Business Process Management (BPM) is a crucial concept in today's fast-paced business landscape. In this article, we will delve into the basics of BPM, exploring its definition, importance, components, types, and life cycle. By the end of this article, you will have a comprehensive understanding of BPM and how it can benefit your organization.
The Basics of Business Process Management
Business Process Management (BPM) refers to the systematic approach that organizations adopt to manage and optimize their business processes. It involves identifying, documenting, and improving processes across departments to enhance efficiency, reduce costs, and deliver better customer experiences.
The Importance of BPM in Today's Business Landscape
In today's competitive business environment, organizations need to continuously evolve and adapt to stay ahead. BPM plays a crucial role in enabling companies to achieve this by providing a framework for process improvement and optimization.
Eliminate redundant activities and streamline processes to optimize workflows, reduce costs, and improve productivity.
Align processes with strategic goals to boost efficiency and steer the company's focus on activities that drive value and contribute to their success.
Enhance agility and flexibility, so that organizations can respond quickly to changing market dynamics and customer demands.
Achieve operational excellence to build a strong reputation and foster customer loyalty.
The Components of BPM
Business Process Management (BPM) is a systematic approach to improving organizational processes to achieve better efficiency, effectiveness, and agility. It encompasses various components that work together to drive process improvement and innovation.
Process
The process is the foundation of BPM. It involves analyzing and documenting the sequence of activities required to achieve a specific outcome. Process mapping techniques, such as flowcharts and process diagrams, are used to visualize the steps involved, identify bottlenecks, and eliminate inefficiencies. What's more, companies can automate their processes using Business Process Automation (BPA) software, which helps streamline operations, reduce errors, and ensure consistency.
Overall, process improvement is an ongoing effort that requires continuous monitoring, analysis, and optimization. By regularly reviewing and refining processes, organizations can adapt to changing business needs, improve customer satisfaction, and stay ahead of the competition.
People
People are an integral component of BPM. It is essential to engage stakeholders, such as employees, managers, and customers, throughout the process improvement journey. Effective communication and collaboration among individuals and teams foster a culture of continuous improvement and drive successful BPM initiatives.
Additionally, training and development programs can equip employees with the necessary skills and knowledge to participate actively in process improvement efforts. By providing training on process mapping, problem-solving, and change management, organizations can build a capable workforce that can drive meaningful and sustainable process improvements.
Technology
Technology plays a vital role in enabling BPM. Organizations leverage various tools and software applications to automate, monitor, and analyze their business processes. Business Process Management Systems (BPMS) provide a comprehensive platform for process design, execution, and optimization. This tool enables organizations to model and simulate processes, automate manual tasks, and monitor process performance in real-time. By leveraging BPMS, organizations can achieve greater visibility into their processes, identify bottlenecks, and make data-driven decisions to drive process improvement.
Moreover, emerging technologies like Robotic Process Automation (RPA), Artificial Intelligence (AI), and Machine Learning (ML) are revolutionizing BPM, allowing businesses to automate repetitive tasks, gain actionable insights, and continuously improve their processes. RPA, for example, can automate mundane and repetitive tasks, freeing up employees to focus on more value-added activities. AI and ML can analyze vast amounts of data to identify patterns, predict outcomes, and suggest process optimizations.
Types of Business Process Management
BPM can be categorized into different types based on the specific focus and objectives. Let's explore them.
Human-Centric BPM
Human-Centric BPM is a type of BPM that places a strong emphasis on optimizing processes that involve significant human interactions. It aims to streamline activities, improve collaboration, and empower employees to make better decisions. For example, in a customer service process, Human-Centric BPM can automate repetitive tasks such as data entry and call routing, allowing customer service representatives to spend more time on resolving complex customer issues and providing personalized support.
What's more, Human-Centric BPM can also involve the implementation of user-friendly interfaces and intuitive process designs to enhance the user experience. By simplifying and standardizing processes, you can reduce errors, improve productivity, and enhance employee satisfaction.
