PEX Guide: What is business process management (BPM)?

Business processes that are time-consuming, muddled and inefficient often result in rising costs, low morale and diminished or frustrated customers, which can be an obstacle for businesses to remain successful and ahead of the curve.

Business process management (BPM) is a well-known practice in the world of process excellence, with many organizations employing BPM teams to normalize solid process management practice and enhance efforts to achieve business and digital transformation goals.

What is business process management (BPM)?

BPM is a process excellence methodology that incorporates various disciplines to discover, model, analyze, measure and optimize business processes. BPM can promote efficiency in a wide range of business processes, but is usually best for tasks that are repetitive and follow a predictable path.

Although not its primary aim, it can often uncover opportunities for automation, but automating a process does not automatically solve a problem. In some cases, it will just make a muddled process run a little bit faster.

BPM methodology has been around for 30 years. Gerard Poolman, CI master in Shell projects and technology at Shell’s Integrated Gas Division, believes its content is still relevant, but “the way to conduct it has to continuously adapt to most modern technologies”.

Related content: How BPM is enabling business transformation

Understanding the types of organizational processes is important

Understanding the various types of organizational processes allows a clearer picture of the ways that BPM methodology can be developed and the impact it can have on organizational goals. There are three primary process categories where BPM can offer opportunities for process enhancement:

• Operational: These are the most important processes that are essential to running a business as they are vital to delivering a product or service, thus offering value to customers.
• Support: Support processes do not offer value to customers but are vital for ensuring that operational processes can function; human resources processes would fall under this category.
• Management: Management processes do not offer value to the customers, but they are the link between operational and support processes. Management monitors, controls and coordinates all aspects of the business and processes such as budgeting and communications fall under this category.

The different types of BPM solutions

BPM is such a wide-ranging, inclusive and dynamic practice that there is a wide array of software tools and approaches that fall into the category.

There are three levels of BPM implementation that organizations can leverage, the first of which is a basic BPM platform, which is a controlled and trusted repository of organizational procedures and documentation. The second is a BPM suite, which takes the basic BPM platform one step further by offering a holistic view of all processes and departments. Finally, there is the intelligent BPM suite, which goes as far as to enable mapping of processes against logs and data to allow development of new, optimized processes that are backed by data.

Here we explain some of the more common BPM solution types.

Process diagrams

Process diagrams are typically what people picture when they think of BPM. Process diagrams will give users the ability to structure processes; meanwhile, the system handles exceptions while the path is functioning.

Generating process diagrams allows organizations to attain a clear picture of process flows and to identify potential bottlenecks that are harming efficiency. This lends way to implementation of process mining practices that can be applied to really drill down into processes, understand how they play out in reality and generate a picture of exactly what needs to be done to streamline them.

Source: PEX Network's BPM Live 2020

Integrations

BPM tools often have a wide array of integration capabilities that can include the ability to pull and push data from various sources. Process triggers are also a key aspect as they give organizations the ability to engage certain systems without human input. For example, a BPM tool that integrates with a CRM will give a full view of the sales pipeline.

Flowchart of an IT business process 

Source: Triaster

Collaboration tools

BPM collaboration includes communication tools that can facilitate messages and calls directly into the system. Communication tools often display the customer’s profile, giving users quick access to relevant information. Task management tools are also big aspect collaboration. This kind of tool gives users the ability to plan tasks, projects, meetings and more. Tasks can be assigned to individuals or groups, and tasks synchronize with calendars so users receive deadline notifications.

Low-code design

Low-code offers ‘drag and drop’ process design capability that enables planning and development of processes without any knowledge of coding. Software tools that come with drag and drop functionality will let you start process optimization right out of the box, providing the additional benefit that the necessity of employee training will be minimized.

The benefits of BPM

At its worst, an improperly managed business process can bring pipelines to a halt and can be a significant drain on employee morale. When an issue shows no sign of being resolved, employees will not feel invested in the smooth operation of the business, which could increase employee churn.

By implementing the BPM methodology to their internal processes and using platforms, organizations will understand them better and will find ways to optimize them. The implementation of BPM platforms also has a wide range of benefits, and there are numerous ways to drive business value with BPM, such as democratizing automation and improving process visibility.

