A Comprehensive Guide to the Business Process Management Life Cycle

Business Process Management versus Traditional Project Management Techniques

How is the business process management lifecycle different from traditional project management methodologies? Both these methodologies differ in their focus, structure, and objectives. The key differences between these methodologies include –

Focus and objectives – The BPM lifecycle is centered around continuous improvement of ongoing business processes. It focuses on optimizing workflows to enhance operational efficiency and align with organizational goals. Traditional methodologies on the other hand are more focused on managing unique, temporary projects with specific deliverables and timelines. The primary focus is to complete a project within predefined constraints instead of optimizing ongoing processes. 

Another key difference is in the structure of the method. The BPM lifecycle includes 5 key stages that allow for continuous feedback and improvement that ensures that processes remain efficient over time. Traditional project management on the other hand follows a linear sequence of phases, each of which have clear goals and are aimed at delivering a specific outcome instead of focusing on ongoing process efficiency. 

BPM differs from traditional processes in terms of methodology. BPM is a management practice that integrates technology and human resources to optimize workflows. It relies on data-driven decision making through real-time monitoring of processes. Traditional project management on the other hand uses specific methodologies that guide teams through the project lifecycle.

The last point of difference between BPM and traditional methods is adaptability. BPM is more about continuous improvement, by encouraging organizations to adapt processes based on performance data and changing business needs. The scope of traditional project management on the other hand ends with the completion of the project. The project typically does not undergo further optimization unless it is revisited in a future project. The results are in less ongoing flexibility compared to BPM practices. 

In a nutshell, although BPM and traditional project management aim to improve organizational performance, they do so with different lenses. Overall, BPM focuses on continuous improvement, while traditional approaches focus on successful completion of discrete projects. 

Types of Business Process Management 

Before exploring BPM lifecycle phases, let us understand the different types of business process management. BPM is categorized as human-centric, integration-centric, and document-centric, based on the focus of BPM. 

Human-centric BPM – This type of BPM focuses on processes that involve significant human effort. These processes require human decision making for completion of tasks. For example, customer service processes require representatives to handle customer complaints, and is a human-centric BPM. 

Document-centric BPM – This type of BPM involves paper-work and electronic-based documents. These processes must be managed by giving attention to the details, and also adhere to the company’s policies, regulatory requirements, and industry standards. An example of document-centric BPM are legal and accounting processes that involve routing contracts and agreements for review and sign-offs. 

Integration-centric BPM – This type of BPM is also system-centric BPM. Integration-centric BPM is about fusion and automation of systems, such as Enterprise Resource Management (ERP), Customer Relationship Management (CRM), and Human Resource Management Systems (HRMS) applications. User productivity and customer satisfaction is greatly improved with integration-centric BPM by providing rapid access to apps, services, data through connector APIs. 

Five Stages of Business Process Management Lifecycle

What are steps in the BPM lifecycle? As mentioned in the above section, business process management is a methodology that comprises 5 key steps that work towards continuous improvement. Each step in the lifecycle takes inputs from the previous steps. The result of implementing the BPM lifecycle is an effective business process management system that meets the requirements of the business. 

In any organization, the BPM lifecycle provides a strategic approach for managing tasks or processes continuously. This is achieved by defining a series of stages that execute one step at a time in a continuous loop. When the last step of the BPM cycle is completed, you can iterate through the stages from beginning to continuously improve business processes. Some organizations apply the BPM lifecycle to separate sections of their organizations instead of the organization as a whole. Let us look at the stages of the BPM lifecycle at length –

1- Design

This is the first step in the BPM lifecycle that initiates business process management. This step explores the aspect of whether the current processes are good enough or not, and whether they require restructuring for a streamlined flow. The design phase is a critical phase that identifies any bottlenecks in the current process. Once the bottlenecks are identified, it becomes easy to formulate ideas and plans on process improvement. Current processes need to be evaluated based on the following criteria –

• Goals that the processes need to achieve
• Workflows that need to be improved to meet these goals
• Painpoints or inefficiencies in current processes
• Current state of each process
• Stakeholders for designing the workflows
• New processes or restructuring required to reach business objectives

On some occasions these improvements involve automation of current workflows and elimination of manual procedures. Other times, it could be something as simple as eliminating unnecessary steps in the process. Irrespective of the type of improvements or the scale of improvements, it is better to break it down to smaller chunks for a clearer understanding and easy execution. 