Document-Centric BPM
Document-Centric BPM focuses on enhancing document-based processes within an organization. It aims to digitize and automate document management, eliminating paper-based inefficiencies and improving accessibility. With Document-Centric BPM, organizations can leverage workflow automation tools to track and manage document flow, ensuring compliance and reducing processing time.
For instance, in an invoice processing workflow, Document-Centric BPM can automate the capture, routing, and approval of invoices, eliminating manual handling and reducing the risk of errors. By digitizing documents, you can also improve accessibility and enable remote collaboration, allowing employees to access and work on documents from anywhere at any time.
Integration-Centric BPM
Integration-Centric BPM focuses on integrating disparate systems and applications within an organization. It aims to establish seamless data exchange, eliminate data silos, and improve information flow. For example, in a supply chain management process, Integration-Centric BPM can integrate various systems such as inventory management, order processing, and logistics tracking. This integration enables real-time visibility into inventory levels, order status, and shipment tracking, making it easier to respond quickly to changes in demand or supply.
Moreover, Integration-Centric BPM can involve the implementation of application programming interfaces (APIs) and middleware solutions to facilitate system integration. By establishing a robust integration framework, you can leverage existing systems and technologies, reducing the need for manual data entry and improving overall process efficiency.
The BPM Life Cycle
The Business Process Management (BPM) life cycle is a structured approach that organizations follow to manage and optimize their business processes. It consists of several phases, each with its own set of activities and objectives. Let's take a closer look at each phase:
Design
The design phase is the starting point of the BPM life cycle. It involves identifying processes that require improvement and defining future-state process models. This phase includes analyzing process flows, identifying pain points, and documenting process requirements. Organizations can use various design techniques, such as Business Process Modeling Notation (BPMN), to create visual representations of processes.
During this phase, it is crucial to involve process stakeholders, solicit feedback, and align process designs with organizational goals and customer expectations. By engaging stakeholders, you can ensure that the designed processes meet the needs of all involved parties.
Modeling
The modeling phase builds upon the design phase by creating detailed process models that capture the sequence of activities, roles, and decision points. Process modeling tools facilitate the creation of visual representations, enabling stakeholders to understand and validate proposed process improvements.
Modeling also calls for evaluating process performance through simulations and what-if analyses to identify potential bottlenecks or inefficiencies before implementing process changes. By simulating different scenarios, you can make informed decisions about process improvements and optimize their processes for maximum efficiency.
Execution
The execution phase is where the new or improved process is implemented. This may mean training employees on updated processes, deploying process automation tools, and defining performance metrics and controls. Clear communication and change management strategies are crucial for a smooth transition and minimal resistance to change.
BPM software and systems play a vital role in process execution, providing real-time visibility into process performance, automating task routing, and tracking process instances. By leveraging technology, you can streamline their processes and ensure consistent execution.
Monitoring
The monitoring phase involves evaluating process performance against predefined key performance indicators (KPIs). Businesses can use dashboards and analytics tools to monitor process execution, identify bottlenecks, and assess the impact of process changes on operational efficiency and customer satisfaction.
Continuous monitoring enables organizations to detect deviations from expected process performance and take corrective actions promptly. By closely monitoring their processes, you can identify areas for improvement and make data-driven decisions to enhance their overall performance.
Optimization
The optimization phase is an ongoing effort to identify opportunities for further process improvement and implement changes based on data-driven insights. By analyzing process data and feedback, companies can identify bottlenecks, eliminate unnecessary steps, and optimize resource allocation.
Moreover, organizations can leverage emerging technologies, such as Artificial Intelligence (AI) and Machine Learning (ML), to uncover hidden patterns and predict process behavior. This enables proactive decision-making and continuous process improvement, so that you stay ahead in a rapidly changing business landscape.
Decode BPM with Wrike
Decoding BPM and understanding business process management is key to efficient operations. With Wrike, you can effectively manage and decode BPM. Wrike allows you to create individual folders for each business process, serving as a central hub for all relevant information and updates.
