Let’s face it; lot of small businesses adopt conventional methods in managing the processes involved in accomplishing business tasks and projects. Documentation and taking time to outline these processes in advance is something new to most of us. But, if you want your business to progress and make huge profit in the today’s business environment, we need to carefully establish clear processes in doing business and also optimize these processes for enhanced business performance. This brings Business Process Management (BPM) into play.
What is Business Process Management?
According to bpm.com, “Business Process Management (BPM) is a discipline which involves any combination of modeling, automation, execution, control, measurement and optimization of business activity flows, in support of enterprise goals, spanning systems, employees, customers and partners within and beyond the enterprise boundaries”.
In simple terms, BPM involves analyzing the current processes involved in running your business, and streamlining these procedures for optimal performance output.
For instance, automation and reduction in paperwork can streamline the process involved in preparing invoices and contracts; this in turn brings efficiency to the system and reduces overhead costs.
The advantages of BPM are enormous when properly utilized. These include enhanced productivity, reduced overhead costs, and minimized errors. For you to derive maximum benefits from BPM, it needs to be completely understood by all parties involved.
IMPROVING ROI AND BUSINESS VALUE
According to statistics from AIIM research, companies that implemented BPM in managing their business experienced a 40 percent increase in ROI within a year. In addition to this, these businesses also experienced better routing to and between persons (62 percent), lesser review and approval cycles (33 percent), and also increased routing and organizational efficiency between processes (42 percent).
BRINGING BPM TO YOUR SMALL BUSINESS
Most companies are accepting the trend now and realizing BPM is very important in improving efficiencies, reducing waste and boosting profits. Implementing BPM software can be overwhelming; notwithstanding, here are few tips on how to get started:
- Go with what you have. Whether you have a few processes written out, or you have the ideas in your head, put them into writing and get started. With time you would notice a pattern emerge as well as the grey spots.
- Don’t think automation is the solution to all problems. Automation only helps when you already have an effective process in place. Automation doesn’t make a bad process good. It just makes a good one better.
- Fish out waste. Always strive to find the cause of problems as a way to eliminate inefficiency in your business.
- Evaluate what you have. Keep records of your current BPM capabilities and highlight missing requirements. This way you concentrate on providing what is missing.
- Start with business needs. Identify the business requirements. This should serve as the base on which the functional requirements of the business are built on.
- Be Mobile. Explore modern trends and ensure your business has the capability to be mobile and can co exist with mobile technologies.
- Build in real-time optimization. Ensure your processes are constantly undergoing evaluation and optimization, BPM isn’t a one off implementation. It’s a continuous process.
In summary, BPM improves performance within an organization. It encourages flexibility, adaptation and versatility. So no matter the size of your business, it is very important you consider implementing BPM.