Business process outsourcing (BPO) is a popular strategy for companies to reduce costs, increase efficiency, and access specialised skills and expertise. Experts predict that the global BPO market will reach $405.6 billion by 2027, with a compound annual growth rate (CAGR) of 8%.
By outsourcing non-core processes, you will save on overhead costs and gain more time to focus on scaling your business. BPO also streamlines operations, resulting in faster turnaround times, improved quality, and increased customer satisfaction.
Access to specialised skills and knowledge from these service providers further enhances the quality of services. Within the realm of BPO, business process management (BPM) is a critical subtopic that enables you to improve your company’s processes and performance.
Effective BPM has become a key component for organisational success. By exploring BPM and looking for a partner with a proven track record, you can eliminate inefficiencies and gain a competitive edge in today’s fast-paced business environment.
Read on to learn about the benefits, types and practices of BPM in this helpful guide.
What Is Business Process Management?
Business process management is a field that focuses on optimising and managing a company’s processes to improve efficiency and reduce operational costs.
The primary purpose of BPM is to provide a framework for continuous process development. By identifying areas for improvement, you can streamline your operations, reorient goals, or minimise bottlenecks that are hindering your organisation’s optimal performance.
Some common ways to use BPM include automation, workflow, and compliance management. Many software tools are also available to help make the practice easier to test and implement.
The typical life cycle of business process management methods is as follows:
1. Design
During the design phase, business analysts evaluate the organisation’s current processes and interview stakeholders to understand the business rules and goals.
The objective is to understand the business structure and methods, and ensure that the project aligns with your company’s targets. The design phase sets the foundation for the project and defines the scope, objectives, and roadmap for the rest of the life cycle.
2. Model
After the design phase, the team represents the process model to support your current bylaws. The stage involves identifying areas for improvement and designing the ideal implementation.
With the help of BPM software, the team can create a detailed model that accurately represents the process and determines areas for development. You can also use the framework to simulate how it works for different scenarios.
The model phase also helps you determine subsequent actions in times of crisis or sudden changes within your industry.
3. Execute
This step involves implementing the process changes identified while modelling—the team creates a proof of concept by testing the new BPM system with a limited group of users.
After integrating feedback and making any necessary adjustments, the team can slowly roll out the process. If the procedure involves automation, the team should artificially throttle the method to help minimise errors.
Always remember to have every change documented and cite every reason. Having records can help with troubleshooting in the future.
4. Monitor
It’s crucial to track the performance of your new process against your business strategy. Establishing key performance indicators (KPIs) and monitoring these metrics help you measure progress and flag any factors that might be an issue in the long run.
Focus on macro and micro indicators to examine the entire and individual process segments. Check whether you’re meeting your goals, such as decreased costs or task efficiency.
5. Optimise
After implementing the new process, the team must continuously monitor and optimise it using the previous steps.
Optimising involves looking for ways to improve the method and considering automation for specific tasks. It also includes making necessary adjustments to enhance business activity and aligning individual functions with the overall strategy.
Benefits of Business Process Management
BPM is a structured approach that leads to more efficient day-to-day operations. Below are some other benefits that BPM can give you and your organisation:
Improved productivity
BPM optimises processes, leading to better resource allocation and productivity. It eliminates redundant tasks and automates routine operations, freeing employees’ time for higher-value activities.
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Reduced operational errors
BPM removes the need for manual data entry, reducing the likelihood of human error. The average error rate for manual data entry hovers around 1%, but it may still increase depending on the complexity of the information or worker health.
Automated workflows ensure that all steps are completed in the correct order and with consistent results, lowering the risk of errors.
Guaranteed compliance
Process management enables you to execute processes consistently and competently, decreasing the risk of non-compliance with regulations and standards. It also provides audit trails and reporting, making demonstrating compliance with local and international regulators easier.
Quicker turnaround times
By eliminating manual processes, BPM can lead to quicker turnaround times. It can help shorten the time to complete tasks and remove delays caused by human error or miscommunication.
