Business Process Management – A Complete Guide

Business processes are the key to running a business, governing its operations, productivity, and overall success. Without structured and well-managed processes, businesses risk inefficiencies and errors, making it difficult for them to scale the success. That’s why the importance of business process management cannot be overstated.

Business Process Management (BPM) stands out as a vital strategy for organisations striving to enhance their operations and achieve sustained success. It involves the systematic approach of designing, implementing, monitoring, and optimising business processes to improve efficiency, quality, and agility.

Moreover, as per the industry report, the global business process management market size was valued at USD 14.46 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 19.9% from 2023 to 2030. This growth reflects the increasing recognition of BPM as essential for meeting evolving market demands and technological advancements.

This complete guide on Business Process Management aims to provide insights, strategies, and best practices to help organisations harness the full potential of BPM for driving operational excellence and achieving organisational goals strategically.

What is Business Process Management?

Business Process Management (BPM) is a structured way of making an organisation’s activities work better to save time and resources. It involves designing, analysing, implementing and monitoring business processes to align with strategic objectives and meet customer needs.

Instead of thinking of tasks as separate, BPM sees them as part of a bigger picture. By understanding how each task fits into the whole process, businesses can make things run smoother and use resources more wisely.

BPM uses different methods, tools, and technology to help make processes better, like drawing out how processes work, highlighting if automation can be used to do repetitive tasks, and keeping an eye on how well things are going. It often means working together across different parts of the organisation to make sure everyone’s on the same page.

BPM is all about getting better over time. It’s not a one-time project; it’s a continual process. By always looking for ways to improve, businesses can stay competitive and keep growing, no matter what changes come their way.

Why Does an Organisation Need to Manage Business Processes?

Effective management of business processes is vital for ensuring that an organisation runs smoothly and efficiently. When left unorganised and unsystematised, poor business processes can lead to chaos.

Without clear processes in place, there is no clarity or visibility into how work is conducted within the organisation. This lack of clarity can cause confusion and mistakes because employees don’t know the right way to do things. By managing business processes well, companies can create clear guidelines and workflows. This helps employees understand what they need to do, making everything run more smoothly and reducing errors.

Moreover, without good management of processes, teamwork and collaboration can suffer. If processes aren’t well-defined or documented, it’s tough for employees to work together effectively. This can lead to communication problems and wasted effort. However, by using strong process management strategies, companies can encourage teamwork by being open about how things are done, encouraging people to work together across different parts of the company, and making sure everyone is working towards the same goals. This approach not only makes things run better but also encourages new ideas and improvements.

Thus, effective management of business processes is essential for making sure a company is efficient, works well together, and succeeds overall.

Benefits of Managing Business Processes Effectively

Effectively managing business processes offers numerous advantages that drive a company’s success and long-term sustainability. These benefits impact various aspects of operations, performance, and customer satisfaction.

5 Simple Steps to Manage Business Processes Efficiently

Implementing Business Process Management involves five key steps: Process Mapping, Process Analysis, Process Improvement, Process Implementation and Process Monitoring.

Challenges Modern Organisations Face While Implementing Process Management and Strategies to Overcome Them

Implementing Business Process Management (BPM) can greatly enhance operational efficiency and team performance. However, several challenges must be addressed for successful BPM implementation. Here are the key challenges and strategies to overcome them:

Challenge 1: Organisations often find it difficult to set clear, measurable goals for BPM initiatives, leading to misalignment and confusion.

Strategy: Set specific, measurable goals from the start, such as cost reduction, improved customer satisfaction, or increased efficiency. Communicate these objectives clearly across the organisation and use tools to track progress.

Check out this quick video to learn about How to Establish Clear Goals for your BPM Projects.

Challenge 2: Lack of strong executive support can result in insufficient resources and strategic direction for BPM initiatives.

Strategy: Gain solid backing from senior management by emphasising the strategic benefits of BPM. Use tools like PRIME BPM to simulate processes and predict outcomes, demonstrating BPM’s value. Starting with a pilot project that shows quick, tangible results can also help secure executive buy-in. Hence, it’s important to select the right pilot project where quantifiable time and cost savings can be shown to gain executive buy-in.

Check out this quick video: How to Choose the Right Pilot Project to Gain Executive Commitment? explaining the points to keep in mind while selecting the pilot project.

Challenge 3: Not involving stakeholders sufficiently can lead to resistance and lack of support, undermining BPM’s success.

Strategy: Engage all stakeholders, including employees, managers, and customers, from the beginning. This promotes collaboration and ensures everyone affected by the change is on board. Regular communication and involving stakeholders in decision-making increase acceptance and support.

