Why KPIs don’t always succeed in driving operational performance and how Process Mining can help
Tom Devonald
By Tom Devonald
Blog

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Performance management often involves key performance indicators (KPIs). The idea is simple, a KPI is a measurable value that shows how well an organisation is performing against its business targets. This ability to measure  allows organisations to alter their approaches to ensure they are constantly performing as efficiently and effectively as possible.

It is important that KPIs align with the strategic priorities of the business. Key to this is input from all levels of an organisation. Valuable insight can be drawn from KPIs that show how strategic targets and their underlying causal drivers are performing. It is important that visibility continues to the point of driving improvement activities.

Unfortunately for a number of reasons KPI's often fail:

  1. Large organisations are often siloed which leads to teams or departments not sharing knowledge. For a KPI to be successful, there must be buy in from affected business areas.
  2. In organisations of all sizes, data can also be siloed with little integration existing in their landscape, if any. This makes generating a valuable KPI very difficult if the data in different areas can’t be related to each other.
  3. Organisational and data silos can make it difficult to get an end-to-end view of what is really going on.

 

So why is Process Mining beneficial to an organisation?

Celonis gives visibility of an end-to-end process cutting through data and organisational silos. Process Mining can provide organisations with the ability overcome common problems in implementing KPIs and its analytics can help organisations reengineer their processes. Process Mining can measure KPIs to drive business outcomes rather than rely on the KPIs that a particular silo can accommodate.

 

Why does the new upgrade from Celonis make sense for your organisation?

1. Celonis Proactive Insights (PI) provides the ability to unravel the complex web of events that make up a process and provide an output of high-level KPIs which provide valuable insight into process performance. This ability to dive in to transactional level data allows process owners to identify where serious deficiencies lie and start implementing a solution.

Blog Image 1 04.05.17.png2. Through the new built-in features, Celonis PI makes it far easier to analyse conformance against the documented process by benchmarking the actual process against an organisation’s business process model and notation(BPMN). The ability for process owners and experts to upload their models into the Celonis application provides a new and enhanced view of how well the process is performing.

Not only can an organisation upload a BPMN model but they can also be built up from scratch within the Celonis tool using the ‘Conformance editor’. Gateways and events can be generated  until a full process flow is created whilst tasks can be added which define activities in Celonis. In a very short period of time, a complete BPMN model can be created against which the data can be compared by launching the analysis.

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Launching the analysis gives an immediate comparison between the actual process that exists in the data and the documented process in the BPMN model. Within seconds the user can see the percentage of conforming cases and conformance over time to help generate more powerful and actionable insight from the tool.

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Arguably the most powerful feature of the conformance tool its ability to list the violations in the process, show how often they occur and what effect the violations have on the throughput time. Showing that a violation of ‘Change Price’ can add on average eight days to the throughput time of cases immediately highlights where the most severe issues and bottlenecks lie therefore giving organisations the ability to investigate these further.

 

Tom Devonald
By Tom Devonald

Tom is a consultant working in the process and integration spaces at AgilityWorks and spends a lot of time working with the Boomi platform to help organisations realise the benefits that iPaaS tools have to offer. Outside of work, Tom is a keen runner and enjoys spending his time watching nearly any type of sport!

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