How To Improve Business Processes Using Process Monitoring
Note: This article was originally published on my previous blog ProcessRamblings.com.
Process discovery and automation are first steps towards a continuous journey of improvement. Beginning this journey is important for any organization, staying on the right path and knowing what the journey is all about is even more important.
So how do you know you are on the right path? You continuously monitor your processes!
Monitoring Matters!
Why Monitor?
At the time of designing (and probably automation) process might look good and complete without issues. In reality, some new issues, bottlenecks and/or opportunities might arise. You will not be able to resolve them or take advantage of opportunities unless you monitor the process.
Monitoring generates metrics, which are used to evaluate the process on regular basis. These metrics answer questions like:
- Is the process working as per expectations?
- Is it meeting (preferably exceeding) internal and industry standards.
Metrics also become the basis for further redesign and improvement of the process. Which of course results in automation opportunities that can further cut down on cycle times and defects.
Monitoring helps in identifying areas of the process that have improved and areas that still need more attention. Based on this information you can better utilize organization resources by reassigning/reallocating to under performing areas.
What to Monitor?
Process performance indicators are identified during the design phase. There are thousands of performance indicators available that can be monitored for each process. Some of them are relatively similar across industries and then there are industry specific performance indicators. Performance Indicators broadly fall into following categories:
- Financial Performance
- Understand your Customers
- Market and Marketing Efforts
- Operational Performance
- Understand your Employees and their Performance
- Environmental and Social Sustainability Performance
How to Monitor?
If you use a Business Process Management Software (BPMS) to automate your process, then some basic performance indicators would already be built into them. For additional custom performance indicators, you can use a Business Activity Monitoring (BAM) software.
References
- The 75 KPIs Every Manager Needs To Know by Bernard Marr.
- Images courtesy to openclipart.org
Republished/Cited
- Article republished on BPMLeader.com
- Article cited by Scott Cleveland
How To Improve Business Processes Using Process Analysis
Note: This article was originally published on my previous blog ProcessRamblings.com.
In my previous post, I talked about mapping customer journeys i.e. as an organization you should understand all the touch points where your customers interact with you, and the resulting processes.
So you understand all customer touch points, what now?
Most organizations unfortunately have not invested in understanding their as-is processes. Things are working, so there is a general lack of urgency. As a process analyst I get to hear following statements a lot.
Why should we spend time and money to model our processes?
If it ain’t broke don’t fix it!
My answer is rather simple.
Well, how do you know it ain’t broke?
Just because things are working does not mean they are working correctly or more importantly, working optimally. You cannot tell if it’s broke or not unless you can answer following questions:
- What is their role in the process?
- What is the impact of their activities on the process and how are they adding value?
- And most importantly, how are they doing compared to their competitors?
These are the answers you get from a detailed process analysis effort. In this article we are going to look at a few important reasons why process analysis is so important, and why every organization should invest in that effort.
Current State (AS-IS)
The first step is to model your current end-to-end processes (a.k.a. as-is). Regardless of what techniques you use, so many unknowns will come to light that you did not even know were happening or causing issues.
Process Hand-offs
Most processes run across departments. Within an organization you cannot work in departmental silos, yet each department is only familiar with their part in the process. Gaps, redundancies and incorrect expectations can be identified and eliminated when all stakeholders look at the complete process.
Common Language
Process analysis effort helps in eradicating all the homegrown process models that use notations only understandable to the teams that created them. Their meaning is lost in translation when someone from outside the team tries to understand them. Try searching for process models on the internet, and you will see plethora of notations that absolutely do not make sense.
Process Hierarchy
Creating hierarchies, helps model the process with correct level of details. It also helps communicate the right amount of information to different levels of management while talking about process improvement.
Enterprise Repository
Another advantage of this effort at organizational level is that it results in an enterprise repository that is shared and is accessible to anyone. You always have access to all the versions of a process and comments from users who worked on them. Majority of tools now also provide collaborations i.e. multiple users can work on same process model.
Industry Benchmarks
When processes are modeled and various performance indicators are captured, it helps in bench-marking against organizations internal standards and industry standards.
Enterprise Architecture
Mapping processes and all the systems they interact with creates links for Enterprise Architecture. This information is extremely helpful during change management, just a couple of clicks and you can see exactly what processes would be impacted by a system change and vice versa.
Future State (TO-BE)
Modeling of as-is processes is just the first step. Use the outputs from this activity to identify issues, bottlenecks, redundancies and gaps in the process. Look at opportunities to automate various unnecessary and time consuming manual handovers. This will help you come up with the future state where you would like to be and then continuously keep reevaluating (a.k.a. continuous improvement).
Conclusion
Processes are everywhere. Processes manage an organization’s business. So, it is important for organizations to invest in knowing their processes. An important first step is doing a process analysis to understand how is the business being run currently and what can be improved in future. In an organization's digital transformation journey, understanding of processes also contributes towards prioritizing what improvements need to be made that can improve customer experience.
Republished/Cited
- Article republished on BPMLeader.com
Business Process Management using Open Source Toolset @ Open Source Series Workshop 2008
I have been invited to speak at Open Source Series Workshop 2008 being organized by Al-Khawarizmi Institute of Computer Science, University of Engineering and Technology, Lahore.
The goal of the workshop is to invite software practitioners from the local industry to share their ideas and experiences related to the state-of-the-art and future-oriented of open-source software & technologies.
Here are details of the workshop and topic of my presentation.
Topic: Business Process Management using Open Source Toolset
Abstract: BPM (Business Process Management) is a methodology used to model operations and procedures carried out by organizations. BPM is becoming really popular in organizations that are concerned with process automation and improvement. Gartner's report estimates the total value of BPM software by 2010 to be $3.5 B. Most of the BPM solutions have been commercial, until recently when two important open-source solutions emerged on BPMS scene.
Workshop: Open Source Series Workshop 2008
Date: March 1, 2008
Venue: Al-Khawarizmi Institute of Computer Science, University of Engineering and Technology, Lahore
Update
[slideshare id=641696&doc=business-process-management-using-the-opensource-toolset-1223389107536476-9]