Process Owner Participation in Process Mapping Projects

One of the most important predictors of success in a process improvement project is the level of process owner participation.  We always use a cooperative approach with our clients.  Process owners and mapping team members need to be trained and educated throughout the process development cycle.  This will lay the foundation for continuous improvement of the newly developed business system.  Bringing in a consultant to document and improve processes without the full participation and cooperation of the client’s process team will be a fruitless exercise.  Only your employees, under the consultant’s guidance, can capture, develop and improve their processes.

Business Process Reengineering

Companies often stagnate or simply fail to grow because they have become lost in overly complicated processes and suddenly realize that they no longer have control over the organization.  When this happens, companies that wish to thrive will have to make improvements to their business processes and may even benefit from a “clean slate”.  In the corporate world, wiping the slate clean is commonly referred to as “business process reengineering” or “business redesigning”.

Business process reengineering is a one way in which a company can make much needed improvements that will address any ineffective business processes and that will optimize it’s efficiency.  The concept of “process reengineering” came into existence in the early 1990’s when Michael Hammer and James Campy published “Re-engineering the Corporation”.  

In their best-selling book, they claimed that the majority of companies encountered two critical problems:  reducing costs and optimizing the quality of their service.  Hammer and Champy also felt that information technology would play a definitive role in companies implementing positive changes in their existing, yet faulty processes.  The book proposed the idea that companies could make amazing changes and improvements to their business processes by reorganizing, restructuring and essentially starting fresh. 

Principles of Business Process Reengineering
In “Reengineering the Corporation”, Hammer and Champy promoted seven principles that they believed would help companies lower expenses and increase productivity.  Today, many companies adhere to these seven principles, which can best be described with one word – downsizing.  When companies become too large or are saturated with redundant processes, they will usually decide to:

• cut back on their workforce
• replace workers with technology
• streamline and condense processes
• prioritize processes and eliminate processes that no longer work

Unlike the practice of business process improvement, companies that are in the midst of reengineering are starting from the very beginning, focusing on the processes they utilize today and ultimately hoping to wipe the slate clean.  The overall objective for business process reengineering is to make radical changes in an organization that will lead to financial stability, continued growth and increased effectiveness.

The Importance of Business Process Improvement

In order for a business to make money and to remain effective over time, leadership must continually plan and oversee the organization from the top-down.  If businesses have a clear understanding of their day-to-day operations and processes, they stand a better chance of long-term success.  A crucial component in understanding, solidifying and enhancing operations is a practice known as business process improvement.

Business process improvement is defined as a systematic approach that allows companies to optimize their core processes in order to obtain the most efficient results.  When companies engage in process improvement, they will start to define: 

-          the goals and objectives of the business itself

-          the purpose of the business

-          who their customers really are

-          what strategic improvements need to be made 

-          which processes should be improved or eliminated to ensure maximum efficiency and profitability

When it comes to business process improvement, the overall goal is to determine which company processes are the most efficient and what processes are problematic.  The company will then be able to determine the steps it needs to take to reach its’ goals.  For example, in cases where a company has inefficiencies or is spending too much money on resources that it does not need, it would evaluate how to best improve its process so that it is efficient and able to maximize its’ performance.  Business process mapping is typically used to achieve these goals.

How Can Business Process Improvement Aid Company Performance?
In today’s struggling economy, more and more businesses are starting to realize that in order to survive they must improve their existing processes and address areas of concern.  Often times, businesses struggle in one way or another, whether they have poor customer service or their sales are simply down.  If a business wants to correct problems and optimize its performance, it will have to take a close look at its existing processes and start making improvements.  

Process improvement begins when a company identifies its problem areas.  The company must then document and measure how these problems are adversely impacting business and revenue.  Finally, the company must manage the problem and find effective solutions.  By finding solutions, the company will make necessary improvements and will ultimately perform better over time.  When business process improvements are implemented correctly, the end result is usually higher performance and increased monetization. 

What is Business Process Analysis?

In the world of business, one thing is always certain and that is change.  Businesses are always looking to evolve and the key to evolving is making strategic, yet beneficial changes.  Change allows companies to improve processes, to expand in new directions and to remain up-to-date with the times and technology.  In order for companies to identify and recognize areas for possible change, upper management and business analysts will frequently conduct a type of review known as business process analysis.

Business process analysis is the activity of reviewing existing business practices and changing these practices so that they fit a new and improved process.  By conducting process analysis of a business, companies can remain efficient, streamline work flow and become more effective in their verticals.

How Business Process Analysis Works
Every operation is comprised of process systems, then individual processes and every process is comprised of a series of tasks or activities.  In order for businesses to deliver a quality product or provide a wanted service, they must utilize a set of effective processes.  When a company’s processes are improved and efficient, numerous things will happen.  First, the company will have reduced or lowered costs.  Second, the company will perform at a higher level.  Finally, the company will be able improve its bottom line.

In cases where business processes are problematic or need improving, the company will usually suffer from high overhead costs and will lack incoming revenue.  In order to avoid further financial setbacks and losses, the company will then have to analyze its processes and make improvements where necessary.

