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JWI 550: Operations Management
Course Project Part D
Assessment Scorecard using the PEMM Framework
Due: Sunday, Midnight of Week 9 (10% of course grade)
Overview
Making changes to improve processes is a powerful and necessary step in building competitive strength, but
organizations must ensure that their (current and new) processes are capable of sustaining higher
performance over time. To do that, they must develop two kinds of characteristics: process enablers, which
pertain to individual processes, and enterprise capabilities, which apply to the entire organization. To help in
this endeavor, it is useful to leverage a proven model or “framework.” One of the most effective models is the
1
Process and Enterprise Maturity Model (PEMM).
In the final component of your Operations Management Course Project, you will leverage PEMM to create a
“scorecard” that will help you to assess your organization’s process and enterprise capabilities to support and
sustain the improvements you have targeted. Specifically, you will assess and evaluate the:
Five process enablers of…





Design: The comprehensiveness of the specification for how the process is to be executed
Performers: The people who execute the process, particularly in terms of their skills and knowledge
Owner: A senior executive who has responsibility for the process and its results
Infrastructure: Information and management systems that support the process
Metrics: The measures the company uses to track the process’s performance
Four enterprise capabilities of…




Leadership: Senior executives who support the creation of processes
Culture: The values of customer focus, teamwork, personal accountability, and a willingness to
change
Expertise: Skills in, and methodology for, process improvement and design
Governance: Mechanisms for managing complex projects and change initiatives
Instructions
1) Assess your value stream and your organization using the PEMM Scorecard exhibit on the last two pages
of the Hammer article, “The Process Audit” (HBR), provided in Week 1 and Week 9
2) Discuss your findings, and highlight the strengths and opportunities for improvement
3) Develop actionable recommendations for presentation to senior management
1
The Process and Enterprise Maturity Model as described in “The Process Audit” by Michael Hammer in the Harvard Business
Review, April 2007.
© Strayer University. All Rights Reserved. This document contains Strayer University Confidential and Proprietary information and may not be copied,
further distributed, or otherwise disclosed in whole or in part, without the expressed written permission of Strayer University. This course guide is
subject to change based on the needs of the class.
1
JWI 550: Operations Management
Course Project Part D
Submission Requirements
Since this is the part of the Operations Management Course Project where you will assess the capability of
the organization to proceed and make the case for your recommendations (and requirements) for moving
forward, your assignment should be written in the form of a recommendation report delivered to senior
management
This means that you must leverage the data and findings you have already gathered in Parts A, B and C, but
not simply repeat it. Your focus must be squarely on moving forward and include recommended actions and
explanations of how success will be measured.
As you gather your information and craft your report around the PEMM scorecard, put yourself in the position
of someone who has not been as close to the process as you have been. Help them to focus on what really
matters, specifically:

The opportunity for wins if the improvement is successful

The risks to the organization if the initiative is not implemented (or not implemented successfully)

What conditions need to be in place to provide the greatest likelihood of success
Scorecards are powerful tools for providing easy-to-understand snapshots, so make sure your scorecard tells
the story you want it to tell. Keep your narrative tight and your paragraphs short. The report should be
approximately 3 pages in length and definitely no longer than 4 pages.
© Strayer University. All Rights Reserved. This document contains Strayer University Confidential and Proprietary information and may not be copied,
further distributed, or otherwise disclosed in whole or in part, without the expressed written permission of Strayer University. This course guide is
subject to change based on the needs of the class.
2
JWI 550: Operations Management
Course Project Part D
RUBRIC: Assignment Part D
CRITERIA
Assess your value stream
and your organization using
the PEMM Scorecard found
in the Hammer article, “The
Process Audit” (HBR) .
Unsatisfactory
Low Pass
Pass
High Pass
Honors
Missing PEMM
Scorecard.
PEMM Scorecard is
included but it is
partially filled out or
poorly presented.
