only if
an effective structure based on process management exists. This includes both definition of
responsibilities for the organization’s management and the operational procedures they can
use.
These must be the agreed best ways of carrying out the core processes.
The review of the management structure should also include the establishment of a
process improvement team structure throughout the organization.

5. Empowerment – encourage effective employee participation

For effective leadership it is necessary for management to get very close to the employees.
They must develop effective communications- up, down and across the organization- and take
action on what is communicated; and they should encourage good communications between all
suppliers and customers.

Several service attributes have particular significance for the design of service
operations:

1. Labour intensity- the ratio of labor costs incurred to the value of assets and equipment used.
2. Contact – the proportion of the total time required to provide the service for which the
consumer
Is present in the system.
3. Interaction – the extent to which the consumer actively intervenes in the service process to
change the content of the service; this includes customer participation to provide
information from which needs can be assessed, and customer feedback from which satisfaction
levels can be inferred.
4. Customization – which includes choice, providing one or more selections from range of
options,
which can be single or fixed and adaptation.
5. Nature service act – either tangible, perceptible to touch and can be owned, or intangible.
6. Recipient of service – either people or things.

7. Reliability – ability to perform the service dependably and accurately.

8. Responsiveness – willingness to help customers and provide prompt service.
9. Assurance – knowledge and courtesy of employees and their ability to inspire trust and
confidence.
10. Empathy – caring, individualized attention the form provides to its customers.
11. Tangibles –physical facilities, equipment and appearance.

The human component is clearly of major importance and the key tests are that wherever
measures are used they must be:

1. transparent – understood by all the people being measured

2. non-controversial- accepted by the individuals concerned
3. internally consistent – compatible with the rewards and recognition system
4. objective – design to offer minimal opportunity for manipulation
5. motivational – trigger a response to improve outcomes.

……………………………………………………………………………………………………………
POST- ASSESSMENT
Answer the following questions in a separate long bond paper.
1. How an effective leader helps his/her subordinates.
2. Give 5 service attributes and explain each.
…………………………………………………………………………………………………………..
Learning Task 7: Week ? (November 2-6, 2020)
TOPIC

TOPIC OVERVIEW

DESIRED LEARNING OUTCOMES

At the end of this task, the students should be able to:
1. discuss the Total Quality Management Pyramid; and
2. Identify each part of Total Quality Management Pyramid.
……………………………………………………………………………………………………………...
PRE-ASSESSMENT 7
Answer the question and write your answer on a separate sheet of long bond paper.
1. What is the importance of Total Quality Management Pyramid?

Content Development

This pyramid shows what level should be prioritizing by the company to achieve the desired
goals and objectives.

Customer
The user of a product or service is called a customer. Usually, there is an economic transaction
attached to the reception of products or services, but this is not always the case. Anything of
value can be exchanged. Customers are classified into two types, internal customer who are the
people working within the organization or who do not work but are directly linked to it and use
the goods or services of the same firm during work. For example, inventory manager is the
internal customer of the operator of a specialized software for inventory management. However,
external customers/end users are the direct buyers of the products and use them in daily life.
External customers must be satisfied.
Customer Driven
The modern concept of business is "make it according to customers' needs". In today's world of
business, the main focus of an organization is on customers' needs, demand and expectations
and the organization do everything possible to meet the needs. The approach of customer-
driven quality allows an organization to become proactive in anticipating customers' needs and
fulfilling them accordingly in order to have a satisfied customer. The customers' needs and
expectations can be identified by filling out questionnaires, conducting surveys, interviews etc.
Once customers' preferences are established, the products are produced according to those
preferences. In this way, an organization would be able to satisfy the customers that will lead to
customer retention.
Culture
Culture refers to the norms and beliefs that lead to decision-making patterns and actions in an
organization
Just as a house, a city, or a country has a specific culture, an organization also displays a
particular culture. The culture of an organization is based on the employees working within it.
Some important aspects of an organization's culture is openness, trust, fairness,
resistance/acceptance to change, value of opinion at all levels, behavioral aspects of its
employees etc. The culture of an organization affects the decision made for a situation.
Sometimes a decision is whole-heartedly accepted by the employees in an organization while
the employees of another firm show resistance to the same decision. An organizational culture
also affects employee satisfaction and a firm with fair and open culture provides a happy work
environment to its employees.
Leadership
Leadership is the process by which a leader influences a group to move toward the attainment
of superordinate goals.
Leadership refers to a process where a person who is influential in any manner, inspires and
guides a group of people to achieve desired goals. A leader not only makes his/her team to do
the work but himself/herself takes the front seat. Sharing power is one of the aspects of
leadership. The powers include power of expertise (special knowledge), power of reward (giving
promotions, raises etc.), coercive power (penalties), referent power (admiring the leader), and
legitimate power (authority). There is a set of skills that a leader can or must possess. The
broader categories/phases are knowledge, communication, vision, and planning. These
categories further identify the skills of a leader.

