What is a Business Management System (BMS)?
A Business Management System (BMS) may be defined as a set of tools for strategic planning and tactical implementation of policies, practices, guidelines, processes and procedures that are used in the development, deployment and execution of business plans and strategies and all associated management activities. (Source: Black’s Law Dictionary)
The BMS is effectively the beating heart of the organisation and plays a vital role in maintaining and growing the business.
When a business is in the early stages of development, informal systems tend to be the norm, with staff performing functions and processes that have been developed over time and that they are familiar with.
However, as the business grows, without a comprehensive, documented system governing all aspects of business activity, there is a significant risk of errors and inefficiencies creeping in. A dramatic increase in demand could mean that the company is unable to successfully scale up because the systems are not in place to do so and ultimately it will fail.
Therefore, the BMS needs to be developed from the outset as a priority, to maximise business potential.
The BMS encompasses all functional areas of the business including finance, production, R&D, IT, human resources, sales and marketing, stock control, legal etc. with all relevant information being easily accessible to those involved.
The system is designed to guide management activities at all levels, namely strategic, tactical and implementation.
To be effective, the BMS must be designed with clarity and ease of use as core considerations to ensure that it is not perceived as an unwelcome layer of bureaucracy but rather a vital resource that is an essential element of daily activity.
If the system is difficult to use or prohibitively complicated, it will not work effectively or enjoy support from those tasked with using and contributing to it.
When implemented successfully a BMS will confer a range of benefits including:
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Create a single source of truth
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Provide easy access to all processes, procedures and business structures
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Clearly defined KPIs and performance metrics
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Maximise efficiency and minimise risks
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Enhanced management and employee engagement
There are many proprietary BMS solutions available and the platforms used and price points are wide-ranging. Finding the best fit is important and each company must carefully research the market to find the most suitable option for their needs.
However, before embarking on a quest to find a BMS solution, it is vital to ensure that core components and documents that will populate the system have been developed correctly. Without this preparation, delays will occur, the solution chosen may not be suitable and costly mistakes are very likely to be made.