Introduction to Business Process Management (BPM) from an experienced transformation executive — Transcript

Full transcript

1. 0:00today we're going to be kicking off a
2. 0:01series all about process improvement
3. 0:03starting with the basics what is
4. 0:05business process management if you've
5. 0:08ever wondered how to make sense of what
6. 0:09goes on underneath the hood of a
7. 0:10business no matter how small or large
8. 0:13how you fit into this and how things can
9. 0:14be improved then this episode is for you
10. 0:27hi my name is raf welcome to riser where
11. 0:30my mission is to help you go further
12. 0:32faster in your career a big welcome to
13. 0:35any of you new to the channel welcome
14. 0:37back to our subscribers and a quick
15. 0:38reminder that i have included time codes
16. 0:40in the description box below if you want
17. 0:42to jump into a particular chapter today
18. 0:44i'm giving you a quick introduction to
19. 0:45something called business process
20. 0:47management otherwise known as bpm
21. 0:50what it is why it's important and how we
22. 0:52use it in business this is going to set
23. 0:54the foundation for many future episodes
24. 0:56on various aspects of bpm and process
25. 0:59improvement which will be posted in the
26. 1:00description box below when they become
27. 1:02available
28. 1:04now over the years i've become very
29. 1:06familiar with the world of processes
30. 1:07myself having analyzed and improved them
31. 1:10during the course of my own career
32. 1:12including leading teams of experts to
33. 1:13design and improve processes across very
34. 1:16large businesses
35. 1:17so i know enough to be able to
36. 1:19confidently say that one of the easiest
37. 1:22ways to come to grips with how an
38. 1:23organization works or any part of that
39. 1:26organization is to take a look under the
40. 1:28hood and that means taking a look at its
41. 1:30processes and that's because all
42. 1:32businesses are made up of core processes
43. 1:34that are linked together that result in
44. 1:36things getting done and value being
45. 1:38created whether it's customer inquiries
46. 1:40we're talking about or loan application
47. 1:42approvals your uber driver arriving at
48. 1:45your door
49. 1:46products being developed ad campaigns
50. 1:48being released or even the way corporate
51. 1:50strategy is run
52. 1:51understanding these processes gives us
53. 1:53insight into how things work and how we
54. 1:56can make the necessary improvements for
55. 1:58better efficiency and effectiveness now
56. 2:01when you break processes down you find
57. 2:03they are always made up of steps
58. 2:05sometimes hundreds of steps and each of
59. 2:07these steps will have various inputs
60. 2:09actions that are taken and outputs that
61. 2:12result from those actions
62. 2:14in order to improve business processes
63. 2:16comprehensively and manage them
64. 2:18effectively it's necessary to have three
65. 2:20aspects working together firstly and
66. 2:23most obviously are the processes
67. 2:25themselves you'll need to know how to
68. 2:27identify processes and then how to
69. 2:29analyze and improve them and there are
70. 2:31multiple proven ways of doing this such
71. 2:33as the methodology known as lean six
72. 2:35sigma which i know fairly well
73. 2:38secondly processes usually hang together
74. 2:40using various types of technology
75. 2:42whether that's as simple as your email
76. 2:44system or more sophisticated tools such
77. 2:47as enterprise software or even
78. 2:49customized automation so there's a
79. 2:51technology aspect to both your current
80. 2:53state processes and any proposed future
81. 2:56state improvements
82. 2:57and thirdly and perhaps most importantly
83. 3:00there's the people involved in all of
84. 3:02this
85. 3:02it's really really hard to improve
86. 3:05business processes without understanding
87. 3:07who is involved what's required of these
88. 3:09people and actually why these processes
89. 3:12exist in the first place
90. 3:14so in a nutshell this combination of
91. 3:16process technology and people to improve
92. 3:19business operations using various
93. 3:21methods to discover model analyze and
94. 3:24improve optimize manage and automate
95. 3:27business processes describes what's
96. 3:30commonly known as business process
97. 3:32management or as i refer to it earlier
98. 3:34bpm
99. 3:35just be aware that bpm has become
100. 3:38somewhat of an umbrella term so when
101. 3:40many people talk about business process
102. 3:42management they could be referring to
103. 3:44business process re-engineering business
104. 3:46process improvement or even continuous
105. 3:48process improvement but you should know
106. 3:51that specialized process practitioners
107. 3:54people who do this for a living when
108. 3:56these people refer to bpm they're
109. 3:58actually referring to some very specific
110. 4:00bpm frameworks and tools and not just
111. 4:02general process improvement
112. 4:04these specialized bpm frameworks and
113. 4:06tools have evolved over time in
114. 4:08different ways to solve common needs
115. 4:10across industries so there really isn't
116. 4:13one bpm standard that everyone needs to
117. 4:15know but there are definitely global
118. 4:17best practices that everyone should be
119. 4:19aware of so stick around because i'll be
120. 4:22covering these shortly so now that we
121. 4:24know what bpm is
122. 4:26why is it important as i mentioned
123. 4:28earlier all businesses are made up of a
124. 4:30web of processes if these processes
125. 4:33aren't working well or not working as
126. 4:35well as they should then a lot of pain
127. 4:37is going to be experienced
128. 4:39firstly by the people working in the
129. 4:41business secondly by the business itself
130. 4:43in terms of its ability to create value
131. 4:45as a profitable enterprise and thirdly
132. 4:48to the customers it serves
133. 4:50because businesses never stay static
134. 4:52there's a constant need for processes to
135. 4:54evolve and adapt no matter how good
136. 4:57these processes may have been to begin
137. 4:58with without continual improvement and
138. 5:01effective bpm things can become chaotic
139. 5:04and this can happen pretty quickly such
140. 5:06as when a business is growing really
141. 5:08fast facing a major challenge or
142. 5:10shifting the way it operates
143. 5:12most businesses tend to have sub-optimal
144. 5:14processes which are not well understood
145. 5:16and challenging to keep optimized and
146. 5:18under control and the larger and more
147. 5:20complex a business is the greater this
148. 5:23challenge is
149. 5:24so this is where bpm comes in because it
150. 5:27can be applied almost everywhere we find
151. 5:29repeatable process steps it can help us
152. 5:32improve productivity and efficiency
153. 5:34specifically by helping us create
154. 5:36consistent processes and improve and
155. 5:38control the quality of what we do
156. 5:41bpm by definition gets into all the
157. 5:44nooks and crannies of our processes so
158. 5:46it allows us to get ongoing visibility
159. 5:48into how those processes are performing
160. 5:50and because of the process
161. 5:51standardization the quality improvement
162. 5:54the repeatability the control and
163. 5:56visibility that bpm allows us well it
164. 6:00also allows us to improve risk and
165. 6:02enforce compliance with bpm we can
166. 6:05enable real-time risk evaluation
167. 6:07reporting and audits because every
168. 6:09action and outcome is recorded we can
169. 6:11also ensure that regulatory deadlines
170. 6:13are adhered to for example when issuing
171. 6:15reports payments or breaches of conduct
172. 6:18bpm also provides smart methods and
173. 6:21proven frameworks for effective business
174. 6:23transformations and helps us make sure
175. 6:25that we're able to track our benefits
176. 6:27accurately and externally it can help us
177. 6:30offer more value as a business to
178. 6:31attract more customers and improve
179. 6:34service so that we retain those
180. 6:35customers such as through making more
181. 6:37self-service options available online
182. 6:40resolving complaints faster as well as
183. 6:43real-time tracking of applications
184. 6:45enquiries orders and so on
185. 6:48undemand services for example have been
186. 6:50extremely successful in disrupting whole
187. 6:53sectors through building and scaling
188. 6:54their businesses using bpm
189. 6:57just think about only a few years ago
190. 6:59how you would book your travel
191. 7:01book an appointment with your doctor
192. 7:03watch a movie how you used to order a
193. 7:06cab or buy a book even grab a burger and
194. 7:08now think through all of the convenient
195. 7:10on-demand options that are available to
196. 7:12you today and how the old traditional
197. 7:13businesses were disrupted so
198. 7:15effortlessly bpm has played a major role
199. 7:18in this and if you look internally
200. 7:19within businesses bpm is often used to
201. 7:22promote collaboration through a common
202. 7:24understanding of processes as well as
203. 7:27through optimizing access to data
204. 7:29file sharing and task management and in
205. 7:32case that's not enough for you once you
206. 7:34consider the benefits i've already
207. 7:35covered and step back to consider the
208. 7:37broader effects on a business you can
209. 7:39now start to see that how having bpm in
210. 7:42place improves profitability through
211. 7:44reducing those costs and increasing
212. 7:46revenue makes businesses more agile by
213. 7:50being able to respond to change
214. 7:51dynamically reacting quickly to emerging
215. 7:54issues and opportunities because we have
216. 7:56real-time information and faster
217. 7:58response and ultimately it gives these
218. 8:01businesses a competitive edge in a
219. 8:03crowded global marketplace
220. 8:05so hopefully you can start to get a
221. 8:07sense of just how powerful business
222. 8:09process management can be and how many