Beyond just decoding BPM, Wrike offers a comprehensive suite of tools designed to foster collaboration, and drive productivity. From real-time communication to intuitive task management features, Wrike provides everything you need to decode BPM and enhance your operations.
Note: This article was created with the assistance of an AI engine. It has been reviewed and revised by our team of experts to ensure accuracy and quality.
Wrike Team
Occasionally we write blog posts where multiple people contribute. Since our idea of having a gladiator arena where contributors would fight to the death to win total authorship wasn’t approved by HR, this was the compromise.
Dark Matter of Work: The Cost of Work Complexities in The PMO
Efficiency is everything for organizations – especially as we face a possible recession and mass layoffs continue. Plus, the way we work continues to evolve and become more complex, causing efficiency to suffer even more.
Over the past few years, modern work complexities have been eating away at your bottom line through an invisible yet powerful presence in your organization — what we call the Dark Matter of Work. Just as CERN identified Dark Matter as the “invisible” content that makes up 95% of the mass of the universe, the Dark Matter of Work represents activity and details that we can’t immediately see but that have a significant influence on everything around it.
From the tools we use to conduct our work to where and when we execute it, work complexities have truly exploded in recent years and will only become more complicated over time — making it increasingly difficult for employees and business leaders to get visibility into work and truly understand work in progress.
Wrike is focused on shining a light on the Dark Matter of Work. That’s why we recently commissioned research to investigate its impact on PMO leaders, employees, and organizations as a whole. We wanted to understand to what extent Dark Matter exists and discover the financial cost of Dark Matter affecting us all. The results are staggering and can point PMOs towards key ways they can increase efficiency to endure the unknown economic future.
Let’s explore the results.
Impact on the PMO
While we cannot “see” the Dark Matter of Work, we can identify where it exists. It lives in synchronous applications and unstructured work, such as instant message threads and video calls, as well as the gaps between systems and applications that aren’t integrated. Without a single work platform that is powerful and versatile enough to track, manage, action, and align all work to goals across an organization, there exists a dangerously low level of visibility amongst knowledge workers and leaders.
At present, most project managers and PMO leaders generally have little visibility into the work their teams are doing and cannot track the progress of much of that work in real time. And if we ask knowledge workers, they say employer visibility into their work is even lower — suggesting there may be more Dark Matter of Work than we think.
Wasted time
Time wasted on activities such as repeating work that’s already been done, attending unproductive meetings, or following up on actions and statuses costs the average enterprise millions.
The cost of the Dark Matter of Work
The total cost of Dark Matter for PMOs and project managers is quite substantial and will continue to increase exponentially unless addressed.
Low visibility
For business and PMO leaders, visibility into work has only increased slightly since 2020 — from 48% to 51%. And other project managers are struggling to view their assignments and expectations.
More human costs
Amid the Great Resignation, the mass layoffs, and the continuing remote work environment, PMOs must work to address the human costs of the Dark Matter of Work, as well.
Too many applications
As hybrid work continues, PMOs rely more and more on applications to stay connected. But many of these tech tools do not integrate with each other, decreasing visibility, increasing wasted time, and resulting in duplicative work. Plus, app integration is also moving at a slow pace from 2020 (43%) to now (49%).
Looking ahead
If left unchecked, Dark Matter will increase by 42% in the next five years. According to the survey, the projected cost of Dark Matter in 2027 looks to be:
How can you minimize these costs? A single source of truth is essential. PMOs need a solution that is robust enough to manage and orchestrate complex workflows and simple enough for team members to use. The organization with full visibility into these workflows and applications and the data they create at all levels will be best equipped to overcome the impacts of the Dark Matter of Work and come out on top.
For more on the Dark Matter of Work, its costs, and the solutions, check out the full report here — and usher in a new age of digital collaboration. Or start a free two-week trial of Wrike today to see how our work management solution can centralize work and increase efficiency for your PMO!