PEMM Scorecard is
fully filled out and
adequately
presented. .
Good, detailed
PEMM Scorecard,
fully filled out and
well presented.
Exemplary PEMM
Scorecard, fully
filled out, and
excellently
presented.
No discussion of
findings and/or offtopic discussion
with poorly
structured overview
of opportunities for
improvement.
Basic discussion of
findings, but
incomplete or
unclear overview of
opportunities for
improvement.
Clear discussion of
findings and basic
overview of
opportunities for
improvement.
Clear discussion of
findings and
detailed overview of
opportunities for
improvement.
Excellent
discussion of
findings and
detailed overview of
opportunities for
improvement, with
specific references
to past initiatives
and comparison to
current situation.
Incomplete,
unclear, or missing
actionable
recommendations
for presentation to
senior
management.
Basic explanation
of actionable
recommendations
but lacking specific
details needed to
support decision
making.
Good explanation
of actionable
recommendations
with some specific
details needed to
support decision
making.
Excellent, wellwritten explanation
of actionable
recommendations
with clear and
concise details
needed to support
decision making.
Excellent
explanation of
actionable
recommendations
with clear and
concise details
needed to support
decision making.
Very persuasively
presented.
Finished product is
disorganized and/or
difficult to
understand and
includes significant
grammatical errors.
Finished product is
free from significant
grammatical errors,
but it lacks
organizational
cohesion, making it
challenging to read
and/or to
understand
recommendations.
Finished product is
free from significant
grammatical errors
and presents
responses and
recommendations
in a satisfactory
manner.
Finished product is
well designed and
written, with a clear,
easy-to-read layout
and few
grammatical errors.
Finished product is
well designed and
written, with a clear,
easy-to-read layout
and few
grammatical errors.
Student makes
good use of color
and/or other design
elements to create
a visually appealing
report.
Weight: 40%
Discuss your findings, and
highlight the strengths and
opportunities for
improvement
Weight: 25%
Develop actionable
recommendations for
presentation to senior
management
Weight: 25%
Finished product presents
responses and
recommendations in a wellorganized format that is easy
to read and free from
grammatical errors
Weight: 10%
© Strayer University. All Rights Reserved. This document contains Strayer University Confidential and Proprietary information and may not be copied,
further distributed, or otherwise disclosed in whole or in part, without the expressed written permission of Strayer University. This course guide is
subject to change based on the needs of the class.
3
www.hbrreprints.org
TOOL KIT
A new framework, as
comprehensive as it is easy to
apply, is helping companies
plan and execute processbased transformations.
The Process Audit
by Michael Hammer

Reprint R0704H
This document is authorized for use only by Ashley Cleckley in Operations Management at Strayer University, 2019.
A new framework, as comprehensive as it is easy to apply, is helping
companies plan and execute process-based transformations.
TOOL KIT
The Process Audit
by Michael Hammer
COPYRIGHT © 2007 HARVARD BUSINESS SCHOOL PUBLISHING CORPORATION. ALL RIGHTS RESERVED.
Business has embraced process management
as a way of life. New and controversial when I
first described the concept 17 years ago in the
pages of this magazine (see “Reengineering
Work: Don’t Automate, Obliterate,” HBR July–
August 1990), the process-based approach to
transformation is now used routinely by enterprises all over the world. Few executives
question the idea that redesigning business
processes—work that runs from end to end
across an enterprise—can lead to dramatic enhancements in performance, enabling organizations to deliver greater value to customers
in ways that also generate higher profits for
shareholders. In virtually every industry, companies of all sizes have achieved extraordinary
improvements in cost, quality, speed, profitability, and other key areas by focusing on,
measuring, and redesigning their customerfacing and internal processes.
Sadly, however, casualties litter the road.
