Blog Posts Business Management Lean / Six Sigma / Quality

Managing by Processes for Dummies

Blog: BPM Leader

What is the best management strategy for the company? How can I make my business more efficient? These are the key questions business owners and top executives ask themselves nowadays.

In this article, we would like to share our experience and show the value of the process-based approach for the medium and large businesses.

Three management problems – one management approach

A small company with its founder at the helm normally does not experience any problems when it comes to establishing effective communication between employees. Complicated issues can be solved in a short time, as employees have no difficulties in reaching each other. The company founder stays close to the personnel, motivating them and keeping their focus on organizational goals.

As the company grows, the number of personnel increases along with the number of new tasks that have to be completed. At this point, the company’s top managers face three main challenges of medium and large businesses:

managing by processes (BPM)

The process-based management approach proves to be a smart answer to all three questions, as it solves them most successfully.

How much do your company´s processes contribute to creating customer value?

Delivering value to customers is a result of activities that make up the company’s core process. This process must be efficient and keep up with the customer needs.

As a rule, the core process is automated and organized by some means or other; a business cannot function properly otherwise. However, it is a common situation when the company’s core process is supported by various IT systems, which are not sufficiently flexible to meet changing business demands. Instead of improving the process, the company tries to force customers to act according to its own rules.

A process-based approach offers a fundamentally new method of managing processes

How can a BPM system help to improve efficiency?

Using a BPM system, you can configure, collect and calculate business process metrics and key performance indicators. With these statistics, you can evaluate employees’ performance and see how much each of them contributes to achieving organizational goals.

With BPM it is easy to control schedule compliance. Each employee, being a part of a process, receives his or her own tasks. A BPM system allows you monitor task progress and evaluate personnel workload. You can easily identify the bottlenecks (tasks where the resource load is greater than its capacity) and reallocate the resources by changing the direction of the business process.

A business process identifies a way in which various departments can work together to achieve organizational goals more efficiently. It clearly defines roles and responsibilities of each process participant. Different departments don’t need to fight over the same resources. Being part of one process, they collaborate in order to achieve better results and increase the output.

Business Process Management - BPM

A complex IT structure holds back the development of a company

All businesses operate within an environment of change. To stay relevant in an ever-changing market, a company must have an ability to adapt to the current conditions.

Only yesterday, your company was one of few who could guarantee on-time delivery. Today all your competitors provide the same level of service. To beat the competition you must change and improve your business processes. After having analyzed the market, you decide to implement after-sales support to differentiate yourself and make your business stand out.

To change the established operational processes you need the support of the IT department. As a rule, IT structure of the medium and large companies is quiet complex and lacks flexibility. It may turn out that to reprogram the system your IT-specialists will need about six months, and the cost of the system update will be higher than the initial cost of implementation.

Now you face the dilemma whether to postpone the development, as it requires too much money and resources, or give up on your goals and implement only part of your plans. Unfortunately, in this case, your business becomes less efficient and you lose part of the profit.

A BPM system covers the full cycle of interaction with the customer from the first contact to the shipment of goods. The logic of teamwork across departments is contained in one BPM system. Therefore, you can change your business processes without much effort and implement the concept of continuous improvement. At the same time, the integration with other IT systems provides all necessary data for successful process execution. BPM enables your team to move fast because there’s no need to wait until IT translate your business requirements into codes, builds, tests. It ensures alignment of your goals with high customer satisfaction.


As you can see, BPM successfully deals with the three main problems of medium and large businesses. It greatly contributes to creating customer value, because it makes company processes more transparent and manageable, reduces customer’s risks and adjusts processes to real customer’s requirements in no time. BPM greatly impacts personnel efficiency due to its ability to coordinate cross-functional teamwork and measure employee’s productivity. Finally, it offers unlimited possibilities for continuous development, as it requires minimal resources to keep the business up-to-date with constantly changing market conditions.

pixelstats trackingpixel

The post Managing by Processes for Dummies appeared first on BPM Leader.

Leave a Comment

Get the BPI Web Feed

Using the HTML code below, you can display this Business Process Incubator page content with the current filter and sorting inside your web site for FREE.

Copy/Paste this code in your website html code:

<iframe src="" frameborder="0" scrolling="auto" width="100%" height="700">

Customizing your BPI Web Feed

You can click on the Get the BPI Web Feed link on any of our page to create the best possible feed for your site. Here are a few tips to customize your BPI Web Feed.

Customizing the Content Filter
On any page, you can add filter criteria using the MORE FILTERS interface:

Customizing the Content Filter

Customizing the Content Sorting
Clicking on the sorting options will also change the way your BPI Web Feed will be ordered on your site:

Get the BPI Web Feed

Some integration examples