Michael Hammer is the pioneer of the Process Management concept. He developed Process Enterprise Maturity Model (PEMM). He helped many organisation to go lean and efficient by his concept of Process Re-engineering.

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3. Book that Hammer wrote
with James Champy,
The book sold several million
copies.
So popular was Process re-
engineering that one survey
in the 1990s showed it to
have been adopted by
almost 80% of Fortune 500
companies.
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4. Designing a Process
Design, refers to the specifications:
 Of what tasks,
 How it has to be done,
 In what order,
 Who is responsible to do it.
 In what location,
 Under what circumstances,
 With what information,
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5. Characteristics of a Business Process
 The business processes to become more
mature - capable of delivering higher
performance - should have two
characteristics:
(1) process enablers - which pertain to
individual processes.
(2) enterprise capabilities - which apply to
entire organizations.
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6. Process Enablers :
1. Design – Specs for process execution.
2. Performers – The people with their skill
and knowledge matrix.
3. Owner – The senior executive who is
responsible for the process.
4. Infrastructure – Information system that
support the process.
5. Metrics – The measure to track the process
performance.
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7.  Process Enablers Design
(a) Purpose - Clearly define the purpose of the
process design.
(b) Context – Be aware of the context why any
change in the process is recommended.
(c) Document – Document the process along
with context, purpose.
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8.  Process Enablers Performers
 (a) Knowledge – (1) aware of the business
processes (2) the interface with other
processes.
 (b) Skill – (1) in change management,(2)
change implementation, (3) decision making.
 (c) Behaviour – (1) right attitude to deliver
results (2) enable others to achieve their
process goals.
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9.  Process Enablers Owner
 (a) Identity – A senior management person
to interact with other process owners.
 (b) Activity – (1) define the process goals and
vision (2) sponsor redesign (3) follow up
implementation.
 (c) Authority – Should have control over the
process, budget, technology.
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10.  Process Enablers Infrastructure :
(a) Information - Comprehensive IT enabled
system.
(b) HR System - (1) role definition Process
owner, (2) job description of performer (3)
competency profile.
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11.  Process Enablers Metrics :
(a) Definition - performance metrics for each
process.
(b) Uses - metrics to compare :
performance to benchmark,
best in class performance,
target .
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12. Enterprise Capabilities :
1. Leadership - Top Management should
support.
2. Culture –
Teamwork,
ownership,
accountability,
willingness to change
development focus.
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13. Enterprise Capabilities :
3. Expertise –
Process skills,
clarity of methodology,
ability to redesign.
4. Governance –
Managerial ability & initiatives to launch a
new process or redesign a process.
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14.  Enterprise Capabilities Leadership
 (a) Awareness - Senior management is fully
aware of the process management ‘s importance
and willing to subject it’s own work into process
parameters.
 (b) Alignment – The Senior management should
support the process management
implementation.
 (c) Behaviour – commits resources, removes road
blocks, support changes to achieve process goals
 (d) Style – The senior management is keen to
bring about change and use process as a key tool
for change management.
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15.  Enterprise Capabilities Culture :
(a) Team work – cross functional project team
in place.
(b) Goal orientation – the process owners
should focus on the goal and its
achievement.
(c) Responsibility – the Process performers feel
the responsibility to achieve the target.
(d) Attitude toward change – performers and
owners are ready for change.
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16.  Enterprise Capabilities Expertise
(a) People – Process team has the skill in
process design, implementation, project
management, communication, and change
management.
(b) Methodology - basic methodology of
redesigning should be well known to the
process team.
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17.  Enterprise Capabilities Governance
(a) Process model – A total process model for the entire
organization - covering each task should be built.
(b) Accountability – (1) The process team should act as
steering committee to achieve progress
(2) the process owners are to be made responsible
for the success.
Integration – Process management office headed by
Chief process officer
(1) who has credibility employs all the tools and
techniques in an integrated manner
(2) coordinating and integrating all the process
owners
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18.  Functions of Auditors :
 The Business Process Auditor should answer
questions in relation to :
Economy, Efficiency and Effectiveness
 Economy
 Are we acquiring goods and services at the
lowest possible prices whilst maintaining the
required quality?
 Are we achieving Value for Money?
 Where else can we save money?
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19. Efficiency
 Can we do this task, activity or process in a smarter
way?
 Have we eliminated all the waste we can?
 Could we do this differently?
 Do we even need this process?
Effectiveness
 Do we know what our customers' expectations are?
 Are we meeting our customers' expectations
consistently?
 Are we positioned to meet our customers' future
needs?
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20. Skills for Effective Audit Team
 Multitasking
 Continuous learning
 Listen to others view
 Negotiate
 Not being intimidated by the position
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21. Skills for Effective Audit Team :
 Confidence
 Building credibility
 Sharing and Training
 Feedback
 Teamwork
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22. Responsibilities of Auditors :
 Review, analyse and evaluate the
organisational processes
 Assess the accuracy, reliability, timeliness, of
the information
 Inspect organization's internal control, risk
exposure, theft prevention, data
manipulation.
 Create checks and balances for financial
and operational reporting.
 Controls to protect organization's assets.
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23. Responsibilities of Auditors :
 strong ethical framework and report on
issues (or anticipated issues)
 Not to "let things go" as further investigation
may reveal embarrassing processes,
performance , fraud.
 Not to be intimidated by strong personalities
 Professional scepticism, to anticipate ways of
potential fraud.
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