Involvement: A central idea of Human Resource utilization

At the heart of the TQM is the concept of intrinsic motivation-involvement in decision making by the employees.
Employee involvement is a process for empowering members of an organization to make decisions and to solve
problems appropriate to their levels in the organization.

The Lean (Toyota) systems, utilizing JIT techniques are more productive, smaller and more efficient, increases
worker pride and involvement on shop floor.

Define Employee Empowerment

The dictionary definition of empowerment is to invest people with authority

Empowerment should not be confused with delegation or job enrichment. Delegation refers to distributing and
entrusting work to others. Employee empowerment requires that he individual is held responsible for
accomplishing the whole task. The employee becomes process owner- thus the individual is not only responsible
but also accountable. Employee empowerment requires that the individual is held responsible for accomplishing
a whole task.

Process Quality
It is important to identify if the process that is producing the products is capable or not. The
process of studying process capability is called process capability analysis. Process capability
can be estimated in the form of probability distributions. Although process capability analysis
shows the capability of the process but the parameters that are normally measured by it are
related to product i.e. functional parameters, quality characteristics etc. An efficient process
capability analysis involves observing the process and collecting data and information over time
regarding the process first hand to make inferences regarding process capability and stability.
Process capability analysis is a necessary part of quality management which helps to reduce
variability in the process.

………………………………………………………………………………………………………
POST-ASSESSMENT 7
Answer the following questions on a separate sheet of long bond paper.
1. Identify the Levels in Total Quality Management Pyramid.
2. Explain each level of Total Quality Management Pyramid.
………………………………………………………………………………………………………
Learning Task 8: Week ? (November 9-13, 2020)

TOPIC

TOPIC OVERVIEW

LEARNING OUTCOMES

At the end of this task, the students should be able to:

1. identify the Planning Process in Strategic Management;
2. explain the Total Quality Management Tools; and
3. discuss the priorities matrix.
……………………………………………………………………………………………………………..
PRE-ASSESSMENT 8
Answer the question and write your answer on a separate sheet of long bond paper.
1. Discuss the Planning Process in Strategic Management.

Content Development

Planning Process in Strategic Management

The 5 Stages of the Strategic Management Process
Strategic management is the process of managing, planning, and analyzing in order to reach all
organizational goals. Strategic management helps an organization see where it currently
stands, where it will be in the future staying on the current course, and where it would like to be
in the future. Strategic management takes advantage of organizational resources to create a
strategy that helps get closer to or reach their goals.

If you look into the research on strategic management and planning, the results are shocking.
According to studies:
 95% of a typical workforce doesn’t understand its organization’s strategy
 90% of organizations fail to execute their strategies successfully
 86% of executive teams spend less than one hour per month discussing strategy
 60% of organizations don’t link strategy to budget

Based on these statistics, we can conclude that organizations’ workforces are not aware of their
organization’s overall strategy, if the strategies being utilized are unsuccessful, and if strategies
are not being budgeted for. As an organization, planning and strategizing for the future is one of
the most beneficial initiatives you can take.

The process of strategic management includes goal setting, analysis, strategy formation,
strategy implementation, and strategy monitoring. Let’s take a look at how each of these steps
ties into the overall strategic management process.

1. Goal Setting
The first part of strategic management is to plan and set your goals. Set the short- and long-
term goals of the organization and make sure that these are shared with all members of the
organization. Explain and share how each member of the team will have an impact on the
organization reaching this goal. This will help give each member of the team a sense of purpose
and will give their job meaning.

2. Analysis
During this stage of the process, it is important to gather as much information and data as
possible. This information will be integral to creating your strategy to reach your goals. This step
of strategic management entails becoming aware of any issues within the organization and
understand all of the needs of the organization.

3. Strategy Formation
In this strategic management step, you will use all the intelligence and data you have gathered
to formulate the strategy that you will use to reach whatever goal you set. Identify useful
resources you have, and also seek out other resources you will need to set up your strategy.

