Process Management: Goals, Measures and Structure

1. What is process management (definition) and what are its goals?
2. What measures are there in process management?
3. What is all part of process management (structure)?
4. What roles are there in process management?
5. Cycles in Process Management - OPM & SPM
6. In the following, we introduce you to 3 process management software. Please note that I do not claim to be complete, the market of software and tools is too heterogeneous for that. But you get an overview of the properties of the software.
7. Draw.io

You've all probably heard something about process management before. But what exactly is it, and who is it exactly for? Is it something mega complex and or only for large companies with hundreds of employees and branches, etc.? I can reassure you and say, process management is for everyone, no matter how big or small a company, business, etc. is.

In this article, you will learn from guest author Yasmin von Hedemann all the important things about process management, why it is so important, and why every firm, freelancer, or company should introduce processes. Having effective processes means saving time and resources. These two factors also mean saving money. Having more time means that you can make more of this gained time. E.g., to try out new ideas, expand your business area, and so on. In a nutshell, processes only bring advantages. It even goes so far as to increase employee satisfaction.

Because if the employees have a clear process, unnecessary time is not lost for inquiries, uncertainties, etc., but the employee can do his tasks calmly and is therefore much more relaxed and satisfied than if he has to constantly ask himself, 'Hmm, how can I solve and implement this task best now.' You will also get an insight into the different methods, which tools are available, and of course, there are tips too.

What is process management (definition) and what are its goals?

Process management is often confused with project management or many people not entirely clear about the difference. So here is a quick explanation.

Process Management vs. Project Management

While process management covers the permanently recurring and consistent processes within an organization, project management is about time-limited, content-completed, one-time projects.

What do both methods have in common? They work across departments - Ideally even across the entire company.

Definition

The term Process management or the English term Business Process Management (BPM) basically refers to the general handling of processes within the company.

Process management includes the implementation and control of all conceivable processes (work steps) within a company. Processes are understood as a coordinated interaction (cycles) of people, possibly of machine and material in a specific, constantly repeating sequence, at the end of which either a product or a service is produced. For processes to be managed at all, they must first be identified, then shaped and introduced in the organization (see below process management graphic). All introduced processes will be controlled in a circular course of process management, continuously optimized if necessary, and also documented.

Goals

Process management aims to streamline processing, improve interfaces or also reduce them and coordinate work along the end-to-end process. With the end-to-end process, it is important, that there is a defined input and a defined output.

Another goal, which can also stand alone, is to accelerate the processing of processes.

What measures are there in process management?

Although the processes differ from company to company, universal measures can be derived. These are each derived from the goals:

• Define roles and areas of responsibility
• Define processes and framework conditions
• Implement project controlling
• Identify and document processes

The documented processes are examined for optimization potentials and adjusted if necessary. The process optimization distinguishes between process improvement (evolution) and process renewal (revolution).

Both measures aim, the effectiveness and efficiency to increase by optimizing business processes, reducing costs, and positively influencing the company value sustainably. Once the processes have been recorded and described in formal models, process optimization takes place. Both radical and gentle process optimization can be applied.

There are many methods and approaches to process management that are particularly suitable for different industries and company sizes. The most widely used methods include Kaizen, Lean Management, Six Sigma, and Total Quality Management (TQM).

Defining, documenting, and auditing processes serves continuous improvement (see PDCA cycle) and to reduce costs. The Business Process Reengineering and the Change Management (Change Management) deal with the improvement of business processes. To improve interfaces and reduce double or unnecessarily performed tasks, a value stream analysis (see Value Stream Mapping) can be performed, for example.

Extract of the methods:

• Business Process Reengineering
• Change Management
• KAIZEN
• Lean Management
• Process cost calculation
• Process modeling
• Process optimization
• Process organization
• Process control
• Six Sigma
• TQM

What is all part of process management (structure)?

The Process management includes the planning, execution, controlling as well as the optimization of interconnected tasks, i.e., business processes. It always answers the question: 'Who does what, when, and with the help of which resources? The focus here is on the value chain.

The pillars of process management

Process management is not only the umbrella term but also the roof for some process management pillars (see below graphic pillars of process management). In process development, you deal with defining a vision, mission, and strategy. In addition, process models and work instructions are defined here. As part of process management, processes are measured, and roles, responsibilities, key figures, and instruments are defined. Besides, the processes are implemented in the context of process culture. Process management is supported by numerous aids. These include, in addition to technical support, checklists, templates, and coaching.

What roles are there in process management?

Depending on requirements, the size of the company, and the target, there are many different roles in process management. I'll just list the central roles of process management for you:

Process Managers

Process Managers support process responsible in the operational execution of the process. In the everyday life of companies, they are often responsible for the operational management of the process. Alternatively, the process manager is also used as a sub-process manager on the next level of the process model.

