Defining BPM

I am a member of BP Group.  They are currently asking their membership for a definition of BPM [Business Process Management].  A couple of definitions follow…

‘Business Process Management [BPM] is to define, manage, measure and improve the ability of processes to achieve organizational goals, improve organizational performance, and deliver measureable value to customers and other stakeholders.’

Wikipedia says that ‘Business process management (BPM) is a management approach focused on aligning all aspects of an organization with the wants and needs of clients. It is a holistic management approach that promotes business effectiveness and efficiency while striving for innovation, flexibility, and integration with technology. Business process management attempts to improve processes continuously. It could therefore be described as a “process optimization process.” It is argued that BPM enables organizations to be more efficient, more effective and more capable of change than a functionally focused, traditional hierarchical management approach.’

My Thoughts…

I don’t know about you, but I get overwhelmed with all of the different definitions that are put forth by all of the different pundits.  I am convinced that they have a vested interest in their particular definition.  There are vendors, consultants and writers putting forth their positions.

It seems to me that the most important position is the position of the company that wants to manage their business processes.  That being the case, I would go with – ‘BPM means defining, managing, measuring and improving the ability of processes to achieve organizational goals, improve organizational performance, and deliver measureable value to customers and other stakeholders.’

Somewhere on the list of objectives for most companies, you should find – Reduce costs; Increase revenues; and improve customer relationships.  Managing your business processes does not require software, it does require that you define, manage, measure and improve your business processes.  Achieving organizational goals and improving organizational performance should lower costs.  Delivering measurable value to your customers should increase revenues and improve customer relationships.

Many respected BPM thinkers point out that ‘customer focus’ is a key to successful business process management.  As you look to improve your processes, ask yourself how this will provide value to your customer.

As I have said before – In this economy, some companies will fail and some companies will become winners.  Effective process management is a key ingredient to success.  And, companies that manage their processes effectively will be better positioned to be one of the winners.

Your Thoughts…

Is your company managing their business processes with a customer focus?

Keeping it Real!

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