What exactly is business process improvement?
According to the Tech Target`s definition business process improvement (BPI) is a strategic process of improving businesses planning approach towards their operations or employees in order to enhance the straightforward procedures, more productive workflow and overall business expansion.
The process is systematic, can reduce cost and improve a cycle time by as much as 90%. The quality of goods or services can also improve as much as 60% or more. The business processes improvement approach is to do things right in the first place rather than doing the right thing later. It is the attempt to reduce variations and waste in organizations processes to produce a better outcome.
Better Management Tips
Business processes are the foundation of any business. Managing these processes and planning effective improvements most commonly starts with mapping all important processes and doing a thorough analysis in order to see which processes require special attention, are the biggest time consumers and are causing most delays. After detailed analysis these processes need to be redesigned in such manner that their change is significant enough so it could impact the organization’s performance.
Business processes management works by previously defining, who the company is, what it does, and why they do it. It is also important for the organization establish who they serve. Determining an organization’s customer base is essential in targeting the correct market. Precise targeting saves valuable time and reduces wasted resources. It is also important to have predefined sets of goals and constantly re-ask the question “How can we do things better.”
Setting up Custom Business Processes with help from Employees
When setting up your business system you may need to make sure that it also supports the vision of the organization itself, and it may need to include a comprehensive staff development program. The staff should have the knowledge of quality control standards and the functions of all parts of the organization. An easy to understand business training program available for all personnel is also a must. These training programs can be courses or even associate`s degrees in business administration that will keep the staff members engaged in training so they won’t lose interest. Human resource development is an important part of the system in that it develops job descriptions, helps set pay rates and develops a training program.
Other Areas where Process Organization Matters
Every organization has many other areas to be concerned about in regards of the development of business processes. The financial area and making enough profits is equally important in order to stay in business. Sales and marketing are also vital sections in the organization hierarchy. Not to mention the operations department is where the actual goods or services are produced, usually called the backbone of the organization.
A person in charge of the new designs of all the important processes must keep in mind that the objectives of these business process updates must correlate to the goals previously set in the business plan. Another plan that achieves the high performance standards set by the organization should also be included.