operatinal excellence

This study examines the impact of process management as a multi-dimensional construct (including process orientation, process mapping and process standardization) on operational efficiency performance, customer effectiveness performance and financial performance. The perceived importance of both standardization and delivering customer-specific products in the market are used as possible contingency variables to explain the contextual impact of process management on efficiency and effectiveness. Structural equation modeling is used to analyze survey data collected from 199 participants of various courses and masterclasses at a business school in the period 2012/2013. The results show that process management consists of different elements including process orientation, process mapping and process standardization and improvement. Process orientation and process mapping are prerequisites for process standardization. The latter directly impacts operational efficiency performance and customer effectiveness performance. It also shows that process management does not impact financial performance directly, but indirectly via operational performance and customer performance. This study also shows that organizations must take time i) to enhance the process orientation of their employees, and ii) to map and describe existing processes as a basis for process improvement: the point is to get the basics in order independent of the type of competitive environment.