Business Process Management (BPM) is a comprehensive management method to business focused on arranging all aspects of an organization so they align with the wants and needs of their clients.
BPM promotes the effectiveness and efficiency of a business by striving for innovation, flexibility, and the integration of technology. This process is done on a continuous basis and is often referred to as an "optimization" process.
Stage 1 - Design:
The design process includes identifying current processes and designing future processes. The number of problems over the lifetime of the process is reduced with good design. Ensuring a correct and efficient design is prepared is the aim of this step.
Stage 2 - Modeling:
Modeling introduces combinations of variables through the theoretical design. Such variables would include material costs, which determine how the process might operate given other circumstances.
Stage 3 - Execution:
A way to mechanize processes to develop or purchase applications that perform the required steps of each process or use a combination of software and human resources.
Stage 4 - Monitoring:
Monitoring encompasses the tracking of individual processes, so that information on their state can be easily seen, and statistics on the performance of one or more processes can be provided. Despite how well you plan and develop a new process, first you should pilot and closely monitor it before the full implementation. Make sure methods of measurement are in place in order to determine where actual improvement are, and so any areas that need fine turning can be identified. Continually monitor the process after implementation on a full-scale. Take note that problems have the possibility to arise, which could not be foreseen and that must be addressed.
Stage 5 - Optimization:
The optimization process entails retrieving the performance information from the modeling or the monitoring stage. Identifying the potential or actual bottlenecks and the potential opportunities for cost-savings or other improvement. Lastly, apply the improvements in the process design. This process creates greater business value overall.
Business processes can always be improved upon. With a culture of continuous improvement, the organization will always be up-to-date and in line with the needs of their business and their customers. BPM should be an organization wide endeavor. All departments should follow the same roadmap and methods for improvement. If one department is using Six Sigma and another is using TQM, the company will not be able to reach the desired results. This requires a centralized control and backing from the highest levels of management.