Since 2000, I have personally observed hundreds of companies try to rejuvenate themselves by creating or redesigning business
processes. In spite of their intentions and investments, many have made slow or little
progress. Even businesses that succeeded in
transforming themselves have found the endeavor arduous and harrowing. All change
projects are tough to pull off, but processbased change is particularly difficult. Contrary
to widespread assumptions, designing new
business processes involves more than rearranging work flows—who does what tasks, in
what locations, and in what sequence. To make
new processes work, companies must redefine
jobs more broadly, increase training to support
those jobs and enable decision making by
frontline personnel, and redirect reward systems to focus on processes as well as outcomes.
As if that weren’t enough, enterprises also
have to reshape organizational cultures to emphasize teamwork, personal accountability,
and the customer’s importance; redefine roles
and responsibilities so that managers oversee processes instead of activities and develop people rather than supervise them; and
realign information systems so they help cross-
harvard business review • april 2007
This document is authorized for use only by Ashley Cleckley in Operations Management at Strayer University, 2019.
page 1
The Process Audit •• •T OOL K IT
Michael Hammer (michael_hammer@
hammerandco.com) is the founder of
Hammer and Company, a management
research and education firm based in
Cambridge, Massachusetts.
harvard business review • april 2007
functional processes work smoothly rather
than simply support departments.
In most of the companies I studied, executives were floundering. They realized that they
needed to change many things to harness the
power of processes, but they were unsure
about what exactly needed to be changed, by
how much, and when. Their uncertainty was
manifest in hesitant decisions and confused
planning, in endless debates and unproductive
discussions, in unwarranted complacency and
equally unwarranted despair, in errors and rework, in delays and abandoned efforts. People
kept asking one another questions such as, Did
we start with the right thing? How do we know
we are making progress? What will the organization look like when we finish? Moreover, executives, especially when they work in different functions, often disagree about the factors
that aid process-based transformations. Each
has a pet idea based on his or her expertise.
Like the six blind men and the elephant, one
focuses on technology, another on human resource issues, a third on organizational structure, and so on, creating confusion and conflict. Managers also have a tendency to swing
from wild optimism that developing new processes will be painless to unremitting gloom
that the task is hopeless. Without knowing
what they must concentrate on and when, executives have been unable to master the science of transforming business processes.
Five years ago, I started a research project in
conjunction with the Phoenix Consortium—a
group of leading companies with which I work
closely—to develop a process implementation
road map. My aim was to create a framework
that would help executives comprehend, plan,
and assess process-based transformation efforts. Over time, I identified two distinct
groups of characteristics that are needed for
business processes to perform well and to sustain that performance (see the exhibit “The
Process and Enterprise Maturity Model”). One
set of features applies to individual processes.
These process enablers determine how well a
process is able to function over time. They encompass the comprehensiveness of a process’s
design, the abilities of the people who operate
the process, the appointment of a top-level
process owner to oversee the process’s implementation and performance, the match between
the organization’s information and management systems and the process’s needs, and the
quality of the metrics that the company uses
to measure process performance. My research
shows that not all organizations are equally
prepared to put these enablers in place.
Companies that are able to do so possess important enterprisewide capabilities: Their senior executives support a focus on processes;
their employees greatly value customers, teamwork, and personal accountability; they employ people who know how to redesign processes; and they are well organized to tackle
complex projects.
Together, the enablers and capabilities provide an effective way for companies to plan
and evaluate process-based transformations. I
presented the model’s first version to the Phoenix Consortium’s members in 2004, and they
tested and revised it extensively. In 2006, I finalized the framework, which I call the Process
and Enterprise Maturity Model (PEMM). In
the following pages, I discuss the five process
enablers and four enterprise capabilities in
detail. I also show how companies that use
PEMM can take the task of process transformation out of the arena of intuition and mystery
and subject it to measurement, evaluation, improvement, and replication.
Can Your Processes Deliver High
Performance?
