What is Business Process Management?

BPM Explained

Business Process Management (BPM for short) is a methodology for improving business processes. In this post, we aim to explain BPM through the stages of the continuous life cycle.

What is Business Process Management?

Processes exist within any business, and involves people, systems, and tools. As businesses grow and more processes are involved in the day-to-day operations, the processes can become large and inefficient. This results in departments duplicating activities, emerging errors and mistakes, increasing costs, lack of compliance and risk-mitigation. and other unintended side-effects.

There are various proven methods that can be used in BPM, such as Lean and Six-Sigma. The practice of BPM focusses on continuous improvement. There are various models in existence that aim to illustrate the cycle of BPM. However, all contain a series of stages that aim to achieve the following:

Process design

Within this stage, the organization will reflect on its current processes and design a new or improved process. First, mapping current processes will provide insight into current performance and creates a starting point from which new decisions can be made. Second, the organization will have to reflect on the mapped process and determine where improvements can be made, such as further streamlining or preventing waste. Here, the process is (re)designed, depending on whether the BPM cycle has already been completed previously.

Process implementation

Once a new process has been designed, it is time to implement it in day-to-day operations. This activity requires proper change management in order to replace the old process with a new one. It must be clear to all stakeholders in the process, why a new process is implemented and what is expected.

Process performance and monitoring

Now the new process has been implemented, the organization must focus on performing the process in accordance with the pre-determined process descriptions. Digital monitoring and analytical tools and technologies help to understand how the process is performing.

Process analysis and improvement

Now it can be determined if the new process has been an improvement of the old process by checking if higher KPI’s are reached. Through the analysis of individual stages of the process and its performance, improvement points can be found to raise efficiency and effectiveness and decrease risks and wastes.

After the final phase, it may be possible that the process can be further optimized. The goal of BPM is therefore to continue to optimize continuously by repeating the stages described above.

Up next

In the next blog, we will dive into Dynamic Business Process Management (DBPM) and the technologies required to achieve processes that are flexible and customizable.

Sources:
Szelągowski, Marek. (2018). Evolution of the BPM Lifecycle.

Like this article?

Share on linkedin
Share on LinkedIn
Share on twitter
Share on Twitter
Share on facebook
Share on Facebook
Share on whatsapp
Share on WhatsApp

What's happening on our blog

Agility in the Financial Sector: People, Processes, and Systems

Digital change is omnipresent. Sometimes innovations happen so fast, it is hard to keep up. Certainly, the path of change is accelerating in a technological sense, as well as customer behavior, globalization and the tools we use. As a financial organization, you must innovate continuously to compete. Being agile is necessary to achieve this; it involves people, processes and systems. In this blog we discuss the synergy of these three crucial elements.

View on the Public Sector from the Perspective of Public Service Integration

In the last two weeks we considered automation in the public sector from both the perspective of policy making and citizens advice and access. This week we focus on the integration of public services across different organizations. As discussed previously, many domains are involved to offer citizens the products and processes they require. In this blog, we would like to expand on the need for efficiency and hyperautomation in the public sector.

View on the Public Sector from the Perspective of Citizens

People nowadays are used to being served directly online and having instant interactions with companies. Questions or request are resolved almost immediately. In the customer journeys they are accustomed to, it is normal the same information is not requested twice, and personal advice is given. Since this is the current status quo, citizens expect this from the public sector as well. Last week we discussed our view on the public sector from the perspective of policy making and automation. In this blog, we highlight the public sector from a citizen’s perspective including citizens access to public services, tailored citizens advice and solutions for the e-government.

Receive updates on our latest blogs