Is Cost Optimization why we’re in business?
Blog: BPM Unplugged - David Novick
Recently, I had a discussion about business process and cost optimization. It seems in this economic environment, companies want to use business process to 1) justify layoffs and 2) optimize costs. And, while those two objectives may be necessary in this environment, it’s not the only use for good business process. What’s more, it should not be the primary use for it.
I heard someone once say that if a company intends to lay people off, it should just do so. Then, it should use business process to figure out what to do next. We shouldn’t use business process to justify layoffs. And, while this is a discussion onto itself, the assessment is correct. If a company is going to lay people off, it should just lay people off. As for cost optimization, business process can provide relief. But, NO company is in the business of optimizing costs.
ALL companies are in the business of optimizing revenue… through 1) understanding what their customers’ expectations for successful outcomes are and making sure that the products, services and all the work (represented by their processes) are aligned to meeting these successful outcomes. If a company does this properly, it stands a much better chance of getting and keeping more loyal customers now, and into the future. For it’s survival it must do this and constantly re-evaluate itself relative to its customers’ expectations for successful outcomes.
Companies can use business process to optimize costs. While this is a good use of business process management disciplines, it is only half the story. And, it’s the half of the story that, on its own, will not assure that a company survives. Business Process must be used to get and keep those loyal customers who will assure and “optimize” the revenue stream for the company, now, and into the future. This economic environment, while difficult, presents great opportunity for customer-focused organizations to plant the seed of outstanding alignment to customer expectations. Those companies that invest in the customer today in everything they make and do have a foundation for success well into the future.
Posted in BPM Unplugged Tagged: BPM, business process management, customer expectation management, LinkedIn 
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