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Today´s Content:
Creating Business Predictability...
Are You Famous
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Creating Business Predictability Can Hold The Key to Success
by Ron Finkelstein
Every
company has processes; some are clearly defined, others are implicit.
Business processes are the way a business does things. Implementing
measurable, repeatable and predictable business processes are how
companies build predictability into their business and transfer knowledge
throughout the organization. On of the many benefits of implementing
predictability into a business allows companies to continuously improve
while reducing cost, become more efficient, effective and productive.
The need to implement predictability in a business occurs for several
reasons: mergers or acquisitions, inefficiencies, cost control, lack of
process effectiveness, competition and global pressures, just to name a
few.
Characteristics that would indicate a process is a candidate for
improvement and predictability can include any process that has inherent
delays, transportations and storage requirement, low ownership and
accountability, high rework, significant paper handling, same problems
keep reappearing, high waste, poor feedback system, focus on quantity not
quality, long cycle times or long process times.
As important as it is to continuously improve your business be careful not
to become so internally focus that your relationship with clients suffers.
Many companies see great results in implementing predictability and over
time they spend more time working on the activities of the process instead
focusing on the expected or intended outcomes.
One company I worked with refused to let a proposal go out the door until
it was reviewed by more than 20 people during a monthly two-day
configuration review meeting. This resulted in the sales organization
fining ways to circumvent the process in order to be more responsive to
clients - not a predictable come that a company would want. In many cases
the configurations being reviewed were not the same configurations being
presented to the client because the process just took too long.
How do you approach implementing predictability in your business? The
methodology described below is one I use for all my projects. It has eight
steps.
1. Planning & Organization - Know what you want to accomplish: drive out
cost, make the company more responsive, implement an empowering employee
culture, etc. This ask the question: What behavior do I want to drive to
get the desired results.
2. Data Gathering & Recording - What data do you need to gather? How do
you gather that information? How does the data gathered support the
project objectives? Is the right data being gathered?
3. Analyze Data - Take what you learned and create a baseline process.
After the baseline is complete you can better understand the implications
of making a change to the existing the process.
4. Create Work Analysis Report - Document what you uncovered and
distribute the results to the correct audience for validation and approval.
5. Implement Predictability - Redesign the process to drive the expected (or
predictable) behaviors, cost saving, or productivity defined in the
planning and organization phase of the project. Make sure the new process
is consistent with the objective of the redesign.
6. Analyze Risks - Understand the risks associated with the planned
changed. Do a risk analysis and create a contingency plan in the event
certain risks materialize.
7. Create Implementation Plan - Many times when processes are changed
companies fail to integrate the new process and tools into the business.
It becomes an add-on that just creates more work, without reaching the
desired results.
8. Create Cost Benefits Analysis - There is a review of expected cost and
benefits during each step of the process. This step is nothing more than
the formalization of what you have learned in the prior steps.
In summary, poorly designed or implemented processes are the root cause of
many problems. A process that has inherent delays, low ownership and
accountability, high rework, significant paper handling, high waste, long
cycle times or long process times are good candidates for process
improvement.
Benefits from process redesign include: a clear definition of roles,
responsibilities, expected time frames and process objectives as well as
improved employee morale, improved productivity, reduced cost and Improved
performance.
Ron Finklestein, President of
AKRIS, LLC, is a small
business success expert, business coach, consultant, speaker, author,
and trainer. Learn more about Ron's book, Celebrating Success! and the
free gift valued $149 available with book purchase at
http://www.aboutbusinesssuccess.com
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