I was reading an Email from ebizQ on BPM Discipline and it reminded me that Business Process Management is not just about software and it is not about SOA, it is more than that.

They say that BPM technology is meaningless without management discipline. They say that to establish a successful BPM discipline, you need to ask yourself the following questions:

• Which processes matter?
• Which processes need to be improved or automated?
• Who will take charge of improving and automating key processes?
• How will technology support automation and optimization?

They say that BPM discipline involves the deliberate and collaborative definition, optimization, innovation and management of business processes.

Our thoughts…

With my sales hat on, I believe that a company is ready to purchase a solution when they know the answers to the questions above.

The processes that matter are the ones that cause the most pain within your company or they are the most expensive ones. If you know the cost of the problem, it is much easier to look at solutions.

I would bet that the processes that need to be improved or automated are the most expensive ones. Someone should figure out the costs associated with a process [although many do not].
Someone must be responsible [take charge] of improving and automating key processes.
Understanding how technology will support automation and optimization will provide the justification for your solution purchase. If the cost of the solution is greater than the cost of the problem, maybe the problem is not big enough yet.

A friend of mine, who is a CFO, keeps telling me that it would be better to do something now and fail than to study it for a couple of years to make sure you are doing it right. Even if it fails, you will learn enough to make the proper decision later.

Your Thoughts…

What do you think - Dive in and take your chances or study it to death?

Let’s say that you own some stocks and today, you don’t look to how they are doing. Or, let’s say you drive a large SUV that gets 12 miles to the gallon – you have been talking about trading it in for something hybrid [but not today]. Or, your shoulder hurts and you have been thinking about seeing a doctor [but not today].

You may not realize that in each of these cases, you have actually made a decision – a decision to do nothing.

In the case of your stocks, the decision is that you will live with whatever happens to the prices of your stocks today.

In the case of the hybrid, the decision is that you will continue to pay at least twice as much as you could for gasoline.

And, in the case of your shoulder, you may not realize that you have torn your rotator cuff and if you wait a couple of years, they can no longer fix it [my true story].

Our thoughts…

Last week I mentioned that it would be better to do something now and fail than to study it for a couple of years to make sure you are doing it right. Even if it fails, you will learn enough to make the proper decision later.

This week, we are talking about the costs associated with making a decision. Once you have identified the processes that matter to your company - the ones that cause the most pain or the most expensive ones. Gather the costs associated with these processes – let’s say they are $X.

Your Decision Alternatives

Do nothing – Your Company will continue to spend $X. These extra expenses will continue to reduce your company’s profits each and every month.

Fix the problem – You identify a person to manage the project; You identify the plan to improve and automate the problem; And you select the most cost effective solution that will support automation and optimization. End result – costs are reduced by some amount less than $X and your profits rise by an amount similar.

In the high flying 90’s when companies were making all sorts of profits, they didn’t spend much time looking to reduce costs. Today, the economy has slowed significantly; it only makes sense to tackle cost reduction.

Your Thoughts…

Or does it?

Part 4… More of ‘What’s in it for you?’

As you know, I have been talking about efficiency for quite a while. Of the many definitions, I see efficiency as the ability to accomplish a job with a minimum expenditure of time and effort. I have to believe that a company’s main objective is to reduce costs, increase quality, increase revenues and, finally, increase profits.

The last several ‘ideas’ covered reducing costs, increasing quality and increasing revenues, this one covers Increasing Profits.

On the Topic of Increased Profits

Obviously - If you really can reduce your costs and increase your product or service quality and increase revenues, your profits will have to increase.
One reader pointed out that you may be able to make one process more efficient, but adjacent processes may prevent you from actually achieving shortened cycle times. Obviously, more processes within your company make it harder to achieve efficiency. But does that mean you don’t try?

One strategy that I have learned over the years is to ‘plan the work and work the plan’. If you don’t make an effort to be more efficient, you definitely won’t get there. So, do some strategic planning – and go work the plan.

One side note – When a company is going gangbusters [sales through the roof] they tend to ignore inefficiencies. When that company is struggling for revenues and profits, then they begin looking to be more efficient. Obviously, it is much easier to attack inefficiencies when there are revenues and profits.

Your Thoughts…

We just received an Email from CIOINSIGHT.

Their focus - CIO’s want better business processes and more productivity from emerging technology.

They conducted a survey of almost 300 senior IT executives – they found that helping the business grow is still the No. 1 driver behind emerging technologies, but at least half of the execs no say reducing costs is becoming a much bigger factor.

Our thoughts…

Over the last year or so, I have been putting a lot of emphasis on Efficiency. I believe that the objective for ‘Every Company’ must be decreased costs, increased service and/or product quality, increased revenues and increased profits. The Email from CIO Insight reflects that thought.

Adding fuel to the fire, they talk about the top goals for adopting emerging technology. Those goals include: Improving business processes; Increasing productivity; Reducing costs; Increasing revenues; Providing new products and services; Ensuring security, privacy and compliance; and Keeping up with competitors.

They found that 70% of the CIO’s responding said that improving business processes was their number 1 objective. It was #1 among companies of all sizes.

I see all of this as evidence that Efficiency is a key business objective.

Your Thoughts…

What are the key objectives this year for your company?