Business Process Governance

Good business process governance is necessary for the success of business processes, which in turn are essential for business success. The term business process governance refers to the direction, coordination, and control of individuals, groups, or organizations that are at least to some extent autonomous: that is, not directly subject to the same hierarchical authority. Business process governance comprises a variety of mechanisms that may be impersonal (e.g., laws or rules) or personal (i.e., administered by individuals who may or may not have formally designated responsibility or accountability for governance). All governance mechanisms have pros and cons; some mechanisms are more effective (and more costly) than others. The challenge is to design a cost-effective governance structure, which usually consists of several mechanisms working in combination. This chapter describes various governance mechanisms, identifies their advantages and disadvantages, and provides examples that reveal how governance mechanisms contribute to business process success.