Connecting the dots for greater returns
Return on Investment (ROI) is paramount in any business decision, and especially in Business Process Management (BPM).
Business Process Management differs from the conventional ROI in that the focus should not only be on the specific processes under consideration, but also on vital elements such as people, partners, and leadership – they all impact process outcomes.
“Without enough dots to connect, you end up with very linear solutions.” Steve Jobs.
BPM is not just an improvement methodology, a software system or knowledgeable people. It is a capability that combines all facets that deliver value to the organisation, as well as to the end customer.
In today’s businesses there is a continuous need to achieve more with less and be more efficient and effective with every resource available. More and more organisations are implementing BPM to reduce operational costs, increase revenue and achieve customer delight.
When creating the business case for Business Process Management it is critical to consider both direct and indirect returns. For example, direct ROI could include:
• Improved customer experience and delight;
• Improved revenue;
• Shorter lead times;
• Improved productivity;
• Reduced operational costs;
• Waste reduction;
• Increased process throughput and operational efficiency;
Indirect ROI would take the gains one step further and could include:
• Employees understanding the bigger picture and how “what” they do impact process outcomes;
• Improved employee retention levels;
• Speeding up employee and partner inductions;
• Process standardisation;
• Better utilisation of organisational resources;
• Organisational agility.
Are you connecting all the dots? Have you considered these direct and indirect elements when calculating ROI?
Extracts from a blog by Justin Siljeur