by Raymond Lim

Created on: May 22, 2008   Last Updated: March 15, 2012

Business Process Management with a spectrum of process management philosophies is being adopted by many organisations as an integral part of their business entity. As businesses strive to enhance and improved further on their performances, growth, expansion or compete against each other, Business Process Management (BPM) is proven to be an indispensable management tools.

Businesses compete against each other in terms of productivity, efficiency, quality, profitability, customers' satisfaction in order to be the leader in their particular industry. Business Process Management is one of the management tools being benchmarked by organisations to achieve those requirements. This is the fourth generation of management practise according to Brian L. Joiner (1994). The previous management practice has been:-

(i) Management by doing - exemplified by a craftsman manager who sets the example.
(ii) Management by directing example the line manager who sets production targets, quality standards to his subordinates to follow and control production activities.
(iii) Management by results example appraisal methods based on performances and outcome of targets achieved.

According to Peter Senge in his book The Fifth Discipline the old bureaucratic command and control model won't be up to the challenge ahead:

(i) It won't be fast enough to match the new product development time of foreign competitors or to spot new market opportunities.
(ii) It won't be wise enough to deliver the high levels of service customers will increasingly demand.
(iii) It won't be smart enough to manage a diverse work force or to motivate its smartest employees.

BPM practice is concerned with management by process. This emphasized on driving for improvements in business results through understanding and managing the processes underlying the activities of the organization.

Realizing that all of an organization's activities are parts of processes which have outcomes that are necessary to fulfill obligations to stakeholders (customers, employees or shareholders) is central to Business Process Management. The dual role of the customer in terms of the benefit they expect from the process and their active participation in the activities that make up the process is one of the major criteria for an organization in deciding its Business Process Management strategy.

What Constitutes A Business Process?

According to Davenport and Short (1990) definition a business process is :

The logical organisation of people,

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