Increased visibility

More often than not when analyzing processes, management will have a hard time determining who is responsible for what, what the status of a process is or if there are any issues. The lack of visibility can lead to task abandonment and sluggish performance and hamper an organization’s ability to improve performance. If leaders cannot determine where a process went wrong and why it happened, there is little opportunity for improvement.

BPM enhances visibility and scope for improvement. With solid process management practices in place, managers will be able to monitor and discern what the inefficient processes are, why they are inefficient and how these inefficiencies can be resolved. Visibility of processes is essential for organizations seeking to improve them.

Breaking down business silos

An over-reliance on business silos can be damaging to organizational performance. Siloing business processes eats up resources and can also result in a work environment that is disparate and lacks interdepartmental teamwork. This makes it harder to capitalize on opportunities and advantages.

BPM gives leaders a greater idea of how different areas and departments are or are not communicating. It will also help departments realize that they are part of a whole, fostering an environment based on communication and clarity over responsibilities.

BPM helps integrating data

Another culprit in resource waste is a lack of integration options that force employees to switch from system to system while using multiple sources of information.

BPM can help organizations integrate data from different silos and departments, whether it is finance, human resources or sales, and allow them to ensure that their data is universal. Not only will this go a long way in reducing errors, but it will also increase data process speed.

Enabling innovation

Businesses are liable to tunnel vision and often stick with their process management way. This can lead to missing out on new and innovative technologies that competitors are turning to.

Over time, BPM will only get more complex as additional methods emerge. Failing to adopt new ways of working will leave bottlenecks in place that can adversely affect the outcome of other business processes.

Embedding resilience and agility

BPM also offers the advantages of enhancing organizational agility and resilience, as management of processes plays a key role in enabling businesses to react quickly to contingencies, challenges and risks that could negatively impact business results.

Related content: How BPM reduces risks in transformation projects

Ensuring processes are correctly managed and optimized allows businesses to stay on track with delivering on customer service or core objectives. With a structure in place that allows for quick pivoting with regard to process changes, setbacks can be dealt with quickly.

Increasing employee productivity by removing duplicated work

When a business process lacks visibility and interdepartmental unison, the duplication of work and process becomes a frequent occurrence. Not only does this waste employee time and confuse everyone involved, but also it also fosters reductions in long wait times for approvals, error-prone work and duplicated errors and delays for the customers.

As a result, employees often end up spending too much time on a business process as opposed to the important things that that they were hired for.

Leveraging BPM will give companies the ability to capture their end-to-end processes, giving them a library of knowledge to draw back on when a process does or does not work.

BPM can give leaders an overview of business process and the ability to discern areas of improvement. This will increase employee productivity due to the minimization of repetitive and time-consuming tasks, giving employees more time to focus on the core aspects of their job.

How to ensure a successful BPM strategy

Criteria for success needs to be defined

For a BPM strategy to be successful, everyone needs to understand what the end goal is. In addition, BPM does not have to be about technological change and automation, although it often is. BPM should involve an issue and an appraisal.

Automation can expand the potential of processes and reduce error rates, but it is not a magic fix for poor processes. Organizations should first apply a holistic end-to-end approach to analyze and fix process efficiencies where they can, otherwise you are simply automating inefficiencies into your processes.

Leveraging cloud-based solutions to reduce investment costs

Introducing new and innovative technologies can be expensive, but the sheer volume of cloud-based solutions that have flooded the market has made BPM inexpensive.

According to Research and Markets, the BPM-as-a-service (BPMaaS) market is growing and is expected to accelerate at a CAGR of more than 28 per cent, or $19.6 bn, between 2021 and 2025. This acceleration of BPMaaS adoption is unsurprising when you consider its ability to provide real-time process optimization and scale self-service capabilities.

Another example of cloud-based solutions is RPA-as-a-service, which removes the skill set and knowledge barrier that any organization will have to overcome they wish to implement RPA internally.

Applying BPM for continuous improvement

BPM is not a one-stop solution. It is a way of thinking and for any business to see success, a continuous and constant process of improvement will be key. If organizations fail to develop a strategy for continuous improvement, they risk being left behind by competitors, as the pace of change and the rate at which inventions become obsolete is increasing.