4. Strategy Implementation
This is arguably the most important part of the entire strategic management process. At this
point, each member of the team should have a clear understanding of the plan and should know
how they play a part within it. This is the stage where your strategy is put into action.

5. Strategy Monitoring
During this stage, your strategy will already be in play. At this point, you should be managing,
evaluating, and monitoring each part of your strategy, and ensuring that it aligns with the end
goal. If it does not, this is the time where you would make tweaks and adjustments to strengthen
the overall plan. This is the stage where you will track progress and have the opportunity to deal
with any unexpected shifts in the strategy.
Planning for the future of your business is an integral piece of operating a successful
organization. Strategic management is a great first step, so be sure to visit our page to see how
we can help your company.

Using Strategic Planning in Total Quality Management

Implementing a strategic planning process in a company's Total Quality Management
approach requires the organization to analyze and evaluate the needs of customers to
determine the best approach to meet their needs. The final product and goal of the
organization is creating value for consumers. The organization must make quality a top priority
for everyone in the company, from top managers to the workers building product.

Total Quality Management Planning Tools

The Total Quality Management approach has strategic planning tools available for the
organization to use when developing a quality plan. For example, a priorities matrix provides a
method to prioritize and evaluate quality options for meeting customer demands. In addition,
the organization may use tools such as a tree diagram, matrix diagram and a process decision
tool to determine the best approach for satisfying customers.

A priorities matrix evaluates and prioritizes a list of options. The team first establishes a list of
weighted criteria and then evaluates each option against those criteria. This is a variation of
the L-shaped matrix.

When to Use:
 When a list of options must be narrowed to one or a couple of choices.
 When the decision must be made on the basis of several criteria.

Priorities Matrix Construction

1. Brainstorm the evaluation criteria appropriate to the situation. If possible, involve customers in
this process.

2. Discuss and refine the list of criteria. From the list, identify any criteria that must be included
and then any that should not be included. Reduce the list of criteria to those that the team
believes are most important. Tools such as multi-voting may be useful here.

3. Based on the criteria importance to the priorities matrix, assign a relative weight to each
criterion. Do this by distributing 10 points among the criteria. Assign the points by discussion
and consensus. Another possibility; have each member assign weights, then totaled the
numbers for each criterion.

4. Draw an L-shaped priorities matrix. Write the criteria and their weights as labels along one
edge and the list of options along the other edge. Usually, whichever group has fewer items
occupies the vertical edge.

5. Evaluate each choice against the criteria. There are three ways to do this: 

Method 1: Establish a rating scale for each criterion. Make sure that your rating scales are
consistent. Word your criteria and set the scales so that the high end of the scale (9 or 1) is
always the rating that would tend to make you select that option. The scale should reflect impact
on customers, greatest importance, least difficulty, and greatest likelihood of success.

Method 2: This may be the best method for an individual ranking when there is no group. For
each item on the list of the priorities matrix, rank-order all criteria on how well that criteria meets
the each item. 

Method 3: Establish a baseline, which may be one of the alternatives or the current product or
service then rank all the others. For each criterion in the priorities matrix, rate each other
alternative in comparison to the baseline, using scores of worse (-1), same (0), or better (+1).
Finer rating scales can be used, such as 2, 1, 0, –1, –2 for a five- point scale or 3, 2, 1, 0, -1,
-2, -3 for a seven-point scale. Be sure that positive numbers reflect desirable ratings.

After establishing the weight and rating then multiply these together. Add the points for each
option. The option with the highest score will not necessarily be the one to choose, but the
relative scores can generate meaningful discussion and lead the team toward consensus.

………………………………………………………………………………………………………
POST-ASSESSMENT 8
Answer the following questions on a separate sheet of long bond paper.
1. What is priorities matrix?
2. How to use Strategic Planning in Total Quality Management?

……………………………………………………………………………………………………..

Learning Task 9: Week ? (November 23-27, 2020)

TOPIC

TOPIC OVERVIEW

LEARNING OUTCOMES
At the end of this task, the students should be able to:
1. explain the process management;
2. discuss operationalizing process management; and
3. identify process classification framework and process modeling.
……………………………………………………………………………………………………………….
PRE-ASSESSMENT 9
Answer the following questions:
1. What is process management?
2. What is the importance of process management?
Content Development
Process management
Organizations create value by delivering their products and/ or services to customers.
Everything they do in that whole chain of events is a process. So to perform well in the eyes of
the customers and the stakeholders, all organizations need very good process management –
underperformance is primarily caused by poor processes and / or their interaction with people
and technology.

