Achieving process excellence is the goal. Business Process Management (BPM) is a system to achieve this lofty objective.
Business’ first priority should be to maximize profit, while creating best possible value for its shareholders and its stakeholders.
In today’s world of instant gratification and rapidly changing customer trends, young businesses need to step into the race running fats and retaining a competitiveness pace while for established ones it is about having the agility and flexibility to flow with constantly morphing customer demand for a high quality experience.
We know that business results are delivered through processes. It goes to reason then that more effective and efficient processes are, the higher the companies returns. Introducing a process improvement mindset and efficient and effective processes lead to sustainable results.
Business Process Management (BPM) holds the promise of providing a holistic approach to ensuring process are well oiled and remain so while adapting with agility and flexibility to an ever changing and increasingly demanding business environment.
Processes have long been recognized as holding the key to a business’ performance. Many methodology, such as Total Quality Management (TQM) and Business Process Reengineering (BPM), have been popularized over the past more than half a century. Business Process Management is the latest refinement of achieving process excellence.
Every generation of process improvement or management retains the best of the past and brings in the new. In the case of BPM it is the use of information technology to create a holistic solution to successfully tackle today’s challenges. In the operational world it is referred to as Industry 4.0.
But let’s be clear, three reasons business do not reap the full rewards of BPM are:
BPM Business Process Management Building Block #1: Business Strategy
This one is a no brainer, but often poorly thought through by leaders. Usually the business has a strategy, whether realistic of not is often debatable.
BPM Building Block #2: Align Business Strategic KPIs
Establish Key Performance Indicators (KPI) linked to achieving the business strategy.
BPM Building Block #3: Identify Core Processes
Identify the core processes that will ensure delivery of the business strategy measured through the aligned KPIs.
BPM Building Block #4: Map the Core Processes and Capture in the Process House
Map the core processes that typically span across the business and may even flow back from suppliers and forward into the delivery channel. These core processes need to be mapped as they are and not as individuals think they are undertaken. Secondary important process that feed into these process should be mapped and understood too. At a later stage the organization can move to deeper process until all process are visible.
BPM Building Block #5: Measure the Core and Secondary Process Outputs
Implement measurement systems that measure the output of processes and visibly display them. The closer to real time the metrics are known the quicker shifts can be addressed in the process. Automating metrics offers a good way forward.
At this point a shift in process output metrics should directly cause a change in the business KPI. If not, either the measurement systems are not aligned or incorrectly measured. Improvement on the process should stick to the bottom line of the business.
Based on the ‘current state’ of the core process and the desired ‘future state’ to deliver on the organizations strategic objectives, a maturity roadmap is established that lays the path to continuous process improvement to achieve best in class status.
BPM Building Block #6: Prioritization of Effort
A mechanism should be established that prioritises and selects the top projects that will see the improvement of metrics of core and secondary metrics. Key resources, with the required skills, should be deployed the lead vital impactful projects.
Typically a Performance Centre of Excellence has SWAT teams ready to address larger performance improvement projects that may span several of the organizations departments, or even plants.
BPM Building Block #7: Establish a Culture of Excellence
Everyone throughout the entire organisation, whether a production or service process, should know how they impact the outcome of core process they are involved in. They should posses basic process improvement skills to be able the measure their work and be skilled at solving problems as they arise.
The Performance Centre of Excellence is tasked with change management to keep the organization on track towards excellence.
BPM Building Block #8: Maintain Quality Excellence
All improvements that are made on a process must be sustainable. Best practices should be shared across the organisation and immediately implemented across similar processes. I
Improvements are captures in new or modified Process Maps and Standard Operating Procedures (SOPs) that are housed in the Process House and visible to all stakeholders.
BPM Building Block #9: Business Process Governance
Process maturity and metrics should be continuously monitored by responsible and accountable Champions. Projects undertaken by the SWAT teams should be reviewed and roadblocks removed. Financial improvements must be audits and reviewed for authenticity to ensure it sticks to the bottoms line.
BPM Building Block #10: Business Process Management Software
And then comes an holistic BPM software system that ties together all of the above in one Business Process Management House. It happens that organizations implement a BPM system before they are clear on what they want to achieve or even have the organisation ready for process excellence.
In other cases an organization may be quick to adopt process excellence only to have IT emerge as the new bottleneck hampering digital transformations. IT itself often needs a bit of BPM to enhance their ability to respond to business requirements faster. The new tend is moving towards a more agile Low-Coding approach.
Everything you will find on this website deals with achieving process excellence and it engine is the latest evolution of BPM. On this website you will find genuine tips, gained through many years of experience at the coal face, on how to get your processes flowing freely.
If you found this article of interest, below are a few you mind find of value too.
Some of our articles related to doing the right things include: