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In today’s fast-moving companies, maximum operational performance and adaptability are the key to their success. To achieve their goals, organizations need to think concretely to manage and improve their internal processes. And this is where Business Process Management (BPM) and the BPM lifecycle become important.
BPM is the combination of methodologies, tools, and technologies to model, analyze, implement, and monitor organizations’ processes. By adhering to BPM, companies are able to visualize their operations more clearly, identify and eliminate negative points, improve the quality and consistency of services and products, and adapt more easily to market changes.
BPM Lifecycle Stages
The article you will read aims to present the stages of the BPM life cycle, addressing a broad view of how each phase helps and facilitates the continuous improvement of business processes. From initial process identification to continuous improvement and optimization, every step plays an important role in creating a more agile, efficient, and performance-driven company.
The steps to be presented include:
- Process Identification and Selection;
- Process Modeling;
- Process Analysis;
- Process Redesign;
- Implementation and Automation;
- Monitoring and Control;
- Continuous Optimization;
Process Identification and Selection
The first point to observe in the Business Process Management (BPM) life cycle is the identification and selection of processes. This is a very important step, as it is where we lay the foundation for all subsequent analysis and improvement activities.
Process identification encompasses mapping all business activities that occur within a company. This step can be done through workshops with key stakeholders, interviewing employees, reviewing existing process documents, and directly observing daily operations. The key point is to capture a broad view of current processes, including their inputs, outputs, activities, participants, and workflows.
Once an organization’s processes have been identified, the next step is to select which processes will be analyzed and improved. Sometimes, not all processes need an immediate detailed analysis. The selection of these processes must be based on clear and objective criteria, such as:
Business Impact: Some processes have significant impacts on results, such as financial impacts, customer approval and satisfaction, or market competitiveness, and these should be prioritized.
Identified Problems: Processes that have evident low yield, high costs, frequent errors, or customer complaints are great ideal candidates for an analysis.
Strategic Alignment: There are processes that are directly aligned with the organization’s strategic objectives, such as market expansion, quality improvement, or also business innovation. These should be prioritized.
Ease of Implementation: In certain cases, it can be a great choice to start with processes that are easier to analyze and improve, aiming to achieve quick wins and demonstrate the value of BPM.
It is essential to involve stakeholders during this stage, in order to ensure that the processes selected for analysis and improvement are aligned with organizational principles and priorities and that they have all the necessary support for the implementation of the necessary changes.
Careful selection and identification of processes ensures that business resources are directed to the area that most needs improvement and that will have the greatest positive impact. With a solid foundation in place, the company can confidently move forward to the next steps of the BPM lifecycle.
Process Modeling
Right after the identification and selection of processes, the next step is process modeling. This step is essential for visualizing, understanding, and communicating how processes work and how they can be improved.
Process modeling uses some standard notations, such as BPMN (Business Process Model and Notation) or UML (Unifield Modeling Language), to create and represent processes. These diagrams show the activities, workflows, decision points, and interactions between process participants. Visualizing processes in a clearer way helps identify inefficiencies, redundancies, and points of failure.
Process modeling can offer several benefits, including:
Clear Understanding: Process modeling can present a more detailed and understandable view of how processes work, making it easier to identify problems and opportunities for improvement.
Effective Communication: Ease of communication between different stakeholders ensures that everyone has a common understanding of the process.
Basis for Analysis: Modeling also serves as the basis for more detailed analysis, helping to identify areas where interventions can be made to improve performance.
BPM Lifecycle Process Analysis
Once we have the processes modeled, analyzing them is the next step. This next step involves evaluating processes to identify inefficiencies, redundancies, and potential problem areas. This phase can be accomplished using a combination of other qualitative and quantitative methods.
Quantitative methods encompass measuring cycle times, operating costs, and error rates, while qualitative methods may involve interviews with companies’ own employees and feedback analysis. Process analysis tools, such as cause and effect diagrams, value stream diagrams, and Pareto analysis, can be great choices to use to deepen the understanding of problems and identify their root causes.
Analyzing processes can be a crucial step to:
Problem Identification: Analysis is a great way to find inefficiencies and points of failure in active processes in companies.
Informed Decision Making: Analysis can provide detailed information that supports decision-making on how to make improvements.
Prioritization: Helps prioritize interventions taking into account the potential impact and ease of implementation.
Process Redesign
Based on the analysis carried out, the process redesign aims to reconfigure the processes to improve their performance. It involves eliminating unnecessary steps, automating manual tasks, redefining responsibilities, and reconfiguring workflows to make them more effective and efficient.
During the redesign stage, it is important to consider the following points:
Alignment with Objectives: One of the main points is to ensure that the proposed changes are aligned with the company’s objectives.