 Process Strategy – particularly deployment

 Operationalizing Processes – including definition / design/ systems
 Process Performance- measurement and improvement
 People and leadership roles – values, beliefs, ownership, responsibilities,
accountabilities,
accountabilities, authorities and rewards

 Information and knowledge – capturing and leveraging throughout the supply chains.
Where process management is established and working, executives no longer see their
organizations as sets of discrete vertical functions with silo-type boundaries. Instead they
visualize things from the customer perspective – as a series of inter-connected work and
information flows that cut horizontally across the business. Effectively the customers are
pictured as ‘taking a walk’ through some or all of these ‘end-to-end processes and
interfacing with the company or service organization, experiencing and improving –
sometimes discontinuously.
In monitoring process performance, measurement will inevitably identify necessary
improvement actions. In many process managed companies they have shifted the focus of
the measurement systems from functional to process goals and even based remuneration
and career advancement on process performance.
 Operationalizing process management
Top management in many organizations now base their approach to business on the
effective management of ‘key or core business processes’. These are well-defined and
developed sequences of steps with clear rationale, which add value by producing required
outputs from variety of inputs. Moreover these management teams have aligned the core
processes with their strategy, combining related activities and cutting out ones that do not
value. This has led in some cases to a fundamental change in the way the place is managed
and the changes required have caused these organizations to emerge as true ‘process
enterprises’.
Companies comprising a number of different business units, such as outsourcing
companies, face an early and important strategic decision when introducing process
management – should all the business units follow the same process framework and
standardization, or should they tailor processes to their own particular and diverse needs.
Each organization must consider this question carefully and there can be no one correct
approach.
Deployment of a common high-level process framework throughout the organization
gives many benefits, including presenting ‘one company’ to the customers and suppliers,
lower cost and increased flexibility, particularly in terms of resource allocation.
Including research on award-winning companies, the author and his colleagues have
identified process management best practices as:

 Identifying the key processes

- prioritizing on the basis of the value chain, customer needs and strategic significance,
and using process models and definitions
 Managing processes systematically
- giving process ownership to the most appropriate individual or group and resolving
process interface issues through meetings or ownership models
 Reviewing processes and setting improvement targets
- empowering process owners to set targets and collect data from
internal and external customers
 Using innovation and creativity to improve processes
-adopting self-managed teams, business process improvement and idea schemes
 Changing processes and evaluating the benefits
-through process improvement or re-engineering teams, project/ program management
and involving customers and suppliers.
Too many businesses and organizations generally are still not process oriented,
however; they focus instead on tasks, on jobs, the people who do them and on structures.
Cross-functional processes
- Plan the business strategy
- Innovation/ product or service generation
-Order generation
-Order fulfilment
-People management
-Servicing products/customers

Functions
- Research and development
- Operations
-Sales and Marketing
-Human Resource
-Finance and administration

For every process the teams will determine:

- The Vision for the process what happens when the process is running as expected
- Critical “must haves” for the vision to be achieved
- Estimate of total cost of the process
- Baseline performance

For every selected critical process, the teams will determine:

-Hypotheses of areas for improvement and the overall “sizes of the prizes”
-A list of improvement projects
-Key risk areas and key performances
- Ownership responsibilities

The process classification framework and process modeling

In establishing a high level or core process framework, many organizations have found
inspiration in the Process Classification Framework developed by the American Productivity
and Quality Centre (APQC). With the assistance of several major international corporations,
the APQC have created and developed a high-level major international corporations, the APQC
have created and developed a high-level generic enterprise model, a taxonomy of cross
functional business process that should encourage business and other than from narrow
functional viewpoint. The intention is to allow the objective comparison of performance within
and among organizations.
The Process Classification Framework supplies a generic view of business process
often found in multiple industries and sectors – manufacturing and service companies, health
care, government, education and others. It seeks to represent major processes and sub-
processes through its structure and vocabulary.
Operating Processes
1. Develop Vision and Strategy
2. Develop Manage Products and Services
3. Market and Sell Products and Services
4. Deliver Products and Services
5. Manage Customer Services

