“TO STANDARDIZE OR NOT TO STANDARDIZE?” - UNDERSTANDING THE EFFECT OF BUSINESS PROCESS COMPLEXITY ON BUSINESS PROCESS STANDARDIZATION

Today, practitioners often have to face a number of challenges during the standardization of business processes, and some processes can be standardized easier (with less effort) than others. Our previous research has shown that major drivers of successful business process standardization are the characteristics respectively the complexity of a particular business process. In order to minimize standardization effort, we need an instrument that allows identifying processes which are appropriate for standardization by assessing each process’ individual degree of complexity. On the way towards such an instrument, the first step is to develop an understanding of how the complexity of a business process affects its standardization. Therefore, the main aim of this paper is twofold: First, we provide a research model representing the fundamental relationships between our main constructs standardization effort, process complexity, and process standardization. Second, we report on the development of valid measurement scales designed to measure these constructs

Issues of standardization concerning organizational culture in change management

This paper is a challenge in taking another view on cultural elements, considered to be more specific then any other strategic issues of management. The paper is structured into the following parts: cultural dimensions and variables; barriers to the organizational culture change and organizational culture change and its adaptation to world values. Conclusions lead to the possibilities of standardizing some related to organizational culture issues, such as: communication, relations and organization’s flexibility, which may be considered as organizational culture elements that are to be standardized.change management; organizational culture; standardization

Should the advanced measurement approach be replaced with the standardized measurement approach for operational risk?

Recently, Basel Committee for Banking Supervision proposed to replace all approaches, including Advanced Measurement Approach (AMA), for operational risk capital with a simple formula referred to as the Standardised Measurement Approach (SMA). This paper discusses and studies the weaknesses and pitfalls of SMA such as instability, risk insensitivity, super-additivity and the implicit relationship between SMA capital model and systemic risk in the banking sector. We also discuss the issues with closely related operational risk Capital-at-Risk (OpCar) Basel Committee proposed model which is the precursor to the SMA. In conclusion, we advocate to maintain the AMA internal model framework and suggest as an alternative a number of standardization recommendations that could be considered to unify internal modelling of operational risk. The findings and views presented in this paper have been discussed with and supported by many OpRisk practitioners and academics in Australia, Europe, UK and USA, and recently at OpRisk Europe 2016 conference in London

Performance management practices within emerging market multinational enterprises: the case of Brazilian multinationals

This study advances our understanding of HRM within EM-MNEs by examining the extent to, and mechanism by, which Brazilian MNEs standardize or localise their performance management (PM) policies and practices, and the factors that influence their design and implementation. We explored these issues through qualitative case studies of three Brazilian MNEs. The analysis of interview data reveals a strong tendency for Brazilian MNEs to centralise and standardise their PM policies and practices. The key finding of this paper is that PM practices within Brazilian MNEs are not based on indigenous Brazilian practices, but rather, are heavily influenced by global best practices. The findings are at odds with previous research, which suggests that EM-MNEs apply different HR practices in developed country subsidiaries and developing country subsidiaries. Also, contrary to expectations, our results indicate that institutional distance does not have a significant influence on the adaptation of PM practices at subsidiary level

Evaluation of Business Processes for Business Process Standardization

Companies often implement multiple process variants in their organizations at the same time. Often these variants differ widely in terms of efficiency, quality and cycle time. In times of highly volatile global economic markets, companies cannot afford unnecessary redundant business processes. Business Process Standardization has therefore become a major topic in the field of Business Process Management, both in research and practice. Management decisions concerning standardization are difficult and complex, due to limited project budgets, organizational and technological changes as well as the increasing challenges of globalization. Choosing suitable processes for standardization is the essential precondition for streamlining business processes in the first place and therefore for reaping the full benefits of Business Process Standardization. However, there is hardly any tool available that supports the evaluation of business processes for standardization. To close this research gap, we develop an instrument for the evaluation of business processes in the context of Business Process Standardization with the aim to help practitioners in their day-to-day operations. Our research aims at providing the necessary preconditions for companies to profit from the advantages of business process standardization and to support decision-making

Performance management practices within emerging market multinational enterprises: the case of Brazilian multinationals

This study advances our understanding of HRM within EM-MNEs by examining the extent to, and mechanism by, which Brazilian MNEs standardize or localise their performance management (PM) policies and practices, and the factors that influence their design and implementation. We explored these issues through qualitative case studies of three Brazilian MNEs. The analysis of interview data reveals a strong tendency for Brazilian MNEs to centralise and standardise their PM policies and practices. The key finding of this paper is that PM practices within Brazilian MNEs are not based on indigenous Brazilian practices, but rather, are heavily influenced by global best practices. The findings are at odds with previous research, which suggests that EM-MNEs apply different HR practices in developed country subsidiaries and developing country subsidiaries. Also, contrary to expectations, our results indicate that institutional distance does not have a significant influence on the adaptation of PM practices at subsidiary level

The Impact of Business Process Complexity on Business Process Standardization - An Empirical Study

Today’s organizations are struggling with increasing business process complexity and face serious problems when standardizing business processes. A possible strategy seems to be to enhance standardization efforts in order to ensure standardization success. In this paper, we analyze the triangle relationship between standardization effort, business process complexity, and business process standardization. We test the hypotheses that higher business process complexity is related to higher standardization effort and lower business process standardization as well as that higher standardization effort is related to higher business process standardization. We report on the development and testing of a conceptual model that allows to understand the impact of business process complexity on business process standardization and standardization effort. Findings from a survey among 255 business process management experts are used to evaluate our hypotheses. Our results suggest that business process complexity has to be considered as an important driver of standardization effort and constrains business process standardization. Moreover, we show that higher standardization effort cannot compensate for higher business process complexity to ensure business process standardization

Succeeding in process standardization: Explaining the fit with international management strategy

Purpose The purpose of this paper is to explore the fit between process standardization and international management strategy of multinational corporations (MNCs) by assessing the compatibility between process standardization and corporate structural characteristics in terms of asset configuration and headquarters-subsidiary relationships. Design/methodology/approach First, after a literature review on MNCs’ strategy and process standardization, the study suggests two propositions on the fit between corporate international management strategy and process standardization. Second, to empirically examine the propositions, the study investigates the outcome of process standardization in three cases with different strategic and structural contexts. Third, using the propositions and empirical findings, the study proposes a framework for aligning process standardization with MNCs’ structural characteristics. Findings Process standardization has a higher degree of fit in MNCs pursuing global integration where process standardization parallels the need for coordinating interdependencies in the functional structure, and is consistent with the headquarters’ operational control over the subsidiaries. Process standardization has a lower degree of fit in MNCs seeking local responsiveness as process standardization disturbs the financial control relationship between the headquarters and subsidiaries and is less crucial for coordination as the subsidiaries contain the necessary coordination mechanisms. Originality/value The study provides in-depth understanding of how the international management strategy and consequent structural characteristics of MNCs affects process standardization in the course of a global enterprise resource planning implementation. The study proposes conditions of fit for aligning process standardization with asset configuration and headquarters-subsidiary relationships of an MNC. </jats:sec