10 BPM Problems to Avoid
Last Updated March 5, 2024
Business Process Management (BPM) can be extremely effective, especially when used to remove unnecessary tasks and costs. When applied properly, companies can use BPM to boost productivity and efficiency. However, it’s important that businesses are cautious when implementing BPM because it’s easy to make a mistake that could affect the bottom line. Here are some problems to avoid when adopting BPM:
- Unclear Start and Finish – It’s estimated that 60-70% of business optimization projects fail. One of the possible reasons behind this high failure rate is due to unclear starts and finishes. To avoid this pitfall, companies need to fully understand their status quo before beginning optimization projects. Here are some questions businesses should ask themselves when beginning a project:
- Who is involved in the process?
- What input and output parameters are being used?
- What is the average timetocompletion for a single instance of this process?
- How often are exceptions raised, how are these handled and by whom?
- Wrong KPIs – Key performance indicators (KPIs) are metrics used to evaluate business success. They are the markers that help keep business performance in the right direction. For this reason, companies have to be careful when defining KPIs. Some common problematic KPIs can include those that are impacted by extraneous factors, those that are ill-defined or multi-interpretable and those that are not linked to business goals.
- Ownership and Support – Successful process optimization typically requires some top-down control. The process owner is usually the one who oversees the process to make sure everything runs smoothly. Without a process owner, projects often don’t have motivating force to bring about a successful outcome. A lack of support can also result in negative outcomes for BPM projects.
- Not Embedding Process Changes – Businesses should expect change when implementing BPM. Alterations can only be made once businesses are ready and willing to make changes. Problems arise when changes are not correctly embedded into the business. In order to avoid this problem, companies should focus on clear communication about organization goals and document any changes. In short, people need to be ready for upcoming changes, and businesses need to internalize changes that are being made.
- Lack of Execution – Sometimes, businesses collect large amounts of complicated statistics in order to help with business optimization. However, seeking to gain as many statistics as possible is not always beneficial. Instead, businesses should focus on how to take appropriate actions based upon the data analysis.
- Unprepared to Demonstrate Value – Even if a BPM team achieves success, failing to document achievements can be detrimental. BPM projects should be carefully documented and recorded so that each success can be pinpointed. It’s also important for the team to decide how they will measure success before starting new projects. If positive outcomes are not recorded, organizations may not value BPM projects.
- Misunderstanding of BPM as a Discipline – Employing BPM generally requires a willingness to change and growth mindset. Otherwise, BPM projects could be become stagnant and only rely on what those in charge have to say. BPM should be about change and improvements, as it is a discipline rather than just technology or subject matter.
- Launching BPM Efforts Without Validation – Instead of delving into a BPM project based upon perceived problems, businesses should make time to recognize and isolate problems. BPM projects should allot time at the beginning of the project to gather and analyze data about problems and areas that need improvement before attempting any modifications.
- Developing Capabilities Without Delivering Value – Oftentimes, BPM teams must prove their worth to their organizations. BPM teams also need to remind organizations that they need time to develop their capabilities. While benefits may be small at first, they will grow in time. It is important for BPM teams to communicate well with their businesses and help organizations see the value of BPM.
- Over-Focusing on Mapping Instead of Improving – Another struggle for BPM teams is getting lost in the process of tracking activity and performing BPM tasks. The work that BPM teams do should be applied to real business problems in order to bring about change. If not used for business improvements, the work of BPM teams may be wasted. Accordingly, BPM teams should use process maps as a way to make improvements and communicate the value of processes back to their businesses.