I’ve received some very interesting comments in response to my previous blog in which I named KPIs as the top BPM software pitfall.  Many thanks to all those who have shared their insights thus far.  I’d like to delve a bit deeper into why I chose KPIs as the greatest business process management software pitfall, and why even despite some very convincing arguments raised by Anatoly, I still believe that KPIs are important to BPM project success.

I agree that time is of the essence when implementing a BPM software system.  But I am not sure that we are justified in sacrificing all KPIs solely in the interest of time.  First, any quantitative measurement, including ROI and costs, takes time to calculate, and we don’t always have perfect data inputs.  So, while I fully support the idea that efficiency is key, I wonder if we are walking a slippery slope by starting to cut out objective measurements, simply because they take time?

Taking the efficiency argument a step further, would “time” be a justifiable reason to cut out other key aspects of the BPM software implementation process?  Should we eliminate the process discovery phase?  Or training courses?  Or meetings between management and employees?  I’m not sure I’m comfortable with the idea of short-cutting key phases for the sake of speed.

Rather, I would argue that the key to saving time and promoting efficiency (both during the BPM software implementation, and in the long run) is to allocate resources effectively and reduce waste, which I believe KPIs (along with other measurements and yes, instinct) can help to reveal.

Anatoly also makes a convincing argument that in small businesses, the decision-maker’s instincts (coupled with analysis of costs and results) can and should be used in lieu of KPIs.  However, while I agree that instincts are very important, I’m not sure I’m comfortable with the substitution of instincts for real data. As a practical matter, in a small business, where the BPM decision-maker is also the primary project evaluator, the lack of data might not “matter” to anyone.  No higher-ups will ask for BPM data later on, so as long as the decision-maker is “happy”, then the project is “successful”.  However I would still maintain that without some way to quantify and measure the impact of BPM on the company’s performance, we are left without valuable indicators of project success.

Don’t get me wrong — I don’t suggest we choose hundreds of useless KPIS just for the fun of it.  But by identifying a limited number of specific, appropriate, revealing measurements, I feel we gain valuable insight into our business processes.

Yes, I imagine that a BPM project can be wildly successful without KPIs.  But how exactly will we know for sure?