Developing Organization-Wide BPM Capabilities in an SME: The Approaches Used, Challenges and Outcomes

Abstract

Business Process Management (BPM) is well known for improving the competitiveness and sustainability of a business, and is widely applied. But, BPM practices in SMEs are alarmingly low, regardless of the potential positive impacts BPM brings. This is due to: limited resources, absence of a cross-functional mindset and lack of strategic clarity. Adopting BPM as a management paradigm across the enterprise [hereafter referred to as Enterprise-BPM (E-BPM)] reduces operational inefficiencies and supports innovative practices essential for success, which is the key to SMEs. However, SMEs lack the required know-how, and hence, BPM education/training plays a vital role in supporting this transformation. This case is based on a Norwegian conference venue operating in the Norwegian market. This narrative describes the organization, the context for deploying BPM on enterprise-level and related challenges.

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

You are not authorized to view Teaching Notes. Please contact your librarian for instructor access or sign in to your existing instructor profile.

Resources

Appendix 1: Further Details About the Case Study

Values and Vision

The Norwegian version of the company vision is provided here, followed by an English translation.

The Norwegian version of the company’s vision statement is seen here.

Translation of the vision is as follows:

“Lower your shoulders”

Kringler is a place where you feel taken care of in a professional way, that allows you to lower your shoulders because

There is no need to worry about anything going wrong with the conference, the conference hosts will facilitate every request/customisation you make

The proximity to the nature, the sound of the waterfall and the forest has a calming, stress-relieving effect on the human mind

The buildings are spacious and modern with high ceilings, whilst at the same time filled with history. This allows you to breathe with your stomach, not simply your chest

Movement in the beautiful landscape helps focus your mind on the importance of being present in every moment Delicious food and inspiring surroundings help increase innovativeness and creativity

Snapshots From the Company Website (www.kringler.no)

The following snapshots are from the company website, and they depict how it aspires to reflect their vision of being a “home away from home”.

These are pictures of sledges in the snow, a lit star at a window, a fireplace, a dining table near French windows, a bare Christmas tree outside a boarded-up wall, two people standing at a long table with rows of things on it and a single-level house under a cloudy sky.

This set of eight pictures is titled, Kringler Gjestegard.

The first picture has a group of people at a table with three large windows behind them with the word Konferanser on this image. The second is a picture of a dessert in a jar with layers of cream and fillings, with whipped cream on top and a spoon beside the jar on the table. The word Selskafer is seen on his image. The third image is of two large shiny vats with taps and pipes around them. The word Gardsbryggeriet is seen on this image. The fourth picture is of a person on a rope, with tall trees in the background. The words Aktiviteterog Opplevelser are seen on this image.

This is a set of four pictures with a word on each picture.
Process Architecture

A Process Architecture (PA) is an overview of the processes of an organization, divided into management processes, core processes and enabling processes (Green and Ould 2005). This allows for a holistic view of the organization, and how the processes are all related. Kringler has three main areas of operation (see Figure 4—Organizational structure) all visualized in the PA. Their respective processes and responsibilities are depicted in the PA presented below. Following is an introduction to the PA explaining the four types of processes.

Management Processes

The management processes include all processes related to the overall government and business strategy. This includes managing the strategy of the organization, ensuring alignment with vision and values and managing stakeholders as described in the stakeholder analysis. Financial management (i.e. invoicing) as well as managing governmental funding/financial support is part of this process area. Governmental affairs include all reporting of sold quantum (food/drinks) as well as financial reporting (i.e. taxes). Management of food and liqueur licences are part of the management processes as well.

Core Processes—Operating

The four main areas of operation all belong to the core processes. The Head Chef controls the supplies of produce to the kitchen, is in charge of all meal services (including the menu) and planning of kitchen rosters. The Head Waiter is responsible for the dinner service (from setting the table to customer requests for pre-/post-dinner activities or drinks). The Conference Host manages the process of hosting the conferences and facilitates all customer requests concerning these. Furthermore, invoicing, and changes in the bookings are part of this process area, as is ensuring the compliance of health and safety standards. The Housekeeper is in charge of cleaning the conference rooms as well as accommodation, managing the stock of beddings/linens and reporting of any maintenance issues to the janitor.

Enabling Processes

Enabling processes include human resource management, marketing and social media, maintenance and information technology. The IT is currently limited to the use of Facebook to notify employees and the outputs from HotSoft to provide the necessary information on customer specifications and requirements.

