The performance impact of business process standardization: HR case study insights

Abstract

Purpose The purpose of this paper is to enhance the understanding of business process standardization and how it contributes to generating business value. This research is a step towards a solid theoretical framework around business process standardization. Design/methodology/approach A single case study conducted in a global operating company is completed. Standardization of a certain business process (in this case the recruiting process) is shown to contribute to business value. Findings By standardizing its recruiting process, the company was able to reduce the “time‐to‐hire” from 92 to 69 days and the overall costs of the recruiting process by about 30 percent. The quality of the applicant data has clearly improved. Clarity and transparency of the recruiting process could be increased, while the administrative expense within the human resources (HR) departments in the distinct business locations could be reduced significantly. Research limitations/implications As with every case study, the generalizability of these findings is limited because the results are based on a single case only and because the focus has been solely on one process – the recruiting process – and did not include other business processes. Practical implications The case study can be useful for any company that intends to standardize its recruiting process. Clear indications of how to achieve business value out of process standardization are given. Originality/value The paper provides a clear definition of what business process standardization is and how it can lead to increased business value. Clear indications of how to achieve increased business value by business process standardization are provided for practitioners.