The first step in business process analysis is understanding every activity within a process.  This can best be accomplished through process mapping.   After processes are mapped, business professionals will have a visual that they can review and analyze.  They can then start to suggest effective solutions that will improve the day-to-day operations of the business.  If a more aggressive approach is needed, the business may consider future state mapping.  When done correctly, business process analysis can help companies implement appropriate changes that will decrease operational costs while increasing long-term profitability. 

The Value of Learning Business Process Mapping

What is the value of taking a training course on business process mapping in today’s economy?  Process mapping is an in-demand skill set and a fast growing professional discipline.  Streamlining operations not only improves work flow and staff communication; it offers a total organizational solution to improve overall productivity and bottom-line profitability.  

 

Process mapping breaks down an overwhelming workload into manageable and understandable pieces.  It eliminates time wasted by rework and redundancy, and adds clarity to roles and responsibilities of all team members.

Good Process Owner, Bad Process Owner

Clients often ask,”How do we select the right process owner?”  While we have a list of selection criteria for our clients, and work closely with them to make the right choice, the fact is that you never really know how someone is going to work out.  The goal is to train and educate a group of process owners that will continue to actively manage their process, and work with their colleagues to continuously improve their process — long after the consultants have left. 

Typically, a good process owner will be someone who is respected by their colleagues and has good “people” skills.  Ideally, they are committed to the process improvement project and have a thorough understanding of the technical and practical aspects of their process.

Still, we continue to be surprised by human nature.  Some of the best process owners we have worked with initially appeared to be poor choices for the role.  Sometimes, circumstances dictate that our clients select individuals who don’t meet the selection criteria.  For example, one long term employee, eternally grumpy and set in his ways, surprised everyone by turning into a passionate, committed process owner.

But what if a process owner fails to rise to the challenge?  It’s better to change process owners as soon as you see a problem, rather than waiting to see if things work out.

Looking At the Organization from the Enterprise Point of View

When you think of a process based system, what comes to mind?

a. manufacturing

b. strategic plannning

While most business executives automatically think of manufacturing, leadership must look beyond the traditional areas of the organization.  In today’s economy, developing a process based organization that includes executive processes is a must.  Smart leadership means looking at the organization from an enterprise point of view.  The key is to lead by example and stay ahead of the competition.

Executive processes such as strategic planning, risk management, resource and capital management, leadership review, enterprise wide improvement and others are vital to the success of the organization.  Yet, not enough companies have implemented processes at this level.

To learn how Business Enterprise Mapping plans to address this issue, click here:

The Drug Industry Plays Catch Up

In a recent issue of Pharmaceutical Manufacturing Magazine, John Walker, a Program Director at Business Enterprise Mapping Inc., was interviewed regarding the imminent emergence of the ICH Q-10 standard for Quality Management Systems (QMS) in the pharmaceutical industry.

In the interview Walker emphasized that several other heavily regulated industries have already successfully made the transition to an ISO 9000-based QMS and that all approaches to implementation are not equally efficient and effective. Properly implemented, the transition is enormously beneficial to the enterprise and fully consistent with best business practices. Conversely, if approached solely as an onerous compliance imperative, the whole exercise can be an expensive, non-value-added chore. Caveat Emptor!

Business Enterprise Mapping’s approach is unanimously considered best-in-class by those accredited third-party auditors that have encountered it.

See the full article at:

http://www.pharmamanufacturing.com/articles/2008/058.html

Are You Ready for Future State Mapping?

A surprisingly large number of organizations have yet to document their processes in a formal way.  So the idea of future state mapping may sound like a shortcut to process heaven, especially if your processes are out of control.  What is future state mapping?  It is, in a nutshell, creating the desired state for a process.  Who should consider future state mapping?  Candidates could include start ups or new departments who have no processes in place; companies who need drastic change to improve the bottom line and those about to implement substantial solution integration.

Future state mapping requires creativity, brainstorming and process expertise.  We have seen the best results when we work with cross functional teams composed of positive thinkers with a can-do attitude.  Human beings tend to limit themselves, based upon their individual experience.  So it can be daunting to remove “inhibitors” from the creative process, even when these inhibitors have been identified during current state process mapping.  But to achieve future state, we must take a leap of faith and imagine processes without financial limitations or resource constraints.

Enterprise Mapping: A Foundation for Six Sigma

Six Sigma must have a defined system in place in order to be successful.  Failure to define the enterprise at both the system and process level can make or break a six sigma initiative.  Process maps are much more comprehensive than flowcharts, and are not only an essential tool in the first phase (Define) and last phase (Control) of Six Sigma’s DMAIC methodology, but also affect the other three phases.  For example, without a defined process in place, there is lack of consistency, so measurements may be invalid.  This can then lead to flawed root cause analysis, and subsequent faulty conclusions. Process maps address the key foundational concept of Six Sigma: the concept of Y = f(X), or simply put, outputs, or product, are a function of inputs and process.  In many cases, the absence of a process map can delay or cause a project to fail.  A well-developed process map can help avert these failures.  It can serve as an effective communication tool and be a constant reminder of where an organization should focus its time and energy.