Business Process Management Software

Like a human organism, an organization is a system. Just as the nerves, digestion and blood circulatory systems are interdependent in the human body, people, tasks and the management are interdependent in an organization. A change in any of these aspects may affect all the other parts to some degree. This is called "ripple effect," which influences the organizational effectiveness. To visualize these consequences between the various segments of the business, managers need an overall perspective. Business process management software plays a pivotal part in this regard.

Managers need to know not just their own jobs, but also how their jobs and all others fit into what the organization is trying to achieve. Thinking about an organization this way is an exercise in using the systems approach. For business process management software to be successful it is necessary that software work on both open and closed systems.

A closed system has fixed boundaries; its operation is relatively independent of the environment outside the system. A watch is a familiar example of a closed system. Once a watch is wound or a battery is in place, the interdependent parts move continuously and precisely. As long as the watch has sufficient energy stored within it, its system is independent of the external environment.

An open system, on the other hand, is characterized by interaction with the external environment. Information and material are exchanged with the environment. Thus, an open system is one that constantly comes into contact with the environment. Because of such close and constant interaction, it must be capable of adapting to the environment for its continued existence and operation.

An organization as a whole is a system, and the various components or parts within it are called the subsystems. The subsystems in an organization like departments or divisions and different levels of management - all play a crucial role in the organization, just as your body's subsystems of circulation, digestion, nerves and skeleton do. Since all are linked, a malfunction in even the smallest subsystem can affect the overall system. That's why it's very important that software be treated like a system.

The Value of Business Process Management

Business Process Management is not about the software that you use but rather about having managed processes that improve your competitive advantage. Whether it improves operational efficiency, reduces cost, improves the customer experience, ensures compliance or drives innovation, it having managed processes all contributes to an increased competitive advantage and differentiation in the market.

All of the above can possible be achieved without any software, but the demands of the Real Time Enterprise (RTE) requires consistent, repeatable and timely execution of business processes. This requires some form of automation, integration, collaboration and monitoring to deliver on the promise of RTE.

Software based process management solutions has been around for a long time and products like ERP solutions have succeeded to some level in connecting information systems from various functional silos into one business repository. The challenge with ERP solutions is the rigidity based on some form of "best practice" and in doesn't allow businesses to structure the solution to the unique processing requirements of the organization. Any changes to ERP solutions required bespoke development and business requirements sometimes changed faster than what the bespoke developers could attend to.

Abstracting business processes from underlying business applications became more important in agile, real time enterprises. The process rules and the way the business works needed to be separated from the transactional business applications like the ERP, CRM, DMS etc.

This can be achieved by creating policies and procedures and also by creating automated processes with BPM.

Work flow vs BPM

BPM is about managing a business problem where work flow is a technology. BPM use workflow as one of its dimensions to manage business processes. The thought of dimensions led me to think of some of the other dimensions of BPM. It also reminded me of the cube as the icon for BPM with its six sides. The six sides of the BPM cube.

o BPM has a human work flow (WF) dimension; o BPM has a rules engine (RE) dimension; o BPM has an enterprise application integration (EAI) dimension; o BPM has a service oriented architecture (SOA) dimension; o BPM has a content management (CM) dimension; and o BPM has a business intelligence (BI) dimension.

So if BPM has all these dimensions one can argue that a BPM Suite (BPMS) should allow for the configuration of all of the dimensions from one interface or product suite. A BPMS provides the ability to create Composite Process Solutions (CPS) with all of these elements from a single toolset. A typical CPS may be a complex Order Management Cycle (OMC) solution with complex business rules, human intervention, various documents and data integrated to the CRM and ERP solutions in the business. The OMC solution needs to provide operational feedback and notifications to line managers as well as the ability to analyze completed processes and identify and opportunities to improve the processes by reducing bottlenecks and redundancy.

A simplified model of the cube would be to integrate RE with WF as well as EAI and CM with SOA. This leaves three dimensions for BPM:

o Rules-based human-centric work flow and process automation [Automate] A o SOA based EAI and CM [Integrate] I o BI based Performance Management [Manage] M

Are you Aiming your processes in you organization? This should be more important than debating work flow vs. BPM.

Business Process Management

Business process management, also referred to as BPM, is an approach that takes the clients' needs and wants into consideration. Basically, a business aligns the aspects of the business to suits all of a client's wants and needs. This approach is considered holistic in management. Holistic means the business must be managed as a whole and not in individual parts or components.

BPM software is often browser-based with integrated components that allow for a business process management solution. A benefit of this software is that it can lead to a boost in productivity and efficiency in the business. If there are any nicks or issues with the business process, they can easily be seen and eliminated or worked out. The business has the opportunity to easily see what is and is not working and fix it to solve any issues that are occurring. If there are any slow or unproductive areas in the process, they can be removed or fixed sooner rather than continue to become an issue to the company.