Project Management
10 min read
Scrum Master vs. Project Manager: Key Differences
When it comes to managing projects, Scrum and traditional project management are the two most commonly used approaches. Although both aim to deliver projects successfully, they differ in their processes and methodologies. In this article, we will explore the differences between a Scrum master vs. project manager and provide insights into their roles, responsibilities, and skill sets.
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The difference between Scrum master and project manager
Before we dive into the differences between the two, let’s first define Scrum and project management.
Defining Scrum
Scrum is an Agile project management methodology that enables teams to deliver high-quality products and involves regular reviews and feedback sessions. It is repetitive and focuses on delivering features in short sprints. Scrum teams typically consist of a Scrum master, product owner, and development team members.
Defining project management
On the other hand, traditional project management is a methodology that is more linear in nature. It aims to plan, control, and execute a project successfully, step by step. This involves defining goals, analyzing resources, developing timelines, and monitoring progress. Project managers are responsible for overseeing the project’s delivery and ensuring it meets the objectives.
Roles and responsibilities of a Scrum master
The Scrum master is a critical role in any Agile development team. They make sure the team follows the Scrum methodology and delivers high-quality work on time and within budget. Essentially, the Scrum master is a servant leader who collaborates with the development team. They also work with the product owner and other stakeholders to ensure that everyone is aligned and working toward achieving the project’s objectives.
Facilitate Scrum events
The Scrum master arranges and leads Scrum activities like sprint planning, daily standups, sprint reviews, and sprint retrospectives. During these events, the Scrum master ensures that the team stays focused and on track. Any issues or challenges that may be hindering progress are identified and addressed to boost the team’s overall productivity.
Sprint planning requires collaborating with the product owner and development team to create a sprint backlog that outlines the work to be completed during the sprint. Scrum masters clarify the sprint goals for the team, so that everybody knows what must be accomplished.
Daily standups involve ensuring that everyone on the team is following the Scrum framework and is aware of each teammate’s progress. Scrum masters identify any roadblocks and work with the team to remove them.
Sprint reviews require communication with the team to review all completed tasks during the sprint. The work must meet the definition of ‘Completed,’ so that the Scrum master can assist the product owner in updating the product backlog based on the team’s progress.
Lastly, sprint retrospectives involve identifying areas for improvement and assisting the team in developing a subsequent action plan. Scrum masters also ensure that the team is continuously learning and improving.
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Coach the team
The Scrum master is responsible for coaching the development team on Scrum principles and practices. The team must understand and follow the Scrum framework and continuously improve their processes and practices.
Areas for improvement are identified and addressed by the Scrum master alongside the team. They provide guidance and support to ensure that everyone is aligned and working toward achieving the project’s objectives.
Remove roadblocks
The Scrum master finds and removes obstacles that stop the team from delivering good features. They collaborate with the development team, product owner, and others to ensure the team has what it needs for success.
Teams are aided by the Scrum master to identify and address any issues or challenges that may be hindering progress. They work with the team to remove roadblocks that slow down productivity.
Ensure transparency and collaboration
The Scrum master is responsible for fostering transparency and collaboration within the team and between the team and stakeholders. They ensure that everyone is aware of the project’s progress and that the team is working toward achieving its objectives.
They also work with the product owner to ensure that the product backlog is transparent and that everyone understands the priorities and goals of the project.
Roles and responsibilities of a project manager
The project manager, in contrast to the Scrum master, oversees the entire project life cycle and works closely with stakeholders. Their key responsibilities include:
Define project scope and objectives
Defining the project scope means identifying the boundaries of the project and determining what is included and excluded. This step is important to make sure the project stays on track and the team members know what they have to do.
Outlining the objectives requires identifying the specific outcomes that the project is expected to achieve. This ensures the project matches the organization’s goals and that everyone is working toward the same outcome.
