Every business has its processes. These have their own areas of focus that are vital to the company’s functionality. To succeed, each link in the chain must work in harmony with each other. That is, each process ideally attains its goal before turning over to next one.
Addressing Workplace Inefficiencies
Unfortunately, not all companies are necessarily successful at this. In fact, many businesses suffer from inefficiencies within their systems. These often propagate a toxic work culture that brings down productivity and morale.
Examples of inefficiencies include:
Stagnant Business Model
Businesses tend to stick to one organizational design, even when it’s outdated. This becomes a problem, especially when new technologies emerge. Companies can’t possibly expect to get past the competition by using only one note.
Without a clear process, some departments end up doing the same work in slightly different versions. This is not only confusing for everyone in the workplace; it is also time consuming and prone to error. Moreover, it creates a lengthier bureaucratic process that delays the simplest tasks.
Lack of Accountability
It’s a problem when managers have a hard time determining who is responsible for what. Without accountability, there is no room for growth and opportunity.
Lack of accountability often results to a lack of cohesiveness, which may lead to a conflict of tasks. Some teams might even end up relying too much on other departments.
Organizations with these inefficiencies need help putting themselves back on track. This is where business process management enters the picture.
Why It’s a Business Gamechanger
With continuous developments and rigorous competition in the business landscape, more and more companies are adopting business process management.
Business process management is a business methodology that scrutinizes and optimizes an organization’s process, and then creates a standard to improve company performance. Simply put, it manages an organization’s workflow so that it adapts well to external factors and developments.
It usually performs six critical steps: analysis, redesign or modeling, implementation, monitoring, management, and automation.
According to Gartner, 75% of organizations are still in the process of standardizing and automating their workflow. Companies that welcome processes succeed 280% more on projects compared to companies who don’t.
Unsurprisingly, the corporate industry expects business process management to grow at approximately $16 billion by 2023.
There are several reasons why organizations benefit from adopting business process management.
Makes a Business More Responsive
New developments in technology and even current events can severely change how a business operates. Just a few years ago, for example, businesses shifted from being product-focused to becoming more customer-focused.
Improving processes benefits a business not just through increased efficiency, but also through increased customer satisfaction. A more efficient customer experience makes them pay more attention and encourages them to continue their patronage.
Business process management also helps organizations adjust to external changes. It tracks those changes, predicts likely outcomes, and evaluates results.
A well-integrated business process management system allows an organization to identify trends in customer needs and preferences. This leads to more innovation, helping the company remain competitive.
Disseminates Knowledge Faster
Many businesses rely on individual talent to keep their processes running. However, this becomes costly and inefficient when the employee retires or files a voluntary turnover.
Business process management documents each workflow and shares it with other members of the team. New talent or other team members can then receive this type of knowledge through orientations and training, ultimately avoiding workflow disruption.
Business process management also standardizes workflow, making it smoother and easier to access and review. This technique makes onboarding easier and cuts back on training costs.
Optimizes for Survivability
Some companies are so used to their organizational design that introducing change can feel like steering the Titanic. However, companies need to stay current as customer habits change along with socioeconomic factors.
Business process management provides an objective analysis of a company. It automates manual tasks, reducing human error and increasing productivity. Through optimization, it can help a company modify its processes where necessary and realign its goals.
When a business understands its workflow in full detail, it better understands how modifications can help it better adapt to changes and determine which organizational design to use.
Many companies today have outsourced their support processes. This allows an organization to focus more on its core functions. It also saves on investment and training costs and provides round-the-clock work. So far, it has worked well for most companies.
Workplace inefficiencies, particularly redundancies, cause financial hemorrhage. In fact, a study by IDC shows that these inefficiencies make companies lose 20% to 30% in revenue.
Since business process management documents and maps out a company’s workflow, companies can figure out where they can reduce costs. This includes eliminating redundancies and pinpointing labor cost and control issues.
For example, inefficiencies like long, unproductive meetings or paper-based documentation simply aren’t worth the company’s time. Managing paper alone can cost a company around $8 billion a year.
Increases Visibility and Responsibility
Business process management automates processes while tracking and monitoring business performance from beginning to end. This cuts down on labor-intensive techniques and gauges the effectiveness of each process in real-time.
Reviewing the performance of each process allows employees to manage tasks easily and managers to delegate responsibilities more efficiently. Everyone will know who oversees or works on what.
Because different departments are more aware of each other’s processes, they can assist and communicate better. This encourages team collaboration and fosters a conducive work environment that boosts employee engagement.
Business process management also brings positive recognition to departments or employees who do well, since it will be easier to determine high performers.
Ensures Compliance and Security
A lack of transparency in the workplace often threatens a company’s security. Companies may find themselves violating government laws and industry-specific regulations if they aren’t careful. For example, perhaps there were changes in security relations over the years that the company overlooked. On the other hand, maybe they simply chose not to deal with it, until the issue was forgotten in favor of more manageable matters.
Business process management inherently safeguards business assets, private information, and physical resources. A company with a well-developed business process management keeps track of changing regulations and security threats, ensuring compliance with regulatory bodies.
Because of the detailed workflows that can be provided, business process management assures employees and stakeholders that all documents meet compliance standards. It can also provide a blueprint for greater security.
Business Process Management is the Future
Rapid changes in technology and other external factors force businesses to constantly review their processes. Business process management helps organizations increase productivity, workflow efficiency, and return on investment while minimizing errors and costly issues of inefficiency.
Through small changes and a steady system of refinement and adaptation, managers can assess their workflow and understand which processes are efficient and beneficial, as well as which ones need an upgrade or can be eliminated.
All this effort improves the company’s overall well-being, allowing it to maintain relevance and succeed in the ever-changing landscape of business.