Management and Supporting Process

6. Develop and Manage Human Capital
7. Manage Information Technology
8. Manage Financial Resources
9. Acquire, Construct and Manage Assets
10. Manage Enterprise Risk, Compliance and Resiliency
11. Manage External Relationships
12. Develop and Manage Business Capabilities
……………………………………………………………………………………………………………….
POST-ASSESSMENT 9
Answer the following questions on a separate sheet of long bond paper.
1. How the process classification framework used by American Companies?
2. Give the following Operating process and Management and Supporting Process.
……………………………………………………………………………………………………………….
Learning Task 10: Week ? (November 23-27, 2020)
TOPIC

TOPIC OVERVIEW

LEARNING OUTCOMES
At the end of this task, the students should be able to:
1. explain the business process management;
2. discuss life cycle of business process management; and
3. evaluate business process management suites.
……………………………………………………………………………………………………………….
PRE-ASSESSMENT 10
Answer the following questions on a separate sheet of long bond paper.
1. What is business process management?
2. How does the life cycle of business process management works?
Content Development
Business process management (BPM) is a discipline in operations management in which
people use various methods to discover, model, analyze, measure, improve, optimize,
and automate business processes. Any combination of methods used to manage a company's
business processes is BPM. Processes can be structured and repeatable or unstructured and
variable. Though not required, enabling technologies are often used with BPM.

It can be differentiated from program management in that program management is concerned

with managing a group of inter-dependent projects. From another viewpoint, process
management includes program management. In project management, process management is
the use of a repeatable process to improve the outcome of the project.
Key distinctions between process management and project management are repeatability and
predictability. If the structure and sequence of work is unique, then it is a project. In business
process management, a sequence of work can vary from instance to instance: there are
gateways, conditions; business rules etc. The key is predictability: no matter how many forks in
the road, we know all of them in advance, and we understand the conditions for the process to
take one route or another. If this condition is met, we are dealing with a process.

As an approach, BPM sees processes as important assets of an organization that must be

understood, managed, and developed to announce and deliver value-added products and
services to clients or customers. This approach closely resembles other total quality
management or continual improvement process methodologies.

ISO 9000 promotes the process approach to managing an organization. It also promotes the
adoption of a process approach when developing, implementing and improving the
effectiveness of a quality management system, to enhance customer satisfaction by
meeting customer requirements.

BPM proponents also claim that this approach can be supported, or enabled, through
technology. As such, many BPM articles and scholars frequently discuss BPM from one of two
viewpoints: people and/or technology.

BPM streamlines business processing by automating workflows; while RPA automates tasks by

recording a set of repetitive activities implemented by human. Organizations maximize their
business automation leveraging both technologies to achieve better results.

BPM Institute defined Business process management as:

-the definition, improvement, and management of a firm's end-to-end enterprise
business processes in order to achieve three outcomes crucial to a performance-based,
customer-driven firm: 1) clarity on strategic direction, 2) alignment of the firm's
resources, and 3) increased discipline in daily operations.
The Workflow Management Coalition, BPM.com and several other sources use the following
definition:
Business process management (BPM) is a discipline involving any combination of
modeling, automation, execution, control, measurement and optimization of business
activity flows, in support of enterprise goals, spanning systems, employees, customers
and partners within and beyond the enterprise boundaries.
The Association of Business Process Management Professionals (ABPMP) defines
BPM as:
Business process management (BPM) is a disciplined approach to identify, design,
execute, document, measure, monitor, and control both automated and non-automated
business processes to achieve consistent, targeted results aligned with an organization’s
strategic goals. BPM involves the deliberate, collaborative and increasingly technology-
aided definition, improvement, innovation, and management of end-to-end business
processes that drive business results, create value, and enable an organization to meet
its business objectives with more agility. BPM enables an enterprise to align its business
processes to its business strategy, leading to effective overall company performance
through improvements of specific work activities either within a specific department,
across the enterprise, or between organizations.
Gartner defines business process management as:
"the discipline of managing processes (rather than tasks) as the means for improving
business performance outcomes and operational agility. Processes span organizational
boundaries, linking together people, information flows, systems, and other assets to
create and deliver value to customers and constituents."
 It is common to confuse BPM with a BPM suite (BPMS). BPM is a professional
discipline done by people, whereas a BPMS is a technological suite of tools
designed to help the BPM professionals accomplish their goals. BPM should
also not be confused with an application or solution developed to support a
particular process. Suites and solutions represent ways of automating business
processes, but automation is only one aspect of BPM.
The concept of business process may be as traditional as concepts
of tasks, department, production, and outputs, arising from job shop scheduling problems in the
early 20th century. The management and improvement approach as of 2010, with formal
definitions and technical modeling, has been around since the early 1990s (see business
process modeling). Note that the term "business process" is sometimes used by IT practitioners
as synonymous with the management of middleware processes or with integrating application
software tasks.

