How do you know a process is wrong?

Let's define a "wrong" process as one that could run in an improved way. With our screening methods we identify process improvement potentials typically in these areas:

• Results. The expected objectives and outcomes are not clearly defined, so that different stakeholders work at the achievement of different results.
• Duration. The process takes too long, e.g. customers wait too long for their responses.
• Efficiency. The process is not efficient, e.g. the process performing people spend too much effort in getting the outcomes.
• Effectiveness. There are many cases where a process does not deliver the once defined ideal outcomes. Example: A delegation of authority process that does not guarantee an appropriate approval at all levels.
• Integration. The process runs isolated with lacking interfaces to other processes.
• Complexity. The process is too complex to be understood.
• System support. Too little or too much automation can cause underperformance.
• Transparency. The process is not clear to the performing people.
• Execution. The process might be defined and perfectly documented, but is executed in a different way or not at all.

These are some examples of "wrong" processes that cost organisations money, people's motivation and customers' loyalty.

Is BPM another type of software?

No. Business Process Management (BPM) is an organised group of activities aimed at effective and efficient management of business processes in organisation. It is a customer-oriented, end-to-end and cross-functional management approach as opposed to management of single functional units. Key parameters for successful management of business processes include:

• Transparency
• Clear goals aligned to the strategy
• People involvement
• Simplicity whenever possible
• Process ownerships with alignment to the reward system
• A lean BPM governance system to ensure sustainability

Although Business Process Management can be supported by appropriate software (usually called BPMS, S for “suite”), it is not an IT term itself and should not be conceived as such. The implementation of an IT tool or system does not change any process by default.

Isn’t Business Process Management too much planning and too little doing?

Yes, and that is one of the biggest threats of activities around business process management. In many organisations most of the defined business processes are never really implemented and executed in daily life. That is pure waste of money, time and effort. So, how to do it right? Here are some ideas:

• Start small. Achieve measurable success with process documentation and improvements on a small scale in one dedicated business unit. After the first achievements you can enhance your activities to other business areas.
• Involve the people. Ask the people who execute the processes. If suppliers and customers are part of the processes ask them. Run structured workshops to gather all available input. You get their knowledge and – even more important – their buy-in.
• Be clear about–measurable–objectives  and ownership. Who is accountable for the business process and what are the objectives to achieve? Do we want to become faster, save money, satisfy the clients? Prioritise. It’s difficult to achieve everything at the same time.
• Ensure execution. Never stop with a documented process. Make it easy to apply for the people. And then, follow up. That last step is often forgotten, and binders full of great process descriptions disappear in dusty shelves.

We have already documented all processes. What additional value do your services provide?

Simply saying our services ensure the full return on the investment of process documentation.

Process documentation is a first step to effective process management.  So, what’s next? How do you use the material? What effect has the documentation on your business?

Obviously, any business process only contributes to the achievement of organisation’s objectives if it is really executed. Sounds simple, but here is the main weak point of operations management. Real process execution means leaving the documentation universe and digging into real day-to-day business of people. All investments into process documentation are waste of money and effort if the processes are not “lived“ as designed.

For us, ensuring that process documentation is used to generate business impact is an integral part of sound process management – albeit some people would call it “going an extra mile”. 

For the physicians of you: This process can be compared to converting potential energy into kinetics.

What do you mean by “process”? (We have organizational structure, people, IT and many projects…)

Business process is an organized group of related activities that together create customer value. That is our preferred definition given by Michael Hammer. 

Business processes run in each organisation—always and everywhere—even though they may be not defined, documented, or communicated.  Like links in a chain, every step in the process must work. Failure can occur at any point in the journey.

Examples of processes are lead generation, marketing and sales, delivery, financial reporting etc.

Business processes link all activities in an organisation–no matter which size, industry, structure. They are the glue that keeps everything together–and like glue business processes need to stick the right things together and let others flow seamlessly. The performance of business processes has a tremendous impact on the organisations' performance. That is why the effective management of business processes has such a high importance for each and any organisation.

What does New Pace stand for?

New Pace is a leading boutique consultancy for innovative business process management. We help organisations create transparent and efficient structures and processes for achieving high operational performance and growth.

“New Pace” stands for a great deal of positive change in the dynamics of your enterprise.  You can find your preferred meaning here.

What is "Business Process Management" (BPM)?

We define Business Process Management in reference to Harmon, 2005 as "a management discipline focused on improving sustained corporate performance by managing a company’s business processes."

What is a "Business Process"?

There are many definitions of a Business Process. We prefer the one from Michael Hammer, 2001:

"A business process is an organised group of activities that together create customer value."

What is the difference between project and process? Do projects substitute processes?

In contemporary business language, a project consists of a temporary endeavour undertaken to create a unique product, service or result. The key difference between project and process lies in word “temporary”. A project is usually a one time undertaking. Whenever the pattern of activities is repetitive, and the number of resulting products/services is considerably large, it is likely to be a process. 

The second main difference is that process has–by definition–to contribute to the creation of customer value. It is always end-to-end.

Note, however, that precise delineation is subject to scope and degree of resolution. Each project certainly includes processes whereas the implementation of a new business process may be seen as a project itself.  

Projects don’t substitute processes and project management does not replace process management. 

What is the value of what you do?

We help organisations create transparent and efficient structures and processes for achieving high operational performance and growth. Typical benefits of our work include:

• Reduced complexity
• Better customer service
• Scalable processes
• Improved agility
• Better RoI on IT investments

Read more about the results New Pace achieves.

In each specific case the value or benefit from our programs depends on the specific goals and starting position of our client. 

In addition, the value is usually multifold, because–just by its nature–any process improvement touches on different parts of organisation. For example, a simplification of a service process typically results in improved customer satisfaction and higher agility, but also in employee satisfaction and better financial results.