Business Process Improvement – There’s no better time than now!
The New Year has begun and it is time to look at how we can add value to our Customers and save costs. We can do this by looking at our business processes.
In times of economic downturn business owners and managers need to look at how they currently run their business and ultimately this requires examining existing processes and procedures. It is important to identify where your business adds value to your customers whilst removing any inefficiencies such as:
- unnecessary waiting times
- handoffs
- non value activities
It is documented that in boom times no proper processes are created. They seem to grow organically, with it inefficiencies and possibly increased head count. That’s because demand for products and services becomes so high there is no need and no time to create processes and procedures. However this leads to a state where everyone is working in silo, only looking after their own turf! In addition each team member offers a different service to the customer so there is no service consistency.
When the economy slows down having no processes and increased headcount can become a financial drain on the business and many businesses find themselves in this situation today.
“As Is” Process Analysis
Owners should not panic and make snap decisions but make a plan to review all its processes. Start off by making a prioritised list of all processes. This is called “As Is” analysis i.e. reviewing the current state of business processes.
Therefore the best approach once the top priority processes are identified is to get to work on reviewing each process one by one. A way to review processes is to map them out using Process Modelling Tool for e.g. Microsoft Visio. Or at a more basic level just begin by drawing the process on paper and understanding the main players in each process, internal and external.
Once a process is mapped out it, it will be easy to identify any non value adding activities, unnecessary handoffs between people/departments and redundant waiting times for the customer. At this stage you will also identify “Quick Wins” – changes that can be implemented immediately and save the business money and time.
Moreover other ideas will start to emerge. I always recommend listing these new ideas on an “Ideas Register” this way you can revert back to these ideas once you begin designing the new process i.e. the “To Be Process Analysis”.
“To Be” Process Analysis & IT
The “To Be” processes can be created once you understand where the “As Is” is lacking. The “To Be” process analysis requires brainstorming, benchmarking and constant referral back to the “As Is” to get the new process correct.
The “To Be” process can be re-designed with the help of Information Technology. For example we’ve redesigned the New Business Department for one of our clients by creating a tailored New Business System. Not only did this speed up the way each account manager worked, it also allowed management real time information on the status of New Business accounts.
Overall in one report Management could ascertain viability of the department, the performance of each sector and the overall returns it was making on its marketing campaigns.
In addition our client’s customers were dealt with more efficiently and the conversion rate increased as a result.
The People Element
One caveat to consider is what’s termed “the people element”of any Business Process Improvement Project; what writers on this subject have commented “Ignore them at your peril”. It’s important to involve team members from the beginning and realise that this is a change project too and it will affect them. Getting them on side asap is the key to a successful business process improvement project.
Outlining a communications plan, roll out strategy and training plan are all important aspects of the people element of a BPI project.
Overall Benefits
Business Process Improvement can save your business money and ultimately create value for the Customer by placing them at the heart of your business processes. It’s important to consider the benefits of IT and how it can play a vital role. It may require an investment but the returns can be realised very quickly and ultimately make your business more competitive.
Starting such an initiative may seem like a lot of hard work and hassle but it doesn’t have to be, sitting back and not doing anything will not benefit anyone. Critical success factors include:
- having the right approach,
- management’s full backing,
- a communication plan and
- experienced consultant
At eNova we can advise you on how to start such a project and help you with implementation if desired.
There is no better time to start than now!
To find out more information on this topic contact us now at info@enova-software.com
For confidentiality reasons we’re unable to show you a previous clients Business Process Improvement Project but we can show you an example of one we have created for illustration purposes see Mobile 123 As Is Process Analysis Example.
Lisa Kearney has studied Business Process Redesign at UCD Smurfit Business School while obtaining her Masters in Management Consultancy
____________________________________
Filed under: As Is Analysis, Benefits of Information Technology, Booming Economy, Business Process Improvement, Business Process Modelling, Business Process Redesign, Business Software, Customer Centric, Customer Service Strategy, Downturn Economy, Management Consultancy, Marketing, Microsoft Visio, Remarkable Difference, To Be Analysis | 1 Comment
One Response to “Business Process Improvement – There’s no better time than now!”