Business Process Management and Corporate Performance Management: Does Their Alignment Impact Organizational Performance

Abstract

Both business process management (BPM) and corporate performance management (CPM) are receiving much attention in academic circles, as well as in business practice. One of the main reasons behind their adoption within organizations is enhancing overall organizational performance (OP). Therefore, this article aims to explore the link between BPM and CPM and how their maturities affect their alignment. Moreover, the article deals with the impact of BPM-CPM alignment to OP. Although there are some studies dealing with empirical confirmation that either BPM or CPM increases OP, to the best of authors’ knowledge, none of the studies tries to investigate their combined impact in terms of an alignment empirically. Hence, this article focuses on shedding some light on the importance of BPM-CPM alignment and its connection to OP. A survey has been conducted in medium sized and large organizations operating in Slovenia and Croatia resulting in a total of 159 answers. Observed organizations have been segmented in two clusters, using k-means algorithm: low-performers and high-performers, revealing statistically significant differences between them for all observed variables. Results also indicate that the BPM-CPM alignment increases when both BPM and CPM maturities are higher. Furthermore, OP of the observed organizations has been examined through named two clusters. The Mann-Whitney U test revealed there are statistically significant differences between OP variables among low-performers and high-performance clusters, indicating the relationship of BPM-CPM alignment with OP.

Keywords

• business process management
• business process orientation
• corporate performance management
• organizational performance
• BPM-CPM alignment