Business Process Management (BPM) – Your First BPM Process Part 2 of 3 – Fast, Measurable, and Communicative!

As in organisations without a centralised BPM strategy, most business processes evolve naturally over time. When introduced for the first time, all processes have a common starting point. However, as time passes, each evolves along its own path, which can lead to diametrically opposed outcomes. Regardless of the numerous factors that influence such evolution, such as organisational restructures, working discipline, and underlying technologies, all business processes can be assigned to one of three major stages of evolution:
- Young & Developing.
- Powerful & Stable.
- ill & Painful.
A well-executed BPM initiative can benefit processes from any of these three categories. However, when starting your first BPM project, not all these groups are equally good candidates for a pilot, and the right group will also depend on the long-term objectives of your overall BPM programme.
Young & Developing - Are good but potentially risky candidates for the first process because they can provide high impact, rapidity, and visibility. These are the newly implemented procedures. Every single process in a start-up falls into this category. Even large, well-established corporations, on the other hand, typically have around 10% of their processes in this space. New processes emerge whenever you launch a new product line, enter a new market, or alter your business model.
Young & Developing processes have the following factors in common:
- Frequent fluctuation and change - each instance of the process is unique as business users experiment with alternative approaches and tackle previously unexplored case variations.
- Manually or with non-standard IT solutions, such as custom-made applications or major enhancements to core corporate systems.
- Strong links to business objectives related to innovation and the creation of USP's (Unique Selling Points) lead to the term "Differentiation Processes."
- Examples of such processes include:
- Launch of a new service or product line.
- Opening of a new subsidiary, region, or sales channel.
- Correspondence of prices across multiple customers/channels.
- Post-merger interim operations.
- Integration of hybrid supply chains.
The following list weighs up the benefits and pitfalls of selecting a Young & Developing process for a pilot.
Advantages:
- Touch areas that have new investment budgets are more likely to receive senior sponsorship.
- Are generally ad-hoc, simple and easy to modify.
- Grow in areas of innovation where a visionary leader is easy to find.
- Involve complex decision-making, allowing BPM to demonstrate its worth by providing accurate contextual information.
- Because they are not yet too tightly integrated with other corporate systems, they are not slowed down by time-consuming core system modifications or restrictive change release policies.
Disadvantages:
- Because they may be very new and undefined, properly designing them may slow down the pilot project.
- Frequently touch many areas of your business, making decision-making authority difficult to identify; reaching consensus with multiple stakeholders can derail the project.
- Have an unknown level of integration with other systems, making the effort involved easy to underestimate. There may be no historical data, making bench marking, KPI's and success difficult to quantify.
- The absence of money related historical KPI's should not be a deal breaker. Soft measures that are new can also demonstrate the outcome of a new process.
- May represent a highly experimental area of your business, making its scope difficult to define.
In Summary: Young and Developing processes are an excellent mid-term option for organisations seeking to gain a competitive advantage through agility and innovation. Just make sure to first define the process and its corresponding KPI's. Other precautions include selecting a BPM suite that includes data virtualization to address the integration issue and finding a strong decision maker to manage expectations.
Powerful & Stable - are not suitable for the first process. While they provide significant room for improvement, maximising these advantages may require significant time, effort, and technique, making them best suited to an advanced BPM programme. You'll recognise these processes because they've been around for a while, they affect many people daily, and they tick like a Swiss watch. They typically got to where they are because they have a low number of steps and variations, making them easy to control, or because they have already been subjected to a corporate initiative such as Six Sigma, Lean, or ERP implementation.
Advantages:
- Rigidly adhere to standard corporate guidelines and are rarely modified.
- Count on a core corporate system (e.g., ERP, CRM) with an embedded workflow solution and a small number of integration points with other systems.
- Support core business activities and are mission critical (if your mission critical processes are not yet in this category, you urgently need a strategic BPM programme!).
- Link to business objectives related to the generation of consistent revenue streams (hence the term "Commodity Processes").
- Examples of such processes include:
- Manufacturing of standard products.
- Provisioning of standard services.
- Purchasing of standard materials.
Disadvantages:
- Because the system is generally quite efficient, any incremental improvement will necessitate relatively high efforts and advanced BPM techniques.
- Rigidly defined, meaning changes accompany the difficult task of changing numerous corporate policies.
- Because your core systems are embedded, any process changes result in intense enhancement of those systems and high integration efforts.
- Most likely to cover mission-critical activities where a conservative stakeholder attitude could stymie rapid progress.
- Because the initiative could be perceived as low-risk, stakeholders immediately dismiss it as change for the sake of change.
In Summary: This is an area that can always be improved. We mentioned before that BPM is about instilling a culture of continuous improvement in an organisation. However, this is best left for your later BPM programme. By then, the low hanging fruit has been harvested, management and staff have developed a strong belief in BPM, and the organisation has amassed sufficient BPM expertise to employ advanced BPM techniques. Then comes the "Powerful & Stable" processes, which will allow the BPM benefits to shine through.
ill & Painful - are excellent candidates for the first process. Small changes can improve overall control, reduce chaos, and boost speed. However, be wary of political baggage from staff members; these may be politically charged.
These processes, like "Powerful & Stable," have been around for a long time, but they are cumbersome and disliked. They represent the true business pain points. Approximately 20% of processes in any organisation fall into this category, whether due to poor design, rigid and outdated ways of working, or, finally, a legacy of corporate restructures, mergers, acquisitions, and divestitures. So, other than the fact that everyone complains about them, how can you identify an "ill & Painful" process?
All “ill & Painful” processes:
- Use a lot of paper and engage in multiple manual activities.
- Failure to adhere to standard guidelines and a wide range of variations
- Produce massive amounts of emails, phone calls, and manually updated spreadsheets.
- Interact with multiple systems but are not tightly integrated and necessitate a lot of manual data re-keying (also known as "swivel-chair integration"; imagine an employee sitting on a swivel chair between two data terminals, turning around to re-key data from one terminal to the other.
- Non-critical, enabling processes that are necessary for a company's operation but do not always have a clearly linked specific business goal.
- Examples of such processes include:
- Employee on/off-boarding, leave requests
- Contract management, supplier on-boarding
- Accounts Payable and purchase orders
- Accounts Receivable and Invoicing
- Client inquiries and complaints
- Returns and claims
- Service management
Advantages:
- Reduce massive manual efforts, freeing up your staff to work on higher-value tasks.
- Reduce the cost of printouts, database storage, CPU power (emails/spreadsheets), and phone bills.
- Allow for easy definition of measurable KPI's that affect your bottom line with clear mapping.
- Reduce the day-to-day hassle for many stakeholders, who will then become evangelists for the next stages of your BPM programme.
Disadvantages:
- Carry a long history of political blame games with no clear decision makers. Some stakeholders may even purposefully obstruct problem resolution because the chaos conceals their own inefficiency or obscures business practices. Choose a process where a very small group of stakeholders (such as a single senior manager or a small central department) can make quick decisions and define the future state of the process.
In Summary: If your overall BPM initiative's mid-term goal is to save time and money; if you want to increase productivity and execution; then the "ill & Painful" processes are a great place to start.
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