Business Process Standardization

Abstract

Across its own functional and geographic structures, every organization has many processes with the same, or similar outputs and inputs. These processes comprise comparable activities, are constrained by similar rules, and are supported by like resources. They are common processes. They could be identical processes; multiple instances of the same process. Consider the corporate process, Purchase Goods, based on a global standard to use a single contracted supplier. At the same time, credible arguments can be made for local variations on these common processes to meet local requirements. Should a local variation of Purchase Goods be allowed in a location where the sole supplier has no office? In planning the implementation of a large software application for use in 30 countries, to what extent should local practice be allowed to customize the corporate application, potentially creating 30 different instances of the application? Is 30 too many? How about 10? 20? How many is too many? At what point does the cost-benefit balance shift away from global standardization to favor local relevance? In this chapter, we address complex issues about process standardization. A Global BPM Framework is described that facilitates management of the conflicting demands of standardization for global efficiency versus variation for local effec- tiveness.