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BUSINESS PROCESSES

The Complete Guide to
Managing, Monitoring, and Enhancing Your Business Processes

Paresh Deshmukh
31 Mar, 2023
6 min read
In our fast-paced, high-tech world, the ability to track and manage your business processes is critical. From automating workflow with technology to evaluating process performance, this guide will lead you through the steps of setting up a successful business process management (BPM) program that ensures efficiency, effectiveness, and compliance across all areas of your organization.
Business processes define how work gets done within an organization and drives business results. Effectively managing, monitoring, and optimizing these key processes is essential for success, growth, and productivity. This complete guide covers best practices for working with business processes at every stage.
Why Process Management Matters
Process management is an essential business process that allows you to manage the way your employees do their jobs.
Processes are what make up the backbone of your business, and they can be used to increase efficiency, productivity, and revenue. They're also a way of managing workflow so that every employee knows what they need to do and when they need to do it. You don't want any parts of your company running inefficiently or falling through the cracks--your processes will help prevent this from happening!
Business Process Management (BPM)
Business process management (BPM) is a management discipline that ensures that the work of an organization is done in an effective and efficient manner. It includes:
  • Process improvement, which involves identifying areas where processes can be improved and then implementing changes to those processes
  • Process analysis, which involves breaking down large tasks into smaller ones so they're easier to manage and understand.
  • Process automation, which is using technology such as computer software programs or apps like Slack to help you manage your business operations.
The BPM Lifecycle
BPM is a process that allows you to understand and improve your business processes. It's a continuous process, meaning it must be repeated over time as the organization evolves and changes.
BPM is an iterative process, meaning you will repeat each step multiple times before moving on to the next one. For example, You might start by identifying your current state (the way things are), then create an ideal future state (the way things could be), then plan out how to get there by creating actionable steps in between these two extremes--this would be your roadmap for improvement! Once you've mapped out this path forward (or road map), it's time for execution.
Business Process Management and Project Management
Business Process Management (BPM) and Project Management are closely related, but they are not the same.
Business Process Management is a continuous process that helps you identify, manage, monitor, and enhance your business processes in order to improve performance. It's a structured approach that ensures activities are performed in an efficient manner so that you can achieve your goals with less hassle.
Project management is a discrete set of activities that are focused on completing one specific goal or objective within a defined timeframe--whether it's building a new website or launching an advertising campaign for example--and then closing out those tasks once they've been completed successfully before moving onto another project or task within the company's workflow cycle (which may include other projects).
Key Components of BPM
  • Processes: Processes are a series of steps that comprise an activity or workflow, such as the steps required to complete a purchase order. These are typically mapped out in flowcharts or diagrams and can include information such as steps, tasks, data inputs, and outputs.
  • Process Models: A model is a representation of something that helps you understand it better. For example, if you're building a new house on top of land that has never been developed before then you'll need to create some sort of modeling software (like SketchUp) so that everyone involved knows what's going on with their part of the construction at any given time during construction process before moving onto another stage like excavation work next week after digging up foundations first thing Monday morning!
  • Process Maps: A map is an illustration that shows the relationship between elements in space. When used in the context of process mapping, a map shows the relationship between elements in time. Process maps are often used to illustrate how different processes interact with each other. They can also be used to show the flow of information or material through an organization and its impact on people's work lives.
How to Begin a Business Process Improvement Project?
To begin a business process improvement project, you must first define the problem. The first step in this process is to understand your stakeholders and their goals. Once you know what they want to achieve, then it's time to identify the current state of affairs: what are the problems with your current processes? How can they be improved?
Once those questions have been answered, you can begin looking at how much money will be needed for new software or hardware and how long it will take for your team members to learn how to use that new software or hardware effectively. This information will help inform budgeting decisions later on in the project lifecycle--it's better not to overspend on something unnecessary just because it looks cool!
Improving Existing Processes
Improving existing processes is a bit different than creating new ones. When you're improving an existing process, the first step is identifying what's not working in that process. Then you find a solution for those problems by asking questions like:
  • Procurement and payroll collaborate to ensure that the right goods and services are purchased at the right price.
  • Procurement uses a variety of tools to manage vendors, including contract management software, invoice processing software, and vendor management software.
Once you've identified your problem areas and figured out how to fix them, then comes time for testing! The best way to test whether or not your proposed solution actually works is by having real people try it out--you know, actual human beings who have never used your product before and don't know anything about its features (or lack thereof).
How can I improve my existing processes?
  • Start with a process map. Process maps are an excellent way to identify bottlenecks and inefficiencies in your business processes.
