BPM: The system-wide view of process management

We’ve learnt the basics, now let’s get to the real deal: how to manage your business processes strategically?

That’s when you need to learn about Business Process Management, or BPM.

What is Business Process Management (BPM)?

We’ve learnt from the previous article that process management gained formal identity in the 1990s. In 1993, Michael Hammer and James Champy published Reengineering the Corporation, introducing Business Process Reengineering (BPR) – a bold approach that encouraged organizations to rethink and radically redesign their processes for dramatic improvements. BPR encouraged companies to ask: “If we were starting fresh, how would we design this process?”.

Although BPR led to big breakthroughs in process design, the business world soon realized that such a radical overhaul wasn’t always sustainable. Instead, a more continuous, data-informed improvement approach feels more necessary.

By the early 2000s, Business Process Management (BPM) emerged as a more balanced, structured response. Unlike BPR, BPM focuses on the full lifecycle of managing processes, from design and modeling to execution, monitoring, and ongoing optimization. It blended the lessons of many popular operational frameworks, such as Lean, TQM, and process reengineering, into a repeatable model.

Crucially, this era has also brought technology into the picture. BPM software platforms are bringing businesses to digitally model their processes, automate tasks, and track performance in real time. With this, BPM moved beyond theory into a practical, operational toolset used across industries.

Business Process Management is the discipline of systematically designing, improving, and overseeing the way work is performed. It helps organizations see their operations not just as departments or roles, but as interconnected flows of activity that deliver value.

Unlike a one-off project, BPM is ongoing. It’s not just a tool or a diagram; it’s a mindset paired with methods. It invites organizations to treat their processes as assets, just like finances or technology. If something is done repeatedly and matters to your outcomes, BPM asks: how can we make it better?

BPM can be applied to nearly any repeatable process: customer service, payroll, inventory restocking, loan approvals, and supplier onboarding. It touches both the visible and the behind-the-scenes work.

The five key stages of BPM

Rather than being a one-time fix, BPM is best understood as a cycle. It follows five main stages that together form a continuous improvement loop.

1. Design

This is where you identify and define the process. You gather input from the people involved, map out the current steps, and clarify the intended outcomes.

You also document any rules, business logic, or exceptions. The outcome of this stage is a complete, agreed-upon version of how the process should work in practice.

2. Model

During this step, your team should create a visual representation of the process model. This should include specific details, such as timelines, task descriptions, and any flow of data in the process. Utilizing business process management software is helpful during this stage.

3. Execute

Now the process moves into the real world. This may involve deploying a BPM system to route tasks, assign responsibilities, and enforce the defined sequence. Or it may be done manually, but with adherence to the process structure.

4. Monitor

Once running, a process should be monitored to understand how well it's performing. You establish process performance indicators (KPIs), collect operational data, and set up reporting routines. You make sure the process runs as designed, and identify where it doesn't, so that risks don’t turn into bigger problems.

5. Optimize

Based on the data and feedback collected, you refine the process to improve speed, accuracy, or efficiency. This stage can be small and continuous, or occasionally involve redesigning parts of the process. All changes should be tested, documented, and communicated before being adopted.

What BPM is not

BPM is not flowcharts

Many people think Business Process Management (BPM) is about drawing diagrams with arrows and boxes to show how work moves from one step to the next. These maps can be useful, but they are only one part of a much bigger picture.

In real BPM, a process map needs to be connected to clear goals, defined roles, rules, and performance measures. After creating the map, the process must be tracked, monitored, and improved over time. A diagram by itself won’t help much unless it’s part of how the business is actually managed.

BPM is not a software product

Another common mistake is to think that BPM means buying BPM software. While many companies use tools to model and automate their processes, using a tool is not the same as doing BPM.

BPM is more about the way you manage work than the tools you use. You can manage processes using paper, spreadsheets, or even whiteboards, as long as you're thinking carefully about how work should flow. Without thoughtful design, clear ownership, and accountability, software will just speed up confusion.

BPM is not recording as-is processes

Some people believe BPM means simply documenting current procedures or creating standard operating procedures (SOPs). But more than that, BPM is about managing processes actively – deciding how they should work, measuring results, improving them, and making sure they support business goals.

Good BPM includes having people responsible for each process, setting regular times to review how things are going, and making updates when needed. It is a living practice, not a static documentation exercise.

The real value of BPM

The value of Business Process Management lies in its approach to work as an ongoing system, not a quick fix. It provides a structured way to manage and improve how tasks are carried out over time.

Structured decision-making

BPM brings clarity to how work is done by prompting essential questions: What is the process? Who owns it? What are its steps and rules? These decisions shape daily operations and make responsibilities clear across teams. They are communicated, understood, and followed, making work more predictable and accountable.

Built-in flexibility

BPM provides enough structure to support everyday work while remaining adaptable. It allows processes to evolve when goals shift, new tools emerge, or market conditions change.

Ongoing improvement for long-term growth

Processes are never considered “finished.” BPM encourages regular review and small, thoughtful changes that keep operations efficient and aligned with business needs. And by creating a system that is both stable and responsive, BPM helps organizations grow and adapt without losing control.

Closing thoughts

At this point, you have a clear picture of what Business Process Management is, and even what it is not.

But understanding the concept is one thing. Knowing what to do next is another.

When it comes down to what actions you can actually take – starting tomorrow – you need something more actionable. Not just principles, but specific steps to follow.

In the next section, we’ll walk through that. Using the same main stages of BPM as a backbone, we’ll break the process down into smaller, practical steps that help you start organizing your business, whether you’re just improving one process or building a management system that can scale.