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8 Core Elements of Business Process Management
High tech companies that are successfully making the leap from start up to growth stage continuously seek ways to improve productivity and operational efficiencies. With growth comes more exposure to competition, and demands from customers for more value and higher quality at lower prices. Customer loyalty and satisfaction becomes increasingly more important, as does requirements for cost and time savings and greater levels of employee productivity.
High tech firms moving to a growth stage need to consider increasing productivity though Business Process Management approaches and technologies. According to SearchCIO, Business Process management (BPM) is “a systematic approach to making an organization's workflow more effective, more efficient and more capable of adapting to an ever-changing environment. A business process is an activity or set of activities that will accomplish a specific organizational goal.”
BPM pinpoints opportunities to improve key business processes through analysis, measurement, and use of benchmarks to identify ways to streamline these processes for effectiveness and efficiency. Employing BPM for your firm should result in increased productivity levels, improvements in staff morale, and positive impacts on customer loyalty and relations.
- Identifying Key Business Processes - Select only key business processes that have a direct impact on the organization and its customers, and develop the benchmark against which success will be measured.
- Identifying the Voice of the Customer - Collect data through your internal and external feedback mechanisms to get their perspective on the good the bad and the ugly of your key business processes.
- Develop a Current Value Stream Map - Use subject matter experts to identify everything that is included in completing each portion of the key business process, and then create a detailed flowchart of this information to identify what is being done and why.
- Measure the Process - Identify the direct costs, people costs, overhead costs and opportunity costs associated with the business process.
- Completing a Root Cause Analysis of the key business process - Identify all of the blockages and barriers preventing the business process from immediately reaching its defined "improvement" requirements.
- Developing the Ideal Value Stream - Identify the blockages and barriers to reaching your defined success measures. Create the "ideal" process map that will address the root causes of all identified issues, concerns, problems and challenges in the current process.
- Developing Solutions - Generate a list of possible options and solutions that can be implemented, and then select the best possible options and solutions, ensuring that these will overcome the root causes. Some firms employ business strategies such as Six Sigma to improve quality and productivity.
- Developing the Implementation Plan -Develop a detailed implementation strategy to ensure that the solutions are successfully realized. Include who needs to do what, when and with what resources.
BPM has the potential to reduce costs, enhance efficiency and productive, and minimize risk and errors. It also serves as a means for helping company management direct, monitor and measure company resources.
Freed Maxick has worked with hundreds of high tech companies and startups. Please call us to talk with one of our CPAs or business advisors on business process management for your high tech company. Call us at 716.847.2651, or contact us here.