Identifying the resources required to deliver the project involves determining what people, equipment, and materials are needed. This makes sure the project has enough resources and avoids delays or bottlenecks caused by a lack of resources.
Develop a project plan
Developing a comprehensive project plan involves breaking down the project into smaller, more manageable tasks. This allows the team to keep track of tasks and deadlines. Creating timelines ensures that the project is completed on time and maintains a sense of organization.
Identify and manage risks and issues
This means anticipating potential problems that may arise during the project and developing strategies to address them. Doing this makes sure the project isn’t affected by surprises and the team is ready to deal with any problems.
The project manager must also work with stakeholders to address these and ensure that the project remains on track. This means tracking the team’s progress against the project plan and crafting solutions. This could include adjusting the project plan or allocating additional resources to address the issue.
Ensure quality
Project managers must confirm that their team’s work meets project requirements and the tasks’ criteria. Additionally, they need to make sure that it follows relevant standards or regulations. This may involve developing quality standards and processes, conducting quality reviews, and providing feedback to the team.
Comparing the skill sets of Scrum masters and project managers
Although both roles focus on delivering projects, they require different skill sets. Some of the key differences include:
Leadership styles
Scrum masters typically follow a servant-leadership style, where they lead by example, empower the team, and prioritize the team’s needs. They believe in serving the team members rather than managing them. They act as a coach, mentor, and facilitator, allowing the team to self-organize and make its own decisions. Scrum masters also encourage collaboration, continuous improvement, and innovation.
Project managers lead and make decisions for the team, using an authoritative leadership style. They are responsible for ensuring that the project is completed within the desired budget, scope, and timeline. Project managers have the power to give tasks, distribute resources, and make important choices. They also check task progress and update stakeholders.
Communication skills
Scrum masters need good communication skills to help teams work together and be open. They talk to team members, stakeholders, and customers every day. They also need to be good listeners, effectively understanding the needs and concerns of the team and addressing them promptly.
Although project managers also need strong communication skills, they often focus more on communicating project progress to stakeholders and addressing all of their concerns. Therefore, project managers must be good negotiators, effectively resolving conflicts and reaching agreements.
Problem solving abilities
Scrum masters need to be skilled problem solvers, as they often address issues that arise during the development process. They must be able to identify the root cause of the problem, propose solutions, and implement them. They also encourage the team to come up with creative solutions and experiment with new ideas.
As for project managers, they also need to have strong problem solving skills. However, they tend to focus more on risk management and identifying risks. They must be able to anticipate potential problems and develop contingency plans. They must evaluate the risks’ effect on the project and take suitable steps to reduce them.
Adaptability and flexibility
Scrum masters need to be adaptable and flexible to pivot their approach and adapt to changes as the project progresses. They must be able to embrace change and encourage the team to do the same. They also need to be able to adjust the scope, timeline, and budget of the project to accommodate changes.
Project managers must do the same, even though they tend to develop and follow a more rigid plan. They must be able to adjust the plan as needed while ensuring that the project stays within the scope, timeline, and budget. Project managers also must balance the needs of the stakeholders with the needs of the team.
Conclusion
Both project managers and Scrum masters play critical roles in delivering projects successfully. However, they differ in their methodologies, responsibilities, and skill sets.
If you’re looking to adopt an Agile methodology that focuses on iterative delivery, Scrum may be for you. But if you’re looking for a more structured approach to a project, traditional project management may be a better fit. Ultimately, it comes down to your team’s objectives, resources, and constraints.
Get acquainted with the unique roles and responsibilities of Scrum masters and project managers, and then watch your projects thrive with Wrike’s collaboration-focused platform. Begin your free trial now and amplify efficiency across your Agile-oriented organization.
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Note: This article was created with the assistance of an AI engine. It has been reviewed and revised by our team of experts to ensure accuracy and quality.
Project Management
10 min read
Workflow diagram examples for process management
Discover essential workflow diagram examples that enhance process management and optimize business operations.
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