What Is Business Process Modeling?

Business process modeling is an essential component of the broader field of business process management. In order to deliver a high-quality product or service in an efficient manner, work must be broken down into a number of specific functions. Business process modeling seeks to optimize these functions in order to achieve organizational efficiency and maintain a consistently high level of quality.

A Brief History of Business Process Modeling

The need for formal business processes first became evident in the late 1700s, when Adam Smith argued in favor of the division of labor in his 1776 work, The Wealth of Nations. In the early 1900s, business theorists such as Frank and Lillian Gilbreth and Frederick Winslow Taylor analyzed and documented work processes, proposing new ways to increase productivity and efficiency. Their theories were embraced by business owners, but often met with resistance from workers – especially when assembly lines resulted in mass unemployment during the Great Depression of the 1930s.

The term "business process modeling" first emerged in the 1960s; it appeared in an Automation article titled "Business Process Modeling Improves Administrative Control," which was published by S. Williams in December 1967. Research and development of business automation processes flourished in the 1960s and 1970s, when tools such as data flow charts and theories like Total Quality Management (TQM) became more widely accepted. Certain aspects of TQM – including Lean and Six Sigma – have become key components of modern business process management.

During the early 1990s, Michael Hammer and James Champey championed the concept of business process re-engineering (BPR) in their 1993 book, Re-engineering the Corporation: A Manifesto for Business Revolution. However, much like the business theories from the early 1900s, this approach faced criticism for being too mechanistic and focusing on actions instead of people. BPR soon became synonymous with downsizing and layoffs, and eventually fell out of favor. However, the best practices of BPR have been incorporated into today’s business process modeling. When used correctly, business process modeling can greatly enhance an organization's workflow efficiency – with full support from employees.

Business Process Modeling Objectives and Steps

The twin goals of business process modeling are to improve organizational efficiency and product quality. In practice, business process modeling uses workflow diagrams to display various work processes and functions. This visual representation helps executives and managers understand and analyze processes.

Each function or department within an organization has its own responsibilities; for example, the sales team is charged with finding and keeping customers, while supply chain managers must ensure there is sufficient inventory to fulfill orders and meet demand. To ensure that everyone is aware of their individual responsibilities and carries them out in a timely and consistent manner, organizations rely on business process modeling as part of a broader business process management system.

Creating a business process model starts with defining what each process is seeking to accomplish and how it interrelates with other processes within the organization. Professionals involved in business process modeling must first identify:

· How a process contributes to an organization’s goals

· All the steps involved in a process

· The sequence in which these steps should be executed

· What skills are needed to carry out the steps

· What the decision-making process entails

· Which staff members have authority to make decisions

· Who approves the final decisions

· The roles and responsibilities of all contributors

· How internal and external customers communicate with those involved in the process

· What documentation should be produced and maintained in relation to the process

· The implications of each process, both within and outside of the organization

It’s clear that professionals must take many factors into consideration when conducting business process modeling. That’s why formal training is so important for anyone seeking to transition into or advance within the field of business process management.

This guest post was provided by University Alliance and submitted on behalf of University of San Francisco.  USF offers a master certificate business process management training course.  Each course lasts eight-weeks and is taught by industry professionals. 

For more information please visit http://www.usanfranonline.com

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Joe Schembri

University of San Francisco & Bisk Education

866.442.6587 x4942

joe-schembri@bisk.com

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