Balancing Process Ownership and Line Management in a Matrix-like Organization

Abstract

Organizations are traditionally designed through the vertical structuring of units in a hierarchy. Business Process Management challenges this approach, and emphasizes horizontal work processes that cut across hierarchical units and competence areas. Few studies have analyzed what happens when the hierarchy is confronted by the mechanisms set up to manage business processes. Here, based on a case study, we describe and analyze the relation between a process owner (a key role in Business Process Management) on the one hand, and the line organization and hierarchy on the other hand. In New Firm, process owners are integrating managers, with coordination tasks horizontally across the line organization. We describe mechanisms for aligning process ownership and line management in a matrix organizations, as well as challenges related to standardization of work processes, control versus support, people deployment and internationalization. Copyright © 2011 John Wiley & Sons, Ltd.

Process Segmentation Typology in Czech Companies

“…The human factor is essential in the position of a process owner. The integral part of his work is also ensuring the right resources and responsibility matrix for activities and competence development (Nesheim, 2011). The empirical research of Kohlbacher and Gruenwald (2011) confirmed that organizations which appointed process owners and delegated them with process performance measurement reached higher performance than organizations which implemented only one of these components.…”

“…Many other authors agree with this statement, too (Nesheim, 2011). They claim that process approach is based on the assertion that the cause of poor economic results resides in inefficient ongoing processes in the company.…”

Toward a Business Process Owner Competency Framework

“…In the conclusion of a quantitative study in the financial services industry the importance of BPM in driving customer satisfaction is emphasised (Kumar et al, 2008). Process changes also impact the design of organizations (Nesheim, 2011) which must be prepared for cultural change (Smart et al, 2009). Such change must be addressed from a process perspective and properly governed.…”

“…In prior studies, interpersonal skills have been found to be significant and although competence and trust in process owners were deemed to be high, communication skills were ranked moderately lower. Consequently, it was recommended that process owners communicate and engage in real dialogues that build relationships (Nesheim, 2011).…”

“…Hence identification and allocation of process owners to the core business processes is a key element for effective BPM (Kumar et al, 2008). Nevertheless, there is a paucity of empirical research on what process owner should be doing on a day-to-day basis (Kohlbacher & Gruenwald, 2011;Nesheim, 2011). The fundamental role that a process owner plays entails the management of interfaces between key processes with the objective of preventing horizontal silos.…”