Business Process Management (BPM) and how it delivers value to an organization

I listened to Anshuman Tiwari discussing all aspects of Business Process Management (BPM) and how it delivers value to an organization in a podcast hosted by Daniel Rayner that aired on 30th May. This is what I learned from the conversation:

Why do some organizations treat process-centricity well, while others do not?

Nobody wants to fail, and companies with more success tend to have a clear focus and don't experiment with new ideas all the time. The problem with less focused or less cognizant organizations is that they don't see any significant results in one or two quarters, no change in profitability, so they decide that it's not worth it and give it up. The more clear-headed and focused organizations know that they will suffer short-term pain, but they will come to appreciate it after a certain period of time, and then the fruitful period will arrive. As individuals build habits, organizations also require time to build habits, which is why it takes a long time. This is the main reason why some organizations are successful with processes-centric approaches, while others fail.

What drives an organization to adopt a process management approach, and what are the most common reasons for doing so?

Organizations that multiply and add departments, locations, products & services tend to have processes that are patchy or like Band-Aids, holding things together. It is common for companies to design processes in silos. Consequently, a lot of stuff is passed from department to department, for example, sales give items to operations, operations says it’s waiting for someone, etc. Eventually, it becomes overly complex to handle. Therefore, the end result is poor quality products or services that dissatisfy customers. Therefore number one driver when companies are looking to adopt a process management approach should be simplification combined with customer experience.

The second is cost because as you add parts to your process and everyone has to be paid, the process becomes more costly as a result because you are putting more in to get the same value out. Eventually, the process that is added is giving less return. 

The third driver is people being employed.

In view of limitations in the number of word characters in a LinkedIn post, part 2 of this conversation will appear tomorrow.

What challenges will an organization face as it embarks on this process management journey? 

Alignment, Infrastructure & Response

Organizational alignment is the biggest obstacle. Process Management is about taking steps to achieve an intended outcome and planning, improving, and controlling the process. It seems that processes have the highest priority in operations-related functions. Functions like sales, after-sales, HR, finance, procurement, etc. seem to be uncoordinated. If operations is only going to BPM, then the business part is already out and the process is also limited. So in a way, only a limited process is being optimized, a shorter process. Most process improvement projects are more effective when they are multifunctional.

It is also important to create an infrastructure that manages processes because nothing will happen by itself. People may notice you, but you won't get anything accomplished.

People engagement is another challenge. Picking and training the right people for BPM is the key to overcoming this challenge. Organizations need to recognize that every employee does not have the temperament to be an improvement professional. Some may be good at planning, others at compliance, hence recognize who is good at what and train them accordingly. 

How do you get different functions aligned to process management and ensure that it’s not just confined to one area or function?

Seek out quick wins and influencers. It can be done by starting where you are, don't wait for instructions from Senior Leadership, find some quick wins, and you will see you will always have takers, see them as examples, make them heroes, and eventually, they will do the talking for you, to bring more people in. 

Try to solve problems that affect a large group of people, since these will become your ultimate examples. E.g. Solve problems for HR or for Finance because their problems impact a large number of people and when people see that change, they will begin to think that this works, so maybe we can support this. Don’t go in for specalised solutions as nobody will get to know

Conclusion

Process management today - The last 2 to 3 years have shown that technology is critical, the world is fragmented and remote teams will work together in the future, this will continue in the foreseeable future

Process mining is going to become very important because a good process mining software can run incognito without any people intervention and can tell you how your processes are operating and where are the pitfalls. This is equivalent of you walking around the process and doing the Gemba. Process Management is more Gemba & Conversation, Are you visiting this part, are living this part, are you talking to people as compared to doing it on Powerpoint, Visio, Email, etc…

Qualities, Skills & Competencies required for The New Age Manager

With time change, everyone is going through a process of transformation. It is no different for managers, the New Age Managers. How do new-age managers fit into the needs of new-age organizations? 

