There are special tools for effectiveness improvement:
- Financial instruments of expenses regulation and rate setting;
- Technical and technological tools of production growth;
- Organizational tools directed to improvement of business process effectiveness, communications, forming up of the value stream
Every tool finds its use, however the third one is hardly ever used as strategic. Not every company has a developed program of business effectiveness improvement.
One of basic concepts of business effectiveness improvement is business process optimization. Principles of such optimization determine success of many companies.
One of this principles say: “Correct process gives a correct result”. But in order to reach it you should know how to come to it.
Sometimes it happens that the meaning and the aim of optimization is not quite clear to employees. And this is one of main difficulties on the way to its implementation. Most companies seldom define certain aims of business process optimization. And very often there’s no correlation between the aims of optimization and corporate strategies of companies.
Using of five 5 optimization objectives can help to set targets of the process. All optimization objectives are connected with each other. For example, quality improvement leads to elimination of expenses and productivity growth, etc.
It is also very important to create implementation strategy. The strategy based on centralization is intended to create special departments and expert teams which are to implement projects on business process optimization. The advantages of such an approach is making less efforts on involvement and trainings, the first results can be achieved quite fast. The disadvantage is that it is more difficult to prepare personnel for business process optimization as it is less engaged into the process
Decentralization strategy is intended to delegate projects to linear employees. This approach takes more time, efforts on training and personnel involvement, but leads not only to business process optimization, but also to optimization of personnel work.
The strategy based on local implementation allows concentrating efforts, implementing pilot projects, gaining practical experience in a business process. The main disadvantage is that optimization is limited. If one area is optimized and the other is not, the difficulties in cooperation between them are possible.
General implementation of the process of optimization in a company requires significant efforts and resources. However, it leads to system changes.