Business processes: constant changing
Some quantity of objects and subjects cooperating with each other under the influence of management actions (instructions, rules, orders, laws, etc.) can take part in business processes.
This means that formalized and well-adjusted business processes can be defined in activities of any company.
However, life goes on. And to stay the course, a company should develop constantly. Even a perfectly formed business process eventually needs to be reorganized. With the course of time the number of participants grows, interior conditions change, outside environment changes. As a result the number of non-regulated cooperation and uncontrolled factors is growing, profit lowers. This process cannot be optimal, it needs improvements.
Business process optimization allows:
- to lower time expenses;
- to lower operational expenses;
- to increase manageability of a company;
- to increase the quality of customer service;
- to reach performance targets.
This process leads to:
- lowering of prime costs of products and services;
- increasing of attractiveness for customers;
- quick reaction to changes;
- competitiveness and sustainability of a company.
When you should make a decision to provide business process optimization?
Optimization should be provided when problems and discontent appear: when the amount of defects is high, increased costs for energy supply pushed up prime costs, documents get lost, customers go to competitors because of a long review of applications. Consequently, the reasons of business process optimization are:
- reclamations of customers;
- dissatisfaction of higher management;
- complaints of performers.
Optimization project includes the following stages:
- project initialization;
- project organization and training;
- project analysis and planning;
- “as it is” process description;
- “as it should be” business process models development;
- Testing of developed business processes.
It is important to mention that support and personal participation of higher management play a key role in any project. The bigger a project is, the more important it is, because only a chief manager can make a management decision about changing of key business processes. Unfortunately, very often business process optimization is provided by process managers (usually middle management) who don’t have enough administrative resources and qualifications to make such important changes in business.