2- Model

This is the second stage of the BPM lifecycle where businesses will discover and decode the process in the form of a process model. Process modeling requires inputs from stakeholders that are involved in the process on a regular basis. You need to involve business analysis, process owners, and subject matter experts for building on the design phase by mapping and testing workflows under different scenarios. The visual representation provides a better understanding of the way processes work and where to introduce efficiencies. The model phase involves the following steps –

• Identify inputs and outputs for each step in the process
• Create process maps or flowcharts for visualizing the sequence of tasks
• Identify potential disruptions like cancelled orders or refund requests
• Explore automation opportunities for repetitive tasks 
• Customize workflows as per department’s requirements

Modeling allows teams to detect bottlenecks easily and adjust before moving to the next phase. In the modeling phase, regular communication with stakeholders is required to capture the essence of process discovery accurately. Accurate process discovery can be done by using various techniques for attaining different outcomes. For instance, quantitative techniques can be used for measuring the performance of a process, while qualitative techniques can be used for coming up with a set of factors that lead to the issue. 

3- Execute

This is the step that puts the outputs from the design and modeling phase in action. In the execute phase, we test all the improvements designed earlier in the process. This stage of the BPM lifecycle takes the outputs from design and model steps and implements them into the business process. This phase may involve process improvements like workflow automation for eliminating redundant steps and automating repetitive, mundane steps. For successful implementation of workflow automation, you need to create a test environment that can carry out this process before it is made live. In the execution step, you need to bear in mind the following –

• Launching the process on a small scale for the purpose of testing
• Ensuring proper assignment of roles and responsibilities
• Integrating automation tools for handling repetitive tasks
• Creating custom dashboards for easy tracking of tasks and notifying stakeholders of approaching deadlines
• Monitoring the adaptability of employees and providing support where needed

The common business processes carried out in the organization include, document approval, onboarding, asset management, expense report management, and purchase order approvals. There are several tasks in these processes that do not require human intervention, which makes them right candidates for workflow automation. A no code BPM workflow platform like Cflow ensures prompt execution of these repetitive tasks by automated routing to appropriate stakeholders. 

4- Monitor

Once you have a Live system going, it needs to be monitored and key performance parameters tracked to ensure that unintended bottlenecks are not created in the newly formed business process. For this, you need to have a process automation framework that allows for real-time monitoring of the process. The current condition and the statuses of the tasks need to be monitored constantly to ensure that it is running as per predefined rules and as per timelines. The information derived from process monitoring can be used to make actionable decisions that can make or break the business. The factors to be monitored include – 

• Process KPIs such as, cycle time, error rates, throughput, and customer satisfaction
• Feedback from employees and stakeholders to understand the challenges in execution
• Bottlenecks that may cause delays and bring down process efficiencies
• Dashboards for visualizing performance metrics grouped according to teams or departments
• Automated alerts and notifications that ensure quick responses for issues 

Real-time monitoring of key performance indicators provides teams with valuable data that helps fine tune processes for optimal performance. The monitoring stage of the BPM lifecycle helps teams spot areas that require improvement and determine whether they are aligned with business goals and objectives. 

5- Optimize

The last stage of the business process management lifecycle is the optimization step. In this step, the lifecycle transitions into a loop that allows teams to optimize and improve business processes. When you have a proper monitoring and control system in place, the data gathered in the monitoring phase is used effectively to optimize or improve any area in the process. Once the area is identified, the whole process needs to be restarted to find ways of improvement. The following steps need to be followed for optimizing a process – 

• Implement changes based on data gathered in the monitoring step
• Automate repetitive, additional tasks to reduce the manual load and improve productivity
• Eliminate redundant steps that bring down productivity of the process
• Customize optimization efforts for specific teams or departments 
• Iterate improvements to ensure that processes evolve with changing business requirements

How to Ensure Smooth Transition between BPM stages?

