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SPEAKINGTOTHECSUITEABOUTBPM
Speaking to the C-suite
about BPM
Whats at the top of the C-level agenda
and how BPM added value aligns to strategic vision
ByRuthCernesFagebaume
VP
Sales
and
Alliances,
BonitaSoft
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SPEAKINGTOTHECSUITEABOUTBPM
TABLE OF CONTENTS
Introduction .............................................................................................................................................. 3
1. BPM provides powerful company-wide governance capability .......................................................... 4
2. The company ERP cant cover everything! ........................................................................................ 4
3. BPM helps fill gaps ........................................................................................................................... 5
4. When operational excellence helps your company differentiate ......................................................... 6
5. When agility is a key success factor for development........................................................................ 6
6.
Boosting employee motivation .......................................................................................................... 8
7. If risk management and mitigation is at the top of the CFOs agenda ................................................ 9
8. Do employees collaborate or are they silo-ed? ............................................................................ 10
9. When your business demands flexibility .......................................................................................... 11
10. What if your company doesnt have an ERP? ............................................................................... 11
Conclusion ............................................................................................................................................. 12
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SPEAKINGTOTHECSUITEABOUTBPM
Introduction
BusinessProcessManagement,orBPM,
canbe
seen
in
different
ways.
BPM
can refer to both a methodology to
improve efficiency through better day
todayprocesses,andalsotoan ITtool
to automate and monitor those
processes
What BPM can achieve
When done right, BPM involves
businessprocess
analysis
(methodology
side)togetherwith the implementation
of business process management
software(toolside).
Inthispaper,thetermBPMreferstoboththemethodologyandtheITtooltoenableaglobal
approach.Thistightinterconnectionisthekeytoanswertothecoreneedsofbusinessactivities.
This is why BPM is known as the game changer it can provide a real competitive advantage.
BPMimplementation
in
acompany
can
be
imposed
from
the
top
down,
from
upper
management,
but itcanalsobeginandgrow locally.BPM isanempoweringtoolforworkers inall levelsofan
organization. Themiddle and lower rungs of an organization gain direct benefit and are often
pushingtheBPMagenda.
Yetwidespreadadoptionneedsthebuyinoftopmanagement.
HowtotalktotheCSuiteaboutBPM?
Byaddressing the issues that theCEO,COO,CMO,CFO,CTO,CIO,andother topmanagersare
concernedwith: theways that BPM can be specifically applied in an organization to improvegovernanceandsustainabilitythroughimprovementofoperationalperformance.Inthispaper,welllookatthefollowingandprovideexamplesofthestrategicvalueofBPM.
Qualityofservice&customersatisfaction Operationalexcellence&productivity Businessagility Employeemotivation&collaboration Riskmanagement
WhatsatthetopoftheClevelagenda?
Governance&sustainability
Qualityofservice&customersatisfaction
Operationalexcellence&productivity
Businessagility
Employeemotivation&collaboration
Risk
management
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SPEAKINGTOTHECSUITEABOUTBPM
1. BPM provides powerful company-wide governance capabilityValue fromBPM implementationcomes fromcontinuouslyplanning,doing,measuring, learning
andimproving.
Its
an
iterative
process,
where
your
company
can
repeat
cycles
as
required.
YoucancompareittothePDCA(PlanDoCheckAct)managementmethodmadepopularbyDr.W.
EdwardsDeming,andwidelyadoptedinmanyindustries,ortheDMAIC(DefineMeasureAnalyze
ImproveControl)cycleintheSixSigmamethodology.
Like these approaches, BPM as amethodology can be applied to any organization or process
withinthecompany,fromthesmallesttothelargest,fromthesimplesttothemostcomplex,from
technicaltobusiness.ThedifferenceisthatBPMcanalsobeapplieddirectlyasanITtool.
The company can imply BPM incrementally to make the entire
organizationlean.
As
process
after
process
improves,
your
company
savescostsandimprovesoperationalperformance,bottomline;but
also top line, with increased quality of service leading to higher
customer satisfaction andmore sales. BPM solutions provide the
means to actually monitor efficiency of all the processes in an
organization, to identify bottlenecks, and to report the
improvements made in efficiency, easily and clearly with actual
measurements.
BPMgives
employees
the
right
tools
to
be
more
efficient.
They
can
focus
on
added
value,
hence
more interesting activities and projects. They feelmore empowered and engaged. Return On
Investmentismaximized,leveragingallthreedimensionsofcost,revenueandmotivation.
2. The company ERP cant cover everything!Today,yourcompanymayhaveanERP(EnterpriseResourcePlanningsystem),aCRM(Customer
Relationship Management system), a CMS (Content Management System), an HRIS (Human
Resources InformationSystem)andothersometimesmanyothersoftwareapplications that
supportits
business.
