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THE NEW RULES OF THE THIRD WAVE
About the book
Contents
Preface
Introduction
One
Two
Three
Four
Five
Six
Seven
Eight
Nine
Epilog
Appendix A
Appendix B
Appendix C
Appendix D
MBA Curriculum
Index

 

NEW BOOK

Preview Smith and Fingar's critical analysis of the "IT Doesn't Matter" debate

 

1. Old rule: Process-based clerical work and practice-based skilled work are different. Disruption: Process desktop. New rule: All forms of work can be described and managed using a single system.

2. Old rule: Processes are rigid scripts, focused mainly on the inputs and outputs of discrete steps. Disruption: Process calculus. New rule: Processes are fluid, dynamic, amoebic and adaptable.

3. Old rule: Executing a process means locating it in one place and under centralized control. Disruption: Distributed process execution and end-to-end processes. New rule: Processes can be as easily managed in a federated environment as in a centralized one.

4. Old rule: Collaboration requires standard processes. Disruption: Business process modeling languages. New rule: Firms are free to innovate because collaboration rests on a standard representation for processes, not a standard process.

5. Old rule: Companies have to start over. Disruption: Process discovery, introspection and projection combined with application componentiza-tion. New rule: Companies build on and transform what exists.

6. Old rule: Process must be kept simple in order to be manageable.
Disruption: Process participants. New rule: Processes can be as complex as they need to be, yet still be manageable.

7. Old rule: Processes have to be changed in order to reduce the manual checking required of accountants, auditors and supervisors. Disruption: Process metrics and process lifecycle. New rule: Processes can monitor themselves.

8. Old rule: A choice must be made between incremental process
improvement, and radical reengineering. Disruption: Lifetime process lifecycle management. New rule: There are no discontinuities.

9. Old rule: Incremental process improvements produce minor gain.
Disruption: Process analysis and transformation. New rule: Processes evolve in fits and starts, sometimes incrementally and sometimes
radically, but always non-disruptively.

10. Old rule: Radical change is painful and disruptive. Disruption: Com-puter Assisted Process Engineering. New rule: Replacement of organizational change with technological implementation.

11. Old rule: Companies need a large, dedicated, long-standing, reengineering team. Disruption: Process portal. New rule: Process management vanishes, becoming a part of everybody's job.

12. Old rule: Process innovation is an art form, with uncertainties and ambiguities. Disruption: Process calculus. New rule: Process management is a precise science.

13. Old rule: Radical change takes a long time to implement. Disruption: Process deployment and execution. New rule: Not all radical changes require changes to IT systems or organization.

14. Old rule: No team can reengineer more than one process at once.
Disruption: Process management system. New rule: Continuous process improvement across many processes.

15. Old rule: Radical change is top-down and continuous change is bot-tom-up. Disruption: Integrated process model. New rule: There is no distinction--circumstances govern the approach you take. Process models developed quite independently can be easily combined.

16. Old rule: Reengineering never happens from the bottom up. Disrup-tion: Process intranet. New rule: Insights for process streamlining and process re-design arise naturally in the business, and are readily accepted by those affected.

17. Old rule: Managers make all process design changes. Disruption: Collaborative process design and closed-loop process optimization.
New rule: Change-making is part of everyone's job.

18. Old rule: There must be a single process owner. Disruption: Collaborative process analysis. New rule: Everyone that needs to be involved in process improvement can be involved.

19. Old rule: Processes can be designed only by the process team. Disruption: Shared process repository. New rule: As many designers as required can be involved, deep within the business.

20. Old rule: It takes work to have to find out where you are in a given process. Disruption: Process metrics. New rule: Processes measure themselves and tell you where they are.

21. Old rule: Every process team needs a human coach. Disruption:
Process training built into process designs. New rule: Processes as couches.

22. Old rule: Plans get revised only periodically. Disruption: Process modeling language. New rule: Plans are processes, guiding the enterprise in real time.

23. Old rule: The only feasible processes are those supported by the exist-ing IT systems. Disruption: Process virtual machine. New rule: Any process can be modeled and executed; it may have nothing to do with IT.

24. Old rule: As few people as possible should be involved in the execu-tion of a process. Disruption: End-to-end processes, process data correlation, distributed process execution. New rule: Everyone and every system needed can be involved without degradation of automation or efficiency through manual hand-offs.

25. Old rule: Don't bury reengineering in the middle of the corporate agenda. Disruption: Process modeling methodology. New rule: Value analysis, process analysis, quality management and costing are combined into one analysis.

26. Old rule: Tradition counts for nothing. Disruption: Process discovery. New rule: Tradition is everything, and must be built upon. Those who fail to learn from the past are condemned to repeat it.

27. Old rule: Design processes so that only a small number of variants are needed. Disruption: Process customization and process patterns. New rule: Any process can be reused to construct or constrain the design of hundreds, even thousands, of variants.

28. Old rule: A company has no more than ten to twenty processes of interest to process engineers. Disruption: Process discovery. New rule:
Organizations are more complex than they think.

29. Old rule: The processes to be improved must be carefully selected and prioritized. Disruption: Process optimization, analysis and transformation. New rule: Process improvement is built into the methodology; pain points emerge naturally.

30. Old rule: Processes must be designed to eliminate excessive information exchange and data redundancy. Disruption: Process data. New rule: Strong processes are those that include all required participants who can freely and efficiently exchange and re-process all required information.

31. Old rule: Work must be structured so that suppliers and customers can plan and schedule their respective activities in dependently.
Disruption: Collaborative processes. New rule: Coordination of independent activities is built in.

32. Old rule: Divide overly complex processes into a smaller number of simpler processes. Disruption: Enterprise process model. New rule:
Manage processes as intellectual property and derive what is required for execution automatically.

33. Old rule: Technology only participates in the process (as cogs in the engine). Disruption: Third wave. New rule: Technology implements the process (drives the pistons, orchestrates the cogs).

34. Old rule: Processes change only when people change them. Disruption: Capability passing, external process participants, business rules. New rule: Processes can change themselves within limits set by process design.

35. Old rule: Processes take a long time to design. Disruption: Real-time process manufacturing. New rule: Just-in-time, single-purpose, throw-away processes are both possible and useful and reflect the way business is really done.

36. Old rule: Changing processes across organizational boundaries is virtually impossible. Disruption: Process interface definition language and end-to-end processes. New rule: Process management knows no
organizational boundaries.

Excerpts from Business Process Management: The Third Wave, Howard Smith and Peter Fingar, ISBN 0-929652-33-9 Off-press November 2002, Meghan-Kiffer Press

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Read and download articles based on the book including Smith and Fingar's monthly columns at Darwin Magazine and ebizq.net

Listen to how Computer Sciences Corporation views the importance of BPM for its customers, a SkyRadio/ Forbes interview with Howard Smith

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