Here are 10 essential reasons why embracing business process management will improve performance.
Business Process Management
1. Defines how work gets done.
A process is a series of tasks, events, and decisions that consume a product or service from a supplier, adds value to that product or service through some transformation, and then delivers a product or service of more value to a customer. Organization workflow consists of a series of processes (e.g. Accounts Payable) that connect to deliver a larger business system purpose (e.g. Financial System).
2. Provides a common language.
By using process language to describe the organization’s workflow, leadership creates a common understanding that provides many organizational benefits, including the ability to compare performance across a variety of processes, to cross-train people and develop their capabilities, and to benchmark performance against other organizations’ best practices.
3. Makes work easier or harder to do.
High-quality processes make an organization much easier to manage and employees much happier. Employee frustrations typically come from processes that are loaded with manual, non-value added activities that prevent employees from doing their job well. A good process makes it easy to do the right thing and a poor process makes it virtually impossible to do so.
4. Gives measurement meaning.
Most organizations measure what’s easy, not what’s important. By assessing process elements and aligning process-based performance measures with strategic purpose and intent, leadership can drive organizational performance improvement that creates a sustainable competitive advantage.
5. Feeds organization scalability.
Many leaders struggle to scale their organization based upon inadequate process infrastructure. The key to scaling an organization is to engage staff to define, build and deploy strong processes that create customer value and deliver repeatable outcomes. Superior processes provide a long-term foundation for growing an organization that delivers predictable, scalable, and sustainable performance.
6. Predicts management quality.
Strong process is a predictor of a well-managed organization. Best practice performance is enabled through clear accountability established by business process management so that work is actively managed and improved to create the desired outcome.
7. Enables employee engagement.
Business process management provides the context through which employees can engage with their work. A process that is designed and continually improved by those who do the work will deliver the most meaningful value to the organization.
8. Deploys strategy.
Strong, reliable and capable processes make the execution of a leader’s intention possible. Understanding how processes perform relative to their expectations and capabilities provides a significant contribution to strategy formulation and deployment.
9. Aligns structure to workflow.
A horizontal organization that aligns management with workflow is an essential element to building strong business systems and processes. And strong business processes provide the engine that powers enterprise performance.
10. Delivers profit improvement.
Process improvement drives better performance in a variety of ways, all of which contribute to increased profitability. Process improvement strategies include (among many) business model standardization, better customer experience, reduced costs, increased efficiency, higher asset productivity, shorter response time, and increased revenues.