Finding Process Improvement Benefits

Identifying, analyzing and making changes to businessresults in time saved. That time saved my result in the
processes takes time and effort, and incurs expense.need for less people or more often it frees up time for
Changing how things are done impacts roles andexisting people to focus on higher-value and revenue
responsibilities and can trigger employee resistance.generating work. Looking for efficiency involves looking
Before embarking on process reviews and changes, itfor unnecessary hand-offs, storing of information
is wise to consider the types of benefits you mightnever used again, unnecessary approval processes,
gain.processing rules that made sense once but are no
Each organization is different and the actual benefitlonger of value and of course ways to use technology
numbers will vary, but below are some commonto reduce manual handling.
benefit areas to be aware of and better yet to plan- Get rid of invisible reporting processes. Over time,
for.requests from management for information or reports
Revenue generating benefits. These are opportunitiescan lead to tremendously time consuming efforts of
to change current processes and practices to directlyquestionable value. What reporting and information
or indirectly increase revenue. These benefits aregathering is done in your organization? Are the reports
often the hardest to achieve as the changes neededused anymore? Is the method to create useful reports
usually break current mindsets and can fundamentallyas efficient as it should be?
change roles and responsibilities. They often also have- Onboard and train people faster. Documentation that
the highest payback. Here are some examples: makes processes easy to find and easy to use
- Upsell opportunities. A telecom company wants toreduces the training time for new people and the
have its call center staff sell more products to existingpeople that have to train them. Getting new hires up
customers whenever they deal with a customer. Theand running faster means they are also working on
process review, analysis and design work will focus onclient revenue activities that much sooner.
building in the analytic processes (and technology)- Reduce key-person syndrome. Improve the ability for
necessary to ensure call center staff know exactlythe office to function effectively if one or more of the
what products the client has and what products mightteam is away. Small businesses are particularly hard hit
be of interest, as well as adjusting the trainingwhen a team member needs to be away. Good
processes and performance management processesprocess documentation makes it far easier for
necessary to skill and incent the call center staff.someone else to step in and handle their work.
- Improved products and new product opportunities. InRisk reduction or risk reaction benefits. There is little
this example a retail organization believes its owndoubt that this is a growing area of process work.
customers hold the key to identifying improvementsBenefit areas include: 
needed in the current products and in identifying new- Security of data, premises and people
product opportunities. Given its target markets, the- Ensuring privacy of customer/client data
organization knows it needs to include social networks- Meeting regulations
in its product development strategy. The processThe ultimate benefit to risk reduction or being able to
review, analysis and design work will focus on howreact to a realized risk, is maintaining the organization's
best to expand its current engagement processes toreputation. Fines can hurt but rarely kill an organization.
leverage social media. The organization has proven inBut if customers, clients or funders lose faith in your
the past that customer-focused product changes andability to provide the product or service they expect,
development leads to getting higher revenue peryou may never recover.
product and getting it faster.Process review and redesign to build in the needed
- Client experience and business reputation. In thiscontrols, checkpoints and governance are often
example, a financial services organization wants torequired. The trick is to balance the cost of the
ensure its target market of high-wealth clients receivesprocess work, and the ongoing execution of the
exemplary service. In their target market there is achanged processes, with a realistic assessment of
strong correlation between the experience of thevarious risk scenarios actually happening. It is far too
customer and their willingness to do and grow theireasy to paint emotion-laden pictures of horrific
business with the organization. In this case the processhappenings that sway leaders to build in process
review, analysis and design work are focused oncontrols that are just too heavy and ultimately hurt the
identifying the business processes from the customers'organization's ability to run efficiently. Worse,
perspectives, ensuring that all customer touch pointsprocesses heavy with rules and controls are the ones
are identified and that the internal functional processespeople most often don't follow, defeating the purpose
are seamless from the customers' perspective. Theof the process work in the first place. In some cases it
organization needs a reputation of service excellence,is better to have a process to react to a risk when it
effectiveness and efficiency to attract and keep itshappens than to have a heavy process that tries to
target market.eliminate or reduce the risk.
These are just 3 examples. What examples can youMeasurement benefits. Process reviews and
imagine for revenue generating process improvementsimprovements provide an opportunity to define and
in your lead generation processes, your productbuild in key metrics for processes. It really is true that
placement processes or your sales processes?you can't manage what you can't measure. More
Cost saving or cost avoidance benefits. These areimportantly you can't improve if you don't know how
process and practice changes that allow you tothings are currently working. Having the ability to
remove costs from the organization or to delay ormeasure current reality sets the stage for continuous
avoid new expenses. This is where processimprovement. As with process work to reduce risk, it is
improvement efforts are often focused. Everynecessary to carefully assess what needs to be
organization should be looking at running as efficientlymeasured and ensure it can be done efficiently without
as possible. Remember though that no organizationadding unnecessary weight to the process. Beware
has ever cost-cut their way to roaring success!the seemingly endless human desire to create and
Here's some benefit areas to look for:consume statistics whether they add real value or not!
- Improve the efficiency of work in the office. AnyProcess review, analysis and redesign work can and
changes and improvements to your businessmust result in benefits that surpass the cost of the
processes that make it simpler and faster for yourwork to change the processes. Make sure you are
team to get their work done or to coordinate on taskslooking in all the right places for benefit opportunities.