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business process improvement (BPI)

By Mary K. Pratt

What is business process improvement?

Business process improvement (BPI) is a practice in which enterprise leaders analyze their business processes to identify areas where they can improve accuracy, effectiveness and efficiency and then make changes within the processes to realize these improvements.

BPI works by identifying the operations, employee skills or enabling technologies that could be improved or added to encourage smoother procedures, more efficient workflow and overall business growth.

This process, also known as functional process improvement, is part of the broader management discipline of business process management.

What is the purpose of business process improvement?

The primary objective of BPI is to continuously improve the performance of both the formal and informal processes within an organization. By engaging in business process improvement, organizations can identify bottlenecks, friction, inefficiencies and other problems within their processes and take corrective actions, which helps them to do the following:

Additionally, BPI techniques can help an enterprise meet customer demands and business goals more effectively. Business process improvement also creates value in its ability to help enterprises fine-tune how they operate to ensure they are positioned to compete in today's technology-driven business environment.

How does business process improvement work?

Business process improvement generally involves the following steps:

  1. Identify what process needs to change. This is typically done through business process mapping or other visualization of the steps, activities and workflows within the process.
  2. Analyze the pain points. This step includes identifying bottlenecks, inefficiencies, redundancies and other pain points within the workflow by using visualization tools as well as input from stakeholders.
  3. Conduct a root cause analysis. This helps to determine a strategy for how best to improve or eliminate problem areas.
  4. Design and evaluate. This could entail streamlining activities, reskilling workers or adding new technology such as robotic process automation (RPA); this step should also include analyzing and testing the proposed solution to ensure it does not have unintended negative consequences.
  5. Implement the new process. Change management techniques can help ensure successful adoption of the new or revised activity or technology.
  6. Evaluate and quantify. Reviewing metrics helps to ensure process changes have taken place and to assess the outcome.

Business process improvement methodologies

Managers engaged in business process improvement typically use one or more of the following methodologies to work through the task:

In addition to these and other process improvement techniques, enterprise executives and managers typically use various tools to understand and gain visibility into their business process. Those tools include the following:

Business process improvement examples and use cases

Business process improvement typically delivers value by eliminating or improving bottlenecks, inefficiencies and redundancies within the entire process through workflow changes or the redeployment of resources – either people or technology. Broad examples of this include the following:

Benefits and challenges of business process improvement

Each of the benefits of BPI is significant, but an enterprise with a strong BPI discipline can also improve the following with optimized processes:

Together, these can help boost an organization's ability to compete in the market.

There are, however, the following challenges to implementing a successful BPI program:

Business process improvement best practices

Best practices to follow for a strong BPI discipline within an organization include the following:

Although workflow and BPM work together, they have very different functions. Learn what sets these two business processes apart.

19 Sep 2023

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