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actual IT BUSINESS PROCESS MANAGEMENT BPM : the road to improvement Business Process Management (BPM) and Business Process Improvement (BPI) are recognized by all economic players, be it in the private or in the public sector, as essential strategic elements in the management of their operations. The combination of this specific status and the increasing number of tools and methodologies available on the market represents a potentially important momentum which can lead to the constitution of a dynamic and continuous movement towards process excellence. According to a survey carried out by KPMG [1] a vast majority of organizations in Luxembourg acknowledge the importance of monitoring and constantly improving their business processes. Documenting processes and procedures is therefore no longer seen only as a regulatory obligation or as an internal/external audit constraint but is perceived as the first step of a broader approach aiming at instituting a continuous improvement attitude around processes within the whole organization. BPM/BPI TREND The BPM/BPI trend is not new; the industry sector has been working on their business processes for decades in order to rationalize them. Major improvement-oriented methodologies such as Lean or Six Sigma emerged from these practices and many business process software packages appeared on the market. The first tools aimed at representing processes in a standardized way (modeling). They were followed by tools aiming at orchestrating processes in a more or less automated way by combining the advantages of the modeling approach with the flexibility of web services and SOA. Yet, in terms of tools, there is still space for more industrialization in the Luxembourg financial sector, as more than 60% of large institutions and up to 80% of smaller ones still do not use any BPM IT system [2]. BPM identified as a fully-fledged function within organizational charts : Any successful BPM initiative requires the set up of an efficient governance model aiming at regulating and facilitating collaboration and communication at enterprise level. It is therefore not surprising that more than 40% of all participants (including some 20% of small companies with less than 49 employees) have already created a formal BPM function in their organizational chart with direct reporting to top management for a majority of them [3]. MAIN DRIVERS AND BENEFITS Main drivers to implement a BPM/BPI project are the increase of services quality and the focus on customers. Productivity remains obviously an important driver but it comes far behind quality concerns [4]. Benefits of applying BPM/BPI approaches in an organization can be numerous. It can bring added value regarding the management of operational risks or in terms of quality of services but it can also be an asset to sales thanks to the increased professionalism and credibility gained on the market. Another important element that the survey highlights is the necessity to focus on the human aspect when setting up a BPM / BPI approach. The high expectations in terms of profit from the organizations, the profusion of tools and the sophistication of methodologies may often lead to focus too much on automation and lead to apply too Taylorist an approach. A much more efficient way is to obtain adherence from the staff to the improvement process. This requires transparent communication from Management and the collection of input from each staff member. BPM is not just the new buzz word in the world of IT. It is a real topic which no organization can afford to ignore, especially in times of trouble and major changes. The issue of productivity but also of quality, time-to-market and risk management will become even more essential in the near future and mastering one’s processes is key to meet these challenges. [1] KPMG Business Process Management survey 2008. The BPM survey was edited by KPMG Luxembourg. If you are interested in the survey and would like to receive it, please do not hesitate to contact Vincent Köller. [2] [3] [4] 32 décembre 08
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