Although BPM initially focused on the automation of business processes with the use of
information technology, it has since been extended to integrate human-driven processes in
which human interaction takes place in series or parallel with the use of technology. For
example, workflow management systems can assign individual steps requiring deploying human
intuition or judgment to relevant humans and other tasks in a workflow to a relevant automated
system.
More recent variations such as "human interaction management” are concerned with the
interaction between human workers performing a task.

As of 2010, technology has allowed the coupling of BPM with other methodologies, such as
some BPM tools and histograms allow users to:
 visualize – functions and processes
 measure – determine the appropriate measure to determine success
 analyze – compare the various simulations to determine an optimal improvement
 improve – select and implement the improvement
 control – deploy this implementation and by use of user-defined dashboards monitor the
improvement in real time and feed the performance information back into the simulation
model in preparation for the next improvement iteration
 re-engineer – revamp the processes from scratch for better results

This brings with it the benefit of being able to simulate changes to business processes based on
real-world data (not just on assumed knowledge). Also, the coupling of BPM to industry
methodologies allows users to continually streamline and optimize the process to ensure that it
is tuned to its market need.

As of 2012 research on BPM has paid increasing attention to the compliance of business

processes. Although a key aspect of business processes is flexibility, as business processes
continuously need to adapt to changes in the environment, compliance with business strategy,
policies, and government regulations should also be ensured. The compliance aspect in BPM is
highly important for governmental organizations. As of 2010 BPM approaches in a
governmental context largely focus on operational processes and knowledge representation.
There have been many technical studies on operational business processes in the public and
private sectors, but researchers rarely take legal compliance activities into account—for
instance, the legal implementation processes in public-administration bodies.

