Green BPM: Driving efficiency and enhancing performance
Green BPM analyzes business processes with the key goal of reducing their environmental impact
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Business process Management (BPM) is an integral element of process excellence. It incorporates a combination of methods to discover, model, analyze, measure, optimize and automate business processes. While BPM is far from a new concept – its roots can be traced back more than a century to the theory of scientific management by Frederick Winslow Taylor – there are a number of modern factors significantly shaping the BPM landscape for businesses.
One of those is sustainability – more specifically, the ecological and environmental impact of running a business. Today, businesses are under increasing pressure to meet sustainability and carbon footprint reduction goals driven by both legal requirements and customer expectations. This has given rise to the concept of “green BPM” which analyzes business processes with the key goal of reducing their environmental impact. By implementing green BPM, organizations can not only assess and improve their sustainability positions to help meet and surpass targets, but they can also save money and improve efficiency.
A recent research report published in the Business Process Management Journal explored the role of green information technology and sustainable business processes and their impact on organizational value. It found that sustainable business processes encompassing economic, social and environmental dimensions enhance financial and non-financial performance. The researchers concluded that businesses should focus on acquiring new green technologies and adopting sustainable processes.
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Benefits of green BPM
“The implementation of green BPM is beneficial for organizations for several reasons. First and foremost, it benefits the larger globe and ecological footprint, and many customers are keen on purchasing from companies that have policies in place to support the environment,” Anand Subbaraj, CEO of field service management software provider Zuper, tells PEX Network.
In recent years, environmental, social and governance (ESG) standards have become common practice and, in some cases, determinants in meeting compliance requirements and receiving investor buy-in, adds Anders Lillevik, CEO and founder of Focal Point. “Companies should leverage green BPM to keep track of their eco-footprint and ensure that they are meeting these necessary regulations both in terms of fuel and carbon emissions and fair labor practices.”
Additionally, there are benefits to the organization on the internal level, Subbaraj says. “The reduction of waste while eliminating unnecessary inefficiencies plays a role in the larger cost-savings strategy at any organization. Companies can leverage green BPM to monitor the production of parts and components, track the sourcing of materials and prioritize digital workflows to reduce the use of paper and plastic.”
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Key elements of green BPM
There are several key elements of implementing and sustaining green BPM. First, companies must analyze existing practices from start to finish and identify areas for improvement in terms of sustainability and ecological footprint, says Subbaraj. “For example, organizations leveraging delivery or travel can analyze existing routes for service and identify faster, more fuel-efficient routes to optimize time and emissions.”
Organizations can transition from pen-and-paper workflow processes (which many organizations are still using) to digital workflows to eliminate product waste, he adds. “They can leverage tech tools for inventory management for manufacturing and other service businesses to reduce the need for unnecessary shipping of ad hoc inventory for jobs. They can also identify and implement processes for recycling and waste management.”
It’s important for all businesses stakeholders to adopt the correct practices and tools to ensure employee and customer buy-in too, says Lillevik. “This can begin with the evaluation of supplier and product sourcing practices for everything from software to uniforms to paper and pens. For companies like large manufacturers, the same is true for the sourcing of components and the ability to understand the environmental impact of those supply chains.”
Regular monitoring of suppliers and geopolitical conflicts or situations that may influence the production of certain materials ensures that teams can quickly adapt if changing suppliers is necessary and beneficial to the company and the environment, says Lillevik. Furthermore implementing preventative maintenance on equipment is essential for any company developing and providing materials to customers or distribution partners, adds Subbaraj. “Preventative maintenance extends the lifespan of existing materials and products while also preemptively ensuring there are no issues that would result in the dispensing of tools and equipment.”
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How to achieve green BPM
To achieve green BPM, organizations should begin with a green BPM-focused task force, team or individual who surveys existing practices at an organizational level and identifies how teams are using materials, where there is unnecessary waste and where efficiency can be improved to reduce time and resources needed for certain tasks, according to Subbaraj.
“Company leaders should provide educational sessions for employees to better understand how the adoption of certain practices and tools can improve their eco-footprint, and therefore act faster in terms of alignment with these tools, he adds.
Companies’ supply chain and procurement management teams should play a key role in the implementation of green BPM across an organization by closely monitoring the sourcing of sustainable materials and practices, says Lillevik. “Supply chain teams not only ensure that materials directly sourced are from reputable suppliers with a positive eco-footprint but also that the suppliers of their suppliers are implementing ethical and sustainable practices in the creation and development of any tools or materials.”
Finally, teams should implement checks and balances to regularly monitor the performance of new practices involved in green BPM to ensure that they are maximizing efficiency on an ongoing basis, concludes Subbaraj.
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