5 Stages of BPM Methodology

Implementing Business Process Management (BPM)  is a strategic endeavour for organisations that offers a multitude of benefits. These benefits range from providing transparency within their operations to elevating productivity to facilitating transformative digital initiatives. However, the path to BPM success comes with challenges, and a significant number of organisations often stumble before they can truly attain their desired objectives.

The 5 Stages of the BPM Methodology serve as a roadmap for enterprises striving to navigate the complexities of process management effectively. These stages represent a systematic roadmap for organisations to follow, helping them circumvent common pitfalls and ensure that their BPM goals are met. At each stage, specific tasks and milestones are set to facilitate the seamless progression of BPM efforts.

In this blog, we will understand these 5 Stages of BPM Methodology in detail, highlighting each phase’s significance and providing valuable insights to help organisations overcome the common hurdles they encounter while implementing Business process management strategies in their organisations.

What is Business Process Management?

Business Process Management (BPM) is not merely a set of procedures or a technical framework; it constitutes a holistic management philosophy and organisational culture. At its core, BPM is a mindset that seeks to enhance an organisation’s performance continually. By connecting various things such as people, processes, technology, roles, and responsibilities, business rules, and regulatory compliances, BPM aligns all elements towards a unified objective: the creation of value for both customers and stakeholders.

In essence, BPM is an all-encompassing approach that optimises operational efficiency and effectiveness. It fosters a structured methodology for the analysis, design, execution, monitoring, and improvement of business processes. BPM software ensures that an organisation’s processes are not static but adaptive and resilient, capable of responding to evolving market conditions and customer needs.

Business Process Management (BPM) is underpinned by the recognition that every component within an organisation contributes to its overall performance. It emphasises the need for collaboration and cross-functional cooperation, breaking down silos and enabling a holistic view of operations. Through BPM, organisations can adapt to change swiftly, reduce redundancy, minimise errors, enhance customer satisfaction, and, ultimately, elevate their competitive edge in the dynamic business landscape. It is, therefore, a strategic imperative for businesses seeking sustainable growth and success.

What is the BPM Methodology?

BPM Methodology, a term often defined in unique ways by experts in the field, can be concisely described as a structured and systematic approach employed by organisations to optimise their business processes. It is a concept that encompasses a series of steps, principles, and best practices aimed at guiding the design, implementation, monitoring, and continuous improvement of an organisation’s processes. BPM Methodology is also versatile, as it can be customised to align with specific industry requirements, making it applicable across diverse sectors, ranging from manufacturing and healthcare to finance and customer service.

The overarching objective of the BPM Methodology is to achieve several key outcomes, including enhanced customer satisfaction, reduced operational costs, and the cultivation of a sustainable competitive advantage.

With over two decades of experience in the BPM domain, PRIME BPM experts have distilled BPM Methodology into a comprehensible framework. PRIME BPM Methodology simplifies the concept into a cyclic procedure consisting of five phases: scoping, reviewing, implementing, improving, and monitoring. These phases collectively offer a clear roadmap for organisations to follow, ensuring that BPM initiatives yield tangible benefits and continuously adapt to meet the evolving needs of the business landscape.

5 Stages of BPM Methodology – Explained

Let’s understand the 5 stages of BPM Methodology and the scope and objectives of each stage:

1. Process Scoping 

The first stage in the BPM Methodology is Process Scoping, a pivotal phase that sets the foundation for a successful BPM initiative and answers every ‘what’ are the processes a business has. Process Scoping involves a series of critical activities that help identify and select high-priority processes for improvement, ensuring that organisational resources are directed toward areas that promise the most substantial benefits. Here’s an in-depth examination of the key activities within this stage:

• Identifying the Right Business Area

To kick-start a BPM initiative effectively, it is imperative to pinpoint the business area or process that holds the utmost relevance and impact. This requires a meticulous assessment of the organisation’s objectives and challenges.

• Conducting Workshops with Key Stakeholders

These workshops are conducted with the key stakeholders in the business to understand what activities or processes are carried out. The objective of these workshops is to gain information about ‘what’ is done in the business rather than ‘how.’

• Building a Process Architecture

The insights are then used to construct a comprehensive process architecture that includes a list of functions and a list of processes that support these functions. Process architecture is critical as it provides a bird’s eye view of the business area and processes existing in an organisation, enabling organisations to identify critical areas and target their process improvement efforts.

• Applying Criteria to Every Process

Once the process architecture is finalised, processes need to be evaluated against specific criteria. These criteria include factors like execution pain, customer touchpoints, risk levels, and process volume. This assessment helps in identifying which processes are most likely to yield substantial benefits through improvement efforts.

• Understanding High-Priority Processes

To initiate the BPM initiative, high-impact processes that align with organisational objectives must be prioritised. These processes serve as the initial focal point, offering the greatest potential for improvement and return on investment (ROI).

Watch Video: BPM Methodology Phase I – Process Scoping 

2. Process Review

During the Process Review phase, organisations engage in a systematic exploration of their processes by conducting in-depth interviews with key process participants. These interviews, each typically spanning 40-45 minutes, are important for gathering the following insights:

• Understanding Different Roles and Activities:

Through comprehensive interviews, organisations attain a profound understanding of the various roles and responsibilities within a process. This involves delving into the specifics of what each participant does, their interactions, and the tasks they perform. The result is a detailed comprehension of the intricacies of the workflow.