Increased employee happiness
You can help reduce your employees’ workload by automating several tasks. Having a smoother workload with less manual work can lead to increased employee happiness and loyalty. A survey found that 89% of workers experienced improved work satisfaction due to automation.
With BPM making each step more transparent and manageable, employees know which tasks must be prioritised and worked on with extra care. These well-defined steps mitigate any confusion regarding expected output and quality of work.
Photo by Mikhail Nilov
3 Main Types of Business Process Management
You can categorise BPM into types based on their workflow automation and management approach. Here are the three main types and what they can give your company:
1. Integration-centric
This BPM type aims to streamline business processes by implementing different systems and technologies. It improves efficiency and lowers errors by automating data exchange between different systems through application programming interfaces (APIs), connectors, and other tools to facilitate system communications.
For example, a logistics company can use integration-centric BPM by linking the inventory management system with the shipping system to simplify the order fulfilment process and ensure that orders are completed accurately and on time.
2. Document-centric
Document-centric BPM manages the flow of documents and data within your company for you to create, review, approve, and distribute copies efficiently and accurately. It often involves workflows tied to specific files and document management systems allowing easy access and sharing of documents.
One of the companies that may benefit from using this type of BPM is a law firm. They need to manage contracts, records, and other documents to ensure all parties can access the latest version and promptly obtain approvals.
3. Human-centric
Human-centric BPM focuses on improving human workflows and productivity. Its function is to streamline communication and collaboration between employees, departments, and customers.
It often involves using task lists, forms, and other tools to standardise and automate workflows.
For instance, an insurance company might use a human-centric BPM to enhance the claims process by standardising the documentation required, automating the approval process, and providing real-time updates to customers.
Business Process Management Best Practices
Following BPM best practices is essential to effectively manage and improve your company’s processes for success. Some of these best practices include:
Establish and measure KPIs
Identifying KPIs helps measure the success of a process and its contribution to your company’s goals. You must establish your metrics before implementing a BPM strategy to formulate a clear game plan for your organisation when the project finally begins.
Talk to customers and vendors
Communication with customers and vendors enables you to understand their needs and expectations. You can then use these insights to tailor your BPM strategies to meet those requirements better, resulting in improved customer satisfaction and vendor relationship in the long run.
Speaking with your clients also helps you develop KPIs that track whether you’re meeting their demands, and which areas regarding client-facing procedures need improvements.
Utilise BPM tools and technologies
Today, many emerging BPM tools include process mapping, workflow automation, and project management capabilities. Choosing the right technologies for your business can reduce human error and increase productivity, giving you more value for your money.
Train your employees
Proper employee training is a crucial best practice in BPM, as it ensures employees understand the BPM process and their roles in it. Well-trained staff can better engage in the process and work towards the desired outcome, improving consistency and efficiency in daily operations.
Moreover, training shouldn’t be a one-time event, but ongoing and updated regularly to guarantee your workers remain informed and skilled.
Take time making changes
Analyse the process thoroughly and ensure your business benefits from these improvements. Rushing or making poorly planned decisions in your strategies and methods can lead to more significant problems and disrupt operations.
Track everything
Continuously monitor the process and collect data on performance metrics such as cycle time, process time, and costs. This will help you identify problems and areas for improvement within your company and its day-to-day activities.
You can use BPM software to make it easier to track all ongoing procedures and generate reports that can help you make well-informed decisions in the future.
Success through BPM Implementation
BPM provides a structured approach to managing workflows, leading to more efficient tracking, rollouts, and product deliveries. Through this strategy, you can streamline your operations, reduce costs, and secure consistent and compliant execution of procedures.
To help your business succeed, consider working with Select VoiceCom as your business process management partner. Our team of experts can provide you with software tools and help you implement BPM strategies and contact centre services according to what best suits your specific needs.
Contact us today to learn more about how our BPM services can help scale your company to success!