Business Process Improvement Tools – A Complete Guide for Business Owners

Manual processes take up precious time in many organizations, preventing teams from focusing on what matters. Wasted time means lost productivity, costing the world $8.8 trillion annually.

Process improvement tools streamline processes, boosting organizational performance. But, onboarding new systems requires time and financial investment, so choosing the right solution is important.

The guide covers some of the best process improvement tools to help your team pick the right one. 

Types of Business Process Improvement Tools

Process Mapping

Businesses often have processes in place that have never been examined carefully. A number of different process mapping methods exist that can help you and your team visualize your processes and identify areas for improvement. Some process mapping methods are:

• Process flowcharts
• SIPOC diagrams (suppliers, inputs, processes, outputs, and customers)
• Value stream mapping
• Swimlane diagrams (also called cross-functional maps)

Each of these serves a different purpose and will help reveal different nuances of your business processes. You may need to use more than one kind of map for each process to help identify areas for improvement.

Problem-Solving

Of course, every business owner wants to solve the problems that are holding the company back. In that way, every business owner is trying to solve problems.

Unfortunately, we often fail to perceive the underlying cause of the problem, and we end up solving for symptoms of the problem rather than the problem itself.

One way to get to the real cause is the “Five Whys” method, a Japanese problem-solving technique that prescribes asking “why” at least five times when trying to identify the cause of an issue.
Another method, the Cause and Effect analysis, is a simple exercise used to visualize the possible causes of a problem.

The issue, say “bugs in new features,” is placed on the far right of a page/screen, and all the relevant factors are placed to the left. For example, “clients, communication, and employees” are all relevant to new features. In each of those categories, you list possible causes of the problem.

A client may have unrealistic expectations, communication among departments may be to blame, and your employees may not have adequate training for the given tasks or they may simply be too few employees on the project. From this point you investigate each possibility to find the cause(s).

Improvement Methodologies

Two of the best-known BPI methodologies are DMAIC and PDCA. Each acronym is a framework for business process improvement and can be viewed as cyclical rather than linear, encouraging continuous improvement over time.

• DMAIC

• 1. Define – define the problem, goals, requirements, etc.
  2. Measure – measure performance at baseline “business as usual.”
  3. Analyze – analyze the level of success at baseline and identify causes of problems.
  4. Improve – improve processes by addressing the problems identified.
  5. Control – use quality control measures and data to ensure improvements are effective and permanent.

• PDCA

• 1. Plan – identify your problems, goals, and strategy to implement change.
  2. Do – carry out the strategy, usually on a small scale at first.
  3. Check – analyze the effectiveness of your efforts.
  4. Act/Adjust – make changes where necessary and prepare for the next iteration/ expansion of your plan.

There are a few more methods you can use to improve your business processes.

Gap Analysis

Enterprises use gap analysis to understand where they currently stand and what steps are necessary to bridge the gap to achieve desired results. They do this by comparing existing processes, practices, or metrics with established benchmarks or goals.

Root Cause Analysis (RCA)

RCA is a systematic approach organizations often use to move beyond addressing surface-level issues, prevent recurring problems, improve process efficiency, and drive continuous improvement. There are several methods to conduct root cause analysis. But the process usually entails investigating the symptoms, gathering data, and applying various analytical techniques to determine the root cause of a problem.

Lean Six Sigma

Lean Six Sigma is a powerful improvement methodology that combines the principles of Lean manufacturing and Six Sigma. Lean focuses on eliminating waste and creating value by streamlining processes, reducing cycle times, and improving flow. Six Sigma, on the other hand, emphasizes statistical analysis and data-driven decision-making to reduce defects and variation in processes.

Just-in Time (JIT)

Just-in-Time (JIT) is an inventory management and production strategy that aims to minimize waste and maximize efficiency by producing and delivering products only when they are needed. JIT focuses on reducing inventory levels, eliminating non-value-added activities, and optimizing the flow of materials and information throughout the supply chain.

Employing one of these methods over time can help you identify improvement areas and create a positive change culture. 

Automation Software

Once you’ve identified areas for improvement in your processes, you’ll notice one theme: inconsistency. Many of the inefficiencies in business processes are the result of inconsistent implementation. Automation can help.

Automation tools ensure that processes follow the correct order, whether it’s employee onboarding, app development, or marketing. It saves a company time and money and ensures employees focus on complex projects directly affecting the bottom line.