In business, process management refers to the development, oversight, and improvement of the processes that enable an organization to function. For example, the manager of a manufacturing firm might analyze the stages through which a design passes to become a manufactured product and think of ways to optimize streamlining and cut cost. Value process management is similar, though practitioners concentrate on how to increase process values, distributing value in a logical way to all components of a process. A significant way in which value process management differs from conventional process management is that it is often less concerned with technological systems than on ideas of value which can be based on a number of functional and cultural standards.
In value process management, executives and stakeholders tend to have the greatest impact in terms of deciding how value is distributed. In conventional business process management techniques, the worth of a process component is based on cost, effectiveness, and market value. When value is a primary focus of process management, factors such as public image, branding, and potential for value creation are taken into account.
Many experts point out, however, that while value process management might seem to stray from classic business process management principles, this is not truly the case. The idea of value is prioritized in a different manner and imbued with a broader definition in value process management. Managers who practice this type of process management do take technological and operational factors into account, however. An employee who has trouble learning new software, for example, can be considered problematic in any management system.
Professionals who practice value process management might be responsible for consistently developing value processes. To many business process experts, the most effective managers are those who are willing to adapt their processes to trends in markets and technology. Likewise, stakeholders' perceptions of what has the most value also can change. Instead of perceiving a value process as an overarching system that guides an organization's operations, a more accurate perception might describe it as ever changing and evolving to meet needs within and around a business.
Businesses that practice value process management well might benefit from more interest from stakeholders. If the overall value of an organization is seen by financial institutions as higher, it can have better access to lines of credit and therefore enjoy greater cash flow. A business that has a good public image can benefit from a broader customer base. As with any management system, a value process system should be developed to fit specific needs of an organization.