Stakeholder Engagement: Putting stakeholder feedback and insights in place to ensure that all changes are practical and accepted.
Tests and Simulations: Perform tests and simulations to validate the changes applied before the actual implementation.
Implementation and Automation
After the design phase, the implementation and automation of the improvements applied to the processes are carried out. This stage encompasses the introduction of new practices, procedures and technologies to execute the changes.
A successful implementation depends on:
Careful Planning: Build a detailed implementation plan that has timelines, responsibilities, and resources needed.
Communication and Training: Ensure that all employees affected by the changes are aware of and trained about new practices and technologies.
Initial Monitoring: Closely monitor the initial implementation to identify and resolve issues quickly.
Monitoring and Control
After implementing the improvements, the next step is monitoring and control. Where this becomes essential to ensure that processes are operating as expected. This phase encompasses the supervision of the process’s activities and the measurement of its performance based on the established objectives.
This step is accomplished by collecting and analyzing data in real-time or at regular intervals. Business Process Management System (BPMS) tools offer monitoring features and functionality that allow you to visualize the performance of processes and generate detailed reports. KPI’s, better known as key indicators, are established to measure critical points of processes, such as execution time, cost, quality, and customer satisfaction.
Regarding key performance indicators (KPIs):
Execution Time: Measures the total time required to finish a process from start to finish.
Cost: Analyzes the costs associated with running the process, including labor, materials, and other resources.
Quality: Checks compliance with established standards and the frequency of errors or defects.
Customer Satisfaction: Take into account the level of satisfaction of customers with the outcome of the process.
In addition to KPI indicators, companies can also use dashboards to provide a broad and real-time view of the performance of the processes in question. This allows managers to quickly identify areas with potential problems and make informed decisions to correct deviations.
Process control involves the addition of corrective and preventive actions taking into account the information collected during monitoring, It may include adjustments to operational procedures, reconfiguration of systems, redistribution of resources, or additional training for employees. Audits at certain time periods are also carried out to verify the established standards and policies and ensure the sustainability of the improvements.
Communication is a very important point at this stage. Regular performance reports should be shared with relevant stakeholders, and feedback should be collected to identify opportunities for continuous improvement.
When we maintain strict monitoring and efficient control of processes, companies can ensure that the improvements implemented have sustainable results in the long term. This is a proactive attitude that allows for the rapid identification of problems and the implementation of solutions, contributing to the company’s agility and resilience.
Continuous BPM Lifecycle Optimization
As the final step in the BPM lifecycle, we have continuous optimization. Different from other stages, which we can see as discrete phases, this is a cyclical and perpetual process. The main objective is to ensure that the processes not only maintain the gains made, but also continue to improve over time.
The main points of continuous optimization are:
Feedback and Learning: Performing regular feedback capture from employees, customers, and other stakeholders to identify new opportunities for improvement.
Performance Analysis: Utilize performance data and KPIs to find patterns and areas where processes can be further refined.
Innovation and Best Practices: Adhere to new technologies, methods and best practices that can add to the improvement of processes.
BPMS tools and other process management technologies play an important role in continuous optimization by adding the infrastructure needed to collect, analyze, and act on performance data. Additionally, conducting continuous improvement workshops and team building can help sustain improvement within companies.
This phase not only helps to keep processes running as expected, but also ensures that the company can respond quickly to changes in the business environment, maintaining its competitiveness and ability to adapt.
Business Process Management (BPM) is a key approach for organizations looking to improve their efficiency, quality, and adaptability in a dynamic business environment. By following the steps of the BPM lifecycle—process identification and selection, modeling, analysis, redesign, implementation, monitoring and control, and continuous optimization—companies can transform their processes sustainably and effectively.
The identification and selection of processes ensures that resources are directed to the areas that most need improvement. Modeling and analysis provide a detailed understanding of existing processes, allowing for the identification of inefficiencies and opportunities for improvement. Redesign and implementation introduce concrete changes that optimize process performance. Monitoring and control ensures that improvements are maintained and adjusted as needed, while continuous optimization fosters a culture of constant improvement and adaptation.
Adopting the BPM lifecycle is not a one-time task, but an ongoing commitment to operational excellence. By implementing these practices, organizations can not only achieve but also maintain a significant competitive advantage, ensuring their long-term relevance and success.
Fusion Platform is a complete tool for process management, covering each of the 7 steps described in this article. With an intuitive interface and robust functionalities, the platform offers comprehensive support at all stages of the BPM lifecycle, ensuring that organizations can achieve operational excellence and adapt quickly to market changes. Try Fusion Platform free for 15 days!
