It’s a Matter of Survival

Use BPM to Drive Out Costs

From a Gartner Article…

Depending on which economist you want to believe, this recession will last a few quarters or perhaps longer.  The typical reaction of most companies is to cut costs.  A CFO looks at the earning targets for the upcoming quarter, projects lower revenues, and then figures out how much cost cutting is needed to make the original earnings target…

The ‘ax man’ approach is likely to leave gaping holes in your business processes.  So, how can you fight the ills of the economy without killing your business?  Gartner believes that one of the methods to do this is to look to BPM.  BPM provides the management disciplines and the tools to surgically target problem processes and put them on the path to recovery.  Importantly, this is done in the context of the organization as a whole.

My Thoughts…

In one of my previous blogs, I pointed out that your ‘quote to cash’ process is likely to be your highest value process.  And that your other processes exist to allow your ‘quote to cash’ process to function properly…

So, as Gartner points out, the ‘ax man’ approach could disable one of these supporting processes or the ‘quote to cash’ process itself.  Neither outcome is desirable.

Cutting costs within processes involves removing non-value added activities and finding better ways to perform activities.  Business process management provides the management disciplines to surgically target problem processes and put them on the path to recovery.  You will see that making these cuts would make sense whether the economy is good or bad. 

It just seems clear to me that process improvement is the best place to look to cut costs rather than just arbitrarily ‘laying off’ employees.  Let me know what you think…

Your Processes can be your competitive advantage…


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