Business Process Management (BPM)
An organized approach to improving business results by changing business processes.
A variety of methods can be used to improve your business processes, such as discovery, modeling, analyzing, optimizing, and monitoring. And while many companies understand the importance of improving business processes, some processes may be seen as too large or complex to manage. It is crucial to remember that no process exists in a silo - they are all interconnected, so that (for example) a change in operations can have an enormous impact on support, and vice versa. Because of this, only a holistic approach to your operations, as well as a review of the upstream and downstream functions can make BPM truly effective.
Why BPM matters
As businesses grow and change over time, the processes and procedures that serve daily operations must adapt to new requirements and new conditions. Process changes are often implemented quickly to achieve a specific result and if successful, the business continues with the adaptation. Often, strategic efforts are made to introduce new products or services, or grow the business. Only rarely does a company devote enough time and resources to BPM - but without it, new adaptations are stacked on existing processes over and over, leading to bloating, inefficiencies, and less-than-optimal results.
Only 1% of firms have business processes down to realize the financial impact of digital transformation initiatives
(ResearchGate)
Benefits of bpm
Business process management requires an ongoing commitment - of time, resources, and attention - on behalf of any company. Instead of focusing on a single goal, BPM means that a company creates a framework for regular benchmarking, tracking, and review of processes both existing and new. It also means that the company builds a culture where employees are encouraged to (and rewarded for) questioning the status quo and finding ways to improve on it. So why bother?
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Gartner found that BPM initiatives have an internal ROI of 15%. Businesses that invest resources in process improvement can recoup their investment and realize gains almost immediately - by reducing errors, waste, and duplication of effort. And this number does not include the ongoing gains attributed to increased customer satisfaction, employee productivity, and business agility.
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BPM has an impact that stretches far beyond internal stakeholders. In fact, a recent survey found that successful BPM can improve customer satisfaction by up to 30%. Why? Consider these examples - through streamlining, automation, and process changes, BPM can:
Shorten deliverable times
Reduce hold time and add self-service options
Eliminate human errors
And an improvement in any of these areas will have a positive impact on customer satisfaction - improving customer retention and helping to grow your business.
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After analyzing a process end-to-end, a business may automate repetitive tasks, eliminate duplication of effort, or centralize information - there are a number of ways that BPM can be implemented. All of these methods, though, result in streamlined, efficient processes which contribute directly to employee productivity.
Not only does higher productivity mean that your business gets more done in a day - it also results in a more proactive workplace and a more engaged workforce, which boosts employee retention.
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A streamlined, documented process is easier to adapt to a rapidly changing business environment. According to a study by McKinsey, high-agility businesses achieved:
20-30% improvement in employee engagement
10-30% improvement in customer satisfaction
30-50% improvement in operational performance
Business process management offers a wide variety of benefits, and can improve your overall company performance and competitive advantage. However, there are circumstances where a third-party consultant can help a business align and implement a framework and a culture for continuing process improvement.
3 Signs YouR BPM Needs Help
Consider hiring a BPM consultant if you encounter:
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When instituting an ongoing change to the cultural framework, aligning different departments and stakeholders to a common goal is critical. However, building a consensus can be difficult. A third-party partner can address these issues without any prior allegiances or history of conflict - ensuring that the needs of all parties are recognized and that everyone stays focused on the larger goal.
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BPM can be a resource-intensive process, particularly in the beginning. Often, the reason that legacy processes exist and continues is because resources are devoted to other priorities, and employees lack the time and effort to devote to process review and improvement. Not only is a consultancy an additional resource, they are flexible - scaling up and down according to your organization’s need, even if that need fluctuates over the course of a project.
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If there is no centralized repository for data, or regular communications throughout the organization, information may be siloed to different departments or functions. Not only does this cause inefficiencies, it is a barrier to just the kind of insight that is required for effective BPM. A consultant that is experienced in BPM, and has a methodology and successful approach, can unlock siloed information and improve communication across the company.
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THREE CHALLENGES SOLVED BY BUSINESS PROCESS CONSULTING
No matter how profitable a business is, looking under the hood for areas of improvement is always a good idea. The most successful businesses regularly examine their company from end-to-end to ensure everything is firing on all cylinders.
A Holistic Approach To BPM
There are a wide variety of business process management services offered by consultants. Peak Process Group has refined their approach to BPM to ensure that businesses start with the most impactful operational processes, and keep tabs on upstream and downstream effects. Peak offers its partners:
Business results approach
Data-driven decision making
Change management expertise
A consultative approach
Effective communication
Embedded team
Most importantly, Peak Process Group has a long-term, strategic approach to not only designing a BPM strategy but to optimizing it. You don’t need a consultant that will deliver a binder outlining a strategy and leave - you need a consultant that will implement a framework for real change, and stick around to ensure that you get real business results.