Challenge 4: A poor understanding of existing processes can lead to incomplete or ineffective BPM implementation.

Strategy: Conduct thorough process mapping and analysis using a tool to understand current workflows, identify inefficiencies, and find areas for improvement. This foundational work is essential for designing optimised processes and achieving BPM goals.

Challenge 5: Choosing inappropriate BPM tools can cause inefficiencies and increased costs.

Strategy: Select BPM tools and software that match your organisation’s needs, scalability, and budget. Evaluate multiple options considering user-friendliness, integration capabilities, and support services. Tools like PRIME BPM are useful for process optimisation and real-time monitoring.

Challenge 6: Resistance to change can significantly impede BPM implementation efforts.

Strategy: Develop a robust change management strategy with clear communication about BPM’s benefits and the reasons for changes. Provide comprehensive training and support to help employees adapt to new processes and tools. Address concerns and feedback promptly to maintain morale and cooperation.

Challenge 7: Inadequate training can result in poor utilisation of BPM tools and processes.

Strategy: Invest in thorough training programs covering both the technical aspects of BPM tools and best practices for process management. Continuous education and upskilling ensure employees are proficient and confident in using new systems, leading to better implementation outcomes.

Challenge 8: Without ongoing monitoring, processes can become outdated and fail to meet evolving business needs.

Strategy: Set up a system for regular review and updating of processes. Continuous monitoring keeps the organisation flexible and responsive to changing market conditions. Use metrics and feedback to drive ongoing improvements and ensure sustained BPM success.

Top BPM Tools You Can Leverage to Implement Process Management Techniques

Business Process Management tools are the solution to help organisations optimise and manage their business processes seamlessly. It aims to enhance efficiency, reduce costs, improve transparency, increase compliance and ensure that processes align with strategic objectives.

Choosing the right BPM tools is essential for the successful implementation of process management techniques. Some recommended tools are:

• • PRIME BPM
  • Kissflow
  • Nintex
  • SAP Signavio
  • Pega
  • Appian
  • Bizagi
  • ProcessMaker
  • Pipefy
  • Process Director

Check out our blog: “10 Best BPM Software for 2024: Functionalities, Reviews, and User Ratings” for detailed information about the tools. This blog offers valuable insights to help you make informed decisions when selecting the right tool, based on customer ratings and functionalities.

How to Maintain Momentum While Managing Business Processes

Maintaining momentum while managing business processes is crucial for sustaining efficiency and achieving long-term success. Businesses often fall into the trap of “set and forget” when it comes to processes, leading them to become less effective over time. However, one effective strategy to overcome this challenge is by establishing a Circle of Excellence.

The Circle of Excellence embodies a proactive approach to process management, emphasising continuous evaluation, adaptation, and improvement. It revolutionises the approach to operational excellence by shifting from isolated efforts to collaborative engagement across the organisation. It helps develop multi-layered involvement, ensuring that every role contributes effectively to drive engagement, adoption, and success.

Key elements of the Circle of Excellence include:

Methodology: A structured methodology focusing on continuous business improvement is essential. This involves five key phases: Process scoping, review, improvement, implementation and monitoring.

People: The second pillar is having the right people with clearly defined roles and responsibilities, such as the process guidance team, process analysts, process champions, process editors, process owners and process participants.

Tool: The third key element is an end-to-end BPM tool that supports all phases of process management.

By embracing the Circle of Excellence, businesses can create a culture of continuous innovation and maintain momentum in managing their processes effectively. This not only keeps things running smoothly but also helps the company stay adaptable and resilient in a constantly changing world.

How to Measure the Success of a BPM implementation?

Measuring the success of a Business Process Management implementation requires evaluating both tangible and intangible returns on investment (ROI). While tracking concrete metrics like cost reduction and productivity gains is crucial, non-tangible benefits are equally important.

Type	Measure	Description
Tangible Measures	Cost Reduction	Monitor decreases in operational expenses due to streamlined processes and reduced waste.
	Productivity Gains	Measure increased output, such as the number of tasks completed or transactions processed, within a given timeframe.
	Efficiency Improvements	Track reduced cycle times and better resource utilisation, leading to improved performance.
Intangible Measures	Customer Satisfaction	Evaluate customer feedback, loyalty, and retention rates. Improved processes often lead to quicker responses, higher-quality services, and better overall customer experiences.
	Employee Engagement	Assess employee morale, satisfaction, and engagement levels. Effective BPM can simplify workflows, reduce frustration, and empower employees, resulting in a more motivated workforce.
	Compliance and Risk Management	Ensure the organisation meets regulatory requirements and reduces compliance-related risks and penalties. BPM helps maintain industry standards and legal obligations.
	Agility and Innovation	Measure the organisation’s ability to adapt to market changes and innovate. BPM helps create a culture of continuous improvement, keeping the organisation competitive and responsive to new opportunities.