Some of these are complex software systems that require expertise, time and money to be
deployedandadditionaltimeandmoneytobefinetunedafterfirstrelease.Mostofthem,when
not from the same software vendor, dont even communicate together without a lot of
adjustmentsandmodifications,ifatall.
Large,globallydeployedsystemscanalsoencounterchallengesaddressingspecificorlocalneeds
thatarenotwidelysharedintheindustryorworldwide.Forexample,locallyrelevantinformation
missingfromthecompanyworkflowmayresultinholesthatpeoplehavetofillwithotherlocally
createdorpurchasedsystems,orwithhomemadespreadsheets.
ROIismaximized,
leveraging
3dimensions:
cost,revenue
andmotivation
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SPEAKINGTOTHECSUITEABOUTBPM
While it isnot an issue to haveboth ERP and standalone systems coexisting, getting them to
communicate isoftenchallenging. Implementing yetanothermoduleordeveloping customized
changes in your companys ERP would probably be costly and timeconsuming; standalone
systemsareoftensinglepurposeandmaynotbeeasilyleveragedtosupportothertasks.
Afterafewyears,thecompanyisdependentonmany
differentapplicationsanddatabases.Employeesstart
complaining that the various systems do not
communicate smoothly and they need to complete
more andmoremanual steps and data extracts and
compilation.Yourcompanyendsupwithasystemlike
aRubeGoldbergcontraption!
This is where Business Process Management comes into play
BPM isabusinessmanagementapproach thathelpsyourcompanygainvisibility intohowyour
companytrulyoperatesinthefield.Youcanquicklysee:
whatscoveredbycurrentsystemsliketheERPandCRM, whatisaddressedthroughstandalonesystems,and wheretheholesare.
Thisoverallknowledgeofoperatingprocessesallowstop
managementto
make
shrewd,
prudent
decisions
more
quickly, increasing business efficiency and operational
results.
What ifyoudonthaveanERP?Thisdoesntmean that
BPMisntusefultoyou.SeeSection10,WhatifyoudonthaveanERP?
3. BPM helps fill gapsThrough
BPM,
all
stakeholders
work
together
at
mapping
processes.
Some
tasks
will
be
handled
withinexisting tools like ERP,CRM, and soon. Some tasks canbe automated. Some taskswill
continuetobedonemanuallybecauseyourdifferentiation,where itdependsonunstructured
processes,isalsokeytoimprovingbusinessresults.
Buttheywillallbelinkedandwillstartcommunicatingtogether,enablingendtoendtraceability
andcontinuity. Clevelmanagementkeepscontrolofwhatishappeninginthecompany.
Afterafewyears
youendupwithasystem
likeaRubeGoldberg
contraption!
With
increased
visibility,
managementhas
bettercontrol,and
canmakegooddecisions
morequickly.
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SPEAKINGTOTHECSUITEABOUTBPM
4. When operational excellence helps your company differentiateWhenanorganization isachievingresultsgoodorbadyoucanretracehowthoseresultsare
obtainedby
using
BPM.
You
can
easily
replicate
successful
processes
in
other
organizations
or
subsidiaries.Wherethereareissues,youcanquicklyidentifybottlenecks,understandrootcauses
andapplyfixes.
Thankstothiscontinuousimprovementloop,yourcompanysprocessescanbeoptimizedtobest
serve yourmarkets at any time, leading to great operational efficiency and higher customer
satisfaction.
CMOandCOOteamscanreview,simplifyandstructureprocesses,focusingonvaluedeliveryand
removingeverythingelse.Atthesametime,theycanidentifytheprocessesthatleadtobusiness
differentiationand
increase
customer
knowledge.
Replicating the companys best practices ensures internal
coherence and consistent delivery to the customer,
whenever and wherever it happens. This is the path to
operationalexcellence.
Inaddition,yourcompanybecomesalearningandagileorganization,abletoquicklyadapttothe
changingenvironmentweallliveintoday.
5. When agility is a key success factor for developmentIn our global economy, new competitors are popping up
everywherewithnewbusinessmodels.Thiscanhappenseemingly
overnight, breaking former rules and habits and changing the
paradigm.Toremaincompetitiveandsurvive,yourcompanyneeds
tobeabletoanticipatethesechangesandactbeforecompetitors.
Ifyourprocessesareclear,robustandefficient,yourcompanywill
bebetterpreparedtotackletomorrowsmarketchallenges.
Withits
solid
framework
and
clearly
defined
steps,
owners
and
interactions,
BPM
puts
you
in
an
idealpositiontocatchnewbusinessopportunities.
