Business Process Management (With Steps and Benefits)

By Indeed Editorial Team

Published June 10, 2022

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.

Business process management (BPM) is a crucial component for evaluating business practices. Companies often want to develop their current processes to improve productivity, and BPM helps them accomplish this aim. Understanding the steps and importance of BPM can help an organization plan accordingly to ensure it accomplishes its objectives. In this article, we define this type of management, highlight the steps involved in the process, discuss the types of BPM, explore its benefits, and review examples of BPM.

What is business process management?

Business process management entails assessing and developing current processes to produce a sequence of notable steps that you can use to achieve the aims of a business. BPM is a long-term approach and involves effective task management to classify a set of actions that occur throughout a project. BPM focuses on constant and continuing processes that follow a certain pattern to improve efficiency.

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6 steps to creating an effective business process

Here are six steps to develop a successful BPM cycle:

1. Develop a plan

For a BPM plan to be successful, it has to be of worthy significance to customers. To achieve this, it's helpful to recognize your objectives and assess the company's present practices. There are three major processes the company can evaluate. These processes are:

  • Primary processes: These processes have a direct significance to customers. Examples of these processes include product development, sales, and raw material acquisition.

  • Secondary processes: These processes reinforce the primary processes. They include IT and facilities management, human resources, and supplies and procurement.

  • Management processes: These are high-level reviews that examine primary and secondary processes so the administration can develop the most effective steps for the business. This step is crucial in helping the company accomplish its objectives.

2. Examine the processes of the company

To develop a successful BPM cycle, it's advisable to first assess the company's current processes. The aim of this step is to establish if your present BPM supports the objectives of the company. There are two types of analysis that you can employ in this step:

  • Qualitative analysis: You can employ this kind of analysis to identify deficiencies, misuse, and losses in a company. You may also use the root-causes analysis approach that involves making cause-and-effect charts.

  • Quantitative analysis: This analysis can be useful when you're dealing with figures. This method allows you to analyze numbers and data, so you can have a statistical rationalization of the business.

3. Develop the suitable representation

Once you clearly understand your present BPM, you can choose whether to build a new BPM or effect some adjustments. To decide, it's helpful to recognize the following factors:

  • The employees involved

  • The time and frequency required for work

  • What the job involves

  • Location of the task being completed

  • The tools, procedures, and approaches used

Upon recognizing these factors, you can consider the continuous process approach, where you concentrate on an area with challenges and implement the necessary amendments. Alternatively, you might also consider the business process re-engineering approach, which involves revising the entire BPM cycle.

4. Effect changes

This is the step in which you can implement necessary changes. You can either do it extensively with the help of relevant software or non-systemically without software. You may implement the process by assessing it live with a limited group at first, then opening it to all users. It's also important to limit access to confidential information.

5. Monitor the new cycle

For effective transformations to happen, regular tracking and checking are necessary. This can ensure you implement the adjustments well and that the new processes are beneficial to the objectives business. For instance, you may use weekly, bi-weekly, or monthly charts of assignments for team members to keep track of their progress.

6. Develop the new cycle

As you examine the new cycle, you can identify any adjustments you might make to improve a company's workflow and resource management processes. This may include opportunities to minimize costs and cycle times while enhancing product or service quality. Doing so can help you achieve the full potential of these new business processes.

Related: How to Develop a Strategic Business Development Plan

Types of BPM

Here are some types of BPM you can consider for the business:

Integration-centric BPM

This kind of BPM system controls processes that largely jump between your current systems, such as human resource management, retail management system, enterprise resource planning, and customer relationship management systems. It's also useful when there's little human participation. Integration-centric BPM systems have extensive connectors and application programming interface (API) access that can help you develop processes that move swiftly.

Human-centric BPM

This kind of BPM is appropriate for those processes that are mainly completed by humans. They typically have many endorsements and assignments executed by individuals. Human-centric BPMs do extremely well in a responsive user interface with simple notifications and prompt monitoring.

Document-centric BPM

These BPM tools are useful when a document, such as a contract, is the most important part of the process. They facilitate routing, configuring, and validating of documents. Many BPMS can integrate components of each of these, but each one typically has one area of expertise.

Related: Guide to Understanding Business Development (Plus FAQs)

Benefits of BPM

Here are some advantages of implementing BPM in the business:

Increased productivity

BPM can enable the computerization of repetitive components within expected functions. Process developments like elimination of restricted access, introduction of analogous processing, and eradication of unnecessary steps are possible with BPM. This enhancement can enable team members to spend more time on other programs if the management system has completed the main support tasks, which can improve productivity significantly.

Improved business agility

Many businesses continually adjust their processes. These changes can become indispensable because of new policies, market demands, or the introduction of new practices of working. One crucial feature of BPM is that it facilitates the establishment of processes that are adaptable. With BPM, you get the modifiability of completing alterations to processes with minimum costs. You can transform processes to support the needs of the firm.

Increased customer satisfaction

With modest processes and enhanced effectiveness, team members are better able to concentrate on the client. There's likely to be an improvement in the company's capability to react more promptly to suggestions and promote solutions faster. BPM also unites individuals and technology in a way that enhances customer satisfaction. With BPM, team members can concentrate on actions that create favourable outcomes for clients and partners.

Guaranteed compliance and transparency

Companies are often required to comply with industry policies. BPM ensures corporations can effect regulatory requirements promptly, to prevent interruptions in compliance and any related fines. Once you implement BPM, you incorporate compliance into the process life cycle. This also means that company processes become straightforward and more apparent to team members.

Improved measurability

You can measure all processes one after the other and compare them to projected outcomes. This helps to supervise processes and human resources. If employed with technology, BPM offers reporting and analytical platforms for making administrative resolutions. With BPM, you can simplify processes and measure how they affect the company's productivity.

Increased employee confidence

Creating an effective BPM system requires the participation of team members. If you're asking your team members for their response on the process they're accountable for, they're more likely to feel involved and that their input matters. It might also make them feel that they're a valuable part of the company and can help build their confidence.

Improved revenue growth

With improved client satisfaction, you can also increase a company's revenue. An effective BPM system can help monitor redundancy, misuse, and other concerns within the company. This can help the business reduce costs and respond to any issues before they can impact its revenue.

Related: 9 Onboarding Best Practices to Increase Work Productivity

Examples of business management processes

Below are some examples of using BPM:

Human resources

The human resources (HR) department can benefit extensively from BPM. HR's activities mostly involve filling out documents. A job applicant might fill in a document, then the organization management signs it, and finally management endorses it while signing leave forms, among other relevant documents. BPM can save time by computerizing the management of all these documents. For instance, if you're trying to computerize leave approval, team members can fill in a leave form which the system then forwards to HR and any managing executives to sign. Doing so eliminates the need for several e-mail exchanges.

Onboarding

Whether you're dealing with a new customer, recruiting a team member, or starting out with a new vendor, onboarding is important. The process involves enlightening them on the functions of the company. When recruiting a new team member, it's helpful to update them as soon as possible on the operations of the business. This might require approving many documents, finding suitable tools for the new members, and introducing them to other employees. BPMs provide a structure for completing the onboarding process to help ensure you complete each crucial step.

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