What We Are Unaware of about Costly Business Process Optimization

Posted by Bob Loblaw on Wed, Mar 20, 2013

The importance of Business Process Optimization may surprise you. We can call it process management or process improvement but in either case the fact that as an organization businesses need to have a concrete view of their purpose, how they execute that purpose and, who they are going to be during that purpose. The various systems of business process improvement begin by looking at the above mentioned aspects along with who the business is designed to serve as its customer base and determine whether the business aligned to do so in a profitable manner.

The purpose of aligning the processes is a matter of quality management, productivity and competitiveness in the environment or genre of the business. Taking a closer look, we have a four part system where the processes function. It is the management system where we find the business leader, the process owner, the operations manager, and finally the process operator. What needs to happen between these aspects is a cohesive alignment that will perpetuate the goals and desired outcomes of the business.

Business Process Optimization

Breaking these areas down further, we have the leader who creates the overall plan for the business accompanied with the planned resources that help with the successful execution of the plan. We have the owner of the process next who designs the processes to achieve the objectives set forth by the leader. Next, we find the operational manager who is the broker, so to speak, who brings the resources and the processes together to follow the plans and meet the objectives of the business. The final component is the process operator. They learn and perform the processes necessary to meet the planned objectives.

There is an internal process performed at the operational managing level that looks at key performance indicators that illuminate possible areas of lag in any of the functions performed at the operator's level. However, at this level the indications may point to any number of things that have either a direct of an indirect impact on the outcomes. This is why the identification and awareness of any bottle neck affect i.e. broken or poorly designed processes can help profitability. On the other side of the coin, if a business is unaware of any type of process issue it can hurt the revenue intake by increased expenses.

Therefore, there is a need for periodic process audits to ensure culpability of the overall processes. It is too easy to function within a comfort zone and not know the risks of the things that we do not know exist. If you have questions as to how to find out more about process optimization contact us and we will help you find a solution to any potential issues.

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