BPMisthepathto
CustomerValueDelivery
&OperationalExcellence
BPMimprovesyour
SpeedtoMarket.
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SPEAKINGTOTHECSUITEABOUTBPM
Business Example
Imagine your company is the leader in high-end cars.
Yourcompanysvisionistoprovideelegant,safe,highqualitycarstoourcustomersandtoprovideexcellentcustomerassistanceincaseofanyproblem.
Intheeventofabreakdown,customerscallyourhelpline.Youhavemanagementdirective
toactquickly;forexample,tofigureoutthatatowtruckisneededandtogetitouttothecustomerasfastaspossible.
However,despiteconsistentlyfastservice,topmanagementhaslearnedthatcustomersare
notfinding
the
after
sales
service
for
problems
to
be
very
satisfactory
at
all.
This
is
now
drivingdownsales.Ashiftinvisionisneeded.
Thecompanysnewvisionistomakethecustomerslifeeasierwhiletakingcareoftheircarifsomethinghappens.Younowhave
toalignthehelplinecallcentersprocessestomatchthenew
strategicvisionforyourcompany.
Youproposetoshiftfocustomakinghelplinecallsthebestinteractionpossiblewithyour
brand,whatevertheduration.Beforesendingassistance,theservicerepcanfindoutmore
aboutthe
specific
situation,
which
better
pinpoint
abetter
solution
than
an
automatic
call
toamechanicperhapstherepcanexplainsomeactionthatthecustomercantaketoget
drivingagain,withouttheneedtowaitforatow.
Therepcanempathizewithstrandedcustomersplight,givethemrealtimestatusonwhat
helpiscomingandwhenitwillarrive,andofferadditionalservicesandperhapsagiftto
compensatefortheunpleasantexperience.
How easy will it be to implement these changes?
Mappinginter
related
processes
internally
with
sales,
after
sales,
the
call
center,
and
with
externalpartnerssuchastowservicesandmechanicsallowsyoutocollaborativelydesign
aprocessthatthecompanycanexecutequickly.Forexample,afterthetowservicehas
electronicallyacceptedtheservicecall,theycanalsoconfirmthedispatchandarrivalofthe
towtruck.BPMwillallowyoutoimplementtheprocesseswithallinvolvedstakeholders,to
collectdatafromtrackingeachcustomereventandsuppliercommitment,andtoreport
results.Allthiscanbedoneinincrementalsteps,toaidadoptionbybuildingonsuccess.
Changeismadeeasier.
BPM provides a good way to make the companys vision clear and understood. It makes strategicdecisions meaningful and concrete to employees and partners who then feel involved and
committed.
BPMis
achangeenabler
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SPEAKINGTOTHECSUITEABOUTBPM
6. Boosting employee motivationStudy after study
1 around the world has shown that motivation has a positive influence on
financialresults.
However,
companies
encounter
more
and
more
difficulties
to
maintain
ahigh
levelofemployeeengagement,atatimetheymostneedtodrivestrongperformance inamore
andmorevolatile,complexandglobalenvironment.
When engagement starts to decline, company
performanceandcustomersatisfaction inevitablydrop.
Most of the time, things are going wrong inside the
organization.Peoplemaybelessconfidentbecausethey
dontperceiveenough interest coming from above;or
they
may
think
management
does
not
provide
them
with the right support and structure, clear roles and
responsibilities, processes and tools. At first, people
tend to compensate for the organizations lack, but beyond a certain level, they oftenjust
disengage.When theydont feel theircompany (ordepartment) is thebestplace towork, they
startlookingaroundforotherjobopportunities
BPM is a motivation enabler
BPMaddressesorganizationalgaps,makingoperatingprocessesclear,simplerandautomated.It
makeswork
easier
and
saves
time,
for
employees
and
for
their
line
of
management.
And
with
moreefficientprocessesandhighercustomersatisfaction,managerswillhavefewerproblemsto
dealwith.
Time freed up from meaningless tasks performed in an
informationvacuumcanbeusedwiselytocreatetheenergizing
and caring environment employees expect from their
management.
WithBPM,peopleknowclearlywhatsexpected from themandunderstandhowwhat theydo
impactscompany
goals
and
performance.
It
gives
their
job
more
meaning,
while
also
helping
them
tomanagetheirtimeandtheirdailytasks.
1
Towers
Watson
2012
Global
Workforce
Study;
Motivation:TheNotSoSecretIngredientofHighPerformance
MotivationIsAllAbouttheManagers...Duh!
Whenengagement
startstodecline,
companyperformanceand
customersatisfaction
inevitablydrop.
