BPM Challenges

From the BPM Quarterly Ezine…

For many organizations, gaining widespread support for BPM remains a struggle, according to a survey of 264 business and IT professionals. Asked to identify major challenges to their BPM efforts, respondents replied:

  • 38% Say that senior management isn’t interested or is focused elsewhere
  • 23% Say that management doesn’t want to make the investment now
  • 12% Say that they have had process projects that failed, so management is cautious

My Thoughts

Today’s economy appears to be slowly recovering.  During this downturn, many companies have seen their revenues decline.  They could keep their profits up by reducing costs; and managing their business processes is a good way to lower costs.

Senior management is focused elsewhere – Someone once told me that senior management cares about 2 things: Sales Revenues and Everything Else.  Somehow, I would think that profit is in there with sales revenues.  I have a hard time understanding why senior management would not see the value in reducing non-value added steps from their business processes and automating where they can in order to reduce their costs.  It will also prepare them to better handle increases in sales.

Investment timing – Making this kind of investment in a downturn will put your company in a better position to compete when the economy turns around.

Failed projects – Failures happen.  Project planning is a key to success.  Implementing a solution is easy if you have done the planning work in advance.  And, watch out for scope creep.  Choose one process to improve and stick with that project through completion.

While the economy slowly makes its recovery, this a great time to improve your processes to lower costs, increase revenues, motivate employees and make your customers even happier.

Your Thoughts…

What steps has your company taken to improve their processes?


One thought on “BPM Challenges

  1. Scott, I certainly see sales revenue a much better target than lowering costs. Profits are easier increased by selling a more exepnsive quality service than reducing your service to the absolute minimum by cutting costs. The idea that costs can be cut without actually reducing service quality is an illusion!

    As I wrote on my blog last week: “Austed Home Depot CEO Robert Nardelli was devoted to Six Sigma. … Profitability soared, but worker morale dropped, and so did consumer sentiment. Home Depot dropped from first to worst among major retailers on the American Customer Satisfaction Index in 2005. Now Nardelli’s successor, Frank Blake is dialing back on the Six Sigma.”

    More on: http://isismjpucher.wordpress.com/2011/04/26/the-process-is-a-practice/

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