Enterprising Developments

3 Key Questions that Keep BPM Productive

Joe McKendrick
Insurance Experts' Forum, December 25, 2012

This may be heresy to say here at a business technology site, but technology is not very good at fixing problems. As noted business author Mike Hammer once put it: “automate a mess, get an automated mess.” Enlightened, forward-thinking organizations get that way because of the way they are managed. (Or, you could say, not managed—executives and employees have a great deal of discretion in their jobs and are highly motivated by intrinsic factors.)

The key to solving business problems is reworking, upgrading, replacing, eliminating or creating entire new business processes. That's why we have an entire discipline called business process management to fix another BPM, “big process mess.”

Yes, you can buy lots of shiny new technology. But the catch is BPM is one of those areas that requires the input of everyone across the business, yet no one tends to take ownership of it. It is also an area that can be greatly helped or hindered by technology, however, it's often difficult to pinpoint what technology approaches would best serve a process.

With these challenges in mind, Chris Taylor recently outlined the three key questions every executive or manager interested in an effective BPM effort. Here they are:

First key question: Who owns it? All too often, Taylor points out, BPM is an effort that has many cooks in the kitchen. A central organizer, evangelist, center of excellence-type, enlightened executive—call it what you will—is the type of leader needed to “create awareness, decide on scope, standards, skills, technology and where to start, initiatives move forward very slowly.” Keep it close to the business unit most affected, but let IT handle the systems and technology side.

Second key question: Where to begin? BPM efforts are often fragmented, Taylor says. “We see situations where there are many, widely varying scraps of process-capture as well as situations where business process is in people’s heads and on post-it notes.” Taylor suggests choosing an established BPM framework (available from the APQC) “that provides a clear scope for the work to be done.” Data can be collected and information distributed within that framework.

Third key question: What technology should be plugged in? Storage management—an under-appreciated field of endeavor—really makes the difference here. “Just as BPM initiatives need centralized leadership, they also require centralized storage of data,” says Taylor. “Putting information into documents that reside on PCs throughout the organization doesn’t provide version control or collaboration. The most effective way to store data is in a place that allows everyone to work from the same source.” Make sure the IT tools employed are easy to use.

Joe McKendrick is an author, consultant, blogger and frequent INN contributor specializing in information technology.

Readers are encouraged to respond to Joe using the “Add Your Comments” box below. He can also be reached at joe@mckendrickresearch.com.

This blog was exclusively written for Insurance Networking News. It may not be reposted or reused without permission from Insurance Networking News.

The opinions of bloggers on www.insurancenetworking.com do not necessarily reflect those of Insurance Networking News.

Comments (1)

Part of the challenge in resolving the "big process mess" is that so many vendors of BPM software position themselves as product companies ("Buy this!"), rather than service companies ("Let's fix that."). As a result, the software is perceived by seller and buyer as a tactical end, rather than as a tactical means to a strategic end.

Worse, when the technical pill fails to eradicate the ill, the buyer starts looking for another symptomatic treatment, rather than diagnosing the causal disease and curing it.

Posted by: Mark OB | December 28, 2012 9:52 AM

Report this Comment

Add Your Comments...

Already Registered?

If you have already registered to Insurance Networking News, please use the form below to login. When completed you will immeditely be directed to post a comment.

Forgot your password?

Not Registered?

You must be registered to post a comment. Click here to register.

Blog Archive

The IT-Savvy 10 Percent

IBM survey reveals best practices of IT leaders.

The Software-Defined Health Insurer: Radical But Realistic?

Can a tech startup digitally assemble the pieces of a comprehensive, employer-provided health plan?

Data Governance in Insurance Carriers

As the insurance industry moves into a more data-centric world, data governance becomes more critical for ensuring the data is consistent, reliable and usable for analysis.

Fear This

Just days before this Issue, which contains our security cover story, went to press, we got some interesting news: 1.2 billion unique usernames and passwords and 542 million email addresses were reportedly stolen from 420,000 websites, according to The New York Times. The websites ranged from Fortune 500 companies down to small online retailers.

Should You Back Up Enterprise Data to the Cloud?

Six questions that need to be asked before signing on with an outside service.

Modernizing Information Management

While better reporting and actuarial analysis help to support financial decisions, improved analytics and decision making greatly assist the rest of the organization.