Governance Models for Process Management

Clear governance aids process management

Governance is perhaps the most important of the Seven Tenets of Process Management. When
strong governance is implemented, accountability is assigned, roles are defined, and the road to
process management becomes clear. Governance allows organizations to define and focus on
goals and objectives, which creates a path towards process excellence.
Three of the best-practice organizations featured in APQCs Building Strong Process
Management Capabilities report created different governance models for process management.
Energias de Portugal (EDP), Northrop Grumman Aerospace Systems (NGAS), and the U.S.
Department of Veterans Affairs CSP Clinical Research Pharmacy Coordinating Center (PCC) each
created strong, effective governance to focus their process management capabilities.

How Best-Practice Organizations Do It

The three best-practice organizations tailored their governance models to meet their unique
needs.

EDP
EDP wanted a common process management approach that would not only overcome internal
concerns but also create value throughout the organization. The leadership knew that clear
governance would establish and support business units through a set of internal controls as the
organization moved its culture toward a process orientation. Eventually, EDP created a sevenpart model (Figure 1) that contained change management, tools, process models, and elements
of strategic alignment.

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EDP Governance Model for Process Management

Figure 1

1. Process Management Concept

At the center of the model is the process management concept, which focuses on measuring
and improving process performance through process performance evaluations, revisions to
metrics, and tracking initiatives.
2. Process Classification and Prioritization
Process classification and prioritization identifies three types of processes.
1. Business unit processes: are contained in one business unit, owned by staff from that group,
and supported by local development departments.
2. Cross-unit processes: involve more than one business unit; have accountability assigned
across groups, with all involved business units taking responsibility; and have support shared
among business units and coordinated by a central governing body.
3. Corporate processes: are originated, managed, and supported by a corporate center
department and owned by department staff.

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EDPs criteria to identify key process are based on the impact on operations, the number of
resources required, the frequency of execution, and the criticality to operations.
3. Global Architecture and Main Participants
The third item in the governance model the establishment of roles for each level of process
management, wherever it is implemented within the organization. Figure 2 illustrates these
levels and roles.

Process Management Levels and Roles

Figure 2

4. Participants Responsibilities
Participant responsibilities are coordinated during a single planning cycle. Once the governance
model architecture was established, the roles and responsibilities for all participants were set.
5. Planning Cycle for Key Process Improvement
The planning cycle for key process improvement produces an improvement plan that includes
initiatives for each business unit. EDP has created guidelines on planning cycle execution,
business unit involvement, and cycle coordination and reporting.

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6. Structured Improvement Methodologies

EDPs governance model recommends two process improvement methodologies: (1) Lean for
continuous improvement efforts and (2) Jeston and Nelis BPM for process redesign.
7. Other Governance Guidelines
Other governance guidelines provide recommendations for a process framework, a process
design notation, and IT support tools.

NGAS
Keeping processes consistently aligned in an organization as large and distributed as NGAS is a
significant challenge. NGAS operates four facilities and two corporate offices with more than
22,000 employees. To effectively manage the organization, it created three governance bodies
that align corporate strategy with actual work:
1. the affordability steering committee,
2. the process management control board, and
3. individual process management teams.
The NGAS affordability steering committee focuses on the strategic goal of affordability and
uses process excellence as a lever to meet that goal. The committee exists at the highest level of
NGAS. Its goals include:

identifying sector-level (NGAS) goals for affordability function performance,

promoting, executing, and overseeing cross-functional processes,
establishing and enforcing sector (NGAS) policies for performance, and
addressing overlapping or contradictory tactics and initiatives.

The process management control board focuses on maximizing efficiencies and creating a
process-based, quality-focused enterprise. This group is responsible for:

developing and maintaining the process management strategy,

sustaining the process management culture,
reviewing process requests and providing feedback to the executive leadership team,
maintaining the process architecture,
overseeing deployment and use of the process architecture,
reviewing process management initiatives, and
coordinating with other corporate organizations on process management activities.

Finally, individual process management teams act on the strategic vision and work through local
process improvement initiatives. Ultimately, these teams implement projects that result in topline growth and bottom-line performance.

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Individual process management teams and their governing committees take direction from a
site steering committee, which governs all process management activity and consists of local
executive leadership, line management, and non-management employees. In sites without a
strong local presence, the sector-level process management control board takes responsibility
for the local-level process improvement and implementation of strategic initiatives.

PCC
The PCCs governance is rather straightforward. The organizational chart consists of three layers
of management, with the director on top, division associate/assistant directors below that, and
operational section chiefs below them. Three kinds of groups drive organizational activities.
1. Functional sectionsare traditional organizational sections such as IT, quality, laboratory,
and production.
2. Matrix teamsdrive clinical trials, have representatives from every section, and are led by
pharmacist project directors and pharmaceutical project managers.
3. Interlocking committeesfocus on an organizational program such as quality improvement,
safety, or customer focus.
Section chiefs assign employees to projects, which are staffed with a matrix team (Figure 4)
consisting of a pharmacist project director, a pharmaceutical project manager, and at least one
representative from each of the organizations eight sections.

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Matrix Management at PCC

Figure 4

Conclusion
Strong, clear governance can facilitate process management by clarifying who is accountable,
which roles various stakeholders will play, and how work will proceed. When organizations keep
these key elements in mind, process becomes easier to implement and manage, thus making it
more effective throughout the organization. Ultimately, the focus becomes organizational goals
and objectives and the best path for reaching them.

ABOUT APQC
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best practice business research. Working with more than 500 organizations worldwide in all
industries, APQC focuses on providing organizations with the information they need to work
smarter, faster, and with confidence. Every day we uncover the processes and practices that
push organizations from good to great. Visit us at www.apqc.org and learn how you can make
best practices your practices.

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