Only when a smooth transition is maintained between the 5 business process management stages can businesses maintain their growth momentum. You need to maintain seamless communication between all those involved in BPM implementation for smooth transition. You must convey clearly the roles and responsibilities, and how the performance of each stakeholder contributes to the success of BPM. 

The next important factor is to provide the team with necessary training for each stage of BPM. Lastly, conduct regular reviews of the process and the changes to refine your approach for each stage. 

The most effective way to ensure smooth BPM lifecycle implementation is to invest in a workflow platform like Cflow. Cflow is an AI-powered BPM-based automation platform that makes business process management a breeze. The best part about Cflow is that even a person without a technical background can use it to create automated workflows by simply dragging and dropping visual elements. The document manager in Cflow provides a centralized location for storing critical data. Real-time alerts and notifications ensure that all stakeholders are aware of their roles and responsibilities, and approve requests well within deadlines. The intuitive dashboard in Cflow provides a bird’s eye view of the entire process, which helps all stakeholders stay informed on the progress. 

Importance of Business Process Management

There are several reasons why BPM is important. Mainly due to the benefits it brings to the business. Process efficiency and effectiveness is greatly improved by implementing BPM. Once the process is streamlined using BPM, the costs will be reduced, there will be fewer errors, and quality of the process will be improved. Business process management allows businesses to adapt to changing market conditions and customer needs. The newly acquired agility gives businesses the competitive edge in the industry. With BPM, businesses can comply with regulatory and industry standards. Implementing BPM standardizes the process, which reduces the risk of non-compliance and mitigates potential legal and financial risks. 

BPM can be used to streamline various business processes like sales and marketing, customer service, procurement, and hiring processes. 

Best Practices in BPM

North America continues to enjoy dominance over the BPM market, growing at a CAGR of 15.8%. 

The key market drivers being technological adoption, digital transformation, industry demand, and regulatory environment. 

Being the largest investor in the market, the United States is expanding its adoption of cloud-based BPM solutions to improve the operational capabilities of organizations.

Here are the top 5 best practices in BPM lifecycle implementation that can transform process operations –

• Involve stakeholders at an early stage. The inputs from key stakeholders are crucial for the success of BPM implementation. 
• Prioritize the process for implementation. You need to remember that not all processes are equally important. So, prioritize processes based on their cost, impact on customer satisfaction, and alignment with business goals. 
• Continuously monitor and improve the process. It must be borne in mind that BPM is not a onetime process, but an ongoing process. 
• Embrace change management. Implementing BPM often involves significant changes to existing processes. 
• Iterate and improve the process. You need to remember that BPM is a journey, not a destination. 

Workflow Automation and BPM

Business process management and workflow automation are integral concepts that aim at improving efficiency and productivity. While these terms are used interchangeably, they serve distinct purposes and operate at different levels within the business context. BPM methodology involves several key steps. It involves a culture of continuous improvement by integrating technology to enhance decision-making and adaptability to market changes. 

Workflow automation focuses on automating specific tasks within a process. This way, all tasks are completed in a defined order and according to established rules. Key objectives of workflow automation are –

• Simplifying task management
• Ensuring compliance with standards
• Increasing the speed and accuracy of task completion
• Improving team coordination

Workflows are typically linear and less complex than BPM because they deal with individual activities rather than overarching processes. 

A workflow automation solution like Cflow, can ensure smooth implementation of business process management lifecycle. 

Final Thoughts

Businesses that take the business process management approach can effectively streamline and optimize their processes. By following the business process management lifecycle, business owners can improve the efficiency and overall performance of their processes. The cyclical nature of BPM lifecycle ensures that all processes are aligned with organizational objectives and help businesses adapt quickly to market changes. A workflow platform like Cflow can help businesses in all the BPM lifecycle phases. The no code workflow builder can be used to create automated workflows within minutes, without the need for technical expertise. Talk to our experts to explore Cflow. Take a test drive by signing up for the free demo today.

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