Continuous improvement needs to be a culture that is embedded into the roots of the business, so that every individual in constantly on the lookout for ways to adapt and improve.

For BPM to succeed, everyone needs to be invested in it. This is especially true for the people at the top as they have the resources and power to follow through with change. It is up to them to communicate the benefits of BPM and how the solution will improve day-to-day operations.

Conversely, workers will also need to be assured that their job is not going to be replaced. They need to know that BPM will help them focus on the important aspects of their job and that no BPM technology or solution can replace complex human insight.

The future of BPM

BPM-as-a-service solutions are commonplace in most sectors, with numerous options targeted at small to medium enterprises putting an end to the misconception that BPM is only for big businesses.

BPM is a well-established practice and no longer a trend; it is simply something that businesses do to improve. There are several key trends and technologies that are looking shape the future of BPM over the next few years.

Low-code systems

Low-code systems are increasingly in demand, as the ability to use fully working automated processes straight out of the box has a huge appeal for businesses of all sizes. Low-code systems are also highly customizable, offering a high degree of personalization to suit different business needs.

When combining it with the BPM methodology on critical processes, low-code will allow organizations to speed up application development and enable innovation quicker than before due to the ease offered by ‘drag and drop’ features.

Unified organizational data

The removal of silos has always been a priority for business leaders. With the rise of chat and data-sharing applications, businesses are one step closer to increased integration. Chat is becoming an increasingly popular way to communicate to customers, as messages are instant and archived for future reference and can be accessed by any agent. Chats remove the need for customers to explain their problem multiple times.

As the application of data scientists and analysts to the management of business processes continues to increase, so does the capability of organizations with regard to data access and quality. A product of this has been the rise of the ‘data lakes’ that collate all organizational data into a single view. They help BPM analysts get to work on understanding exactly what an organization’s data is telling them and apply this in process optimization efforts.

Process mining will continue to grow

Process modelling has been a common tactic in BPM for years, however, this practice was taken to the next level with the development of process mining techniques. Process mining allows organizations to visualize how a process plays out and combine that process map with data in the form of event logs. This helps creating a process model that can inform an organization of exactly how a process is functioning in real time.

Such an enhanced level of process visibility enables the detection of bottlenecks or unnecessary process steps, allowing process optimization at a level that was previously unheard of.

BPM in action

In PEX Network’s Using BPM to create business value report, it was revealed that Bank of Ireland is undergoing the implementation of BPM initiative focused on operational resilience. After degrees in inconsistencies around how components of processes mapping were identified across the organization, the business decided to go back to process basics, ensuring that processes are optimized before working on resilience.

The bank is currently deploying a process repository which Keith Bohanna, its head of group BPM standards, sees as their “gold source of processes within the enterprise”, which will help ensure the long-term future use of process maps across the bank’s 12 divisions.

By going back to existing process maps and ensuring they are consistent, Bohanna hopes to incorporate a strong holding structure for all processes. He notes: “This will ensure all processes are held and navigated into and analyzed separately from the current organizational structure within the bank and that is critical to enable process analysis and reporting.”

In the same report, it was also revealed that Coca-Cola Beverages Florida has applied BPM to ensure that automation of optimized processes was aligned with the business objectives. In this case, business objectives were focused on ensuring the health and safety of employees while maintaining business continuity for customers.

The business developed an end-to-end health tracking system for employees, utilizing a self-service solution that leveraged public health officials’ screening questions to assess the level of risk related to the pandemic.

The initiative, along with the in-depth health information it generates for employees, offers Coca-Cola Beverages Florida a level of visibility and control over health concerns that it did not enjoy previously.

PEX Report 2024 global state of process excellence

PEX Network's annual report reveals the current state and future trends of process excellence. Based on a study profiling hundreds of global process excellence leaders, the report provides insights on how to leverage innovation, generative AI, and process intelligence to achieve operational excellence, customer-centricity, and organizational growth. Download your copy of the PEX Report 2024/2025 today and benchmark your process excellence journey against your peers.

Download Now

This article was originally written by Adam Muspratt and published on 29 September 2018 and was updated on 01 September 2022.