In a scramble to leverage the latest technology, organizations all too often fall
into the trap of defining their business process management and performance management initiatives as technology
tool strategies rather than business strategies. An optimized, benchmarked process is a snapshot
in time: as your organization's operating environment changes, its once optimal processes will slowly become
less optimal. The same applies to scorecards and KPIs. How to factor in the financial repercusssions of change
should be an important dimension of any management framework. It seldom is.
Many organizations today find themselves in a quasi-permanent state of upheaval, whether as a result of Business Process Outsourcing (BPO), changing customer preferences, mergers or acquisitions, or the increasing burden of regulation and compliance, e.g. the Sarbanes-Oxley act. Change brings opportunities, but also requires an investment, not just in direct monetary terms, but also in time and effort that has to be diverted from the "business as usual". If the potential benefits can usually be itemized and quantified with relative ease, the costs often prove more elusive. Only by carefully considering, identifying and, if possible, estimating potential cost items arising from the proposed change in each of these categories can executives begin the process of controlling and minimizing them.