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Consultancy Services - Process Improvement
In an organization, process improvement is a series of actions taken by a process owner to identify, analyze and improve existing processes within an organization to meet new goals and objectives. These actions often follow a specific methodology or strategy to create successful results. Process Improvement is a method to introduce process changes to improve quality, reduce costs, or accelerate schedules.
  Business Process Improvement
Business Process Improvement (BPI) focuses on "doing things right" more than it does on "doing the right thing". In short, it attempts to reduce variation and/or waste in processes, so that the desired outcome can be achieved with better utilization of resources.
Business Process Improvement works by:
  • Defining the organization's strategic goals and purposes (Who are we, what do we do, and why do we do it?)
  • Determining the organization's customers (Who do we serve?)
  • Aligning the business processes to realize the organization's goals (How do we do it better?)
The goal of Business Process Improvement is a radical change in the performance of an organization, rather than a series of incremental changes (compare TQM).

  Key considerations:
  • Processes need to align to business goals: An organization's strategic goals should provide the key direction for any Business Process Improvement exercise. This alignment can be brought about by integrating programs like Balanced Scorecard to the BPI initiative.
  • Customer focus: Fast-changing customer needs underscore the importance of aligning business processes to achieve higher customer satisfaction. It is imperative in any BPI exercise that the "Voice of Customer" be known, and factored in, when reviewing or redesigning any process.
  • Importance of benchmarks: BPI tools place a lot of emphasis on "measurable results". Accordingly, benchmarks assume an important role in any BPI initiative. Depending on the life cycle of the process in question, benchmarks may be internal (within the organization), external (from other competing / noncompeting organizations) or dictated by the senior management of the organization as an aspirational target.
  • Establish process owners: For any process to be controllable, it is essential that there be clarity on who the process owners are, and what constitutes success/failure of the process. These success/failure levels also help establish "control limits" for the process, and provide a healthy check on whether or not a process is meeting the desired customer objectives.

 
 
 
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