223. 8:12facets of business it touches now if
224. 8:14you're even mildly curious you might be
225. 8:17wondering
226. 8:18how
227. 8:19how does bpm do all of this
228. 8:22well as promised earlier here are some
229. 8:24of the most widely adopted bpm methods
230. 8:26in use across industries globally
231. 8:29these are
232. 8:30workflow management by understanding and
233. 8:32designing effective sequences of steps
234. 8:34across processes to connect those three
235. 8:36areas we spoke about earlier
236. 8:41a good example here is when a new
237. 8:43employee is hired without effective
238. 8:45workflow management this process can be
239. 8:46a total disaster for both the company
240. 8:49and the new starter ever had this happen
241. 8:51to you
242. 8:52well using this example you can also see
243. 8:54how analysis tools to generate metrics
244. 8:57kpis and reports could be really helpful
245. 9:00in assessing the quality and efficiency
246. 9:02of the hiring process but analysis tools
247. 9:04can also be used externally for
248. 9:06customers to access the information they
249. 9:08need such as when comparing electricity
250. 9:10providers trading on the stock market or
251. 9:13even checking the weather and going back
252. 9:15to our employee example again you can
253. 9:17see how effective business process
254. 9:19management also requires integrations
255. 9:22which links the data held in separate
256. 9:24places sometimes many different places
257. 9:26and makes it available for use in this
258. 9:28case from customer relationship
259. 9:30management software to human resources
260. 9:32portals and even the company's internet
261. 9:34for various parties including hr i.t
262. 9:38finance the business area and the
263. 9:40employee themselves and bpm also
264. 9:43includes more advanced methods such as
265. 9:45robotic process automation or rpa which
266. 9:49simulates the processes performed by
267. 9:50people a process automation requires a
268. 9:53deep understanding of those processes
269. 9:55and then coding each little step in
270. 9:57carefully orchestrated sequences to
271. 9:59replicate what us humans do and here we
272. 10:02use various types of software to help us
273. 10:04from simple form generators for
274. 10:07collecting data in a structured way
275. 10:09to business rules engines which automate
276. 10:12process steps according to whatever
277. 10:14rules and conditions we would like to
278. 10:16specify
279. 10:17and we can even get into more advanced
280. 10:19areas of bpm such as artificial
281. 10:22intelligence or ai engines that start to
282. 10:24mimic human intelligence through making
283. 10:27predictions based on algorithms and data
284. 10:29if you've ever looked through your
285. 10:31photos on your computer or your
286. 10:32smartphone and wondered how the
287. 10:34application's able to recognize your
288. 10:36face across thousands of images
289. 10:38suggesting that you tag them or sort
290. 10:40them in various ways well that's an
291. 10:42example of artificial intelligence
292. 10:44within bpm in action
293. 10:46and lastly bpm also uses collaboration
294. 10:49tools quite widely such as task
295. 10:51management software communication tools
296. 10:53like instant messaging and
297. 10:55organizational tools to share and
298. 10:57consume information
299. 10:59all of these methods are typical
300. 11:00hallmarks of business process management
301. 11:02especially when you see many of them
302. 11:04being used together in combination and
303. 11:07they illustrate what i mentioned at the
304. 11:08outset about process technology and
305. 11:11people working together to improve
306. 11:13business operations
307. 11:15so hopefully i've demystified bpm just a
308. 11:18little bit for you through this very
309. 11:20high level overview as you probably
310. 11:22realize it is a broad topic area and it
311. 11:24can get pretty complex
312. 11:25regardless of where you are in your
313. 11:27particular bpm journey there will be
314. 11:29future episodes on this channel going
315. 11:31deeper into various individual aspects
316. 11:33of business improvement and process
317. 11:35improvement focusing on the ones that i
318. 11:37think you'll be able to apply in a very
319. 11:39practical way to help you go further
320. 11:41faster at work in almost any role look
321. 11:44out for the next episode where i show
322. 11:46you how to use a very practical and
323. 11:48powerful tool for understanding
324. 11:49processes at a high level which we call
325. 11:52cypoc
326. 11:53as always if you have any questions or
327. 11:55observations let me know in the comments
328. 11:57below hit the like button if you enjoyed
329. 11:59this video and while you're there why
330. 12:00not subscribe and hit that notification
331. 12:02bell to make sure that you don't miss
332. 12:04out on any future episodes and don't
333. 12:06forget to share this with a friend or a
334. 12:08colleague till next time keep rising
335. 12:17[Music]