Business process management software also allows the business process to become more flexible, meeting the expectations of clients, while at the same time integrating technology and creating room for improvement. The process of the business can be changed when needed to suit the specific needs and wants of clients and ensure that all aspects are met. The satisfaction of clients will greatly improve with an approach aimed to suit them and make them happy.  In addition, your business will become more successful because it strives to satisfy all clients.

BPM software also allows keeping track of data easy. All transactions and data can be retrieved when needed because it is stored in one location. If there is an issue concerning a component of the business, the issue can be spotted through the retrieved data or transactions. Referencing is also an easy task if desired. This software contains embedded searches which allow data to be searched and retrieved when wanted. If a study needs to be done, the data or transactions can be searched and collected for required or wanted examination.

Business process management is an approach through software that allows companies to meet all the wants and needs of clients through a change in the business process. BPM is a holistic process that looks at all components of a business and the business process as a whole rather than in individual parts or components. Companies who use this software see an increase in client satisfaction, an increase in productivity and efficiency, and management of data and transactions to be easier. Mistakes or errors in the business can be seen quickly and easily and be fixed or eliminated to better improve the business.

Overcoming Business Process Management and Six Sigma Resistance

I am pleased to share our, "Need-to-Know Tactics for Overcoming Business Process Management & Six Sigma Objections" within our "5 Core Competencies of a Systems Thinker" series.

Let's get started!

In this scenario, Rebecca manages Chocolate Cupcake production and services. She is charged with improving efficiency and effectiveness of the processes she manages while ensuring that any changes she makes positively impact the customer and other related company functions.

After significant research, she decides that a customized Lean Six Sigma (LSS) methodology, implemented inside a larger Business Process Management (BPM) strategy is the best option.

Confident in her findings, Rebecca thinks about firing off an email to her team members, making her case for the BPM & LSS solution.

Now, how do you think Rebecca's team members will respond?

"What a great idea Rebecca! That sounds like the perfect way to: streamline production, keep the customers happy AND keep the business's larger functions, like strategic planning, nimble!"

Maybe, but that would not be realistic. Instead of firing off an email, Rebecca does a Google search and finds:

"Rapid Results Action Plan: Overcoming Objections"

A. List Specific Objections: Think about how each team member sifts through an idea. Based on what you know about everyone's personality, write down the most likely objection from each person. If there is only one that comes to mind, that is fine. Try to come up with at least one objection from each person.

B. Answer The Objections: It may seem simple, but the helpful things often are. Know how you will respond to each objection before it is asked. Frequently, objections come from a lack of understanding. So be ready to address the concern by filling in the gaps with information you've researched.

C. Agree with others when it is appropriate: No one is ever 100% right so be flexible. One way buy-in happens is by incorporating other people's ideas.

D. Ask questions to understand where others are coming from. If you find that this does not resolve the issue, ask yourself if the objection is actually revealing something you missed.

After reading the Rapid Results Objections Action Plan, Rebecca crafts 6 possible objections:

1. "Why don't we just work on controlling our processes and not worry about how they tie into the larger functions? We don't need the bureaucracy or the headache."

2. "There is already so much low-hanging fruit, we know what to do. We don't need to complicate things by over-engineering our business by creating Business Process Models. "

3. "How are we going to convince everyone?"

4. It will take too long."

5. "I heard Six-Sigma took down Motorola, making them too cumbersome to be competitive."

6. "It's too expensive to implement."

Place yourself in Rebecca's shoes for just one moment and think about how you might address the above objections...

After thinking through the objections, Rebecca came up with the following Need-to-Know Tactics for Overcoming BPM & LSS objections

1. "Why don't we just work on controlling our processes and not worry about how they tie into the larger functions. We don't need the bureaucracy or the headache." How will we know what our processes are verses their processes, if we don't discuss the activities we do both together and separately? Our customers see only one company and therefore only one process. If we don't map out interdepartmental processes, experts say often times the change one department was hoping for can quickly become undone by another department.

2. "There is already so much low-hanging fruit, we know what to do. We don't need to complicate things by over-engineering our business by creating Business Process Models." You are right - we should address low-hanging fruit. BPM models such as Opportunity and Business Interaction Models show larger organizational strategic views than conventional LSS process modeling. We can have a near perfect, Chocolate Cupcake production process, and the entire company could go down if we don't collectively, as a company, understand market and competitor impacts. BPM combined with LSS expertise can help prioritize any apparent low hanging fruits with statistical fortitude.

3. "How are we going to convince everyone?" That is true - most times, it takes an objective third party Human Integration Facilitator and/or Change and Integration Management tools to bring a common vision among various departments.

4. It will take too long." Robust BPM tools with the appropriate team of subject matter experts (SMEs) and BPM Professionals can create holistic business process models, on average, in less than a day.

5. "I heard six-sigma took down Motorola, making them too cumbersome to be competitive." Motorola's Six Sigma methodology has now reached what internally is called Second Generation Motorola Six Sigma, with a process for governance, moving the tool from counting defects in manufacturing processes to an overall business improvement methodology. In 2006, Motorola started Lean transformation and Software Design for Six Sigma; thereby integrating Six Sigma tools with Business Process Management mindset.

