Getting Control of Your Financial Balance Sheet Regardless of Your Cash Flow

by Paul Marrero 7. December 2010 08:44

“How do we, as small businesses, do the best job of making sure we are getting the most out of our tasks and transactions?”

One can begin by becoming process centric. There is a discipline out there called “Business Process Management,” or BPM for short.

So, what is Business Process Management?

There are many definitions out there. However, one could say that Business Process Management (BPM) is a set of methods, tools and technologies used to design, enact, analyze and control business processes. BPM is collaboration between business people and IT to foster effective, agile and transparent processes.

What are the bi-products of BPM?

  • Increased productivity, consistency, reduction in errors, maximizes customer satisfaction and compliance.
  • Faster response times to issues, to develop solutions and turnaround time.
  • Flexibility and agility.
  • Visibility and transparency.
  • Collaboration.
  • Governance.

“What is the Importance of Management Control?”

1. Successful businesses have learned that all improvements start with controlling processes.
2. One needs to think carefully about the path and participants associated with their processes.
3. Continuous access to real-time management info is needed in order to navigate the business in the right direction.
4. The ability to monitor and optimize performance.
5. Flexibility to easily adapt to constant change and unforeseen market influences.

“Why do we have too little control when it comes to process management?”

  • We define the processes insufficiently or not at all.
  • Objectives are unclear.
  • Processes are too abstract.
  • The business doesn’t work with the processes.
  • Insufficient communication.
  • Too little attention for bottle-necks.
  • Too little grip on progress/situation.


“Bank of America famously stated that their goal is not to complete a million successful transactions, but instead to complete one successful transaction – and then repeat it a million times. That’s Process Management.”

“Is there a common BPM Methodology Approach? How does one begin delving into BPM?”

There are a number of analytical techniques that can be applied. For example, a Sarbanes-Oxley process improvement projects are focused on risk mitigation and financial controls, while LEAN projects are focused on the reduction of waste. There are some basic practices that are done during a BPM implementation.

Analysis. First, we do a thorough analysis. The analysis should not be rushed as a rushed job leads to a week foundation. On the other hand, there is such a thing as “analysis paralysis.” A good analyst knows how to skillfully gain information without spending too much time.

Scope. Begin by mapping the current processes. In order to improve a process, you must know where the week points are.

Look at the Big Picture. Every process is usually part of another process. Improving one part can be a detriment to the entire process.

Map the Human Element. Document the processes that involve people to perform an action. Do not assume improving processes will reduce headcount. This is a good way to ensure failure.

Culture. Culture plays a key element in a successful BPM implementation. Employees are one of the best sources of information since they are involved in the everyday processes. Employees can also suggest improvements and feel employee involvement is crucial to ensuring a successful BPM implementation.

Governance. With quality and customer experience in the forefront, put in quality controls and rules to foster a culture of continuous improvement. Embrace an auditing process to ensure employees abide by the policies and procedures of the organization. If not, then why?

Monitoring. To grow and improve, all processes must be monitored. Determine key performance.

“What are the Traditional Benefits of BPM?”

  • Reducing Cost
  • Improving Revenue or Customer Service (what we like to call The Customer Experience)
  • Managing Risk
  • Ensuring Compliance
  • Creating a competitive advantage
  • Enabling innovation and process improvement

Benefits of Automation are:

  • Improved throughput (productivity)
  • Removing all unnecessary manual controls and steps (efficiency)
  • Improve accuracy and repeatability (quality)
  • Improved visibility, decision trails and processing logging (customer service and governance)
  • Improved monitoring and load planning (operational efficiencies and improvement).

    “Are there tools available to help with Business Process Management?”

    Yes. However, installing a software application does not magically transform the organization. It takes planning, collaboration, identifying critical business issues and choosing a methodology that looks at each process and improves upon them.

    Much has to do with culture, management support (and involvement) and corporate politics.

    Find out more at www.caaspreconsulting.com.

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BPM | Corporate Culture

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