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Although they may seem very similar at first glance, there are key differences between the Process Management and Process-based Management concepts — they are definitely not the same thing. These two approaches still spark a lot of debate. After all, they are two management models that complement each other, each bringing concepts and guidelines that make all the difference in the way they’re put in practice.
When it comes to management models, literature typically leans towards the Process Management model. However, many of our contemporary organizations are already employing Process-based Management, sometimes without a clear definition, which often leaves us with even more questions.
To clarify the matter once and for all, let’s understand the difference between Process Management and Process-based Management, along with each of their characteristics and how they can fit into your company. Let’s dive in!
First, what is Process Management?
Processes have always been present in organizations and all types of businesses, whether for purchasing materials, recruiting new employees, paying bills and issuing receipts, you name it.
But what exactly are processes? According to the Business Dictionary, a process is a sequence of interdependent and linked procedures. At each stage, they consume one or more resources (employee time, energy, machinery, money) to convert inputs (data, materials, parts, etc.) into outputs. These outputs then serve as inputs for the next stage until a known goal or final desired outcome is achieved.
In practice, think about your own’s company workflow. When you finish a product, isn’t it necessary to start a new process for purchasing inputs for new units or batches? In short, sets of activities like these can be considered a process or at least part of it.
Until a few decades ago, activities occurred without the aid any specific methodology. This is where Process Management, better known as Business Process Management (BPM) in the corporate world, emerged.
And what about Process-based Management?
While Process Management represents the methodology and specific actions known in the field, Process-based Management aims to integrate all departments and its processes. It structures and integrates functional processes within organizations towards common goals.
Traditional organizations developed based on a culture of managing each department’s processes and activities.Process-oriented companies on the other hand, use a Process-based Management approach, leveraging management systems to handle everything involving the company and its departments.
This broadens and systematizes management, with less interference from departmental managers. The main objective here is to optimize the organization’s performance.
Ultimately, Process-based Management aims to integrate all company processes, resulting in clearer common objectives. This lets processes to be conducted in a better organized manner, benefiting the entire company, not just a specific department or sector.
In this sense, process management provides a holistic view of the company, making decision-making more effective. Additionally, it’s easier to identify bottlenecks, and teams and departments are more integrated and collaborative.
In summary: what are the differences?
Essentially, a company that practices process management has its tasks and activities mapped and monitored with complete control. They know that all processes will occur as planned and described.
When Process-based Management is adopted, there’s connectivity between processes, which favors a trully comprehensive view of the organization. Activities are integrated, and the result stems from the effort of a correlated whole.
Indeed, companies that operate with Process-based Management are more focused on developing their activities to ensure customer satisfaction.
With a process-oriented company culture, decision-making, employee management, document sending and viewing, and team interaction become integrated activities, improving overall productivity.
Additionally, there’s alignment of strategy for product or service development for the customer. At this point, having available indicators for better decision-making becomes essential.
Undoubtedly, Management through Processes is very advantageous for companies. However, its application requires management to focus on analyzing the entire value chain, ensuring that activities and processes are geared towards creating value for the customer.
BPM systems in context
Digital Transformation is a great ally to companies looking to manage their processes. They provide tools capable of automating and optimizing routine activities, facilitating execution and internal communication.
In this sense, software is essential for both process management and process-based management.
Although each term has a specific objective, both generally represent concepts such as continuous improvement, clear and simple processes, sector organization, and more assertive decision-making in any type of organization.
In this regard, Neomind has developed the BPM module, which integrates and manages structured processes. This provides effectiveness and agility in responses, enhancing company results, with greater transparency and collaboration among stakeholders.
Fusion Platform enables companies to reduce processes errors and automate repetitive and manual activities. Additionally, it improves corporate performance, enabling greater competitiveness and assertiveness for your business.
The purpose of adopting BPM software is the convenience in carrying out activities as well. Because of that, Neomind’s Fusion Platform is a low-code tool, fully user-friendly and adaptable to your needs.
Curious about how process management happens in practice? Try Fusion Platform for free, or talk to our consultants.
Whether you’re considering investing into process management or process-based management, Neomind is your business partner!
Does your company practice process-based managament? Tell us about your experience. Or if you have any questions, write it to us in the comments. We’ll be happy to assist you.
