BAM - Another Acroynm

BAM = Business Activity Monitoring. 

So what you might say.  I have my EIS (Executive Information System) or my ODS (Operational Data Store) or my DSS (Decision Support System) or my DW (data warehouse). 

We all know that metrics are critical to what we do.  What gets measured gets done.  Companies that don't use SMART (Specific, Measurable, Attainable, Realistic, Timely) goals are often either lucky or haven't optimized their market opportunity (assuming they are successful).  But, choosing metrics is not easy.  What data do you use (or trust)?  How do you correlate executive metrics (EVA, EPS, Revenue Growth) to metrics that a person in the store or on the line can influence?

A framework I have used several times with good success is the Balanced Scorecard framework.  It not only forces you to look at retrospective metrics (e.g., financial), but it gets you looking at prospective metrics that drive your financials - customer satisfaction, help desk response time, training.

I know...what does this have to do with BAM (or BPM).  Well BAM is one of the key components of BAM (automated or not).  Understanding what to measure on your processes is key.  Like any improvement effort (BPR, Six Sigma, Lean) you have to understand the data around the process to understand how you can improve it or manage it.  Don't forget that the "M" in BPM is intentional.  It's not just about documenting processes or creating automated solutions.  You have to capture the right data and present it to the right person in a easily digestible form where it becomes actionable.

Traditional BI (Business Intelligence) solutions have struggled with process level data.  It is not readily available.  It is not automatically captured.  It is often not end-to-end so it doesn't help you diagnose problems.  BPM and its use of technology to create BAM dashboards can begin to change all that.

Now, don't forget that moving from a culture of that has limited metrics to a culture where everything is measured will be resisted.  This is transformational change and puts a spotlight on issues with fact-based conclusions.