BPMtranslates
yourvision
intoconcreteactions
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SPEAKINGTOTHECSUITEABOUTBPM
Employees:
canservecustomersmoreefficientlywith lessstressandmoreownership,thankstoclearprocesses,
computer
aided
task
management
and
reminders,
havetimefreeduptodoproductiveactivitiessuchasleadingaprojectortaskforce,addingvalueandinteractingmorewiththeircoworkersandmanagers,and
havebettervisibilityonwhatothersaredoinginthecompany,improvingcollaboration.Managers:
understandand show interest inwhat theiremployeesaredoing,providemoreaccuratejobdescriptionsandfactbasedperformanceevaluationmetrics,
canbalanceworkloadintheirteam,and savetimethattheycanreallocatetospendmoretimewiththeiremployeesandmaketheircompanyabetterplacetowork.
7. If risk management, risk mitigation, and tracking/auditis at the top of the CFOs agenda
Depending on your industry, your companymay be subject to
more andmore complex regulations.Bybonding systemsmore
tightlytogether,BPMformalizesprocesses,allofthem,eventhe
onesbetween
two
existing
systems.
It
ensures
complete
traceability, hence better compliance with your industrys
standardsandregulations.
Butriskisnotonlyaboutlegalcompliance.Ifyourcompanysprocessesareclear,wellestablished,
automated and securedwith electronic signature for approval, it considerably reduces the risk
thatanyemployeemightnotfollowcorrectprocedure,orforgetstepslikeaskingforanapproval.
Companieshavegottenintotroublebecausetheyfailedtomonitorandcontroltheiractivitiesand
processes:materialsorderedwithoutproper authorization that are contractuallyobligated and
cantbereturned;accountspayablesurprisedbytheamountandnumberofpurchasesaffecting
cashflow,andothersuchfamiliarsituations.
Weallremember theDeepwaterHorizondisasterandoilspillon
theGulfCoast
Companieshavegoneunderbecauseofqualityandliabilityissues.
Others have been working very hard for years to rebuild their
brand after a bad experience, especially on the social or
environmentalside.
Reputationhasan
impactonsales.
BPMhelpsguard
againstmisconduct.
BPMis
insurancethat
yourecompliant.
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SPEAKINGTOTHECSUITEABOUTBPM
Thecompanyisalsobetterprotectedagainstfraud,corruptionorethicsviolations.Whateveryone
does is recorded andelectronically signedwhen needed,making itmore difficult for someone
withbadintentionstobypassvalidationsandcontrols.
Another point to consider: when describing, formalizing and
automatingprocesses,thecompanyalsoultimatelydependsless
onindividualknowledge.
Ifkeyemployeeshappentoleave,generalexpertisestaysinthe
companyandyoudontneed to recreatewhat theyknew that
wasntcaptured.Newhirescanbuildonpastexperienceandmaketheircontributionfromthere.
Thissavestime,preservescorecompetenciesandenablesnewexpertiseacquisition.
8. Do employees collaborate or are they silo-ed?Maybeteamsusedtocollaboratewell,butafterseveralyearsofgrowthorchanges, it looks like
theircollaborationhasbeenreducedtothebareminimum.People
are working in silos, not seeing the big picture any more,
generatingduplication,rework,orbottlenecks.
Does IT need to be closer to your business challenges?
When
it
comes
to
IT,
the
gap
may
be
even
bigger,
with
misunderstanding
between
IT
and
business
functions.BusinessdevelopsrequirementsandhandsthemovertoIT,whothenbuysordevelops
anapplicationthatseemstofit.Whenitisreleasedandbusinessteamsstartusingit,theyreport
issuesnobodytalkedaboutbefore.ThusbeginsapingpongmatchbetweenbusinessandIT.
ThewayBPMsoftwarehasbeendesignedinvitesandreinforcesdirectcollaboration:businessand
ITteamsworkonthesametools,innearlyrealtime,withgraphicaltoolsthatmakeitmucheasier
for them to talk the same language and avoidmisunderstanding or
omissions.Feedbackisincorporatedastheygoalongtogether.
More feedback may arise at a later stage, once a specific case is
encountered.BPMsystemsare flexibleenough to letyou implement
changesafterwardswithoutmobilizingafullITprojectteam.
OntheITside,thereisacommonarchitectureforallthecompanysspecificapplications,instead
of many independent standalone systems. This homogeneity makes it possible to leverage
successful processes and applications consistently and across the entire organization, including
subsidiaries,locallyorabroad.
Relyingtoomuchon
peopledependent
processes
isarisktoo!
