measuring soft characteristics of an organization: business proces approach

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What to predict and how to measure the results of business process related projects ? Ilia Bider, IbisSoft Erik Perjons, Royal Institute of Technology (KTH) Proceedings: http://bit.ly/18d5rje

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Presentation at BPMDS 2007. Discusses the ways of measuring soft characteristics of an enterprise, like level of collaboration, level of stress in working environment, etc.

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Page 1: Measuring soft characteristics of an organization: business proces approach

What to predict and how to measure the results of business process

related projects ?

Ilia Bider, IbisSoft

Erik Perjons, Royal Institute of Technology (KTH)

Proceedings: http://bit.ly/18d5rje

Page 2: Measuring soft characteristics of an organization: business proces approach

What to predict and measure?

Money-related properties • productivity• turnover• profit

People-related properties:• communication/

collaboration• human resource usage• knowledge gathering &

sharing

Page 3: Measuring soft characteristics of an organization: business proces approach

People-related properties

• Collaboration between employees

• Collaboration between departments

• (De-facto) organizational structure

• Quality of planning

• Distribution of workload

• Stress

• Initiativness

• Transparancy

• Utilization of previous experience

• Goal and result awareness

Page 4: Measuring soft characteristics of an organization: business proces approach

Model of organization

Department

Department Department

Activity Activity Activity Activity

Process

Page 5: Measuring soft characteristics of an organization: business proces approach

• Organization• Employees• Departments• Managers• Activities• Process• Process participants

Department

Department Department

Activity Activity Activity Activity

Process

Model of organization

• Goal of the process• Result of the process• Communicate/Collaborate• Activity - carried out as a reaction on

events• Activity - planned and carried out • Replanning activitie

Page 6: Measuring soft characteristics of an organization: business proces approach

Collaboration between employees

• Participation level – the number of employees that have been enganged in the processes divided by the number of activities that have been completed in the processes

• Interaction level – the number of completed passes between employees divided by the number of completed transitions

• Collaboration between employees – is reflected by the avarage values of participation and interaction level over all processes in an organization

Department

Department Department

Activity Activity Activity Activity

Process

Pass - a transition between employees Activity

Page 7: Measuring soft characteristics of an organization: business proces approach

Collaboration between departments• Interdepartemental participation level – the number of departments

that have been engaged in the processes divided by the number of activities that has been completed in the processes

• Interdepartemental interaction level – the number of completed interdepartemental passes (between employees from different departments) divided by the number of completed transitions in the processes

• Collaboration between departments – is reflected by the avarage values of interdepartemental participaction and interaction level of all processes in an organization

Department

Department Department

Activity Activity Activity Activity

Process

An inter-departe-mental pass

Page 8: Measuring soft characteristics of an organization: business proces approach

De-facto organizational structure

Department

Department Department

Activity Activity Activity Activity

Process

• Standing (of an employee) – the number of requests issued by an employee divided by the number of request received by the employee. A low value indicates that the employee is governed by others

• De-facto organizational structure – is reflected by the distribution of standings over employees. If the differences in standing is high, it is an indication of a hierarchical structure

Issue a request – an employee asks somebody to complete an activity

Page 9: Measuring soft characteristics of an organization: business proces approach

Quality of planning

Department

Department Department

Activity Activity Activity Activity

Process

• Re-planning act – the act of changing the timeframe, changing the related employee, or removing an already planned activity

• Level of unrealistic planning – number of re-planned acts divided by the number of planned activities

Page 10: Measuring soft characteristics of an organization: business proces approach

Distribution of workload

Department

Department Department

Activity Activity Activity Activity

Process

• Workload – the number of activities completed by an employee

• Distribution of workload – reflects how well human resources are used in a given organization, e.g. whether there are overloaded employees, while other are ”underloaded”

Page 11: Measuring soft characteristics of an organization: business proces approach

Stress

Department

Department Department

Activity Activity Activity Activity

Process

• Level of stress – a subjective feeling of an employee that he/she has more activites to complete than he/she can handle

• Stressfullness of environment (for an employee) – the number of activities that are planned for an employee divided by the number of completed activities

Page 12: Measuring soft characteristics of an organization: business proces approach

Initiativeness

Department

Department Department

Activity Activity Activity Activity

Process

• Self-assigned activity – an activity completed by an employee and that he/he was not obliged to carry out

• Initiativeness – the number of self-assigned activities divided by the total number of completed activities

Page 13: Measuring soft characteristics of an organization: business proces approach

Transparency

Department

Department Department

Activity Activity Activity Activity

Process

• B-visible activity of A – an activity (planned or completed) assigned to employee A that another employee B has the right and possibility to observe

• A-transparency – all B-visible activities of A divided by the number of activities (planned or completed) for A

• Transparency of all employees – the average value of A-transparency for all employees

AB

Page 14: Measuring soft characteristics of an organization: business proces approach

Utilization of previous experience

Department

Department Department

Activity Activity Activity Activity

Process

• Utilization of previous experiences – an act of using information in archives during completion of an activity

• Level of utilization of previous experiences – the number of completed activities the involve utilization of previous experiences divided by the number of activities completed

Previous experience

Page 15: Measuring soft characteristics of an organization: business proces approach

Goal and result awareness

Department

Department Department

Activity Activity Activity Activity

Process

• Goal awareness – the number of processes for which a process participant know the goal of the processes divided by the number of processes in which the employee participates

• Result awareness – the number of finished processes for which a process participant know the result of the processes divided by the number of processes in which the employee participates

Page 16: Measuring soft characteristics of an organization: business proces approach

Volume-related parameters• Example of volume-related parameters:

– the avarage number of activities per process

– the avarage number of started processes per time period

– the average of ongoing processes

– the avarage number of finished processes per time period

• Why do we need volume-related parameters?

Department

Department Department

Activity Activity Activity Activity

Process

Page 17: Measuring soft characteristics of an organization: business proces approach

Measuring parameters

• How to measure

– Methods based on investigation of (arti)facts, e.g. mining system logs (if they exists)

– Methods based on measuring personal opinions and feelings (interviews and questionnaires)

• What to measure

– Absolute values

– Changes in values

Page 18: Measuring soft characteristics of an organization: business proces approach

Questions for a questionnaireQuestion: How often have you been contacted by colleagues in your daily work, for example to inform about something, answer a question or carry out a working task? We have divided up the question in four sub-questions depending on categories of colleagues. Mark one alternative in each of the subquestions a), b), c) och d).

a) colleagues on your department

[ ] never

[ ] sometimes

[ ] often

b) your manager

[ ] never

[ ] sometimes

[ ] often

c) colleagues on some other department

[ ] never

[ ] sometimes

[ ] often

d) person that you are managing

[ ] never

[ ] sometimes

[ ] often

Comment: The question aims at investigating the following parameters: Collaboration between employees, Collaboration between departments, De-facto organizational structure.

Question: Are you distributing work-related information to your colleagues, even though it is not part of your working tasks? [ ] always [ ] often [ ] sometimes [ ] never Comment: The question aims at investigating the parameter: Initativeness.

Page 19: Measuring soft characteristics of an organization: business proces approach

Thank you for your attention!

Ilia Biderwww.ibissoft.com/English

Erik Perjonswww.dsv.su.se/en