Most banks and financial organizations have already described their business processes and have developed detailed graphical models and regulations. After this stage the objective of business process optimization and improvement is stated. The principle of continual improvement is one of the main principles of quality management and is a standard approach to basic techniques of process management.
A lot of various innovations, technologies appear in banking sector nowadays, requirements of customers and market environment are changing. There is a need in effective methods and tools of organizational development, business reengineering and management.
There is a method of business process optimization based on the experience of implementation of consulting projects and on a complex standard business model of a bank (a financial organization). This method consists of 6 stages:
- Defining of problems and problem KPI indexes in business processes
- Gathering of indicator values of KPI (“as it is”)
- Analysis of reasons of the problems and choosing of methods of business process optimization
- Implementation of methods of business process optimization
- Implementation of optimized business processes in practice
- Gathering of indicator values of KPI, comparing of values before and after optimization
To provide the analysis and optimization of a business process it is necessary to form a team consisting of:
- A business analyst (technologist) implementing work in the system of business modeling;
- An owner of a business project (a chief manager);
- An expert who has a significant experience of working in a business process;
- Representatives of other departments of the bank (financial organization) depending on the chosen direction of optimization.
Defining of problems and problem KPI indexes in business processes
The first important thing to do is to localize the problem (or problem KPI indexes) of a business process. Sometimes owners or chief managers set the objective to optimize a business process, however they cannot define the problem distinctly. It is recommended to use 4 groups of typical KPI indexes of a business process:
- Time
- Costs of a business process
- Quality
- Productiveness and effectiveness.
Gathering of indicator values of KPI (“as it is”)
After localization of the problem and choosing of problem indexes of KPI it is necessary to measure them and to get values “as it is”. Values of indexes can be got manually or automatically.
Analysis of reasons of the problems and choosing of methods of business process optimization
In order to analyze reasons cause and effect diagram is used. Two models are developed: cause diagram and effect diagram. They are very convenient for classification, discussing and making decisions concerning optimization of business processes.
After the analysis methods of business process optimization are implemented, improved business processes start functioning and comparing of values before and after the optimization is provided.