Process management – A management concept for designing, executing, controlling and optimising business processes in the company in a target-oriented manner
Definition
The term Business Process Management (BPM) covers the management concept for designing, executing, controlling and optimising business procedures (so-called processes) in the company in a target-oriented manner. Ideally, this includes all the processes described in the company. This also includes the definition of responsibilities for the corresponding processes and long-term (strategic) and short-term (operational) control. In German, the method is referred to as business process management or process management.
The process – what is this?
Firstly, important terms need to be clarified so that everyone knows what we are talking about in process management and so that everyone involved is talking about the same thing and not about something else. First of all, we have the process that we want to manage. This is a recurring sequence of linked activities which means work steps that are always carried out in the same order. It is important that there is a defined input and a defined output (see ‘end-to-end’ process).
The roles in process management
As successful process management does not work on its own, we need people who feel responsible for it. This is where responsibilities and roles come into play. The roles must be clearly allocated and assigned. This also anchors process management as a method in the organisation and processes can be carried out effectively. Each role must be assigned to a very clear role description with points and recorded in a binding organisational manner. The AKV principle should be applied here. A for tasks, so which tasks does this role take on? C for competences, so which skills should the owner of this role have or perhaps should be taught? Finally, V for responsibilities, which means that the rights, authorisations and duties of the role must also be defined.
The roles in process management have two objectives. Firstly, they are intended to ensure the management of processes and secondly, they enable the execution of processes. There are three types of process roles:
- Executing process roles
- Leading process roles
- Advising process roles
More about roles in process management
Mapping of processes
The basis of the concept is the complete inclusion of all business processes in the company. The holistic mapping of processes is usually done graphically in a process map. The processes are organised into three categories: Performance, support and management processes. The performance or core processes are the processes that create a service (output) based on customer requirements from an input. The support processes create the necessary framework conditions for the provision of services. These could be IT or HR processes, for example. After all, no added value can be created without the appropriate employees. The processes are coordinated, controlled and monitored in the management processes. This is where the general company-wide guidelines (known as BPM governance) are defined.
The two cycles of process management
For process control to work, two cycles are required – the short-term cycle of operational process management and the long-term cycle of strategic process management. Short-term processes cover a period of up to one year and long-term processes cover a maximum of 10 to 20 years. The two sub-areas represent continuous cycles that constantly interact. This is clearly illustrated by the process management glasses developed by BPM&O.
1. Operational process management (OPM)
OPM includes all the tasks of a control cycle for processes with a short-term time horizon – usually a financial year. In addition to process planning (targets and approved process budgets), process execution, process monitoring and process analysis, this cycle also includes process improvement. All necessary organisational instruments must be set up accordingly (e.g. planning process, activity-based costing or IT applications and reporting system).
More on operational process management
2. Strategic process management (SPM)
SPM encompasses those aspects that are of strategic importance to the company, such as the definition of core processes or the development of strategic process objectives. The aim of strategic process management is to ensure that process management is aligned with the company’s strategic objectives and, in turn, that the feasibility of corporate objectives has been reviewed (counterflow method). Strategic process control continuously ensures that any strategic adjustments are made.
More about strategic process management
We would be very pleased to advise you on process management in your company.