Life-cycle

Business process management activities can be arbitrarily grouped into categories such as
design, modeling, execution, monitoring, and optimization.
Design
Process design encompasses both the identification of existing processes and the design of "to-
be" processes. Areas of focus include representation of the process flow, the factors within it,
alerts and notifications, escalations, standard operating procedures, service level agreements,
and task hand-over mechanisms. Whether or not existing processes are considered, the aim of
this step is to ensure a correct and efficient new design.
The proposed improvement could be in human-to-human, human-to-system or system-to-
system workflows, and might target regulatory, market, or competitive challenges faced by the
businesses. Existing processes and design of a new process for various applications must
synchronize and not cause a major outage or process interruption.
Modeling
Modeling takes the theoretical design and introduces combinations of variables (e.g., changes
in rent or materials costs, which determine how the process might operate under different
circumstances).
It may also involve running "what-if analysis"(Conditions-when, if, else) on the processes: "What
if I have 75% of resources to do the same task?" "What if I want to do the same job for 80% of
the current cost?
Business process execution is broadly about enacting a discovered and modeled business
process. Enacting a business process is done manually or automatically or with a combination
of manual and automated business tasks. Manual business processes are human-driven.
Automated business processes are software-driven. Business process
automation encompasses methods and software deployed for automating business processes.
Business process automation is performed and orchestrated at the business process layer or
the consumer presentation layer of SOA Reference Architecture. BPM software suites such as
BPMS or iBPMS or low-code platforms are positioned at the business process layer. While the
emerging robotic process automation software performs business process automation at the
presentation layer, therefore is considered non-invasive to and de-coupled from existing
application systems.
One of the ways to automate processes is to develop or purchase an application that executes
the required steps of the process; however, in practice, these applications rarely execute all the
steps of the process accurately or completely. Another approach is to use a combination of
software and human intervention; however this approach is more complex, making the
documentation process difficult.
In response to these problems, companies have developed software that defines the full
business process (as developed in the process design activity) in a computer language that a
computer can directly execute. Process models can be run through execution engines that
automate the processes directly from the model (e.g., calculating a repayment plan for a loan)
or, when a step is too complex to automate, Business Process Modeling Notation (BPMN)
provides front-end capability for human input. Compared to either of the previous approaches,
directly executing a process definition can be more straightforward and therefore easier to
improve. However, automating a process definition requires flexible and comprehensive
infrastructure, which typically rules out implementing these systems in a legacy IT environment.
Business rules have been used by systems to provide definitions for governing behavior, and a
business rule engine can be used to drive process execution and resolution
Monitoring
Monitoring encompasses the tracking of individual processes, so that information on their state
can be easily seen, and statistics on the performance of one or more processes can be
provided. An example of this tracking is being able to determine the state of a customer
order (e.g. order arrived, awaiting delivery, invoice paid) so that problems in its operation can be
identified and corrected.
In addition, this information can be used to work with customers and suppliers to improve their
connected processes. Examples are the generation of measures on how quickly a customer
order is processed or how many orders were processed in the last month. These measures tend
to fit into three categories: cycle time, defect rate and productivity.
The degree of monitoring depends on what information the business wants to evaluate and
analyze and how the business wants it monitored, in real-time, near real-time or ad hoc.
Here, business activity monitoring (BAM) extends and expands the monitoring tools
generally provided by BPMS.
Process mining is a collection of methods and tools related to process monitoring. The aim of
process mining is to analyze event logs extracted through process monitoring and to compare
them with an a priori process model. Process mining allows process analysts to detect
discrepancies between the actual process execution and the a priori model as well as to
analyze bottlenecks.
Predictive Business Process Monitoring concerns the application of data mining, machine
learning, and other forecasting techniques to predict what is going to happen with running
instances of a business process, allowing to make forecasts of future cycle time, compliance
issues, etc. Techniques for predictive business process monitoring include Support Vector
Machines, Deep Learning approaches, and Random Forest.
Optimization
Process optimization includes retrieving process performance information from modeling or
monitoring phase; identifying the potential or actual bottlenecks and the potential opportunities
for cost savings or other improvements; and then, applying those enhancements in the design
of the process. Process mining tools are able to discover critical activities and bottlenecks,
creating greater business value.
Re-engineering
When the process becomes too complex or inefficient, and optimization is not fetching the
desired output, it is usually recommended by a company steering committee chaired by the
president / CEO to re-engineer the entire process cycle. Business process
reengineering (BPR) has been used by organizations to attempt to achieve efficiency and
productivity at work.
Business Process Management Suites
A market has developed for enterprise software leveraging the business process management
concepts to organize and automate processes. The recent convergence of this software from
distinct pieces such as business rules engine, business process modelling, business activity
monitoring and Human Workflow has given birth to integrated Business Process Management
Suites. Forrester Research, It recognize the BPM suite space through three different lenses:
 human-centric BPM
 integration-centric BPM (Enterprise Service Bus)
 document-centric BPM (Dynamic Case Management)
However, standalone integration-centric and document-centric offerings have matured into
separate, standalone markets.
Rapid application development using no-code/low-code principles is becoming an ever
prevalent feature of BPMS platforms. RAD enables businesses to deploy applications more
quickly and more cost effectively, while also offering improved change and version
management. Gartner notes that as businesses embrace these systems, their budgets rely less
on the maintenance of existing systems and show more investment in growing and transforming
them
Practice
While the steps can be viewed as a cycle, economic or time constraints are likely to limit the
process to only a few iterations. This is often the case when an organization uses the approach
for short to medium term objectives rather than trying to transform the organizational culture.
True iterations are only possible through the collaborative efforts of process participants. In a
majority of organizations, complexity requires enabling technology (see below) to support the
process participants in these daily process management challenges.
To date, many organizations often start a BPM project or program with the objective of
optimizing an area that has been identified as an area for improvement.
Currently, the international standards for the task have limited BPM to the application in the IT
sector, and ISO/IEC 15944 covers the operational aspects of the business. However, some
corporations with the culture of best practices do use standard operating procedures to regulate
their operational process.[31] Other standards are currently being worked upon to assist in BPM
implementation (BPMN, enterprise architecture, Business Motivation Model)
Technology
BPM is now considered a critical component of operational intelligence (OI) solutions to
deliver real-time, actionable information. This real-time information can be acted upon in a
variety of ways – alerts can be sent or executive decisions can be made using real-time
dashboards. OI solutions use real-time information to take automated action based on pre-
defined rules so that security measures and or exception management processes can be
initiated. Because "the size and complexity of daily tasks often requires the use of technology to
model efficiently" when resources in technology became increasingly widespread with general
availability to businesses to provide to their staff, "Many thought BPM as the bridge between
Information Technology (IT) and Business."
There are four critical components of a BPM Suite:
 Process engine – a robust platform for modeling and executing process-based
applications, including business rules
 Business analytics – enable managers to identify business issues, trends, and
opportunities with reports and dashboards and react accordingly
 Content management – provides a system for storing and securing electronic
documents, images, and other files
 Collaboration tools – remove intra- and interdepartmental communication barriers
through discussion forums, dynamic workspaces, and message boards

