Friday, October 31, 2008

Business Process Management - Costly and Vague?

I attended a seminar recently that talked about Business Process management. Some of the views of this is that projects to implement Business Process Management (BPM) were considered by many to be costly and vague.

While it's true that many projects undertaken by large business are exactly that, I question whether it has to be.

Firstly, they are costly because they are taken on as huge projects that are going to change the way a company does business. Like any major change, they are complex and require many changes in many people, if they are to work. This kind of change will never be taken on by small business. They can't afford the disruption and the failure. Because they are so large, it's like trying to boil the ocean. It may be possible, but it will take a lot of heat concentrated in many places in order for it to happen. It's much easier to boil water in a pot. In the same way, small projects that address a small part of the business are more effective. It's easier to focus on one process than a whole organization. Continuous process improvement (doing it in small chunks) also gets people comfortable with constant change, eliminating one of the barriers.

The second issue is the focus. In many cases, when organizations talk about BPM, they talk about the process and the activities of the process, they don't talk about the business value that will be delivered from improvements in the process. Try talking to the average business person about process and you will get a blank stare. If you don't, and you ask what is meant, you will get many different answers, none of which are helpful. Why are you taking on a process improvement project? If it is not to add business value, then why do it? So, if you are to be successful, you should focus on business value and measure business outcomes that provide business value. Real estate professionals will tell you there are three important things. They are: Location, location, location. For Business Process projects, the three important things are: Focus, Focus, Focus .....on business value. This focus brings the project down to a level where everybody understands it. It becomes real to them.

Do you want to improve the quality of your services? Do you want to improve productivity? Do you want to reduce costs? Then process improvement is the approach. But keep your focus on business results.

No comments: