Aligning Revenues, Costs and Customer Service with BPM
- Published: November 29, -0001
- Written by Nathaniel Palmer
In the business process management (BPM) world the ability to simultaneously grow revenues, reduce costs and improve service is called a Triple Crown. It is a direct consequence of implementing advanced process management.
A 21st century company shifts attention from ‘doing things right’ to ‘doing the right things’ and as a consequence, much of the work taking place within a company becomes ‘dumb stuff’ when tested against the KPIs based on the previously mentioned Triple Crown. This ‘dumb stuff’ can be eliminated and typically will result in cost reductions of 40-70% within three to six months after implementation across traditional business processes.
A large slice of reduction is in the potential effort to run a process – the people. It also includes considerable swathes of information technology, now no longer required to manage the significantly simplified ‘Outside-In’ processes. Saves are also available across the enterprise from reducing the need for ‘outsourcing’ that does not explicitly contribute to the delivery of successful outcomes. Progressive 21st century companies such as IBM, Google, Apple, Gilead Sciences and Southwest Airlines actively redeploy staff to the benefit of the bottom line – making more with less. Service improves and revenues grow.
“BPM wins the ‘triple crown’ of saving money, saving time and adding value. BPM is delivering both short-term return on investment (ROI) and long-term value. One example is an insurance company that was able to reduce its claims processing cost by more than 20 percent. We are currently seeing uptake in BPM use and benefits in government, banking, health-care, transportation and travel industries” said Janelle Hill, research vice-president at Gartner.
There are many Customer Expectation Management methods available that are easy to implement, as well as very inspiring tools for meaningfully aligning your revenues, costs and service strategies quickly. For example, the CEM Method offers effective tools for analyzing the successful customer outcomes (what your customers really need), moment of truths (customer interactions), breakpoints (internal hand-overs) and business rules. That information is put together and observed through the Outside-In lens, which reveals all the pain points in business processes and customer experience of the organization. After that, innovation tools are used to redesign those processes to meet the customer needs and organization’s strategy, which will lead to getting BPM’s Triple Crown.
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