Right Approach To Justify Your BPM Expenses

Prime BPM

The world of business is constantly evolving, and staying ahead of the curve means adopting new practices and strategies. One such strategy is Business Process Management (BPM), which aims to streamline operations and increase efficiency. However, justifying the expenses of BPM can be challenging, especially when stakeholders require proof of Return on Investment (ROI). In this blog, we will discuss how organizations can develop a business case for justifying their BPM expenses through a pilot project.

What is Business Process Management (BPM)?

Before we dive into the details of a pilot project, let's first understand what BPM is. In simple terms, BPM is a methodology that helps organizations improve their business processes. It involves analyzing, designing, implementing, monitoring, and optimizing processes to increase efficiency, reduce costs, and enhance customer satisfaction. BPM enables organizations to align their business goals with their operational objectives and provides a framework for continuous improvement.

Challenges in Justifying BPM Expenses

While the benefits of BPM are well-known, justifying its expenses can be challenging. One of the primary challenges is convincing stakeholders of the expected ROI. Although benefits from a BPM investment are realized, it is difficult to promise a specific ROI. Another challenge is the scale of an enterprise-wide initiative involving high investment. It becomes challenging to justify such an initiative without the support of proven data.

Investing in business process mapping can pay off in a big way for your organization. By identifying areas for improvement and streamlining your workflows, you can create a more efficient, productive, and profitable business.

The Pilot Project Approach

To overcome these challenges, the right approach is to start with a pilot project within a small business area. A project with a smaller scope helps build a business case for justifying how things are performed today, how they can be done better, and how those changes can guarantee effective returns.

Developing a Business Case Based on a Pilot Project. To develop a business case based on a pilot project, organizations need to follow a set of core activities and objectives. The following is an approach organizations can follow for developing a Business Value Framework for their pilot projects:

Validating the Starting Point:

Before developing a business case, it is essential to determine the right starting point where a quick win can be realized. Organizations need to prioritize the process(es) based on process execution pain. This includes the assessment of client/vendor satisfaction, volume, and frequency of process execution, and so forth to identify the processes that need immediate attention within the business area.

Benchmarking the Current State Process:

Identification of the right processes for improvement is followed by the establishment of a ‘current state’ benchmark of the process. This includes the creation of a process map, offering a better understanding of the process or set of processes in question.

Defining Key Performance Indicators:

Once a process is captured in its current state, the ‘Key Performance Indicators’ (KPIs) associated with it are defined based on corporate objectives. KPIs assist in gaining stakeholder buy-in and are useful for establishing the success metrics for the project.

Optimizing for the Future State Process:

Finally, a more optimal future state of the process is designed. Modelling and simulation can help identify improvement opportunities in part, however, other factors like automation and analysis are also necessary for realizing the full potential of BPM.

Quantifying Benefits and Justifying ROI

The benefits yielded from the redesign must be quantified from the perspectives of value, time, cost, and efficiency. These results (savings) need then be compared to the anticipated expenditure to realize these savings. This helps in identifying the potential of savings and justifying the Return on Investment.


Developing a business case for the first BPM initiative can be a highly time-consuming task, but it is rewarding. It justifies the investment of time, resources, and money, gains feedback from the management team at an early stage, and works as the first proof point for enterprise-wide BPM. It can subsequently lead to the implementation of a BPM software

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