A Quick Approach for Developing Impactful Business Processes

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Organizational fatigue has set in regarding launching large-scale re-engineering and process improvement efforts.  The time and resources it takes to carry out a major re-haul of processes is daunting. Besides, too many organizations have experienced too little benefit from these massive efforts.

The solution to this challenge, however, should not be inaction.  Crafting business processes which lead to effective and efficient operations is critical.  The key, for many organizations, is to launch a few short business process sessions in order to identify a critical few new or revised processes that will make a difference.

Below is an easy three step process for quickly putting business process wins in place:

Definition of Business Process

A business process is a series of actions or procedures designed to produce a product or service.  It is a general (high-level) approach to completing specific work activities.

Criteria for Quality Business Processes

Clear and consistent business processes should:

  • Encourage accountability at all levels.
  • Improve customer satisfaction through more efficient business practices.
  • Establish clear roles for employees to avoid confusion.
  • Reduce redundancy in work.
  • Customize solutions for different customers.
  • Improve communication between functions.

Steps for Establishing and Aligning Business Processes

  • Step One: Analyze
    • Identify the major strengths and weaknesses of the current processes
    • Objective: To utilize best practice and avoid pain points
  • Step Two: Brainstorm
    • Brainstorm options re: new and aligned processes
    • Objective: To ensure you dig deep and generate many ideas
  • Step Three: Select
    • Assess options against criteria and select the critical few new processes
    • Objective: To ensure that we are adopting useful processes

For example, I guided an operations team through this three step process.  As a result of three, half-day meetings we came up with a dozen new and revised processes that were designed to have a big impact on quality and speed.  The new processes addressed everything from how the team accessed resources, to how they interacted with internal customers.

They key to success was to avoid getting bogged down on details.  The team knew first-hand where the pain points lie and I simply helped them quickly identify fixes.

One might argue that a more in depth process re-engineering effort involving dozens of staff over a period of months would have resulted in larger wins.  Perhaps in theory it would have.  However, in reality that would have never happened. Leadership was not prepared to invest in a large scale process effort.  However, the entire organization was very happy with our quick wins…

General Questions to Consider When Identifying Business Process Changes

Finally, here are some to consider when identifying business process changes.  Answering these questions will help ensure that you establish business processes which are successful:

  • What tasks do employees perform today and what tasks do we want employees to perform in the future?
  • What observable behaviors will employees be expected to display?
  • How will interrelationships between your work group and other work groups change?
  • How will the timing and/or sequence of projects or tasks change?
  • What completion timelines need to be built into business processes?
Note: The views expressed in this blog are my opinions and do not reflect the views of my employer.

 

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Organizational Structure: Start with Design Principles

House project

It would be foolish to design a home without first thinking through your needs. How much living space do you need? How many bedrooms?  What style do you like?

However, organizations are built each and every day without considering these types of fundamental questions around what the design is attempting to accomplish.

In order to create organizational structure, the key is start with design principles which are statements about what the design should provide.   It is critical that these design principles guide the entire design process since they focus us on creating an organization which accomplishes our objectives.

Below are ten organizational design principles from groups that I have consulted for:

  1. Build depth of leadership capability
  2. Be more agile via delivering faster
  3. Create cost efficiency
  4. Optimize people and system resources
  5. Enable process efficiencies
  6. Create best in class customer satisfaction
  7. Foster better service delivery
  8. Increase manager accountability
  9. Enable collaboration between departments
  10. Build internal change readiness

For example, I helped design a very different type of structure for the organization hoping to increase leadership skills versus the organization seeking to deliver products faster. In order to improve leadership, we crafted a structure that would challenge leadership to gain new skills, knowledge and abilities.  While at the organization looking to deliver products more quickly, we streamlined the structure resulting in more agility.  Clearly, depending on outcomes, the types of functions created, how they are organized and the roles and responsibilities within those functions are going to be very different.

Design principles are the foundation for trade-off decisions.  The design principles provide leadership with a tangible way to surface and discuss competing interests and outcomes.  Leaders are able to clearly state the improvements that they want to see as a result of the design.  This allows for a robust discussion across parties helping leadership gain consensus around the primary outcomes. [JayGalbraith.com, 2016]

I typically have leadership rank the importance of design principles since it allows them to evaluate the value of various design solutions.  I have found this to be the most effective and fastest way to determine which outcomes are most important to leadership.  We can then more easily determine whether an organizational design that is functional, divisional, strategic business unit, matrixed or project based will result in the best outcomes.

Jay Galbraith [JayGalbraith.com, 2016] makes a strong case for the importance of robust design principles.  He says that the criteria should be debated, rated, and kept prominent throughout the design process.  As a result, design principles are a topic in each and every conversation that I have with clients about the new design.  Clients find that as a result of this ongoing exploration of the principles, their understanding of what they are driving towards via the organizational design and how to get there becomes clear.

Questions:

  • Imagine that three years from now the Wall Street Journal [WSJ] names your organization the best in your field. What is the WSJ saying about you that makes you the best?  [This will provide you with clues as to your design principles.]
  • How can we best organize our work and people in order to accomplish our strategy?

Note: This blog reflects my thoughts and not the opinions of my employer.