Business Process Management according to MIchael Hammer

Business process management is defined as "an integrated system for managing business performance by managing end-to-end business processes.  The figure below is a representation of the essential process management cycle.

The Essential Process Management Cycle

This cycle is derived from Deming's PDCA cycle (Plan Do Check Act) and represents a shift from how enterprises are typically managed.  It is based on the premise that the correct way to manage an organization is to control and have a well-defined end-to-end business process through which customer value is created. This is a departure from the typical management mindset of trial and error, pushing people harder, and financial manipulation.  Therefore, BPM is essentially a customer-centered approach to organizational management.  Customers care about one thing only, results.  The results that customers expect are the outputs of interrelated business processes. An organization must focus on customers, results, and business processes to be successful.

With BPM, an organization can enable high-performance processes that operate with lower costs and with greater efficiency, accuracy, and precision.  Integrating all of a companies process improvement goals under the integrated environment of BPM leverages a wide range of targeted tools to specific problems. With the process design insight that BPM provides it is possible to achieve goals that are apparently incompatible like reducing inventory while at the same time reducing out-of-stocks.

In order to effectively implement BPM on a sustained basis, five critical enablers are required:  Process Design, the specification of what tasks are to be performed and by whom, Process Metrics, the targets that will be measured, Process performers, the people who work in the process, Process Infrastructure, the supporters of the process like IT and HR, and finally Process Owners. the person(s) responsible for the end-to-end process.