If you want to get end-to-end business processes under control you are inclined to appoint process owners. Sounds logical doesn’t it. Nevertheless there are only relatively few process owners in a company. How come?
Typically a process owner needs to argue with the line managers whose areas he is traversing. And typically this means a lot of infighting because normally hard facts are hard to come by to decide such trade-offs.
That’s a real-life problem which we incidentally solved while we created our TPI (True Performance Index). The TPI gives a meaning to KPIs. The main disadvantage of KPIs is that they are not comparable. Let’s say that your KPI for shipping on time in Italy is 45% and in Mexico it is 65%. The question on hand is where should I invest? In Italy or in Mexico? The TPI converts the KPI into the associated value weighted with the company-specific likelihood to achieve the identified value gain. This way you can take an educated decision.
By the same token a TPI can be calculated for the whole and all individual steps of a business process. And the beauty is that this “process” TPI can be compared with the “org unit” TPI for example. Thus you can decide whether you gain more by investing into high frequency business process scenarios like “rush order” versus investing into “shipping on time in Russia” for example.
Sounds cool? If you want to learn about the details talk to us. Right away.