Business process management (BPM) cannot be summed up with a single word, product, or service. Instead, it is the sum of the efforts of a combination of processes that involve information, systems, and people to create a more efficient and consistent business.
by Eleanor Wyatt
Image via Pixabay
If you are looking to boost productivity while reducing costly errors in your own business, it pays to understand the fundamentals. SmartBizOpps.com offers the following explainer so you can get a better understanding of BPM and its benefits.
What is the goal of BPM?
Intelligent business process management is a series of systems and services put into place to help automate where possible and to best streamline human interactions, such as customer service. BPM is not the same as task management, which focuses on individual and sometimes one-time actions. A well-implemented BPM plan will make it possible for many predictable tasks and actions to take place with little to no human assistance.
BPM Tools
There are many different components of a successful business process management system. A few, but certainly not all, of these include:
- Financial software. Arguably, one of the most important aspects of all businesses is how they intake, process, and distribute funds. Financial software that automates invoicing, employee payroll, and other accounting transactions is a huge benefit to businesses, especially those that currently rely on humans to process thousands of financial transactions each year. By using a dedicated invoicing program, your transactions will be more secure, and you can even verify your users’ identities.
- Cybersecurity. Cybersecurity is a weak point for almost all small businesses, even those with a dedicated IT team. UK-based business services provider Comidor suggests that secure business process management should be everyone’s primary goal. By utilizing security protocols, software, and human checks and balances throughout your BPM systems and processes, you can circumvent many critical threats, such as hacking. Look for an affordable and customizable solution to keep your drives, devices, and servers protected. This will reduce downtime and allow you to focus more on the customer experience.
- Customer relationship management. Customer relationship management (CRM) software is one of the best investments that businesses can make. This is a program that you can utilize throughout marketing, customer service, and sales that holds information about every customer and transaction in one interconnected hub.
- Standard operating procedures. A standard operating procedure (SOP) is not an automation solution, per se, but written documentation explicitly outlining how certain human tasks are to be performed. As there are many moving parts in all departments of all businesses, having a blueprint of how scalable tasks are handled can make it much easier for someone to jump into a position while maintaining accepted standards.
How to Identify Best BPM Strategies for Your Business
Deciding which business process management strategies to implement isn’t always easy. What works for one company may not work for yours, and finding a custom solution is key. The best way to get started is to talk with your employees. Ask them about pain points in each department. For example, if orders taken online must be manually invoiced and taken out of inventory, consider implementing an enterprise resource planning solution that automates these processes. This will reduce man-hours as well as the potential for human error.
The BPM Flow
Once you have identified areas that would benefit from BPM, it’s time to get started. Five steps to effectively implement a BPM plan are:
- Design. Talking with your employees is part of the design process, but you must also get input from management and other stakeholders. This is your opportunity to identify your most pressing issues and discuss potential desired outcomes with pertinent parties.
- Model. This is essentially a quick draft of how your new processes will work and the ways they will benefit your business.
- Execution. You’ve decided what you need, and now it’s time to do a test run. Use a small group of employees, perhaps a single department, to see how your new automation processes work out. This gives you time to fix any bugs and alter any steps to best suit your business.
- Monitor. Monitoring your BPM is an ongoing process. This is when you can gauge the effectiveness and work on improvements that make the processes more valuable to your company. If you’ve already appropriately identified your key performance indicators from the beginning, you can use these to gauge your BPM’s current and potential future success.
- Optimize. As part of your BPM system, you will utilize data gleaned from your monitoring efforts to help optimize and streamline your overall outcomes. Optimization, like monitoring, is an ongoing process that allows you to update your strategies as technology (or demand on your technology) changes.
Why BPM Really Matters
Business process management matters throughout your business. However, its benefits are most seen in business agility, reduced costs, higher efficiency, greater visibility, and better adherence to safety and security measures. Ultimately, improved performance and any or all of these areas will result in a better business with happier customers, higher profit margins, and more engaged employees.
BPM vs. BPA
Business process management and business process automation (BPA) are closely related. You must have both. While business process management is all about, as the name suggests, managing processes, Frevvo explains that business process automation is about applying and implementing these processes. A few areas in your business that may enjoy the greatest perks of automation include IT support requests, onboarding, and expense filing. The vast majority of business processes that are triggered by a specific event, such as payroll dates, will benefit from technology solutions as well.
To summarize, business process management is not a single action or software. It’s not something that can be done by a singular employee. Instead, it is a collective of programs and processes that help automate and streamline your business. Financial software, cybersecurity, and even standard operating procedures can all play an effective role in your business process management strategy. However, to maintain an effective BPM system, you must continually evaluate and monitor all components of your BPM and be prepared to adapt when changes are needed.
Sources and further reading
- Fund your business (U.S. Small Business Administration): Funding options including self-funding, crowdfunding, and small business loans.
- Manage your business (U.S. Small Business Administration): SBA guidance on finances, hiring, taxes, marketing, and cybersecurity.
- Cyber Guidance for Small Businesses (CISA): An action plan covering multi-factor authentication, patching, and tested backups.
SmartBizOpps provides information only and does not guarantee income, leads, or results.
Photo by Kaleidico on Unsplash
Sources and background: PwC.
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