A report from the Business Manager for June 2022 by Management veterans and Industry experts who have seen and experienced generations shares the following insights

• By being aware of the change in employee psychology - Managers should unlearn the intuitive side of decision making and turn towards new, rich analytics based decisions.
• By learning to transition from authority to informality, from democratic to inclusive, and from the top down to the bottom up, transforming from a traditional authority figure to a trusted mentor, coach, and friend.
• Focusing on facilitating performance and reducing friction to manage continuous change.
• Becoming people managers, starting with dedicated efforts around wellness and care, leading to the creation of a psychologically safe environment where teams can thrive and unlock their potential.
• By being agile, i.e. able to quickly pick up new skills.
• Adapting quickly to the rapidly changing environment will be necessary for managers as they will be evaluated based on their capabilities in the areas of motivation, technological, cultural, social, emotional, economic, and digital agility. New age organizations will operate using these competencies.
• Demonstrate compassion by moving beyond the industrial-era style of command and control and instead creating cultures of empowerment and contribution. Make decisions and solve problems more quickly by flattening out the hierarchy.
• In this digital age, learn how to lead teams. The new managers will require a very different set of tools, e.g., agility, frugality, as well as a core of trust, empathy, and compassion.
• The human touch is going to be more and more important as technology advances, as it is at the core of our human nature. We will never be able to replace human interaction completely.
• It's all about embracing new initiatives that will lead to innovation at workplace since leadership style will always remain the same whether you're a fresh manager or seasoned manager leading through turbulent times. To stay on the crease and make way for the team while handling every challenge that comes your way and still be able to withstand emotional pressure will be a challenge for the new age leader/manager.

To conclude, these required qualities are not new and have always been identified, known and taught across ages. But the gap always has been in practicising them consistently. But what is changing is the degree of importance in implementing them NOW, in the current paradigm, it becomes more imperative & urgent.

Pragmatic Leadership

On the 4th of June, I took part in an online lecture on 'Pragmatic Leadership'. Narayanan NC provided excerpts from his book, 'Pragmatic Leadership,' including what to expect when you read it.

Pragmatic leadership refers to the development of leadership through practical methods. Leadership explained in plain English is the book's goal. This book is designed to help readers shape themselves into future leaders and to provide guidance on what skills are necessary to succeed in business. We all have read many Western leadership books, but Pragmatic Leadership takes us to the eastern path of leadership. This book shares the author's own life experiences with leadership. 

Leadership begins from within i.e. Personal Leadership which is followed by Team Leadership & finally Organizational Leadership. 

 

Indian paradigm states that every human being is born with capability. Every human being has the power of becoming a leader provided he or she chooses to sharpen those skills. If you are a good observer & conscious of your brain’s functioning, you will be able to develop Leadership skills. You do not need to have taken the Leadership Course from Harvard.  People become leaders when they develop competencies in themselves.

 

In order to grow in your career, you must create value. By improving top line, bottom line, and perpetuity of the organisation we work for, we create value for that organization.

 

Utility + convenience equals personal equity. A multi-skilled person is able to contribute to the organization through utility skills. "How easily others can work together with us without hassles" determines convenience.

 

Difference between a Transformational Leader versus Transactional Leader is that whilst the latter are always doing the same thing day in & day out, Transformational Leaders are always bringing about change

 

Extensive & Intrinsic Motivation are needed to be a Leader. We need to take charge of our own development by using our own brain power & moving forward. Expecting the organization to take care of your development, your growth is not the right approach.

 

A leader's golden rules

 

1. Don’t focus only on technical skills. Else you will be stuck in career growth by age of 35-40 years. Try to develop your overall personality.

2. The manner in which you interact with other people, your peers, supervisors, etc., and how you are perceived as a relationship person, is very important for your career path

3. Work beyond your organization's boundaries without waiting for it to give you the opportunity. Take on some of your boss' responsibilities.

This book has certainly caught my attention and I'm looking forward to reading it. How about you?