Measuring business process management in UK financial services

Abstract

There is a growing interest in the nature and significance of business processes both within the business community and in management research. For many researchers, process has evolved from its re-engineering origins to become a powerful tool for understanding and explaining business activity. Within this new paradigm, effective Business Process Management (BPM) is viewed as a pervasive and profound business challenge.

A number of case studies have explored how companies react to this challenge and several recurring themes have emerged: for example, companies must fully identify their business processes, and introduce 'end to end' process measurement and management. However, these themes have not yet been synthesised into a single model capable of being measured. In the absence of such a model, it is difficult to explain why some companies are more active and effective in managing business processes than others.

This paper reports on a collaborative exercise carried out with a large UK Bank to develop and test such a model in an empirical context. The findings suggest that the model is both valid and pragmatic. The results were used by the Bank to identify and implement business improvements. More importantly, the model provides a platform for assessing process performance across the financial services sector and underpinning future explanatory research. The paper concludes that BPM was an important consideration for the Bank, supporting the emerging paradigm, and recommends further research from within this perspective