|
Business processes constitute a significant portion
of an organization's operating costs. And the more bureaucratic an
organization is - the greater the potential to reduce operating costs.
Management silos (hierarchical structure) can be devastating to an
organization's performance and cost structure. Walls need to be torn
down, and the internal customer/supplier model embraced.
Unfortunately, line and staff departments have become too myopic or
insular. Process management is imperative in order to manage and improve
cross-functional business processes. And the more process-centric an
organization is - the more performance-driven it will be. If you think
you can be customer-centric, without being process-centric - think
again. Processes must put the customer first.
Process Management Introduction
The stark reality is that processes (especially cross-functional
processes) are usually not documented, not systematically and
continually improved, and not managed. So why improve and manage
processes? Simply, processes are the fundamental building blocks for
achieving business results, and streamlined processes are critical to
building and maintaining a competitive edge.
When I ask a client to give us a snapshot of their business, the
discussion usually starts off with their history, an overview of
products and services, core capabilities, and even their customer base.
Along the way, an organization chart is typically thrown into the fray.
But, perhaps the most revealing snapshot of all is an "organizational
map" that shows the interrelationship of company-wide key business
processes.
An organizational map is a top-level blueprint of the fundamental
structure for an enterprise. This macro-level flowchart shows the
interrelationship of business processes at a twenty-thousand foot
elevation. It is the foundation from which to build an agile,
competitive organization. Yet, alarmingly few organizations have taken
the time to construct this "capstone" document.
Process Management begins the process of visualizing the organization as
a whole - determining how one aspect of the system affects another.
Leaders need to extend their vision beyond the project or function -
beyond their department - to see the organization through a new set of
glasses. They must focus on those key business processes that affect
business objectives and critical success factors. Leaders must be
visionary, and they must see the world anew.
Process Management Focus Areas & Tools
There are three general focus areas. These are: (1) making business
processes effective - producing the desired results; (2) making
processes efficient - minimizing the resources needed; and (3) making
processes adaptable - being able to adapt to changing stakeholder and
customer business needs.
An integrated holistic approach is essential to process management.
Process mapping and flowcharting (down to the task level) are central to
this effort. You can use a combination of several process flowcharting
techniques - process maps, block diagrams, standard flowcharts,
functional flowcharts, and geographic flowcharts. But remember, the
journey starts with an "organization map - a macro-level flowchart."
Process maps provide a composite overview of the business process, from
an organizational context. Block diagrams provide a quick overview of a
business process. Flowcharts are used to analyze the detailed
interrelationships of a business process, and geographic flowcharts
illustrate the process flow among locations.
Process Management Roadmap
A systematic approach (roadmap) is needed to improve business
performance. There are proven strategies, methods, and tools to create a
streamlined organization with a significantly lower cost structure. An
integrated process management approach should link the organization's
mission, culture, business objectives, and key processes.
Our methodology consists of ten integrated tools and/or steps:
1. Bureaucracy elimination - remove unnecessary administrative
tasks, approvals, and paperwork.
2. Duplication elimination - remove identical activities that are
performed at different parts of the business process.
3. Value-added assessment - evaluate every activity in the
business process to determine its contribution to meeting
stakeholder/customer requirements.
4. Task elimination/simplification - reduce the overall complexity
of the process.
5. Process cycle time reduction - determine ways to compress cycle
time to meet or exceed stakeholder/customer expectations, with fewer
resources.
6. Error proofing - make it difficult to do the activity
incorrectly, while standardizing the activity at the same time.
7. Problem definition/solving - utilize a problem solving
methodology (roadmap) that focuses on identifying and eliminating root
causes.
8. Technology/automation considerations - apply technology
platforms and enterprise/legacy applications in innovative ways.
9. Business process reengineering - use a radical approach to
change the process, when the previous streamlining methods have not
provided the desired results.
10. Performance measurement - identify appropriate performance measures
that will paint a composite picture of the business process performance.
Process Management Absolutes
There are a dozen process management absolutes that must be considered
when you embark on a process management journey. You might also view
these as "best practices." Either way, these are critical to success:
• Ensure management commitment upfront
• Create an environment where departments are partners, not
competitors
• Reward cross-functional collaboration
• Take a disciplined, integrated approach to process improvement
• Allocate resources based on process needs
• Link process improvement initiatives to your strategic plan
• Identify critical business issues to drive improvement
• Ensure that product and service processes are customer-driven
• Put comprehensive and reliable process metrics in place
• Define and implement strategies to keep each process measure in
control
• Measure levels of internal/external customer satisfaction for
each process
• Reward individuals for their contributions to process
improvement
For more information on Process Management, visit the Business Process
Management Institute website, a peer to peer exchange for business
process management professionals, at
www.bpminstitute.org
About the Author
Stanley Cherkasky is the Managing Partner of Change Management
Consulting, Inc. Founder of the firm, Stan is the principal architect
 of the Performance Improvement Breakthrough™ methodology, and the Six
Sigma Lean Advantage™—innovative and proven strategies that accelerate
ROI and net income improvement, build customer loyalty, and create
world-class recognition.
Stan has more than three decades of business and consulting experience,
in both the private and public sectors, in the United States and abroad.
Stan specializes in building high-performance teams, and working closely
with senior leaders to achieve breakthrough financial, organizational,
and operating improvement. He has been quoted in many business
publications, including Fortune, Business Week and the Wall Street
Journal.
About Change Management Consulting, Inc. (CMC)
Founded in 1993, Change Management Consulting is a global management
consulting and training company, dedicated to helping organizations of
all sizes improve performance, achieve goals and advance leadership
capability. As a full-service organizational improvement firm, CMC
focuses on organizational and leadership development, compliance
management (ISO 9001 and it’s derivatives), strategic planning and Lean
Six Sigma initiatives.
Headquartered in Wayne, NJ with offices in San Diego, Dallas and
Detroit, CMC has a proven track record in helping public and private
sector clients implement pragmatic continual improvement initiatives
that drive financially measurable results. CMC also has extensive
experience in obtaining grants and funding assistance for its clients.
Learn more at
www.cmc-changemanagement.com or contact CMC at (877) 268-2440 or
(973) 696-7878.
Download PDF for Printing
|
