How Business Process Management Improves Business Results
Business Process Management (BPM) is more than automation of business processes. It is a network of connectivity that gives your business an edge in improvement. It is continuous enhancement of business processes that create an agile organization able to constantly absorb insights and transform to meet the needs of customers, employees, and the market.
We’ve talked a lot about how performance management drives results, but this time it’s all about process management.
Consider the following question: How many processes does my business use to operate?
Do you know the answer? Can you ballpark it? Most people in your business, including you, probably don’t know how many processes run the business.
Carl Lehmann, a BPM specialist, suggests doing a Business Process Inventory in his article How Many Processes Does your Organization Use to Run its Business? Lehmann says, “Processes considered ‘Core’ to operations must perform well. They demand commitment, ownership, investment in performance enhancement and optimization. ‘Non-core’ processes that create liability or risk demand consolidation, decommissioning or outright elimination.”
It is essential that you understand your business processes because they define your operation. How you operate determines your company’s success.
Real Life Example of How Business Process Management Improves Business Results
I spoke with an executive at a non-profit blood collection company after the organization implemented BPM software for donor services. The new system gave interdepartmental access to donor information that was vital to each department in different ways.
When a tech collected the blood, he or she would insert the number of units collected into the system. That number did not always match what actually was collected once the blood was processed, but communication between the departments was slow and the information fell into a bit of a void. Instead of using this insight to affect change and get results, the information was lost or ignored.
After implementation of the BPM tool, the organization found that the discrepancies were more quickly communicated. This consistent, verified information became vital to business processes. It gave the centers a better opportunity for scheduling of donors. The more accurate collection count improved the center’s ability to time the collection process.
This simple step helped in a myriad of ways. First, it enhanced staffing decisions and saved on labor costs. Whereas before, the center may have always scheduled a donor for a three-hour slot based on the donation, after BPM tool implementation they were able to see they only needed two hours for the donor. For example, the center may have needed staff until 8 PM when the departments weren’t communicating, but after BPM technology, they only needed them until 7 PM.
Second, the system meant savings on donor supplies. In a sterile environment, products can’t be reused, so opening a bag that you don’t use because the donor doesn’t donate as much as you previously thought is wasteful. Though one bag and one donor may seem inconsequential, across the many centers this organization operated, the savings were exponential. A near immediate drop in supply spending occurred.
Finally, the BPM software implementation offered opportunities for increased revenue. Better scheduling meant more donors on the docket, and communication between the departments meant the centers could see which donors were giving more blood after processing or had the best opportunity for higher-quality collection.
These results were felt by the year’s end across the company. Wasteful spending went down, revenue went up, and employee success on draws increased. This success started a BPM revolution in the company. They went on to apply BPM solutions to nearly all their hundreds of business processes and it put them light-years ahead of competing blood collection organizations in their area.
Why You Should Care
In Charles Araujo’s blog, Why BPM is Now Taking a Central Role in Digital Transformation, he writes, “The new generation of BPM tools offers organizations a way to turn complexity into an advantage by creating transparency, enabling rapid development and testing, and providing a platform for those closest to the customer to stop worrying about technology and focus on solving the problems that matter most.”
So, how many business processes does your organization have? Could applying BPM technology to even one of those processes have the effect in your organization that it did for the blood collection center?
The answer is yes. If you care about consistently achieving positive results within your company, whether it is increased revenue, customer or employee satisfaction, or lower expenses, you need to begin a process inventory and discover where business process management can play a role.
Ultimately, the greatest investment you can make is in a BPM solution that will give your company the agility it needs to adapt to the constantly changing future.
For guidance regarding Constructive Feedback, Performance Management, Employee Relations, Leadership and Executive Coaching and Development, and all things “HR,” The Pendolino Group is here to support you and your team. Contact us today!