Over the past 5 years of developing and implementing operational solutions for our clients’ changing needs, I have come to realize that Business Process is not just about operational effectiveness; it is also one of senior management’s most powerful decision-making tools.

What is a Process?

Alan Ramias, and his colleagues at Performance Design Lab have recently set about redefining the term “Process” to reflect the operational and strategic significance of a business process focus within successful organizations.

This is their suggested definition of “Process”:

A process is an artifice or construct for organizing work so that it can be:

• Performed effectively and efficiently;
• Managed effectively;
• Offers the potential for competitive advantage.

Briefly, he explains it like this:

A process is an artifice or construct…

Think of the process as a “model” which can be rapidly tuned and tested.

…for organizing work

Processes must be deliberately designed and organized to accomplish the work of an organization, no just allowed to evolve.

…so that it can be performed effectively and efficiently.

1.             A process should be designed from the perspective of the person who executes it.

2.             Process design should optimize efficiency (doing things right) and effectiveness (doing the right thing).

3.             Processes should be measurable.

… so that it can be managed effectively

Avoid or minimalize delays and complexities caused by reviews, approvals, controls, and management interference.

…offers the potential for competitive advantage

Some processes are so important they are integral to the core purpose of a company. Other processes can be designed to provide competitive advantage, by enabling a company to offer products or services that are faster, better, and/or cheaper.

Further to this thought, I came across a presentation by Tom Dwyer, Research Director at the Yankee Group, directed at “Enabling Business Process Innovation”. Two of his main conclusions were:

•                     Global competition and low barriers to entry mean process innovation will outrank product innovation as a means of differentiation.

-          Process-orientation is the next evolution in business models

•                     Process-driven companies will prosper through all stages of growth and maturity by fully leveraging innovative services throughout the value chain.

-          Moving to a process orientation enables the business to view its key value-creating processes as enterprise assets.

Business Process oriented organizations realize that high quality provides customer value, and agility brings market share. Therefore the way business is done contains the components for competitive advantage, growth and success. Dwyer looks at business process as the key to innovation and differentiates the process perspective thus:

Many companies are moving beyond viewing process as an operational entity. The strategic power of business process is being embraced because BPM has modern tools which provide fast and accurate evaluation of proposed changes, whether driven by products, customers, legislation or location.

BPM methods and tools provide analysis and simulation techniques that enable rapid modeling and dynamic measurement capabilities. The power of business process is providing the competitive edge for companies needing speed, flexibility and innovation.