6. "It's too expensive to implement." How do we know that it is too costly? We are very unaware of the Cost of Poor Quality (COPQ) in our organization. We need LSS to obtain a baseline of what all of our non-value added activities are costing us. A well-documented fact is that average companies perform at a 3 to 3.5 sigma level, with a COPQ ranging between 24% - 40% of their sales. Companies performing at a 5 sigma level lower their COPQ between 5% - 10% of their sales.

Simple Steps to Improving Your Business Processes

Business process improvement is the developing of a systematic approach to helping an organization optimize its underlying processes to achieve more efficient results. It is the methodology for process redesign and process reengineering. It is a systematic way for businesses to become organized as they grow and develop by looking at their current processes, documenting them, identifying areas for improvement, and then implementing any necessary changes to help them reach their goals and objectives.

Any type of entity can implement a process improvement change, as long as there is a need for improvement. And the change does not always have to be a major overhaul of how the entire company functions. Remember you can focus on a process or a product. Examples of often implemented process improvement projects includes: revamping a new product to meet customer's needs, implementing a new software that can integrate with various other systems currently in use or re-structuring how you accounting department functions and implementing more controls into your policies and procedures.

Regardless of who is doing it and why, there are five simple and basic steps to business process improvements.

1. Assessment.

The first step of any process improvement is to assess is situation. Take a look at your current processes, policies and procedures. How are things currently working? Are they operating efficiently? What steps are followed in the current procedures? Do you they generate optimal results? These are just a few of the key questions you need to answer. The key to this step is to not try and solve the issue. You only want to document the "as is"; regardless of whether it is right, wrong or indifferent.

2. Identify.

The identification step of this process is where you document process successes and failures. This is where you will make note of all the areas in your business that are sucking the cash out of your business. You will look at accounts receivable and accounts payable. How your jobs are performing and if you are experiencing job scheduling time lags. You will also make note of everything is working wonderfully. It's not just about the negative but also about the positive.

3. Define.

Now that you have documented your current system and identified the good and the bad, time to define your desired goal. What does your ideal situation look like? This is the step where you get to paint the picture of how you desire for things to be and how you want this new system to look. Set your scope and parameters, no matter how small or wide. And don't forget to determine how long it will take to get to this new desired result. A good process improvement plan is only as good as the amount of time it takes to get it up and running.

4. Create.

This is probably the step most people look forward to. Creating the process flow of how you are going to reach your desired goal. These are the step-by-step instructions on how you are we going to get there. You will take the define procedures in step three and create the strategy. Be sure that your timeline is based around the annual goals of the company. Create the steps of each phase individually and then bridge them together. This is your map so be clear and concise. Be sure that every detail is addresses. And don't be afraid to designate and delegate. Enroll whoever you can that would be an asset to this process.

5. Implementation.

Finally, take action! You have the plan; now follow the steps. Implementation is the key to any type of change. And if you find that something isn't working start the process again.

Business Process Modeling Overview

Business process modelling is usually implemented when looking at changing processes, implementing new processes or identifying problems with an existing process. To understand business processes and the importance of business process modelling it is important to understand the two ways of viewing an organisation. Organisations can be viewed functionally and as sets of business processes.

The functional view is characterized by the traditional organisation structure where the business is grouped by function, for example, accounts, sales and production. The advantage of grouping an organisation in this way is that it allows the functional areas to develop specific expertise, makes it easier to provide defined career paths and makes it easier to define a management structure.

The danger with this structure is staff only focus on their role within the function and so become unaware of cross-functional interaction. This can lead to staff focusing on functional goals rather than the goals of organisation.

The business process view of an organisation sees the organisation as a collection of business processes that cut across the various functions of the organisation. The process approach focuses on the end goal of the process.

Why many organisations are beginning to focus on their processes To understand why businesses are focusing more on their processes, it is useful to know how a business evolves. When a business grows, it gets harder to manage and to overcome this it splits into functional areas, with each area under a manager's control. Each functional department is given objectives that together should work towards the main objective for the business as a whole. The problems lie with coordinating the work of the different units and that is where problems arise.

The business process approach and business process modeling attempts to tackle these problems. By modeling the business processes organisations can see where the problems are. These problems usually come about as processes evolved instead of being designed in a rational way and they were often affected by changes in conditions, takeovers and reorganizations. This led to mismatches where processes passed between functions and processes containing outdated and redundant content.

How business process modeling can reveal the problems Business process modeling uses diagrams and models to help gain an understanding of how processes operate across the organization. Mapping the process allows you to see the bigger picture and realise how the role played by one part of the organisation in the process has an impact on other parts of the organisation involved in the process. When you have a model of the existing process it makes the interactions more visible and makes it easier to see where an existing process needs to be updated to reflect changes or identifying problems with an existing process and look at possible improvements. With a new process, the model can show how the process will affect other areas and allows various scenarios to be tested before the live implementation of the process.