1. A method of preparing a state model defining the behavior of logical objects in a process model as a set of permitted states and a set of permitted transitions between the permitted states, and comprising the steps of: (1) selecting a template for the state model; (2) selecting business object components for the state model; (3) selecting or defining state transitions for the state model; (4) defining permitted state transitions from a “from state” to a “to state” with a State Transition Rule name; (5) associating state transitions with state transition rules, names, and conditions; (6) enumerating the state transition names and state transition rule names; and (7) extracting the state transition rules from a database; wherein said states, transitions, and extracted rules comprise a state machine execution engine; and (8) processing a model through said state machine execution engine.