Explore this insightful discussion from BPM RealTalk with Kersty Christensen, Executive General Manager of Corporate Services at Trident Services Australia, on calculating ROI for BPM initiatives within business cost centres. Gain valuable perspectives and actionable strategies for optimising BPM initiatives in your organisation.

Skills and Roles Required to Successfully Managing Business Processes

Successfully managing business processes requires a combination of specialised skills and roles, each contributing to the effectiveness of a Business Process Management initiative. Here are the key roles and skills necessary for a successful BPM team:

Business Process Modellers: End-to-end business process maps are essential for identifying improvement areas and opportunities. A business process mapping expert should be part of the team, possessing advanced knowledge of mapping rules, methodologies, standards, and tools. These people are experts in accurately capturing process flows and obtaining necessary approvals.

Business Analyst: These experts analyse current business processes to identify improvement opportunities. They have IT skills to evaluate current processes and suggest improvement, cost-cutting, and efficiency-enhancing solutions. Their role is critical in bridging the gap between business needs and technological solutions.

Change Experts: Change management is vital when transitioning from current to future states. Change experts communicate the necessity and benefits of changes to frontline staff and work with leadership to assess and mitigate people-related risks. They formulate strategies to address these risks and ensure smooth transitions.

Business Process Champion: The Business Process Champion ensures that process improvement is a continuous effort. They seek opportunities for ongoing enhancements and ensure alignment with organisational objectives and future growth plans. This role involves communicating the value of BPM to the organisation and securing executive buy-in for future projects.

Solution Architect: A Solution Architect provides technical support and ensures compatibility with existing systems. They work with business leaders to understand requirements and integrate technology with business needs, maximising the results of BPM initiatives.

Project Manager: A Project Manager oversees the BPM project, defining its scope and objectives. They develop a comprehensive project charter, detailing team involvement, stakeholder engagement, and timeline management. The Project Manager ensures that the project stays on track and meets its goals.

Watch this quick video to get a detailed understanding of the Skills and Roles required for a successful BPM initiative.

How Technology is Shaping the Future of BPM Beyond 2024

Technology is transforming Business Process Management, changing how organisations manage, analyse and optimise their processes. Here are the key technological advancements driving this change in 2024 and beyond:

Process Automation: Advances in Robotic Process Automation (RPA), Artificial Intelligence (AI), and Machine Learning (ML) are enabling organisations to automate repetitive and rule-based tasks. This speeds up process execution, reduces errors, and improves efficiency. By automating mundane tasks, employees can focus on more strategic activities, adding greater value to the organisation.

Low-Code and No-Code Systems: Low-code and no-code platforms are accelerating BPM implementation by enabling business users to optimise processes without extensive coding knowledge. These user-friendly technologies allow for rapid development and deployment, encouraging collaboration between technical and non-technical stakeholders.

Real-Time Insights for Agility: In this business landscape, where competition is everywhere, agility has become crucial. BPM solutions that offer real-time process insights are becoming more important as organisations prioritise customer service, efficiency, and cost reduction. Real-time data helps businesses continuously benchmark and improve processes for optimal performance.

Digital Transformation: As organisations adopt digital transformation, BPM becomes essential. Technologies such as mobile apps, Internet of Things (IoT) devices, and blockchain are being integrated into BPM to streamline processes, enhance customer experiences, and maintain competitiveness. Digital transformation is reshaping traditional business models and processes, making them more efficient and customer-centric.

Customer-Centric BPM Tools: The future of BPM is increasingly focused on customers. BPM solutions are evolving to include customer journey mapping and analytics, providing a seamless and personalised experience. This approach ensures that processes are designed with the end-user in mind, meeting their dynamic needs and expectations.

5 Common Myths About Business Process Management

Implementing BPM is essential for organisations to gain agility and flexibility and stay ahead of the competition in today’s challenging business environment. However, common BPM myths about managing business processes prevent these organisations from fully utilising their advantages. We dispel below the top 5 myths about BPM to help you leverage maximum benefits from it.

Myth 1: BPM is just about mapping processes.

Many organisations believe managing business processes is only about mapping processes and documenting workflows. While process mapping is essential, it is just one part of the BPM lifecycle. It also involves analysing, improving, and monitoring processes. The main goal is to enhance processes. After creating process maps, they are analysed to find redundant tasks, duplicate efforts, and opportunities for automation. These insights help optimise processes for better efficiency.

Myth 2: BPM is only suited for complex operations in big businesses.

