A compelling vision supported by values, a base business strategy, and a strategic plan are the foundational supports for business success. Strong leadership with the appropriate knowledge, skills and attitudes to implement the plan are also essential. Without processes that are functioning optimally to support both the plan and the employees implementing the plan, outcomes are significantly compromised.
Business process improvement typically includes at least these components: cycle time reduction, focusing on the process, applying "lean" principals, and speed in restructuring and implementation.
The goals of Business Process Improvement include: Making processes effective: producing the desired results Making processes efficient: minimizing the resources used Making processes adaptable: building in flexibility and the ability to adapt to changing customer needs
The tools used in Business Process Improvement include: Eliminate bureaucracy Eliminate duplication Add value Simplify Reduce time Reduce errors Standardize Partner with suppliers Upgrade results and outcomes Use automation, mechanization, or computerization as appropriate
Traditionally, we focused on people as the "problem" when things were not completed in a timely manner. While there are human components, business process improvement focuses on the process. This means: the focus in on the process, not employees as the problem understanding how each job fits in to the total picture instead of just doing a job measuring process, not individuals change the process, not the person remove barriers, as opposed to just motivating people develop people, not controlling employees trust as compared with mistrust looking at what allowed the error to occur instead of pointing fingers at who caused the error reducing variation as opposed to correcting errors customer rather than bottom line driven
Cycle time reduction is defined as reducing the time taken for the transformation from input to final output. We know that time is money and thus reducing time decreases costs.
It is specifically NOT: adding costs to the process decreasing quality rushing the work working longer hours
It IS making processes: effective, by producing the desired results efficient, by minimizing the resources used adaptable, by increasing flexibility and ability to adapt to changing customer and business needs
Cycle Time reduction enables businesses to focus on the customer as it: Better predicts and controls change Improves use of resources Effectively manages interrelationships Provides systematic view of organization's activities Maintains focus on process Develops complete measurement systems Helps employees understand how input becomes output Helps employees understand how good you can get
Cycle time reduction has the biggest impact when it focuses on core business processes.
That means: Linked to external customers Related to internal and external customer complaints Potentially high cost If improved it will provide a competitive advantage Cross functions Inherent to the company's competitive advantage
Many companies look at process improvement, and specifically cycle time reduction without considering the implementation of the new process. Without this component, great work and a lot of time go to waste. Maybe more importantly, the employees who participated in the process feel devalued. The best approaches include swift implementation of the new process, and careful measurement and follow-up.
A correctly implemented process that is management driven, employee supported, and customer focused will deliver a significant return on investment.