0 Benefits of BPM...

As perviously discussed, an example and life cycle of BPM. Now the Benefits of BPM are:

• A good BPM implementation will increase the visibility of the bank activities making it easy to monitor and control the critical business processes of the bank.
• It provides management with an increased ability to identify the bottlenecks, making improvements needed and reassign resources to meet customer demand.
• It also provides an increased ability to identify further areas of optimization, that’ll improve customer satisfaction all over transaction costs.
• Good BPM system contributes significantly to reduce lead times, so the customer hears about the decision within days rather than weeks.
• BPM ensures better definition of duties and roles of the employees throughout the company. It is also good to fraud prevention, auditing and assessment of regulatory compliance.

Cross functional:

BPM system prevents the unfortunate situation for a customer to phone to enquire about a loan application which is transferred from one individual to the next and to the next. With all of them saying, “Sorry, it is not my decision but let me transfer you to the person who deals with it”. BPM uses a cross functional approach so that work is automatically moved from one desk to the next without any need for the manual intervention. Of course training is crucial, to ensure employees and managers know what is expected of them.

Before BPM initiative is launched, it is really important to get the Buy-in and active support senior management. Project-leader needs to manage the expectation of all the stake holders. Once the system is operational, the project is not yet complete. The team needs to listen to the customer’s feedback and further improvements. In general, all the principles of the change management need to be followed to ensure success. Because, everybody’s job will be a bit different after the project is done.

Bill gates once said, the first rule of any technology is that ‘automation applied to an efficient operation will magnify the efficiency’.

The second rule is that ‘automation applied to an inefficient operation will magnify the inefficiency’.

It is important to remember the information technology been used is simply an abler that comply with business, its processes, and management to near heights. It can create new, faster and more effective businesses if used correctly but it can’t fix broken processes. However, if bpm is implemented in the correct way and a good change management process is followed, it can have dramatic benefits for the business.

References:

Garimella K. & Lees M. & Williams B. 2008. BPM Basics For Dummies. Indianapolis: Wiley.

Jeston, J. & Nelis, J. 2006. Business Process Management - Practical Guidelines to Successful Implementations. Oxford: Butterworth-Heinemann.