Fundamentals of Business Process Optimiztion [New Guide for 2023]
No matter what, processes should always function at their peak efficiency. Efficiency has a direct impact on the productivity of employees who use these processes. Think about it. What happens if an employee has a faulty device and it takes two days for the IT team to respond? The employee is forced not to work the entire time. Companies that have been around for a while don’t have the liberty to scrape off everything and rebuild their processes from scratch. These companies nail down detailed processes the first time and continue to use them for a long time. The easiest and best option is to optimize processes constantly.
What is Process Optimization?
Process optimization is the discipline of adjusting a process to optimize a specified set of parameters without violating a few constraints. The most common goals are minimizing cost and maximizing throughput and/or efficiency. This is one of the major quantitative tools in industrial decision making.
What is Business Process Optimization?
Business process optimization is the practice of increasing organizational efficiency by improving processes. It’s a part of the discipline of business process management (BPM). Optimized processes lead to optimized business goals.
Some examples of optimization include:
- Eliminating redundancies
- Streamlining workflows
- Improving communication
- Forecasting changes
The Rewards of Optimizing Business Processes
Your organization is in constant competition and faces threat from other companies, disruptive technologies, and changing norms.
Optimizing business processes offers many benefits that can help businesses stay afloat in the tidal waves of change such as:
- Market compliance
- Streamlined operations
- Reduced risks
- Well-utilized resources
- Assured quality
- End-to-end visibility
Business process optimization can be the secret to navigating rough seas of the industry.
Steps to Implement Business Process Optimization
Planning is essential to make the most out of your business process optimization effort. Here’s a brief step-by-step guide to help you carry out a process optimization plan.
Step 1: Identify the Business Process to be Optimized
Clearly define the problematic business process you want to optimize, including its goals, inputs, outputs, and key activities.
Step 2: Analyze the Current Process
Map out the current process flow and identify any bottlenecks, inefficiencies, or opportunities for improvement. You can use tools like process mapping and process flow analysis to help you with this.
Step 3: Identify Potential Improvements
Based on your analysis, identify the areas where you think you can make the biggest impact on efficiency, effectiveness, or agility.
Step 4: Test and Implement Changes
Develop a plan to test and implement the changes you have identified.
Step 5: Monitor and Measure
Once the changes have been implemented, monitor and measure the results to see if the business process has been optimized.
Step 6: Continuously Improve
As you learn more about the business process and how it is performing, continue to make improvements over time.
What Does Business Process Optimization look like in the Real World?
Here are a few real-life examples of how business process optimization can increase efficiency.
1. Purchase Orders
Multiple purchase orders clog the queue of the purchasing department. The department senses this problem is due to email approvals. To streamline requests, the department deploys a dedicated workflow management system. The workflow system lets employees choose the item and send it for approvals automatically.
2. Travel Reimbursement
The finance department makes frequent errors when reimbursing expenses. Since the entire process is paper-based, they misread numbers and reimburse the wrong amount to employees. To fix this, the department moved to a digital system where employees fill the amount in form fields. There are no processing errors this way.
3. Employee Onboarding
Onboarding a new employee happens in a sequence of steps. The HR executives send the employee agreement over email. After the employee signs it, the next step to provision assets in IT should proceed. But each time HR manually sends a mail to IT to provision laptops and grant access to tools. To make the process faster, an email trigger is set up. Once the employee signs and sends the employee agreement, an email is automatically sent to IT.
How Kissflow can help your business
Kissflow Process can power your process optimization efforts with ease. It has a no-code workflow designer with a drag-and-drop form builder that allows you to automate structured and unstructured processes in a matter of 15 minutes. Kissflow Process integrates easily with other applications in use, making process optimization seamless. Real-time insights enabled by customizable dashboards can help you keep processes running smoothly on track. Kissflow also enables effective collaboration, driving processes towards maximum efficiency. Take a free trial of Kissflow Process and see how you can control your processes.