Tag Archive for 'Process'

Re-Discover Your Business

An organization, be it a business, a school, a government agency, is a collection of processes. These processes are the natural activities you perform that produce value, serve customers and generate income. Managing these processes is the key to the success of your organization.

Unfortunately, most organizations are not set up to manage processes. Instead they manage tasks. Think about it. Isn’t your company organized around functions. . .the accounting department, the engineering department, the sales department, the customer service department?

As a result, people tend to focus on “local” concerns instead of the “global” needs of process customers. Sub-processes evolve within departments without consideration of other functional areas. Layers of communication and management are created to ensure desired outcomes, thereby adding to costs and lengthening cycle and customer response times.

Inefficiency and waste become part of the system. They rob your organization of profits, productivity and its competitive advantage. But, there is a way out.

Process mapping is a simple yet powerful method of looking beyond functional activities and rediscovering your core processes. Process maps enable you to peel away the complexity of your organizational structure (and internal politics) and focus on the processes that are truly the heart of your business. Armed with a thorough understanding of the inputs, outputs and interrelationships of each process, you and your organization can:

  • Understand how processes interact in a system
  • Locate process flaws that are creating systemic problems
  • Evaluate which activities add value for the customer
  • Mobilize teams to streamline and improve processes
  • Identify processes that need to be reengineered

Properly used, process maps can change your entire approach to process improvement and business management. . .and greatly reduce the cost of your operations by eliminating as much as 50% of the steps in most processes as well as the root causes of systemic quality problems.

Improving a Process

How do you know when to reengineer a process? I get this question posed to me during every engagement, usually about a specific process, and mostly from company executives and managers whose business has stagnated. As people start to view processes as a critical success factor for business, they naturally want to improve their processes to better fit their way of managing the business.

Business management is process management. If your management style does not include process management in your organization, it should.

Here are some factors to mull over when deciding how to handle a process change:

  • size of the change,
  • number of and specific people involved,
  • your organization culture,
  • single or multiple organization involvement,
  • complexity of the current process,
  • can technology be applied,
  • impact of results you seek.

You must question each step of your process. Getting down to whether or not each step adds value to the overall process, is a painstaking process in itself. Ask yourself when deciding to reengineer, whether you have the knowledge, the time, and the patience to walk through all the steps one by one, probably with multiple groups multiple times. While your department, division or management group may have something to gain, another group may end up feeling like they lost. Remember, just because you have figured it out and realize great savings can be had, your peers and associates may well take some hard convincing. So improve that process when you see huge gains from cutting or mutating many steps, when your change may make the difference between success and failure, or when adopting a new technology will allow you to leapfrog your current, out of date, processes.

Performance Management and IT Strategy

Last summer there was an explosive article in the Harvard Business Review IT Doesn’t Matter by Nicholas Carr, on how IT may go the way of the railroads. So what should companies do? From a practical standpoint, the most important lesson to be learned may be this: When a resource becomes essential to competition but inconsequential to strategy, the risks it creates become more important than the advantages it provides.

Well, Bloor Research in Performance Management and why IT doesn’t matter states the problem is in converting strategic thinking into tactical action.

So, the core question is whether senior executives are any good at developing corporate strategy? All the evidence suggests that, with only a few exceptions, they are not.

In the long run, though, the greatest IT risk facing most companies is more prosaic than a catastrophe. It is, simply, overspending. Studies of corporate IT spending consistently show that greater expenditures rarely translate into superior financial results. In fact, the opposite is usually true. Organizations have a perverted thinking that if they have “the latest and the greatest” software and hardware, they are on the leading edge of IT strategy. Wrong!

Value Management

A “namesake” article in the latest issue of CIO magazine, about the value created by projects: Don’t Stop Thinking About the Value.

CIOs know that project implementation success rates are woefully low. So once a project comes in on time and under budget, CIOs think they’ve won the battle and can move on. Wrong. Here are some strategies for wresting value from systems long after they’ve gone live.