A common misconception is that BPM is only for large organisations with complex operations. In fact, it is beneficial for businesses of all sizes and sectors. Every organisation has processes that need management to avoid inefficiencies and bottlenecks. Business process management provides transparency and gives decision-makers access to process-related insights. This supports informed decisions aimed at reducing costs, enhancing productivity, and improving customer satisfaction, regardless of the organisation’s size.

Myth 3: BPM is expensive and complex.

Traditionally, BPM solutions were seen as complicated and costly, suited only for process experts. However, modern BPM tools have evolved. Today’s BPM tools include low-code and no-code platforms with drag-and-drop features, making them accessible to professionals without specialised skills. Additionally, cloud-based BPM solutions are now available, making them more affordable and manageable under operational budgets with a low monthly fee.

Myth 4: BPM success depends on tool functionalities.

Many believe that the success of a process management project depends on the tool’s features. While tool features are important, they are not the only factors for success. A successful BPM project requires a strong methodology and framework, executive commitment, effective change management, and people engagement strategies. These elements must work together to ensure project success.

Myth 5: BPM is a one-time project.

Another misconception is that BPM is a one-time initiative, after which processes will always function optimally. In reality, managing processes is an ongoing effort where processes need continuous monitoring, analysis, and improvement to maintain optimal performance. Neglecting processes can lead to inefficiencies, undoing initial improvements.

Watch this quick video to understand more deeply: Busting the Myth about BPM Success

Real-World BPM Applications and Its Impact

Let’s look at some real-world impacts of BPM on different industries to help you understand its benefits.

1. Largest Life Insurance Company in the Philippines

The largest life insurance company in the Philippines faced several challenges: manual and inefficient processes, siloed efforts across business units, unclear roles and responsibilities, and a lack of a centralised process repository. Before automating to support their growth, they needed an effective process management framework. They chose PRIME BPM, identifying and documenting 120 critical processes, complete with attributes, KPIs, and procedures.

Impact:

• Estimated USD 7.5 million in annual savings.
• Clearer roles and responsibilities.
• Consolidation of tools and licenses on the PRIME platform, reducing costs.
• 30% reduction in manpower.
• Standardised processes and best practice sharing across subsidiaries.

Checkout the complete story – Moving Towards Future-Ready Insurance Operations

2. Canadian County

Serving a population of 64,000 residents and a large seasonal population, Canadian County struggled with paper-based, labour-intensive processes, delays in citizen services, and a lack of data for strategic decision-making. Without a centralised repository, they risked knowledge loss. By prioritising citizen services, the county adopted PRIME BPM to enhance efficiency and optimise services.

Impact:

• Completed 24 business process improvement projects.
• Reallocated $850,000 in operational savings from 2023.
• Recognised for continuous improvement efforts at the 49th Annual CAMA Conference by the Canadian Association of Municipal Administrators.

Here is the complete case study – Unlocking the Power of Process Insights for Transforming Municipal Services

3. Leading Australian Bank

One of Australia’s largest customer-owned banks, with 381,000 members, faced challenges in defining user access, maintaining control and governance, and ensuring compliance. The bank lacked a clear role and task ownership and needed a reliable audit trail. They chose PRIME BPM for its strong audit capabilities and version control, documenting up to 2,100 processes segmented by roles and procedures.

Impact:

• Gained a comprehensive view of product life cycles.
• Established clear process ownership.
• Defined audit frequencies to maintain compliance and privacy policies.
• Created a single source of process and procedure truth, improving customer service.

These case studies illustrate the transformative impact of Business Process Management across various industries. By implementing BPM solutions like PRIME BPM, organisations can overcome challenges, streamline processes, and achieve significant cost savings and efficiency gains.

Streamline Your BPM Implementation Journey

If you’re looking to accelerate your Business Process Management journey, PRIME BPM is a tool worth considering. PRIME BPM enables you to map, analyse, improve, and automate your business processes from a single, integrated platform.

The software is intuitive and easy to use, catering to both process experts and business users. With powerful features such as an in-built methodology, BPMN 2.0 for standardised process documentation, one-click analysis of process efficiency, value, time, and cost, and a robust process approval mechanism, PRIME BPM drives end-to-end improvement.

PRIME BPM has proven its effectiveness in helping numerous leading organisations maximise the output of their BPM initiatives. By leveraging this tool, you can achieve significant efficiencies, cost savings, and process improvements across your organisation.

Interested in exploring how PRIME BPM can transform your business processes? Check out some success stories and get access to a 30-day free trial.

Let PRIME BPM streamline your BPM implementation journey and drive your organisation towards greater efficiency and success.