Collaborationleads
toefficiency
BPMbrings
homogeneity
andscalability
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SPEAKINGTOTHECSUITEABOUTBPM
9. When your business demands flexibilityBPMallowstopmanagementtoimplementchangequicklyandsmoothly.
RadicalchangesandbigITprojectstaketimeandalwayscarrysomerisks.WithBPM,youcanstart
from currentprocesses, improve, implementandautomate
toachievefirstoutcomes.Thisallowsaquickwin,evenwhile
preparing thenextsteps.You see resultsearlyandvalidate
thatthingsaregoingintherightdirection.
You can then iterate as much as needed. Those multiple
iterationsarenotdisruptiveasBPMsoftware ishighly flexibleand
candeliverfastandfrequentchanges.
10.What if your company doesnt have an ERP?Depending on many criteria, among them size, complexity or
volume, your companymay not need to invest in such a large and expensive system.Not all
businessesneedasophisticatedERP,especially ifthecompany issmallanddoesntmanufacture
products.
Butthisdoesntmeanyoudonthavetoformalizeandstructure
thewayyouoperateanddelivertoyourcustomers.
Yourcompanyjustneedsamoresimple,yetexpandable,tool.A
BPM suitecanbe that tool.You firstdescribeand refine your
processeswithallstakeholderscollaborating.Then,youdefinewhatneedsautomation,validation
andtracking.Thisappliestomanyprocesses,suchas:
Quotation to a customer that need to be validated by technical staff for feasibility andmanagementforpricing.Itmayalsoinvolveseveralversionsbeforereachinganagreement
andtheseversionsneedtobetrackedandarchived
Employeesvacation,withmanagementvalidation,systemrecordingandlinkedtopayroll Invoicingautomation,validation,recordingandarchive
WithouthavingtoinvestinanexpensiveandheavyERP,yourcompanystillgetswhatsneededto
structureandmonitorthebusiness:
Operationalperformanceandcostreduction Qualityofserviceandcustomersatisfaction Visibility,Controlandreporting AgilityandAdaptability Teamandindividualproductivity TraceabilityandCompliance
Radicalchangesandbig
ITprojectstaketimeand
alwayscarrysomerisks
Incremental
implementation
islowrisk
Ourcompany
justneedsasimple,
yetexpandable,
tool.
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SPEAKINGTOTHECSUITEABOUTBPM
Conclusion
BPM improves the companys overall efficiency today, so executive management can focus onthe future.
Asweveseen,BPMcanhaveapositive impactonmanyaspectofacompany,fromgovernance
and sustainability to motivation and change management, to agility and collaboration, to
complianceandriskmanagement.
AlltheseaspectshaveaninfluenceonbusinessperformanceandcontributeincreasingReturnon
Investment. Its notjust about cost savings.With BPM theentirecompanygetsmuchmore.It
gets
happy
employees,
happy
customers,
and
awell
oiled
operationalmachine, optimized for the best outcomes, not
the lowest costs. This is a positive feedback loop where
satisfaction leads to more success, which leads to more
profits that can fuel company expansion and stakeholders
satisfaction,andsoon.
Isthissomethingthatcanbequantified?Definitely.
ClassicROIcalculationbuildsupon:
efficiencymodelsmeasuringcostsavings,lostproductivity,reworkandduplication,and statisticalandprobabilisticmodelforriskevaluation.
Thegoodnews is theresa verygood chance yourcompanywillgetahigher return than your
calculationswillanticipate.Andyouwillbeabletoshowthiswithprocessmeasurements.
When done properly, with all stakeholders involvement and empowerment, and strong
managementsupport,aBPMprojectwhethercompanywideoratdepartmentlevelwillhelp
peopleunderstandbusinessgoalsandstrategiesandmobilizeenergiestowardsacommonproject
serving common purposes. Engagement and motivation will naturally get boosted, and by
rebound,
customer
satisfaction
will
increase.
This is thehuman factoreffect.Peopleengagementandmotivationarecomplexanddifficult to
link directly to a saving or performance increase, as arewordofmouth and referrals among
customers.
Butweallknowitworksandcanproducerealresults.
Once the companys processes are structured, optimized
and automated,management can focusmore on defining
andimplementingstrategyandlessonlogistics.Teamshave
timeto
get
customer
insights,
and
to
anticipate
and
get
ready
for
the
next
challenges.
TheCsuiteandtheBoardofDirectorsarebetterpreparedtoworkontheirvisionofthefuture.
Theresaverygood
chanceyour
company
willgetahigherROI
thanyourcalculations
willanticipate.
Executivescanfocus
moreonstrategy
andlessonlogistics
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SPEAKINGTOTHECSUITEABOUTBPM
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