Business Process Optimization Fundamentals
What is Business Process Optimization?
Business Process Optimization is the targeted redesign of core processes to promote efficiency and strengthen the alignment of individual processes with overall strategy and goals.
While the optimization of a single processor of the processes in a particular department can yield real business improvement, organizations that broaden their efforts across the entire organization can see a significant competitive advantage, better customer service (internal and external), and much more efficient operation.
Planning for Process Optimization
Whether or not you have fully-documented current state processes or if the current processes are undocumented but well-internalized. At the outset of a process optimization initiative, align your team’s understanding of your strategies, and make sure everyone understands the following:
- The primary business goals of the process.
- The non-negotiable constraints placed on the process.
- The strengths and weaknesses of the process as currently performed.
- Acceptable optimization strategies for preserving/enhancing strengths and mitigating/eliminating weaknesses.
Example Process Optimization: Manage Client Contracts
Let’s look at a process optimization project example.
You should be able to apply this framework to any process you’re planning to optimize.
Start with The Low Hanging Fruit
Smaller optimization projects may be led centrally or by self-organizing teams within a department or across departments that participate in a bigger process chain. These projects can make substantial improvements by addressing the low-hanging fruit.
Example: Eliminate Off-system Work
Many businesses spend considerable capital and effort when implementing modern enterprise systems that automate business processes that were formerly performed in isolation and sometimes on paper. However, off-system work sometimes persists.
Consider the following simple off-system example:
When a new customer is onboarded, a series of tasks need to take place. Currently, those tasks are handled manually. The salesperson enters the information about the customer, including the contract, into the CRM system. They then send an email to the customer service team, the finance team, and the marketing team.
The customer service team needs to assign an account rep, the finance team needs to collect a payment, and the marketing team needs to send out a welcome kit. The process relies entirely on the salesperson to remember to contact all the relevant groups and those relevant groups to remember their tasks.
Initial optimization of this manual process might be to automatically trigger a workflow at customer signup that sends notifications to each group along with the basic information needed to perform their tasks. Then, as each group completes their task, they click “Complete” in the workflow.
You build this process, launch it, test it, then evaluate it after a set period of time. You find that the process has become more optimized, predictable, and accountable than the previous method. You could stop there and have a positive impact.
But what if you dig deeper? What if the contract is automatically attached to the notification to finance? What if the process assigns an account rep automatically based on the type of customer? What if a welcome email is automatically sent to the customer?
Through rounds of this kind of build/test/evaluate cycle, you are gradually optimizing the process and delivering more value.
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Connect 2 BPO S.A.S is a Business Process Outsourcing company established in 2016. We develop, execute and manage campaigns for businesses around the world.