Business Process Management (BPM) software has the potential to greatly improve both the efficiency and the effectiveness of an organization. Perhaps more importantly, it has the potential to greatly reduce the mistakes that result from poor communication and coordination.

BPM software tracks progress through a defined work process.  It notifies participants when their contribution is needed, records the actions they take, stores related documents and keeps track of performance parameters.

Even with the tremendous capability, the rate of adoption in the energy business seems slow.  Why is this?

We believe it can be attributed to five key obstacles. These obstacles are natural reactions within an organization.  As project mangers we know that every project is really two projects. The “first project” is getting the new asset ready for the organization and the “second project” is getting the organization ready for the new asset.  Most of the barriers arise out of fear of  the “second project”  Each of the obstacles can be dealt with effectively when recognized at the outset and included in the planning.

1.  Fuzzy Cases for Action. Getting acceptance of new information technology in the oil patch is always a challenge – one that begins and ends with a convincing business case.  A good business case speaks to decision makers in a language they can understand.  It outlines in clear terms the benefits of the investment, its costs and the risks involved.  Each needs to be presented clearly, openly and honestly.

A weak business case, without clearly defined benefits, costs and risks, will not build the firm foundation needed for moving forward. We believe that a business case without verifiable numbers is just hot air!

 (We are currently working with the SPE Real Time Optimization Technical Interest Group to prepare a paper on Preparing a Business Case.  See SPE 103248 to be presented this fall at the annual meeting.) We believe that a business case without verifiable numbers is just hot air!

 2.  Workflows not Understood.  The most difficult environments for introducing BPM software are situations where work is not perceived as a process, that is, where work is not seen as series of sequential steps.

 Often we hear, “Our work is different.  It’s always unique and can’t be reduced to a routine process.  We must think our way through every case and come up a unique solution.”  These situations are often the biggest challenges, and are also the biggest opportunities.   Behind even complex tasks, there are core processes common to every case. Overcoming this barrier involves discovering and understanding these core processes. Any systems installed must then be flexible enough to allow variation for different situation while still managing the overall process.

 3.  Organizational Boundaries.   Work processes often cross organizational boundaries. This is particularly true when organizational structures were designed without regard to work process.  Organizations aligned with regions or territories are excellent examples.  Work processes rarely stop at geographical boundaries.  Other examples are organizations that are designed around product lines.  Again work processes and functions aren’t aligned with products.

These organizational boundaries can mean taking the request for a BPM solution to a higher level to find someone who has decision authority for the entire process.  This brings on several new problems. First someone will probably have to admit to his/her boss that things aren’t as good as they could be.  Second, the particular work process probably won’t be high on the boss’s priorities, since he/she assumes it is being handled competently by subordinates.

 Changing organizational boundaries is not usually an option. Consequently, organizations must learn to recognized work processes that cross these boundaries and must learn to share responsibility for them across the organization. Although these organizational issues can be a barrier to utilizing BPM software, the software can be a tremendous benefit in these situations.  Not only can it help improve the process, but it can make managers aware of the performance of their part of the process.  It can pinpoint problem areas as well as highlight superior performance.  Appointment of a process owner and a process management team with representation from all participating departments is usually a must in these situations.

4.  Resistance to Change.  In general, this is the most frequent obstacle to work process improvement.  People resist change for a whole host of reasons. Often the resistance comes from a fear of job loss or fear of being made obsolete. These fears are very real, because they are often one the real outcomes of process improvement.  If processes are made more efficient, some jobs could be eliminated.  Using BPM software requires people to learn new skills.  For some this may invoke fears of becoming obsolete because they fear they won’t be able to master the new tasks.

 Another manifestation of resistance may come from people just not wanting to put forth the extra effort to learn something new.  They are comfortable with the current situation and anything new would require them to put in more effort.

The most destructive form of resistance is much more passive. That is the situation where people just keep on doing things the same way even though a new process and a new system are in place. Often their excuse is that they couldn’t make the new system work and the work had to get done. The truth is they probably never put the real effort in to make the new software work.

 Effective process improvement starts with a change management plan and every change management plan should deal with the expected resistance.  It should anticipate what resistance is likely to occur and plan to deal with it proactively. This usually means that a compelling case for action must be presented to all the workers involved. They must understand that there is a valid business reason for doing what is being done. They must understand that the leadership wants it to happen. Most importantly, workers must be able to personalize the change plans. They need to understand what will happen to them and what options they have. A good change management plan must allow each worker to visualize his/her future in the new system to the fullest extent possible.

5.  IT Issues.  And last, but not least, barriers to implementing BPM software reside in IT issues. Many IT organizations have adopted global standards and have “locked down” networked computers, and rightfully so.

 Although great improvements have been made in recent years, incompatibilities between software still exist.  Not only is there still a problem with interchangeability of data between applications, but there is also a problem that some software just can’t peacefully co-exist with other software.  The way IT departments have been able to manage this situation is to carefully control the software that is allowed on the network, and sometimes this requires that computers be “locked down” so that new software can’t be installed.

 Additionally IT managers have been charged with trying to control the ever increasing costs of IT. Adding software to the system requires storage space and computing resources and IT managers are naturally reluctant without clear direction from the business leaders.

 This presents a unique problem to those wanting to use BPM software to improve process performance. Not only must you convince the business leaders but you must also convince the IT department.  Organizationally that can be a challenge since the IT department is typically independent and only reports to the business head at the executive level.

 Here again the best approach is a compelling business case.  And engage the IT department early to conduct a pilot test of the software to eliminate concerns about compatibility and resource requirements.

 In summary, we believe that BPM software can be a great enabler to improving business processes.  Improved business processes lead to improved profitability. To achieve the potential gains, each of these obstacles can be overcome if they are recognized and dealt with at the beginning.