Managing business processes is a big challenge for any business and most leaders think of it as a huge expense and consider it relevant for massive processes. With BPM, Businesses can improve their overall operations. It can gain control of chaotic and unwieldy processes, help analyze, improve business, minimize expenditures, pinpoint operational deficiencies, run operations more efficiently, help achieve organizational goals faster, and fine-tune processes to increase agility.
As per Gartner’s report, 80% of enterprise companies conducting BPM projects gain more than 15% of the return.
What is Business Process Management?
BPM is a comprehensive methodology and a holistic approach to achieving optimized and monitored business outcomes. In simpler language, owners analyze their current situation of the business, identify areas of improvement and enhance the organizational efficacy.
It helps to align business functions with customer needs and helps in monitoring and measuring company resources. If properly executed, it can enhance efficiency and productivity by reducing costs, minimizing errors, and thus optimizing results.
Benefits of BPM:
- Increased Productivity
- Reduction in Work-In-Process Inventory
- Improved Quality
- Space Utilization
- Increase in Sales volume
- Increase in Revenue
When understanding the BPM, focus on 10 questions associated with a businesses
- What is done?
- Why it is done?
- Where it is done?
- When it is done?
- Who is doing it?
- Way it is done?
- What are the resources associated with it?
- What are the ways to monitor performance?
- What are problems that need to resolve?
- What are the methods or tools that can help us to achieve the best results?
70% or more of the budgets are spent on sustaining and less than 30% on improving or finding new business capabilities”.
Why do Businesses need BPM?
When left unorganized and business processes can lead to disruptions.
● Wastage of Time
● More errors
● Blame games
● Lack of data
● Demoralized employees
How should Businesses plan for BPM?
Design: Most businesses need to collect data and a workflow to process it. Design a structure and identify who will own each task in the workflow. Create a visual layout, fix details like deadlines and conditions to get a clear idea.
Execute: Create a model and execute the process by testing it live with a small group first and then opening it up to all users.
Monitor: Keep an eye on metrics to identify progress, measure efficiency, and locate bottlenecks.
Optimize: Analyze and optimize to make it more efficient.
Businesses should focus on creating new and more value from money spent on systems and technology. Companies must find ways to reap the kind of benefits BPM delivers in today’s competitive environment. Otherwise, they are chances of missing out on profits that competitors can quickly overtake. By following the BPM approach, a business can innovate and transform its way to achieving more business value.
If you want to drive your company forward, you must have calculated processes. Investing in BPM will help you control your costs, keep consistent productivity levels and satisfy customers.