Key Lessons From Value-Driven BPM

Towards the end of December last year, I came across this resource: Value-Driven Business Process Management: The Value-Switch for Lasting Competitive Advantage by Peter Franz & Mathias Kirchmer. The book contains practical insights into the practical implementation of Business Process Management. I got some useful ideas from the book so here I am, sharing as usual.

The list below is not intended to be a representation of all the ideas in the book.

  • Measuring the effectiveness of process improvement initiatives should be based on KPIs and not process metrics. This is because KPIs are linked to desired business goals/strategy. For example, if organizational strategy focuses on cost-cutting, process metrics such as quality will not offer as much insight as those that focus on the amount of resources used, time expended and the cost of doing business.
  • Every BPM project should be driven by value - this should also drive the choice of process improvement methodology. If your value as a company is quality, use TQM methodology to drive the BPM initiative; If your value is waste reduction, use LEAN methodology; if it’s reduction of variability, it might be better to use Six Sigma.
  • Determine if your BPM Project is internal or external-focused - It’s important to understand exactly what your company is into. Efficiency or Quality? Compliance or Agility? Integration or Networking? Efficiency, Agility and Integration are internal to the organization while Quality, Compliance and Networking are external. The great thing about implementing BPM is that you do not have to choose between these pairs of options. You can have it all in one package. The authors call it the “AND” power of BPM.
  • There’s a clear link between BPM and Business strategy. You can use this link to identify the processes that matter. What are the processes that drive the strategic business goals of your company? Thinking BPM? Think Strategy. Think Value.