Supporting Processes

The supporting processes in this PA represent the processes that as of 2016 do not belong under any of the main areas of operation; thus, they are run by the owners, or whoever has free time, on an ad hoc basis. These include the garbage processes (such as composting food waste), the brewery, the breeding of Scottish highland cows, Transportation of guests to/from the airport and the landscaping. The Green house is a supporting process as it provides fresh herbs to the kitchen, and the landscaping is an important part of the upkeep of the “cozy” and picturesque environment (Figure 9).

The four kinds of processes seen in this image are:

Management processes, core processes – operating, enabling processes and supporting processes. The seven boxes seen in the management processes stage are:

  • Manage strategy.
  • Financial accounting.
  • Funding/financial support.
  • Manage corporate governance.
  • Manage governmental affairs.
  • Manage licencing.

The next stage of core processes has four large boxes with smaller boxes under each. These boxes are listed below along with the boxes under them:

  • Head chef
    • Manage suppliers to the kitchen.
    • Manage stock supply.
    • Breakfast, lunch and dinner service.
    • Manage rosters for kitchen staff.
    • Manage customer specifications.
    • Health and safety regulations.
    • Plan for seasonal menu.
    • Cleaning of the kitchen after service.
    • Quality of produce.
  • Head waiter (evening)
    • Meal service.
    • Setting the tables,
    • Pre-dinner drinks.
    • Purchase office materials.
    • Light cleaning.
    • Manage customer specifications.
    • Facilitate for conference guests.
    • Manage wine stock supply.
  • Conference host (day)
    • Manage bookings.
    • Coffee/Tea buffet all day.
    • Information to guests.
    • Manage invoicing.
    • Manage stock supply.
    • Coordinate transport service.
    • Plan team building activities for guests.
    • Manage changes to bookings.
    • Manage customer specifications.
    • Health and safety.
  • Housekeeper
    • Placing orders for new linens.
    • Laundry (towels, not linens).
    • Cleaning of common rooms.
    • Cleaning of conference rooms.
    • Cleaning of accommodation.
    • Prepare for double rooms.
    • Facilitate for conference guests.
    • Tell the janitor about broken things.
Figure 9: The Process Architecture derived for the company
This image captures the process architecture for a company in four kinds of processes.
Occupancy Rate

The occupancy rate is a percentage of the maximum occupancy at a given time. This is given as the number of nights guests have booked accommodation at Kringler, counted as the total number of beds occupied. Depicted is the first half of 2016, with an occupancy rate of 68%. For such a small venue, the CEO confirms this to be a good percentage as they are limited by the number of beds to accommodate several larger groups, thus often having less than all 51 beds booked (Olstad 2016).

Economic Transcript

The economic transcript presents the gross revenue generated by Kringler in the first half of 2016. This includes all areas of operation as well as the supporting processes (i.e. the brewery). The total revenue is found to be 8337 mill NOK or approximately 1.4 mill AUD.

Figure

The table seen in this image is replicated below:

man

Tir

ons

tor

fre

Lor

son

man

tir

ons

tor

fre

lor

son

man

tir

ons

tor

fre

lor

son

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

Totalt

Rom

34

34

34

34

34

34

34

34

34

34

34

34

34

34

34

34

34

34

34

34

34

7242

Blokkert

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

68

Kapasltet

34

34

34

34

34

34

34

34

34

34

34

34

34

34

34

34

34

34

34

34

34

7174

Bekreftet

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

2226

Ubekreftede

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Comp.

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Til Salgs

34

34

34

34

34

34

34

34

34

34

34

34

34

34

34

34

34

34

34

34

34

4948

Venteliste

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

11

Dagrom

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

8

Daggjester

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Ankomster

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

1923

Avreiser

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

1923

BeleggA

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

31

Belegga

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

31

Belegge

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

31

Bookingmeny

21

0

20

0

0

0

0

0

0

0

0

0

0

0

0

3411

Avbestilt

0

0

0

0

0

0

0

0

0

0

0

1617

No Show

0

0

0

0

Tunr away

0

0

0

0

Ukjent

0

0

0

4

A large oval occupies the empty part of the table seen above and a line from this oval points to a circle around both the 1923 numbers on the last column. The text in the large oval reads: The occupancy rate of Kringler Gjestegard AS is 1923 nights in the first half of 2016, or 68% of the maximum occupancy rate for the conference venue.

The second table in this image is replicated below:

Kringlergjestegard AS

Kassaliste 01.01.2016–31.07.2016 HR021-02 (I)

15.08.2016

Navn

Nei

Repportundertyper

Oppgjar vakt:Sammendrag

Debitere

Alle

Konto #

Beskrivelse

Transaksjoner

Debet

Kreditt

Belep

1900

Kontant

4

1,225.00

-

1,225.00

1902

Kortbetaling

228

6,40,401.00

-

640,401.00

1905

Fakturastenging

264

8,658,641.00

962,719.00

7,695,922.00

Totalt

496

9,300,267.00

962,719.00

8,337,548.00

A line points to the number 8,337,548 in the above table to text that reads: Translation of economic transcript:

States from the first half of 2014, the gross amount of revenue generated by the business is 8.337 mill NOK, or approximately 1.4 mill AUD.