BPM also addresses many of the critical IT issues underpinning these business drivers,
including:
 Managing end-to-end, customer-facing processes
 Consolidating data and increasing visibility into and access to associated data and
information
 Increasing the flexibility and functionality of current infrastructure and data
 Integrating with existing systems and leveraging service oriented architecture (SOA)
 Establishing a common language for business-IT alignment

Validation of BPMS is another technical issue that vendors and users must be aware of, if
regulatory compliance is mandatory. The validation task could be performed either by an
authenticated third party or by the users themselves. Either way, validation documentation must
be generated. The validation document usually can either be published officially or retained by
users.
………………………………………………………………………………………………………………
POST- ASSESSMENT 10
Answer the following questions on a separate long bond paper.
1. Explain the business process management suites.
2. How Information Technology helps business process management?
 NORZAGARAY COLLEGE
Municipal Compound, Brgy. Puoblacion
Norzagaray, Bulacan

STRATEGIC MANAGEMENT AND

TOTAL QUALITY MANAGEMENT
PRELIMINARY EXAMINATION

Direction: Read the questions before you answer. Erasure is highly discouraged and follow the instructions
carefully.

Name:________________________ Date:_______________
Year & Section;_________________
7. The knowledge and courtesy of employees and
their ability to inspire trust and confidence.
Test I. Multiple Choice. Encircle the letter of the a. Interaction b. Assurance
correct answer. c. Contact d. Labor intensity
1. It includes choice, providing one or more
selections from range of options, which can be single 8. The willingness to help customers and provide
or fixed and adaptation. prompt service.
a. Interaction b. Customization a. Responsiveness b. Customization
c. Contact d. Labor intensity c. Contact d. Labor intensity

2. The extent to which the consumer actively

9. The ability to perform the service dependably and
intervenes in the service process to change the
accurately.
content of the service; this includes customer
participation to provide information from which a. Reliability b. Contact
needs can be assessed, and customer feedback from c. Assurance d. Empathy
which satisfaction levels can be inferred. 10. Its either tangible, perceptible to touch and can
a. Nature service act b. Customization be owned, or intangible.
c. Contact d. Interaction a. Nature service act b. Customization
c. Contact d. Interaction
3. The ratio of labor costs incurred to the value of
assets and equipment used. Test II. Definition of terms. Define the following:
a. Interaction b. Customization
c. Reliability d. Labor intensity 11-13. SOA-
___________________________________________
4. The proportion of the total time required to ___________________________________________
provide the service for which the consumer is 14-16. BPMN-
present in the system.
___________________________________________
a. Responsiveness b. Customization
___________________________________________
c. Contact d. Labor intensity
5. The physical facilities, equipment and appearance. 17-19. BAM-
a. Assurance b. Empathy ___________________________________________
c. Reliability d. Tangibles ___________________________________________

6. The caring and individualized attention the form 20-22. BPR-

provides to its customers. ___________________________________________
a. Contact b. Empathy ___________________________________________
c. Reliability d. Customization
23-25. BPM-
___________________________________________
___________________________________________

26-28. IT-
___________________________________________
___________________________________________

29-31. OI-
___________________________________________
___________________________________________

32-34. APQC-
___________________________________________ 71-80. Explain the Business Process Management
___________________________________________ Life Cycle.
35-37. LOB-
___________________________________________
___________________________________________

38-40. SBU-
___________________________________________
___________________________________________

Test III. Enumeration. Give the following topic.

5 Levels of TQM Pyramid

41.________________________

42.________________________

43.________________________

44.________________________ Prepared by:

45.________________________
Paul Mark B. Cajayon
Process Management Instructor

46.______________________

47.______________________ Noted by:

48.______________________ Maria Vanessa S. Mendoza, MBA

49.______________________ Dean, College of Hospitality Management

50.______________________

Test IV. Essay. Explain the following:

51-60. How Corporate Strategy helps businesses?

61-70. Discuss Priorities Matrix Construction.