Strategic Growth Partners

Business Process Management (BPM)

Golding Group Definition: Business Process Management (BPM) is a strategic approach to aligning company workflow, procedures, communication and human assets (talents) to create the most effective, efficient and manageable systems for sustainable business growth and longevity.
Business Process Management (BPM) is a strategic approach to creating effectiveness, efficiency and dependability in the execution of business activity. By focusing on ALL processes necessary for day-to-day operations, you (business leader) can better manage your business outcomes.
  • Businesses are organized by separate but collaborative departments: Production, Distribution/Logistics, Marketing, Sales, Accounting, HR, Management, etc…
  • Processes are the “business rules” (steps, guidelines, actions, operations, procedures, practices, techniques, etc.) for accomplishing necessary tasks. These are actions, tools, skills or communication required for each role in the business – the what, when, where, why and how of every function in the business structure. 
  • Systems (or systemization) are a collection of processes that all work together to produce efficiency.
  • Management is the continual adjustment, improvement, and organization of processes and systems for the best possible outcomes.
  • Business Process Management is highly focused execution to maximize the potential of business strategy, assets and structure through continual improvement.
 
Why is that important?
BPM creates the opportunity for constant improvement via communication, measurement and adjustment of internal and external processes. These improvements translate to efficiency in developing, creating, and delivering products and/or services. The potential benefits are lower cost to produce, fasters delivery/turn times, lower overhead, better profit margins, agility, multiple levels of leadership, consistent potential for growth and a positive attitude of innovation. A potential downside is the over-thinking of business processes with too much emphasis on finding savings or efficiencies that might not exist. BPM is hardest to incorporate in industries based chiefly on creativity and experimentation but essential to quantify and organize for profitability. 
 
Challenge everything. Don’t allow for “sacred cow” processes or ideas that cannot be examined, challenged or changed. Never take the process personally. Some people misguidedly take challenges to their ideas to reflect their worth or intelligence. The result is more important than who had the idea. Communication is the key. Start all process development by communicating how changes or improvements can be made by those who do the work. Don’t make assumptions. Spell out all ideas to minor levels.
 
Make BPM theory a part of everything you do: 
  • Planning, execution and review at all levels of the organization. 
  • Training, educating and empowering employees to identify, communicate and execute improvements in their workflow. 
  • Learn lessons daily for progress. 
  • Top-down, bottom-up, end-to-end improvement. 
  • Be intentional and strategic.
  • Create opportunities for innovation. 
  • Increase margins by lowering cost, improving throughput and controlling as much of the business process as possible.

 

We have a variety of podcast episodes addressing BPM theory and execution.