Poor Business Processes

Inefficient business processes have five times more impact on the customer than the delivery of a poor product. 

Processes

A process is defined as a group of activities that convert inputs to outputs by using organizational resources. Every organization’s processes vary on a scale from effective to ineffective, and efficient to inefficient. 

How often have you received an adequate product but the customer support was so poor you never bought another product from that company?  

Process improvement methodologies can result in tremendous direct savings to an organization’s supporting processes. However, the greatest benefit comes in an overall improvement of the image of the organization as it is held by the customer. An improved image can bring about huge savings and improved market share. 

The Facts

What did the BP Trends 2012 State of the BPM Market survey reveal about Business Process Management?

- 52% stated their organization had never or occasionally developed performance measurements to evaluate the success or failure of business processes.
- 49% stated their organization had never or occasionally defined and documented the skills needed to perform the tasks in the major processes.
- 59% stated their organization had never or occasionally trained managers to analyze, design and manage business processes.
- 53% said their managers never or only occasionally use performance data to manage their processes.

Symptoms of Inefficient Business Process Management and Design:

- Lack of a standard process to address business requirements and business process improvements.
- Unmet expectations for business processes.
- Poorly implemented business processes that resulted in lack of training and communication in the use of the process.
- Highly reactive organizations creating business processes due to issues at hand instead of creating proactive processes to eliminate potential issues.
- No continuous improvement process for maintaining business processes.

Successful Business Process Analysis, Design and Implementation Projects:

- Understand the business architecture - Business Process, Metrics, Strategy and Goals.
- Engage stakeholders and define process ownership.
- Utilize internal SMEs to develop processes.
- Use proven process design methodologies to ensure consistent design and implementation.
- Prioritize projects.
- Create well-designed roles and responsibilities.
- Incorporate continuous improvement processes.
- Celebrate small wins gained from process improvement.
- Perform periodic process reviews to remove non-value added activities.

Cost Savings of Business Process Management:

- Reduced order to cash cycles
- Reduced Process Costs: 10-15%
- Increased quality / reduced number of errors: 20-30%
- Reduced process throughput times: 10-30%
- Reduced training time / expenses: 10-30%
- Reduced number of (internal) support requests: 15-30%
- Reduced number of customer complaints: 20-30%
- Increased forecast accuracy: 15-30%

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