Process managers, in keeping with their role, are working methodologists, often in contrast to project managers, especially if they pursue a pragmatic approach. These different approaches can lead to disagreements and friction.

Chief Process Officer (CPO) – Head of Process Management

The Chief Process Officer (CPO) has the ultimate responsibility for process management. He or she ensures that process-oriented control is part of the company's strategic control. In addition, he or she is responsible for achieving the company's goals, while at the same time complying with the standards and requirements of the company-wide process management system.

In addition, she or he leads all employees who have tasks in process management and organizational development, both functionally and disciplinarily. The role is usually part of the management board or the management team.

Process Responsible

The Process Responsible takes care of the goal-oriented and strategic control of a process. The focus of action is both the alignment of the own process goal with other processes and the selection of sustainable key figures for measuring the process performance. This role coordinates all resources required for the control and execution of the process.

Cycles in Process Management - OPM & SPM

Process management primarily has a regulating function. This should define and improve work processes, thereby increasing the efficiency of the company..In order to achieve this goal, it is important to consider two cycles of process management:

OPM - operational process management

includes the control and planning of processes

• short-term horizon up to one year
• The OPM includes all tasks of a control cycle for processes with a short-term time horizon - normally a financial year. This cycle includes process planning (target specifications and approved process budgets), process execution, process monitoring, process analysis, as well as process improvement. All necessary organizational instruments must be set up accordingly (e.g., planning process, process cost calculation, or IT applications and reporting system).

SPM - strategic process management

includes processes that are of strategic importance to the company and contribute to the strategic

• company goals usually with a time horizon of five to ten years
• The SPM includes those aspects that have a strategic importance for the company, such as the definition of core processes or the development of strategic process goals. With the help of strategic process management, it is ensured that process management is aligned with the strategic goals of the company, and vice versa, the feasibility of company goals has been checked (counter-current process). Continuous strategic process control ensures any strategic need for adjustment.To be able to develop effective process management, the following guiding questions should be at the center of the description and optimization of internal company processes:

What tasks and actions are necessary to achieve the process goal?

• In what order do the tasks have to be done?
• Which tasks should be performed by humans, which by machines?
• What auxiliary tasks are necessary?
• What information needs to be passed from each post to the others?
• What interfaces are necessary to other processes?
• Helpful Tools for Your Process Management

In the following, we introduce you to 3 process management software. Please note that I do not claim to be complete, the market of software and tools is too heterogeneous for that. But you get an overview of the properties of the software.

Microsoft Visio

One of the best-known software to represent processes and depict workflows is

. With this tool, flow diagrams can be represented quickly and easily. From the Microsoft Visiovisualisation of workflows of simple structures to templates for BPMN methods, everything is possible. Microsoft Visio is integrated into the Microsoft 365 world. This allows you to use the software also in Microsoft Teams, and thus you can also use it in a team with integration into the 365 world of Microsoft. The use within the cloud solution on mobile devices is as possible as on desktop devices.ADONIS Business Transformation Suite

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The software ADONIS Business Transformation Suite is a BPM tool offered by the company BOC Information Technologies Consulting GmbH. With this software, you get a tool, which supports you from the process modeling to process analysis to process optimisation. The focus of ADONIS is the continuous improvement of business processes, therefore you find besides the actual process management also the quality management, digitalization, automation, and compliance.SAP Signavio Process Manager

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The cloud-based software solution allows you to document, model, and simulate your company's business processes. With the overview of your company’s processes, along with process optimization, there is also an increase in the performance of the employees  Signavioand the company . Processes and strategies can be represented and linked, process inefficiencies can be eliminated. With the SAP Signavio Process Manager, you also achieve seamless collaboration with all stakeholders, every employee is able to act correctly and quickly.
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⁠In addition to process transparency and compliance, this process management software also offers an intuitive and understandable user interface for quick deployment.
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⁠It is indeed a challenge to find a suitable process management software. The vast array and selection of process management software are initially daunting for many project managers, IT managers, and managing directors who are in the decision-making process. However, a suitable process management software as a tool for process mapping is an important success factor for a company. Therefore, it is advisable to decide whether you want to document only, generate a workflow, or even use process mining. Therefore, it is important to invest enough time beforehand, compare and then make a decision. Further tips for your process managementOf course, you don't have to buy the mega project management tools right away. In the beginning, it is important to first capture and understand the potential processes to be optimized. Depending on the situation, you can work with flowchart tools like e.g.

Draw.io

or mind map tools like e.g. Mural. You can also work with project management tools in the beginning of sketching, recording, and planning. A good overview of project management software

can be found on OMR Reviews.Projektmanagement-Softwares findet Ihr auf OMR Reviews.