My two decades of experience with business
processes have taught me that form influences
function—that is, process design determines
performance. By design, I mean the specification of which people must perform what tasks,
in what order, in what location, under what
circumstances, with what information, and to
what degree of precision. Certainly, companies can use techniques such as Six Sigma and
TQM to ensure that employees execute processes correctly. However, redesigning processes is often the only way to improve their
performance dramatically. Doing so eliminates many of the nonvalue-adding activities
that are the source of costs, errors, and delays
and helps companies come up with process innovations (see my article “Deep Change: How
Operational Innovation Can Transform Your
Company,” HBR April 2004).
Although process redesign is no longer the
terra incognita it once was, one issue stubbornly persists: Most companies tend to
overlay new processes on already established
functional organizations. However, the appur-
This document is authorized for use only by Ashley Cleckley in Operations Management at Strayer University, 2019.
page 2
The Process Audit •• •T OOL K IT
tenances of a traditional organization—such as
job definitions, performance measurement systems, and managerial hierarchies—don’t always support high-performance processes. For
instance, senior executives might encourage
managers to create a cross-functional process
but then prevent them from altering the company’s performance measurement system appropriately. That’s shortsighted. The revamped
business process needs employees to focus on a
broad, common outcome; if the organization
measures performance as it has always done, it
will reward people for focusing on narrow,
functional goals. How can the process live up
to its potential under those circumstances?
Companies will invest in retraining employees
to work in a new process, but they balk at footing the bill for helping people understand how
the process works as a whole. If employees
don’t know the context in which they work,
they will be prone to making decisions that
aren’t in the best interests of the entire
process. Similarly, leaders will try to create
processes without altering managerial responsibilities. That’s problematic, too. A highperformance process extends across functional
boundaries, so a senior executive must supervise it. Without such a person, the process
won’t gain traction within the organization.
The Process and Enterprise Maturity Model
Companies need to ensure that their
business processes become more
mature—in other words, that they are
capable of delivering higher performance over time. To make that happen, companies must develop two
kinds of characteristics: process enablers, which pertain to individual
processes, and enterprise capabilities,
which apply to entire organizations.
There are five process enablers…
Design: The comprehensiveness of the
specification of how the process is to be
executed.
Performers: The people who execute
the process, particularly in terms of their
skills and knowledge.
Owner: A senior executive who has responsibility for the process and its results.
harvard business review • april 2007
Infrastructure: Information and management systems that support the process.
Metrics: The measures the company
uses to track the process’s performance.
…and four enterprise
capabilities.
Leadership: Senior executives who
support the creation of processes.
Culture: The values of customer focus,
teamwork, personal accountability, and a
willingness to change.
Expertise: Skills in, and methodology
for, process redesign.
Governance: Mechanisms for managing complex projects and change initiatives.
Companies can use their evaluations
of the enablers and capabilities, in tandem, to plan and assess the progress of
process-based transformations.
While studying organizations that were implementing new processes, I kept track of
their errors of omission. I also analyzed the
various factors that were necessary to sustain
business processes. I tested both lists over
several years and winnowed them down to
the five characteristics that I find are essential
for any process to perform well. A process
must have a well-specified design; otherwise,
the people performing it won’t know what to
do or when. The people who execute the process, the performers, must have appropriate
skills and knowledge; otherwise, they won’t
be able to implement the design. There has to
be an owner, a senior executive who has the
responsibility and authority to ensure that the
process delivers results; otherwise, it will
fall between the cracks. The company must
align its infrastructure, such as information
technologies and HR systems, to support the
process; otherwise, they will impede its performance. Finally, the company must develop
and use the right metrics to assess the performance of the process over time; otherwise, it
won’t deliver the right results. These enablers give a process the potential to deliver
high performance.
The enablers are mutually interdependent:
If any are missing, the others will prove to be
ineffective. A weak owner can’t implement a
strong process design, poorly trained performers can’t carry out the design, a bad design cannot optimize the process metrics no matter
how well thought-out they are, and so on. A
process that is missing an enabler might deliver results in the short term …
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