PLAN

The first step, Plan, in the BPM method is used to determine the scope of the planned BPM program to be undertaken. The scope can be performed multiple different ways as each organization will have their own specific context and circumstances. However, the two most common ways are to take a functional or team-based approach or an end to end process approach. While both have pros and cons, using an end to end process approach ensures you analyse and design a complete set of processes that deliver business outcomes. Using a functional or team-based approach runs the risk of missing something that occurs when processes are handed off between functions.

DESIGN

This step, Design, covers both identifying and redesigning existing processes and the design of future processes. Design will address:

• Individual processes within the scope end to end processes to determine the right activities needed and the applications and information required to deliver the outcomes of expected of each process
• The overall flow within the end to end processes to reduce hand-offs between roles / teams and to eliminate or significantly reduce process failures
• Address the relevant competition, market, regulative and legislative business challenges that may arise during the execution of the process
• Appropriate alerts, escalations, notifications, service level agreements within individual processes or across the process within the end to end process.

Outcomes of this step will include documented re-designed business process including process maps, process key performance indicators (KPI’s) with proposed target, standard operating procedures and work instructions. Process documentation also incorporate details of proposed process improvements, including delivering improvements to the process flows for human-to-human, human-to-application or application-to- application.

MODEL

Model, takes the outputs of the Design step and uses this information to model various scenarios to identify how changes to inputs impact process. This may also involve undertake simulations of the process to understand the impact of changing constraints, such as on changes to its inputs or costs.
For example, modelling changes to process volumes or input materials costs, will assess how the process might operate under different situations. It also allows evaluation of changes to organization objectives, such as “What is the impact of an unexpected 50% drop in orders” or “What can I do to reduce the unit by 20%”.

EXECUTE

Execute, involves implementing and performing the processes designed in Step 2 using the knowledge gained from the modelling of processes and their constraints in Step 3. Processes can be executed manually or be automated.

MONITOR

Monitor, encompasses measuring and reporting of the performance KPI’s for both individual processes and end to end processes against their set performance targets. These KPI’s can cover different measures for process effectiveness, efficiency, service level and customer experience. For example, cycle time, error rate, resource effort,
The approach required to measuring performance KPI’s will largely depend on the type of KPI and the availability of information needed for measurement. It may be necessary to collect data needed to calculate the performance KPI. This data collection and calculation will depend on the context and circumstances of individual organisations. In some organisations, this may be a manual or partially manual process, but in most situations it will be automated.
The performance metrics can also be used to work with partners, suppliers and potentially customers to improve how they connect with the organisation, by using KPI’s to analyse how to best connect with their processes.

OPTIMIZE

Optimize, involves analysing the process performance to identify processes that are not meeting their performance targets or the organisation is looking to change. These changes can be driven by many different external and internal influences.
External influences can be due to changes in:

Legislation or regulations

Requirements from Suppliers or Partners

Requirements from Customers.

Internal influences can be due business stakeholders looking to:

Reduce process costs

Reduce process cycle times or effort

Improve customer experience.

Process optimization will look to identify potential or actual bottlenecks, as well as potential opportunities for cost savings or other improvements. Use of process mining tools can assist in discovering critical activities and bottlenecks, to help improve business value. The outcomes of Optimize will be improvements and enhancements to the design of processes, including potential automation of all or part of the process.