Extract
Evolving business processes is a fundamental part of an organization to guarantee the delivery of value to its clients, optimize its operations and improve its competitiveness in an increasingly dynamic market. Through the characterization, documentation and review of their processes, companies carry out the (re)engineering of its operations to ensure operational efficiency, organizational coherence and continuous improvement in all areas of the organization.
Contents
Basis of Evolving Business Processes
When embarking on any transformation initiative during the business journey, we seek to develop the maturity of business operations to a level that enables a more efficient, fluid and effective delivery of value to the customer.. This implies the constant search for improvements that lead to the achievement of operational excellence and contribute substantially to business success.
To do this, we must have a complete understanding of the business processes and carry out (re)engineering that focuses on analyzing and optimizing the tasks carried out by the organization through the characterization, documentation and/or review of processes to detect and address possible risks and areas of opportunity, and implement improvements that positively impact the profitability of the business.
The creation of a process map in terms of a value chain, which visualizes strategic, tactical and operational processes, provides clear guidance for successful (re)engineering. In this value chain, procedures, roles, functions and responsibilities are related to clearly show the general functioning of the organization in delivering value to its customers and serves as a starting point to characterize, document and/or review production processes. efficient and orderly manner.
Process Characterization: Knowing its Key Components
Process characterization seeks to understand in detail the crucial elements that guarantee proper execution of activities and serve as a starting point to identify areas of opportunities to optimize efficiency, fluidity and effectiveness. The SIPOC method (Supplier, Inputs, Process, Outputs, Clients) is a tool used in process management to help understand and visualize the key elements of a business process considering the following components:
Suppliers: People, departments or organizations that provide the resources necessary to execute the process.
Inputs: Financial, human, material and technical resources that are used as inputs and are necessary or transformed in the process.
Process: Sequence of steps and decisions made in the process to transform inputs into outputs in order to add value.
Departures: Pproducts, services, reports, processed data or other results that meet customer needs or expectations.
Client: Internal or external that receives the output of the process.
This method is commonly represented in the form of a table or diagram to facilitate understanding and communication of the key elements of the process. Each component is listed in a column and relevant details are described in associated rows, allowing teams to identify areas for improvement, establish responsibilities and make informed decisions to optimize business process efficiency and quality.
When performing the characterization exercises, you must be aware thatMany times what you think about a process can turn out to be very different from what it really is.; This is why we must gather a multidisciplinary work team Experience the process first-hand to answer the following key questions:
What is done? (Activity)
Who does it? (Responsible)
How is it done? (Process)
How long does it take you? (Time)
What is needed? (Prohibited)
Who(s) provide it? (Suppliers)
What is generated? (Exit)
Who uses it? (Client)
What element(s) or form(s) of work do not add value? (Waste)
How to ensure that it is done correctly? (Controls)
What failures or unwanted behaviors can be generated? (Risks)
What is unclear or remains to be defined? (gray areas)
How could it be improved? (Opportunities)
These are just general questions to ask to get a complete overview of the process.It is important that organizations analyze and document their processes to ensure the proper functioning of the business.
Process Documentation: Avoiding Errors
Process documentation seeks to standardize execution and facilitate the induction processes (onboarding) of new collaborators that are integrated into work spaces. This step in (re)engineering runs the risk of generating power conflicts between collaborators and departments, since what is written on paper is used as a weapon to promote interests throughout the entire organization.
To avoid this scenario, you must go into detail about how each process is carried out,ensuring that anyone can understand and execute the required tasks, and in turn, identify those responsible for each process, calculate the appropriate and realistic times and conditions for its execution.
Process documentation will not make an organization perfect. There will always be errors of many types within the processes, the most important are:
Humans: Related to human nature; can be addressed with training, awareness and accountability mechanisms.
Forgetfulness when the person is distracted.
Delays when the person procrastinates.
Carelessness when the urgency of the moment hits.
Omissions when you lack adequate experience and knowledge.
Sabotage when acts are carried out with premeditation, with advantage, with treachery or as a form of betrayal.
Materials: Related to supply; can be addressed by developing suppliers, performing receiving inspections, and good inventory management.
Nonconformities when the product does not meet specifications.
Landslides when replenishments are not requested on time.
Damage when materials are not stored properly.
Technical: Related to the use of machinery and equipment; can be addressed with preventive and corrective maintenance.
Breakdowns when equipment wears out.
Failureswhen configured incorrectly.
Stops when used inappropriately.
Procedural: Related to the way of doing things; can be addressed by bringing together best practices from individual methods.
Variations when you give a personal touch to things.
IT: Related to data management; can be addressed with information systems that generate traceability.
Misunderstandings when there are only oral instructions and it is understood differently or incorrectly.
Distrust when the data source is not reliable.
These are just a few examples of errors that can occur in a process. It is important that organizations actively identify and address these errors. and review your processes regularly to improve the efficiency, quality and reliability of your operations.
Process Review: Applying Continuous Improvement
Characterizing and documenting processes is just the beginning of evolving business processes; Continuous improvement is essential to maintain efficiency and effectiveness over time. Regular internal audits identify areas for improvement and ensure that documented processes are followed correctly.
This constant feedback promotes continuous evolution and optimization of business processes by adopting formal identification mechanisms, monitoring, mitigation and control of risks and errors. In practice we can find the following mechanisms:
Elimination: Redesign the product, process or system to remove the possibility of an error occurring in a task (or part of the associated product).
Prevention: Redesign the means with which the product, process or system is carried out so that the interface prevents its execution.
Replacement: Exchange parts for ones that are more reliable and improve the consistency of the result.
Facilitation: Facilitates and guides the user when performing the task through sensory information.
Detection: Identifies the error after the user has initiated it but before a defect occurs in the system.
Mitigation: Minimizes the negative effects of error by designing preventive countermeasures before the process and corrective countermeasures after the process.
The adoption and/or creation of business applications that automate repetitive tasks, improve collaboration between teams, and provide advanced data analytics for informed decision making play a critical role in this stage. From business management solutions to artificial intelligence and predictive analytics platforms, there is a wide range of technologies available to drive business transformation and improve business efficiency.
It is important to encourage a business culture that values innovation, collaboration and adaptability to change to ensure the long-term success of the transformation. This may involve training and developing staff in new skills and practices, such as computer programming, as well as creating an environment where experimentation and continuous learning are encouraged.
Conclusion: Processes as the Basis of Transformation
As business processes evolve,It is essential to identify and maintain a clear focus on desired results to prioritize transformation initiatives that generate the most value. These objectives may include improving product or service quality, reducing operating costs, increasing customer satisfaction, or expanding the market.
Establishing good governance that is responsible for managing and controlling this process of characterization, documentation and review of processes is increasingly becoming a business necessity that must be a priority for any company.
By taking a comprehensive approach that includes understanding current processes, focusing on error prevention, implementing continuous improvement mechanisms, and promoting a change-oriented culture, Organizations can position themselves for success in an increasingly competitive and dynamic business environment.
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About Pablo Tellaeche (Author):
Owner and main consultant of TACs Consultores, Speaker and University Professor; seeks to bring a true and positive Lean Culture and Digital Transformation to every company with which he has the pleasure of collaborating.
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