• Documenting Processes with BPMN Standards:

The information garnered from the interviews serves as the basis for creating a well-structured process map, adhering to BPMN (Business Process Model and Notation) standards. This visual representation provides a standardised view of the process, making it considerably easier to identify bottlenecks, redundancies, and areas ripe for improvement.

• Identifying Issues and Opportunities:

The Process Review phase not only culminates in the creation of a high-quality process map but also uncovers issues in the current state process map and opportunities for enhancement. By gathering feedback from process participants and owners and leveraging their expertise, organisations gain invaluable insights into what aspects are functioning well and where improvements are warranted.

Watch Video: BPM Methodology Phase 2 – Process Review

3. Process Improvement

The process Improvement stage is a bridge between the identification of issues and the implementation of substantial changes, ensuring that processes evolve to meet the dynamic demands of the business. Key steps in this phase include:

• Analytical Techniques

Organisations employ a range of analytical techniques, encompassing time, cost, value, and root cause analysis. These methodologies uncover inefficiencies and bottlenecks, allowing for targeted improvements. Time analysis identifies delays and cycle times, while cost analysis assesses process cost. Value analysis identifies the process waste and root cause analysis identifies underlying issues.

• Redesigning the Process

With insights gained from these analysis techniques, organisations proceed to redesign the process. The goal is to eliminate waste, reduce handoff points, streamline activities, and enhance overall efficiency. This redesigned process builds upon the quality process map created in the process review phase, incorporating vital enhancements.

• Demonstrating Profits and Gaining Commitment

During process improvement, organisations must demonstrate the potential profits and benefits that will be realised through the redesigned process. This is instrumental in securing approvals and commitment from stakeholders, ensuring that all are aligned with the proposed changes and the subsequent value they will bring. The Process Improvement phase thus plays a fundamental role in enhancing processes for sustainable success.

Watch Video: BPM Methodology Phase 3 – Process Improvement

4. Process Implementation
   The Process Implementation phase within the BPM Methodology is all about transforming design and analysis into tangible action. It involves a series of meticulously planned activities to facilitate a seamless transition from old processes to newly designed and optimised ones.

• Defining Change Projects

During the process implementation phase, it’s key to outline and define specific change projects. These projects serve as the roadmap, detailing the necessary steps and actions required to facilitate the transition from the existing processes to the newly improved ones.

• Assigning Responsibilities

Clear delineation of responsibilities is critical during this phase. Key responsibilities are assigned to various teams, including operational excellence, process excellence, IT teams, and subject matter experts. This allocation ensures that everyone involved comprehends their role and is held accountable for the successful execution of the implementation.

• Monitoring Progress

Continuous monitoring of progress is an essential facet of the implementation phase. This oversight guarantees that process changes are carried out efficiently and in alignment with the established Key Performance Indicators (KPIs). Regular check-ins and status updates enable organisations to promptly identify and address any issues or delays that may arise.

• Completion and Go-Live

The ultimate objective of the process implementation phase is to complete all change projects. Once organisations are confident that the newly designed processes are functioning as intended, they are prepared for the final step – the go-live phase. This signifies the transition of redesigned processes into full operational integration within the organisation’s day-to-day activities. Process Implementation is the pivotal stage where the envisioned improvements manifest into operational reality.

Watch Video: BPM Methodology Phase 4 – Process Implementation

5. Process Monitoring

The process Monitoring phase ensures that the benefits identified during the improvement phase are not just realised, but consistently maintained. This critical stage encompasses several essential elements:

• Informing and Training

Before a process goes live with the changes introduced in the earlier BPM phases, thorough communication and training are essential. All stakeholders affected by the process alterations must be informed and equipped with the necessary skills and knowledge. This proactive approach ensures a smooth transition, minimises disruptions and reduces resistance to the changes.

• Performance Monitoring

At the heart of process monitoring lies the continuous assessment of process performance. A set of Key Performance Indicators (KPIs) needs to be established and tailored to measure specific aspects of the process. Monitoring these KPIs provides valuable insights into whether the process is delivering the promised improvements and value. It allows organisations to react swiftly to any deviations from the desired performance.

• Value Realisation

The essence of process monitoring is to ensure that the future state of the process consistently delivers the expected value. If the KPIs reveal that the desired benefits are not being realised, organisations need to revisit the BPM cycle, going through phases of review, improvement, reimplementation, and re-monitoring until the intended value is achieved.

Watch Video: BPM Methodology Phase 5 – Process Monitoring

Choose BPM Software With In-Built BPM Methodology

If you are looking for software to accelerate your Business Process Management growth, then PRIME BPM is definitely worth considering. PRIME BPM helps you map, analyse, improve and automate your business processes from a single integrated platform using the PRIME BPM Methodology.

With its powerful features, including BPMN 2.0 for standardised process documentation; one-click analysis on process efficiency, value time and cost; process approval, etc., you can manage your business process more efficiently.

PRIME BPM is also a reputed provider of BPM training programs and successfully trained 5000+ BPM users or professionals by delivering 400 courses. You can also take these courses to train your dedicated team about the entire procedure of implementing BPM Methodology and maximise the outcome.

Wish to explore the powerful features and functionalities of the PRIME BPM software? Take a Free Trial.