A Typology of Business Process Standardization Strategies

Abstract

Business Process Standardization (BPS) is a strategy for improved efficiency and effectiveness of business processes. However, BPS approaches are known to vary much in practice, can consume inordinate time and resources, and are ill-understood. This study applies an exploratory analysis of BPS literature to identify alternative BPS strategies. The analysis identified three key decision-points when strategizing: (i) Approach to standardization (Bottom-up or Top-down), (ii) Choice of Master Process (Internal Exemplar, Internal Best-of-Breed, or External Exemplar), and (iii) Optimization of the Master Process (Yes or No). These alternative choices, in combination, yield 12 BPS strategies, which are described herein and instantiated by mapping 21 published BPS cases against the 12 strategy types. The resulting typology of BPS strategies can serve as a useful tool for researchers investigating BPS and may provide insight for practitioners when considering an appropriate BPS strategy, or in better understanding their existing implicit or explicit strategy.