Fuzzy cognitive maps in business analysis and performance-driven change

Business process reengineering (BPR) has made a significant impact on managers and academics. Despite the rhetoric surrounding BPR, articulated mechanisms, which support reasoning on the effect of the redesign activities to the performance of the business model, are still emerging. This paper describes an attempt to build and operate such a reasoning mechanism as a novel supplement to performance-driven change (PDC) exercises. This new approach proposes the utilization of the fuzzy causal characteristics of fuzzy cognitive maps (FCMs) as the underlying methodology in order to generate a hierarchical and dynamic network of interconnected performance indicators. By using FCMs, the proposed mechanism aims at simulating the operational efficiency of complex process models with imprecise relationships to quantify the impact of performance-driven reengineering activities. This research also establishes generic maps that supplement the strategic planning and business analysis phases of typical redesign projects in order to implement the integration of hierarchical FCMs into PDC activities. Finally, this paper discusses experiments with the proposed mechanism and comments on its usability.