Business Process Management and Process Improvement
Written by: Tom Isonhood
The marketplace we compete in today is a much smarter one than it ever has been in the past. The use of advanced technology systems has created more intelligent and interrelated systems and processes. These technologies continuously shape and reshape the way we do business.
Ergon uses many applications that provide real time information and data to specific users. SAP, Macola, Picasso, and Vendavo are just a few of the many systems our company uses. These systems provide the information we need to make business decisions for many aspects of our company.
One thing normally experienced with the implementation of new technology systems is the need to update our work processes that relate to these systems. Sometimes as we transition to the newer system from one that was traditionally “siloed” to a certain business function, it becomes necessary to bring other stakeholders to the planning table. This practice can often ensure that new processes will not adversely impact or limit the required outputs from the system.
A couple of methodologies that may help us with these transitions are “business process management” and “process improvement.” Business Process Management (BPM) is described as the way in which an organization manages its business by focusing on its processes. BPM uses a strategic, proactive approach and tends to be more long term in nature. Process Improvement (PI), on the other hand, is more operational in nature and tends to be short term and reactive. PI uses methods by which a business can improve its business by focusing on processes.
While business process management and process improvement are related, they are different. Each of these methodologies depends on the other to sustain itself. BPM relies on PI methods to improve processes and design new ones. PI relies on BPM to pro actively identify opportunities and sustain improvements. As Ergon continues to grow, it is very important that we not only improve our work processes but also provide the management systems necessary to sustain these improvements.
As we update and improve our business processes, whether for the implementation of a new system or as part of continuous improvement, we must also design and create those elements of our management system to monitor, measure, and sustain these improvements. Both of these elements are required for us to be successful.
SPID offers a number of services that use many process improvement tools, including Business Process Management and Process Improvement. We also work with Ergon companies to update their management systems to sustain these improvements. These services are designed to help our customers pursue the things that are important to them and to manage their business.
Reference: Hegedus, Imre. BPM and PI: Business Performance Partners (Part 1). BP Trends (February 2008)