The table in this image captures the data across different categories over a time period.
SWOT Analysis as of September 2015

Strengths

Weaknesses

Entrepreneur attitude in the top management Willingness to develop and improve further Customer-centric organization—willingness to listen and customize

Highly skilled chefs, good quality produce Personal and “homemade”

Location: Close to the international airport Functional layout of the venue

Classy and a well-developed style of the interior

Top management eager to continue growing and develop to exceed customer expectations

The venue stands out in the crowd of larger hotels, etc. with its homely feeling

Employees do not see the requirements of their work

Poor communication between the top management and the employees Limitation in terms of accommodation capacity (only 51 rooms)

The CEO has too many responsibilities and faces too many tasks on a daily basis, unable to keep an organizational overview in mind

The top management wants to expand too rapidly, not allowing the organizational culture to grow accordingly

Highly dependent on the top management in daily routines Little responsibility taken by the employees

Need for innovation in the kitchen

Few small conference rooms

Opportunities

Threats

Focusing on the fresh produce, an onsite brewery and farm fresh meat, eggs, etc.

Package deals, in terms of offering a set price for a fixed menu a few nights each month

Very personal and close relationship with the customers, loyal customers returning

Economic downturn due to low oil prices

For the venue to become too much like the more traditional conference venues (i.e. hotels) and lose their uniqueness

Not able to complete projects properly due to time issues

Appendix 2: Improvements Attempted

Insights Obtained From the Management Survey

The survey was created by the CEO and answered by all of the four middle-level managers, with a response rate of 100%. All questions were to be answered from the perspective of how the respondent felt the assertion was true for Kringler as an organization. The four respondents are represented in the table by the distribution of their replies. Areas of potential interest are highlighted in the table.

Question

To little extent

To some extent

To a large extent

To what extent is Kringler able to accommodate special requests from the customers

0

2

2

To what extent is Kringler able to accommodate changes “on the spot”

0

4

0

To what extent do changes imply an increase in the costs that will not be covered by the customer

4

0

0

To what extent does Kringler has the resources to accommodate changes “on the spot”

0

1

3

To what extent is Kringler delivering the same quality product to all its customers

0

0

4

To what extent is Kringler able to respond to booking requests within the same working day

0

0

4

To what extent is efficiency in the work routines an area of focus at Kringler

0

1

3

To what extent is minimization of costs an area of focus at Kringler?

1

2

1

To what extent is Kringler providing a product that is well aligned with the expectations of its customers

0

0

4

To what extent is the values of Kringler reflected in how processes are performed

0

2

2

To what extent does Kringler receive good feedback from its customers

0

2

2

To what extent does Kringler receive feedback on things that should be done differently

4

0

0

What are some areas of improvement

Accommodation (more rooms)

Quality of the food

Customer service after dinner is served

Employee Survey

The two employee surveys undertaken showed a gap between the expectations from the top management and how the employees felt responsible for the organizational performance. A total number of 20 employees answered the survey (100% of the workforce).

The following figure displays the answers collected from the employee survey to the question “What, in your opinion, is embedded in the strategy of ‘doing the little things better’?”. It is important to note the employees were asked this question as a multiple choice question, but given the opportunity to add options as well. As the quality of the food, customer service, adaptability and activities offered to the customers are rated as very important to the strategy of “doing the little things better”, the lack of willingness to improve on these areas is not coherent in the answers. As the middle-level managers perform all the above-mentioned processes, and they clearly state that they see the value and importance of these, top management wishes for them to be more involved in continuously improving these areas.

The first graph plots the responses to the ten categories of responses captured in this horizontal bar graph that are captured on the x axis in percentages ranging from 0 to 100%, in 10% intervals, for each response captured on the y axis. The table below captures the approximate values for each response:

Category

Percentage

The quality of the lunch

55%

The quality of the snack

35%

The quality of the dinner

72%

The selection of wines/beers

38%

Customer service

72%

Standard on the accommodation

28%

Facilities in the conference rooms

36%

Team building activities offered to the customers

73%

Adaptability

55%

Transport to/from the airport

45%

The second image has two sections with steps in the bottom section contributing to the flow chart on the top section. Both flows start with a dark circle on the left and end with a circle with a cross in it, on the extreme right. The top section is labelled Head chef/Sous chef and the bottom section is labelled Hear waiter (+extra waiting staff). The steps in the top section are labelled with the suffix A and steps in the bottom section are suffixed B. The flow in the top section is as follows:

Steps that lead from one to the next:

1A: Receives notification.

