Before talking about what business process optimization is, let’s clarify what aspects of a company’s activities can generally be attributed to this category. A business process can be called a regulated sequence of actions of several employees, aimed at obtaining a certain result that has value for the customer of the process.
Optimization of business processes involves the improvement of activities in order to choose a path that will help achieve the goals of the organization. Among the most common reasons for optimization are the following:
- reducing the time to complete the operation;
- reducing the cost of goods, services;
- improving the quality of service and, as a result, customer satisfaction;
- achieving transparency of operations, resources and their allocation;
- achieving increased control over the activities of the organization;
- improving the management and planning system.
Ways To Improving Business Processes
When optimizing business processes, there is a comprehensive implementation of new technologies that help to model and implement changes in the existing organizational structure of the company.
Step 1: map the process
The task for fulfilling this rule is the grouping of business processes for high-quality and efficient work. First, you should select all the available processes, divide them into groups and form an icon according to the parameters:
- duration of activity;
- the result of activities in numbers;
- achievement of the product/service in the market;
- market risks;
- business specifics;
- the number of departments, employees and managers in each;
- functioning of business processes.
The resulting map clearly shows all the positive and negative aspects of the company’s activities and mistakes.
Step 2: analyze the received data
You can talk personally with each employee and find out what difficulties they face in performing certain tasks and think of what suggestions for improving the work there can be. Your task is to figure out exactly what gaps you can fill and what problems you have to solve. During the problem analysis, determine if the business process will improve if the alleged problem is fixed.
Step 3: redesign the process
Think about how you can improve or change the processes that hinder the development of the company. Perhaps, the company doesn’t use new modern technologies and the resources of its employees are no longer enough. It may be necessary to expand, or vice versa, to reduce the staff. Depending on the nature of the identified problems, an individual set of methods can be:
- exception – elimination of interference, rejection of part of the stages of the process, reduction of transport routes;
- simplification – reducing the complexity of the structure of work, organization, product passage along the path of the business process;
- standardization – software, technologies;
- reduction – additional costs, time of technological operations;
- acceleration of work execution;
- change – methodology, technology, work systems, materials, assessment parameters;
- increasing interactions, coordination of actions of organizational units: departments, employees;
- highlighting and adding the necessary elements: processes, tools, documents.
Step 4: implement changes
After the problem areas have been identified and solutions have been found, it’s time to start implementing these methods in life. Keep all employees informed about the innovations, because in order to step on a new modern path of development and increase profits, you should work together.
Don’t expect instant changes. Business process optimization is a long-term process. You can conduct a survey of employees in order to find out how innovations work in certain areas, what to remove and what to add to your plan. Your task is to find and adopt continual improvement strategies to ensure that systems are in place that promotes positive interaction between all critical components of the process.
Be prepared for the fact that not all employees will accept the innovation and respond positively to the optimization. Discontent with innovations is normal. Employees resist change for several reasons: the common human desire to maintain stability; fear of possible layoffs; an increase in the workload (efficiency) of an individual employee. The task of the manager is to provide information support to employees, to explain the advantages of the innovations being introduced. And take it easy on the fact that some of the disloyal employees will not be able to win over to their side, they will have to be replaced.