  • Improve current processes: Once you've identified areas where improvements can be made, start by implementing small changes that will have an immediate impact on productivity or cost savings--for example, automating manual tasks or eliminating repetitive steps in a process by using technology such as AI-powered chatbots that help users navigate through the system more easily.
  • Identify opportunities for improvement: In addition to making incremental improvements (such as automating manual tasks), consider large-scale changes like redesigning key processes from scratch with an eye toward reducing costs while increasing customer satisfaction levels across various touch points within your organization's ecosystem (e.g., suppliers' ecosystems). This may involve working closely with suppliers or other partners involved in delivering services related to those particular processes so they understand why certain changes were necessary and how those changes will benefit everyone involved over time.
Optimizing Your Existing Processes
  • Map your processes. The first step is documenting how work currently flows through your business. Use process mapping tools to visually lay out the steps and ensure you have an accurate, high-level view of end-to-end processes. This helps identify duplicative efforts, wasted resources, and potential automation opportunities.
  • Set process objectives. Determine clear objectives and key metrics for each process that align with business goals. This could include things like cycle time, cost, quality, compliance, user satisfaction, and risk mitigation. Having measurable objectives allows you to evaluate process performance and make informed improvements.
  • Monitor process metrics. Establish a regular cadence for reviewing process metrics, evaluating objectives, and determining optimization opportunities. Things like funnel abandonment rates, handle times, cost overruns, defect rates, and rework frequencies should be monitored closely. Look for trends that could impact processes positively or negatively.
  • Identify and prioritize improvements. There are likely multiple opportunities for enhancing each process. Prioritize them based on potential impact and feasibility.Some options for process improvement include automation, simplification, streamlining, delegation, and redesign. Implement changes one by one and measure the results of each update.
  • Continuously optimize. Make process optimization a continual effort rather than a one-time project. Even well-designed processes will eventually become inefficient as business needs change, technologies evolve, and new requirements emerge. Stay up-to-date with improvement techniques and best practices to keep enhancing your processes over time.
What does automation mean for my business processes?
Automation is the use of technology to replace human effort, often with the goal of improving processes. Processes can be automated in a variety of ways and for a variety of reasons. Automation can reduce costs, increase efficiency and speed, and improve accuracy (among other things).
The process you want to automate may involve only one step or many steps; it might be simple or it might be complex; it might take place over minutes or months. Regardless of its size or complexity though--or even if you aren't sure at all what kind of process you're looking at--automation will help your business achieve its goals by making everything work more efficiently than ever before.
How much should I automate and when should I start automating a particular business process?
As a business owner, you have to decide whether to automate a particular process. You can do this on an ad hoc basis or as part of a strategic plan. If you're automating a process that works well and produces great results, there's no reason to change things up (unless there's something missing).
If you're automating something new or if your current processes aren't working as well as they could be, then it might make sense for you to start making changes.
Automation can be a good thing for your business, but it will only work if you know what you're doing. If you don't, then automation can become a hindrance rather than an asset.
Some additional tips for process management
  • Engage process stakeholders and gain input from subject matter experts and end users. Their perspectives are critical for designing processes that work.
  • Consider process automation options like workflow tools, robotic process automation, and decision automation. This can significantly boost efficiency and reduce errors in repetitive processes.
  • Provide clear documentation for each process, including policies, procedures, guidelines, tools, templates, and workflows. This helps ensure processes are followed consistently across the organization.
  • Establish central governance to oversee processes, changes, optimization efforts, and other initiatives. Consistent oversight and guidance help keep processes aligned with goals.
  • Monitor regulations and make adjustments as needed to ensure continuous compliance. Periodically validate that key processes meet requirements and make changes proactively rather than reactively.
  • Train new team members on processes and make ongoing educational resources available for all staff. Processes will only achieve objectives if implemented correctly across the organization.
BPM is essential for sustained success in the global economy.
BPM is essential for sustained success in the global economy. Your business processes are your backbone, and they need to be managed and monitored. They also need to be optimized for maximum efficiency, which can only happen if you automate them using BPM software.
Business process management (BPM) is an approach used by many companies today to optimize their business processes so that they run more efficiently and effectively than ever before. With BPM software like Microsoft Dynamics 365 Business Central, it's easier than ever before for businesses of any size or industry type--from manufacturing companies all the way through retail stores--to use this powerful method of improving efficiency across every aspect of their operations.
In summary, effective process management provides the foundation for a high-performing, scalable business. By mapping, monitoring, and continuously optimizing key processes, companies can improve quality, reduce costs, increase speed and productivity, minimize risks, and achieve better business results. With the right approach and ongoing efforts, processes can reach their full potential.