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Process management

Ana Canteli

Written by Ana Canteli on 3 February 2023

Process management is a systematic approach to the planning, design, execution, monitoring, control, and improvement of critical processes within an organization to achieve strategic goals and improve efficiency and effectiveness. It involves identifying and analyzing essential processes, defining roles and responsibilities, establishing performance indicators, and using tools and techniques for continuous improvement.

 The most important processes in process management may vary depending on the industry and the organization. However, some of the techniques that are often considered critical include the following:

  • Talent management: Recruitment, selection, training, and development of employees.

  • Production: Plans, designs, executes and controls the production of goods or services.

  • Finance: Accounting, budgeting, financial risk management, and decision-making.

  • Marketing and sales: Product development, market research, promotion, and sales.

  • Customer service: Customer service, problem-solving, and complaint management.

  • Supply chain management: planning, managing, and optimizing the supply chain.

  • Information management: Captures, stores, manages, and distributes critical information.

How can process management improve talent management?

Process management can significantly improve talent management by providing a systematic, efficient, and continuous improvement-oriented approach to human resource management, an essential activity for any organization; it can occur in several ways:

  • Clarification of roles and responsibilities: Process management helps to improve the definition of roles and responsibilities; it results in a more effective allocation of tasks and greater efficiency.

  • Improved efficiency: By standardizing and optimizing HR management processes, downtime can be reduced, and efficiency in decision-making and task completion can be increased.

  • Objective assessment: Process management enables the identification of key performance indicators and accurate performance measurement, which helps to make informed decisions about people management.

  • Continuous improvement: Process management is an iterative approach focused on constant improvement, which means that talent management processes are periodically re-evaluated to optimize performance.

  • Increased employee satisfaction: By improving the efficiency and effectiveness of talent management, employee satisfaction can be raised, and turnover can be reduced.

How does process management improve production management?

The production of goods and services management is at the heart of the activities of almost any organization. It is usually organized in several stages, each of which process management has something to contribute to all of them:

  • Planning stage: here, it allows critical processes to be identified and prioritized in planning, resulting in better decision-making.

  • Design phase: Process management helps establish clear design objectives, allowing a more effective and efficient approach to decision-making and resource allocation.

  • Execution and control phase: in this phase, process management enables the standardization of procedures, which helps ensure greater consistency and efficiency in execution; the early detection of deviations or problems, thanks to real-time monitoring; and the identification of key performance indicators, which helps make informed decisions about execution and control of production.

How can process management improve financial management?

Process management can improve a company's financial management in several ways:

  • Identifying cost reduction opportunities: Process management can identify areas for improvement in the distribution of costs along the value chain, which can significantly improve a company's profitability.

  • Resource optimization: By reducing costs, the company can focus on improving resource management, producing more with less, thus significantly improving efficiency and savings.

  • Improved transparency: The implementation of process management helps to shed light on financial management; it allows the company to make informed decisions on resource allocation and cost optimization.

  • Automating financial processes: Process management can automate many financial processes; this reduces the time and expense associated with traditional financial management.

  • Improved decision-making: Process management facilitates the collection and analysis of data to support decision-making about the organization's financial management.

How can process management improve the sales and marketing plan?

Process management has several options for improving an organization's sales and marketing strategy.

  • Optimization of the sales cycle: Process management enables a better understanding of marketing and sales processes. This can help optimize the sales cycle and increase the company's marketing and sales plan effectiveness.

  • Improved process quality: Process management facilitates the identification and elimination of errors within the marketing and sales strategy, which increases the quality, effectiveness, and efficiency of these management processes, including decision-making.

  • Improved customer satisfaction: Better processes lead to better coordination between marketing and sales, which contributes to increased customer satisfaction and sales performance.

How can process management improve customer service?

Although it is partly mentioned above, without customers, it is almost impossible for a company to exist, so it is well worth devoting a section to the question. Process management can improve customer service in many ways:

  • Standardizing processes: ensuring a consistent experience for customers at every interaction.

  • Improved problem resolution: Process management allows for greater coordination between departments involved in customer service, which improves problem resolution and customer satisfaction.

  • Identifying opportunities for improvement: Process management enables the collection and analysis of customer service data, enabling the identification of service improvement opportunities.

How can process management improve the supply chain?

Process management can improve supply chain management in several ways:

  • Regulation: by implementing process management over warehouse management, you can opt for implementing a standardized plan, which helps to improve the visibility of the entire supply cycle and monitoring and auditing.

  • Improved collaboration: Process management can enhance cooperation and communication among the different actors in the supply chain.

  • Optimized planning: Process management can optimize supply chain planning and improve inventory management efficiency.

  • Cost reduction: Process management helps to identify opportunities to eliminate or reduce costs in the supply chain.

How can process management improve information management?

Process management can help organizations improve their information management processes through standardization, automation, visibility, and decision-making.

  • Standardization: with standardization, each task is organized in a sequence of steps, whereby aspects such as security, effectiveness, and efficiency at the operational and financial levels are considered. Every standardization can be updated for improvement.

  • Automation: By standardizing information management processes, repetitive tasks can also be automated, which reduces errors and improves efficiency.

  • Improved visibility: Process management can improve the visibility of information management processes and enable better monitoring and control.

  • Improved management processes: Information management processes can also enhance the collection, analysis, and use of information for decision-making.

Implementing a document management system is essential to achieve all of these objectives. Document management systems can significantly improve a company's process management by providing a more efficient, secure, and continuous improvement-oriented approach to managing documents and information in an organization.

OpenKM's document management software includes process management functionalities such as automation, the OCR zonal engine, or the workflow engine, among other tools. The workflow engine is an OpenKM component that automates and manages any organization's processes, from the reception of a request to its final stage. It ensures that the established rules and procedures are complied with.

OpenKM's workflow engine allows users to define tasks, responsibilities, and conditions for each step in a process and to automate the sequence of functions according to specified criteria. This can include assigning tasks to specific people, notifying events, and approving decisions.

If your organization is looking to improve efficiency and transparency in process management, document management software with a workflow engine is likely a good investment. This solution allows you to automate and monitor processes, reduce errors and comply with regulations and standards, which can improve efficiency, quality, and your organization's reputation.

Also, don't forget that the EU-funded Next Generation program that supports small and medium-sized enterprises in their digital transformation. Process management is an essential part of digital transformation. The Digital Kit voucher is a valuable resource for SMEs looking to improve their process management, especially in terms of efficiency and automation.

For more information, please get in touch with OpenKM, the digitalizing agent of the Acelera Pyme program.


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