7 Principles of APQC’s Process Management Methodology

The American Productivity and Quality Center (APQC) has long been known for its Process Classification Framework (PCF), which we have previously discussed in relation to frameworks.

In 2020, APQC introduced its own process management methodology.

The APQC methodology is built around a five-step business process management lifecycle:

1. Identification, Structuring, and Prioritization of Business Processes

2. Modeling and Documenting Business Processes

3. Monitoring and Controlling Business Processes

4. Analyzing, Improving, and Integrating Business Processes

5. Managing and Supporting Business Processes

This cycle reflects not only the recommended approach to working with a single business process but also the overall maturity model of an organization in the field of process management. The company starts by understanding its business processes and achieves maturity when it takes control of its key business processes.

This lifecycle is based on 7 practices or core principles identified by APQC analysts from the experience of implementing numerous projects:

1. Alignment with Strategic Goals The prioritization of business processes and initiatives for process improvement should be aligned with the company’s strategic goals.

2. Formalized Roles and Rules of Process Management When implementing process management into the company’s everyday operations, a critical factor for success is the clear definition of rules and the distribution of responsibilities and authority between:

   • Top management

   • Process owners

   • Process analysts

   • Managers

   • Employees

3. Transparent Business Process Model
   The lack of process models creates misunderstandings among participants. A clear architecture and design of business processes allows for the identification of pain points, root cause analysis, and consideration of interdependencies when improving business processes.
4. Systematic Change Management
   Changing the way things have always been done inevitably leads to resistance. A conscious, systematic approach to change management enables you to plan actions in advance: engage stakeholders in process initiatives, communicate vision and goals, provide training, and prepare employees to work in a new environment.
5. Regular Evaluation of Business Process Effectiveness
   Regular evaluation of business process performance indicators (PPI) helps identify deviations and take corrective actions in a timely manner. PPI analysis allows you to assess the effectiveness of initiatives aimed at improving business processes.
6. Targeted Business Process Optimization
   To ensure that support and resources are allocated to initiatives that make the greatest contribution to achieving organizational goals, a formalized approach to business process improvement must be used. Otherwise, process optimization becomes fragmented and, at best, offers limited returns to the organization.
7. Technology as a Tool
   We live in an era where technologies are constantly evolving. They provide standardization and automation of business processes. However, automation is merely a tool for process management. It cannot replace the management itself. Technologies should support changes in processes to create additional value or reduce costs, not hinder organizational changes.

To explore the methodology APQC further, follow this link.