Business Process Management (Definition + Steps To BPM)

Post A Job For Free, Promote It For A Fee

Post a Job

Business process management (BPM) is a structured and organized way to manage the process of doing things in a company. It’s become a very hot-button topic as companies look to expand profits and cut back on expenses.

In theory, a company’s BPM is continually changing to adapt to any shifts along the way and bring on new efficiencies that are available. It takes a lot of work and diligence to manage the business process of a company, but it can be worth it in the long run by cutting down on injuries, removing extra expenses, adding profit, and streamlining the organization.

Key Takeaways:

• Business process management (BPM) is a way to review your business processes to make them more efficient.

• There is a five-step lifecycle to BPM that is constantly working to ensure that the process is functioning at optimal performance.

• BPM can be used in a variety of places throughout a company, and there might even be more than one BPM used within the same company.

• BPM can be system-centric, human-centric, or document-centric.

• There are both upsides and downfalls to implementing a BPM.

What Is Business Process Management?

BPM is how a company looks at the way things are done and what can be changed to make the process more efficient. It’s an overarching view of the entire process.

Often, there is a technological approach and software that helps collect data on the process and determine which aspects of the process need more attention. This is called the BPM suite; it’s a part of the overall BPM, and it definitely helps with the application, but it’s not the whole picture.

BPM is not the same as project management, as that looks at one project and establishes a process for that particular event. The next project will likely be different and require a different approach to project management. BPM is repeatable and focuses on the process itself, not so much on the project.

The Business Process Management Lifecycle

There are five basic steps in the BPM lifecycle, but they are a cycle, so once you’ve completed all five, you start back at number one again.

• Design. This is the first step where the process is broken down into multiple tasks for better understanding and evaluation.

• Model. Examine the process to see how it works and then evaluate it under different conditions and situations to note any changes.

• Execute. Most BPM teams will execute with a small group at first before they begin rolling out changes throughout the company. This often begins with some standardization and, potentially, some automation.

• Monitor. Track the new process and look for improvements and any setbacks that may occur.

• Optimize. Continue to monitor, looking for areas that need to be optimized.

To make the most of the BPM cycle, many companies have formed teams that use a formal methodology to get results and track progress within each workflow model.

Types of Business Process Management

BPM is incredibly broad, and it fits a number of different businesses and segments within a company. To more accurately manage a process and finetune the metrics, there are three divisions or types of BPM.

• System-centric. System-centric BPM usually deals with a business system that has little human intervention. These are often automated systems that rely heavily on computer software for process applications.

• Human-centric. If system-centric is about the non-human component, it just makes sense that the human-centric BPM focuses on people. These are the processes that are designed for human interaction at some point within the process.

• Document-centric. A BPM that focuses on documents often has many contracts and other specific documents that form a major part of the company workflow.

Areas Where BPM Is Used

Picturing BPM in action is easy in its simplest form if you imagine an assembly line. Along the line are people doing different tasks, and a manager is sitting in an office above them overseeing the process.

If they see a continual problem along the line, they’ll come up with a way to alleviate the log jam and get things running smoothly. That’s an oversimplification, but it’s a good demonstration.

In modern business, there are many different ways that BPM can lead to improvements and greater success. This is not simply an assembly line technique. In fact, you’ll often find BPM used in the following areas:

• Developing/manufacturing products. This is where the assembly line would come into play, but any process of making a product or developing one can fit in here.

• Fulfilling a product order. From the moment a shopper puts something in their cart (often electronically) to the point it gets to their home is all a part of the order fulfilment pipeline, and there are a lot of places for things to fall apart or for improvements to be made.

• Managing customer services. There are a lot of different areas of customer service within any company. Each one might have its own process, or they could all fit under one umbrella. The key is creating a system that’s repeatable and leads to the most favorable outcome for everyone.

• Onboarding employees. One process in every company that requires a ton of documentation is the hiring phase. From the first job posting to the employee’s first annual review, there are a lot of forms to complete. A BPM smooths this process for everyone and creates a seamless onboarding experience.

What Are the Benefits of Business Process Management

BPM is not essential, and not having one does not mean that a business won’t succeed, but those who are BPM proponents claim that there are a lot of benefits to this approach.

• Improved quality

• Greater efficiency

• Employee satisfaction

• Standardized process

• Less human error risk

• Accurate performance metrics

• Smooth automation

• Cut costs

• Continual improvement

• Improved safety

It’s easy to see why the BPM approach of constant improvement and analysis is worth the effort when you see all of the benefits involved.

What Are the Challenges of Business Process Management?

While there are certainly many benefits to BPM, there are also some challenges and drawbacks.

• Requires dedicated manager or team

• BPM suite is expensive

• It changes the status quo

• Executives need to buy-in

• Confusion about purpose

• Inflexibility among customers or team

Getting everyone onboard with a new process can be difficult; with a BPM, the process is continually evolving, which means there’s a lot of change. It can also be difficult to train outsiders if that plays into the process you’re managing. There’s an incentive for staff to follow through but not necessarily for anyone else.

BPM In the Future

BPM isn’t new, but rolling forward with more technology-driven approaches to different processes can be very new to some companies. Because the goal of BPM is to improve efficiency, safety, and quality to boost profits, it’s likely to continue and pick up steam.

The interesting thing is that BPM is also a byproduct of its own approach, meaning that BPM is constantly changing and will continue to do so. It’s likely that BPM in the future won’t look much like it does today, but the basic lifecycle will still be in play.

Business Process Management FAQ

1. Is BPM expensive?

   Yes, BPM tends to be expensive. Even if you’re not using a BPM suite, which is very expensive, you’ll have the added costs of additional team members who are in charge of this task. There will be constant changes to the process, which can require changes in staff and training for all.

2. Is there a shortcut to BPM?

   No, the lifecycle of BPM is pretty set and requires all of the steps to thoroughly evaluate the process, find improvements, implement them, measure the results, etc.

   That said, most BPM are customizable, and they’re constantly evolving, which means that there may be some ways to improve efficiency within your company’s BMP and cut down your timeline.

3. Is BPM a waste if we already have a good process?

   No, BPM is never a waste. Even if your company has been doing the same thing for decades and you’re the best in the business, there is always room for improvement.

   Of course, if you’re in a utopian environment like this, where everything runs as effectively as possible already, it might be difficult to get buy-in from key management figures to implement a BPM.

4. Is there a computerized BPM?

   Yes, there are many software solutions that are focused on different types of business process management. The trick is finding the right solution for your business and your process. This will require some research but having the built-in speed of a BPM suite is very useful, as well as the collected data.

Author

Kristin Kizer

Kristin Kizer is an award-winning writer, television and documentary producer, and content specialist who has worked on a wide variety of written, broadcast, and electronic publications. A former writer/producer for The Discovery Channel, she is now a freelance writer and delighted to be sharing her talents and time with the wonderful Zippia audience.