"The timeless path of the process" (vii) bridging the gap between strategy and BPM-introducing BPM governance

In the previous article, we analyzed three reasons for the gap between strategy and BPM: No detailed description and decomposition strategy, no governance of the implementation strategy, no measurement strategy. Bridging the gap requires the following three areas of work, namely, the elaboration and decomposition of strategies, the governance of "Implementation strategies", and the development of indicators for measuring strategies. In the late 90 's, in the management field, the above three aspects of the work of the relevant theoretical methods, tools and practices, respectively, are well-known balanced scorecard, strategic center-type organization and strategic map. The strategic map is responsible for the description of the strategy, the strategic Central Organization is responsible for the management and implementation of the strategy, the Balanced Scorecard is responsible for the decomposition and measurement of the strategy. The relationship between the three is shown in Figure 1.

Fig. 1 The relationship between Balanced Scorecard, Strategic Center type organization and strategic map

In the early days of the Balanced scorecard, it addressed the measurement of strategy and creatively proposed "you cannot manage without measure"; In recent years, the BSC has also been used as an important tool for strategic formulation (or strategic decomposition). Strategic central organization solves the problem of strategic management and implementation. The strategy map solves the problem of strategic description, and once again creatively proposes "you cannot describe, you cannot manage".

In most enterprises, the biggest problem is not that there is no strategy, but that the strategy cannot be effectively implemented, that is, there is a gap between strategy formulation and strategic implementation. The emergence of a balanced scorecard is considered an important milestone in bridging this gap . Why do you say that? This should be analyzed from the role of the Balanced scorecard. Its essential function is to decompose the strategy into a number of mutually causal relationships containing indicators, goals, index values and the "card" of the action plan, each of which is based on the financial, customer, internal processes and learning and growth of 4 levels, the development of indicators, objectives, indicators and action plans. As shown in Figure 2.

Figure 2 Strategy for action, based on the Balanced Scorecard strategy decomposition diagram

As can be seen from the diagram, the strategy of an enterprise or organization is decomposed into multiple balanced scorecard, in which the causal link of the four scorecard of BSC1, Bsc1-1, Bsc1-1-1, Bsc1-1-2 is: bsc1-bsc1-1-bsc1-1-1/bsc1-1-2 , this path can correspond to the End-to-end process decomposition path within the enterprise or organization. We can think back to the six elements of the process, the most basic composition of which includes "activities" and "activity between the role", here card and card (or between the indicators) causal relationship is not the corresponding "activity between the role"? Do you have a bit of a relationship between strategy and BPM now?

As we mentioned before, the balance scorecard bridges the gap between strategic development and strategic implementation, and BPMS provides a path for strategic execution. So what is the relationship between strategy, balanced scorecard, strategy implementation, and BPM? As shown in Figure 3.

Figure 3 Relationship between strategic development, strategic execution, balanced Scorecard, BPM governance, BPM

As shown in the left part of the above figure, we first analyze the relationship between strategy formulation, strategy implementation and the Balanced scorecard. The Balanced scorecard bridges the gap between strategic development and strategic implementation, but only a one-way divide is bridged; that is, the balanced scorecard allows the strategy to be implemented but not guaranteed to be implemented; in other words, the balanced Scorecard is a necessary condition for the implementation of the strategy, but not a sufficient one. The strategy needs to be implemented with the introduction of another condition, that is, strategic Central organization responsible for managing and implementing strategies, so to speak,

Strategic Map (responsible for description strategy) + Balanced Scorecard (measurement strategy) + Strategic Center Organization (Management and execution strategy) = Sufficient conditions for strategic execution

Continue to analyze the right part of the above figure. First, there is also a gap between strategic development and BPM, but BPM governance bridges the gap and is a two-way bridge. From this analysis, we can deduce the conclusion that