2A: Prepares first course.

3A: Receives notifications after 1st course.

4A: Prepares second course.

5A: Receives notification after 2nd course.

6A: Prepares dessert.

End.

The flow in the bottom section is as follows:

Steps that lead from one to the next:

1B: Seats customer.

2B: Upgrade beverage? If yes, go to 3Bi, if no, go to 3B.

3Bi: Change glass/wines. Go to 3B

3B: Pour wine.

4B: Serve first course. An arrow from this box points to another that reads, clean plates. An arrow from this box then points to step 5B.

5B: Pour wine.

6B: Serve second course. An arrow from this box points to another that reads, clean plates. An arrow from this box then points to step 7B.

7B: Coffee AND dessert wine? If yes, go to step 8Bi, else, if only coffee, go to 8B.

8Bi: Pour wine, go to step 8B.

8B: Pour coffee.

9B: Serve dessert. An arrow from this box points to another that reads, clean plates. An arrow from this box points to the end circle.

Arrows are seen pointing from 1A to 1B, 2A to 2B, 4A to 6B and 6A to 9B. Arrows are also seen pointing from 3B to 3A and 8B to 5A.

Figure 10: Process map of meal service process
The first image is a bar graph that plots the percentage of responses across different categories in an employee survey. The second is a flow chart that illustrates the meal service process.

The two sections seen here are labelled customer and CEO on top and below respectively. The flows in both sections begin with a dark circle and end with a circle with a cross in it, on the extreme right. The steps in the customer section labelled with the suffix A, lead to steps in the CEO section labelled with the suffix B. They are in the below order:

1A: Sends request.

1B: Receives request.

2B: Check availability.

3B: Availability? If yes, go to 4B. If No, go to step 4Bi.

4B: Confirms availability and price. Go to step 3A.

4Bi: Proposes different dates. Go to step 2A.

2A: Replies regarding new dates. Go to step 4B.

3A: Confirms booking.

5B: Existing customer? If yes, go to 6B, if no, go to 5Bi, which reads, create customer account.

6B: Confirms booking in booking system. Go to 4A.

7B: Notifies kitchen, house keeper and head waiter upon arrival. Flow ends.

4A: Receives confirmation. End of flow.

Figure 11: Process map of conference booking process
This flow chart illustrates the process of booking conference rooms with steps across the box titled customer and the other titled, CEO.
Examples of Attempted Process Modelling Efforts

To provide a better understanding of the processes in place at Kringler, some processes were modelled in April 2016 as part of attempting an enterprise-wide approach to BPM. The two main processes modelled were the meal service process and the booking of conference process.

These processes were presented to the top management, with the intension to convey: (i) how the processes interacted with each other and to display how the different middle-level managers needed to work together and (ii) how the customer interacts with the company when a booking is made. Note that there may be syntax errors in place, as the modelling of the processes was performed without prior training in process modelling tools. The reason for inclusion of these models with the possibility of syntax errors is to provide an overview of the processes in the business for the reader of this teaching case.

The process of meal service (see Figure 10) involves the Head Waiter and the Head Chef. The modelled process is based on the dinner service, but it is more or less the same process for lunch service, except that there is no first course. As the kitchen solely relies on being notified by the waiter on preparing the courses, this timing as well as an understanding of process collaboration is important. If the kitchen is not notified, guests will have to wait for their next course, or the food might get cold if the timing is off, which can have a big impact on the customers’ perceptions of the food service. The focus of the improvement efforts undertaken since 2015 has been to help kitchen staff to perceive the supplier–customer relationship. However, the two parties still lack a holistic process-centric view, and they focus too much (according to the top management) on completing each task in their area of operations than being concerned with the overall process.

The second process modelled was the booking process and is shown in Figure 11. The request comes in via phone or email to the CEO. It is noted and handed over to the Conference Host who takes over the request from there. This is due to the lack of IT knowledge in the company (only the CEO is familiar with the booking system). After the booking is registered, there is some communication back and forth with the customer to confirm the selected dates, before finalizing the booking. This communication is often subject to delays as the requested dates are not always available, and the changing of the dates needs approval from a higher level in the customer company. Furthermore, as the CEO is the only one with the training to handle bookings, this process relies on her availability to be completed.

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

locked icon

Sign in to access this content

Get a 30 day FREE TRIAL

  • Watch videos from a variety of sources bringing classroom topics to life
  • Read modern, diverse business cases
  • Explore hundreds of books and reference titles