How BPM Works and Leads to Business Growth
Business process management is a structured approach of your organization to manage, streamline, and optimize the business processes to derive value.
Consider a scenario:
Jonnes is working for the HR department of <XYZ> organization. The goal is to hire 100 freshers in 3 months. Now this is considered a bigger task, which consists of several steps and involves multiple stakeholders. How can this be done perfectly? The answer lies in business process management. At a high level, business process management is an approach to how organizations identify, model, analyze, measure, optimize and automate business processes for improving efficiency and customer satisfaction.
What is BPM?
BPM is all about continually analyzing your business processes and improving them for performance. There is no single or standard definition to it. However, there do exist several definitions that are widely used. In the book titled, “Fundamentals of Business Process Management,” the authors Dumas et al, state that “BPM is the art and science of overseeing how work is performed in an organization to ensure consistent outcomes and take advantage of improvement opportunities.”
A business process is a series of related actions that are repeatable to achieve a particular goal. In the above example “recruitment” or “hiring” is considered a process of the human resource department. The department consists of several such processes such as payroll, training, compliance, among others.
How BPM works?
BPM solutions optimize workflows and accelerate the processes and increase efficiency.
There are three different types of BPM namely – document-centric, integration-centric and human-centric.
- Document-centric BPM:
This type of BPM is suitable for a business which has to deal with different contracts and agreements. Drafting a document or contracts involves multiple stakeholders. A document-centric BPM solution takes inputs from the stakeholders, and creates contracts, covering all the aspects in contract – drafting, reviewing, approvals, signatures and report compilations.
- Integration-centric BPM:
Integrating company-wide software with department-specific solution enables smoother functioning, with less room for manual errors. Integration BPM is all about connecting the business architecture for a seamless flow of data in the network. Best example of such a BPM is connecting sales and marketing departments through CRM and marketing automation tools, which capture, nurture and convert leads into prospects.
- Human-centric BPM:
Circling back to our “recruitment” example. Even though a software can unifiy and automate all the steps – shortlisting candidate profiles, screening candidates, scheduling interviews, sending out notifications, coordinating with stakeholders of various departments and finally releasing the offer, human intervention is required to some extent.
In the business process management lifecycle, there are seven main iterative steps to a successful BPM implementation.
The first phase is to plan. In this step, you will develop a strategy and the directions for your BPM initiative. Make sure to work out on the following items:
- List down the things you want to achieve
- Understand the organizational goals,
- Identify the primary, secondary and management processes. Primary processes are the core processes of your organization. They could be anything like prototyping a product, procurement of raw materials, customer service, sales and distribution, etc. Secondary processes are the ones which support the running of the business. For example, non-operational processes like human resources and accounting. The last, management processes are more of administration and operation processes, which mostly include controlling and supervising the other two processes.
- Decide upon the BPM roles and responsibilities, who will be the key players and what type of support will be required from the management
- Identify the methodologies and performance measures
An in-depth analysis of all the existing processes in the as-is condition is important. Collect data and get insights into every detail, whether a process is working or not, what are the strengths and weaknesses, how many people are involved in completing it, are all the steps in the process tied to the organization’s goal, how much time does it take to complete, and all other such relevant information. Perform a qualitative and quantitative analysis to understand whether the process is working or not, the accuracy levels, rework times, a cost-benefit analysis which will help you evaluate the value a particular process adds to the enterprise.
Now that you have got a fair understanding of the existing conditions, the bottlenecks, scope for automation, gaps in workflows that can be enhanced and the weaker areas, the next step is process design. In Process design, you use tools such as flowcharts and process maps to create new or modified processes, with respect to certain parameters such as the company’s objectives, technology platforms, controls, integrations, financials and data resources.
Process model provides an end-to-end picture of the process workflow with documentation and analysis. The pictorial or graphical representation of the process gives analysts a better way to inspect the processes, how they work and how they can be improved. Process modeling helps gain transparency, bring standardization, facilitate smoother coordination among people, systems and data, and overall increase the efficiency.
Next, the redesigned processes are put into practice. When you do this, remember to involve the end users or the stakeholders to share their feedback so that they feel encouraged to take active role in executing. BPM software can aid in executing it systematically.
It’s not done yet. Once the business processes are implemented, you need to track and measure its performance to identify the blockages, assess what is working and what is not and find and the areas of improvement. In this phase, you will also detect the problems in software or technical equipment. Doing such health checks periodically every week or every month can go a long way in contributing to greater ROI efforts.
There’s no end to improving, especially in business context. After a thorough analysis, you can optimize the processes to eliminate redundancies, streamline workflows, and enhance communication. Plus, in a changing scenario, your organization can stay on top of the latest compliance regulations and assured quality.
Business process management software is an enterprise-level solution that can automate all the repetitive tasks. Unlike a workflow management system and a project management system, BPM can work on all the steps, right from identifying the processes, planning, executing, monitoring and optimizing. The aim of BPM solution is to reduce wastage, tackle complex processes, improve accuracy and efficiency.
Why BPM Consulting services?
There are many BPM consultants in the market. BPM companies use several latest technologies to execute all these 7 steps. They adopt the best practices in deploying the BPM tools, training the teams, establishing governance, building architecture, designing process improvement plans, among others. BPM consulting companies can support you throughout the entire automation journey.
Benefits of business process management
BPM provides excellent benefits for organizations that keep on innovating new ways to update IT infrastructure, make enhancements to processes to beat the competition, and ensure resources are well utilized. By partnering with the right BPM company, the organizations can
The recent COVID crisis has been a wakeup call for many organizations. It is now clear that only companies that can weather the storm can survive. This translates into organizations having to keep pace with the dynamic conditions. With the BPM approach, you can spot errors on the processes at a much early stage and make adjustments to it before it creates an impact, reducing time and unwanted efforts. Making changes faster than the competitors offers significant advantages.
One of the high risk aspects of businesses is compliance. In the age of cyber crimes and scandals, staying abreast with the latest regulations is mandatory to avoid legal repercussions. The statement holds true especially for companies in the financial sector, insurance and healthcare where agreements and processes may have to be revamped more frequently. BPM software enables users to view audit trails with complete transparency; there are configurable dashboards and customized reports as well.
Satisfy employees and customers
What’s more important than employee and customer satisfaction? After all, these are the key drivers and factors of business success. Agree? As BPM automates mind-numbing, repetitive processes and flags off mundane, unregulated processes to pause and optimize, your employees can focus on other critical tasks; easy-to-use feature-rich user interface empowers anyone in the organization to create workflows without extensive training. BPM can uncover deep insights into customer facing business processes, so that you can make a plan and roll out modifications, thus enhancing customer experience and retaining brand loyalty.