For every step you introduce into a business process, the complexity increases exponentially. In a complicated world, with complicated customer requests, how do you simplify your business processes quickly and easily?
Below is a step-by-step approach to simplifying business.
- Map out the current processes and ask yourself if there is a better way. Be willing to, and open to, the possibility that your current approach is wrong - especially when there is some resistance, with lots of mistakes, complaints and errors. Don’t slip into believing it is just a mistake and it can be fixed with a better staff member, or more discipline. Think of mistakes as process and a 'systems' problem.
- Define the current reality clearly. By exactly defining the problem, the solution often presents itself easily - or at least the immediate next steps. Be absolutely honest with yourself and your team about each situation exactly as it is today, not the way you wish it might be. Define the scope of the problem; often we think problems are bigger than they are. Also define problems objectively and without blame.
- Re-organise the process. After mapping out the process it should become obvious where and how you can re-organise the process. Processes and functions often evolve over time. Identify which parts of the process are linked to Customer Value Add (CVA), that is, where they add value directly to the customer and what they will pay for. Identify the Business Value Add (BVA), that is, what the business must do in order to be in business, e.g. finance, meeting government regulations, and so on. Finally, identify and eliminate the Non Value Add (NVA).
- Restructure your resources and distribution channels to where you get the most results. Look for the places where either 80% of the problems or opportunities come from 20% of the causes. In every process you have ever come across, a relationship exists. Restructure the processes to either deal with or take advantage of those causes.
Continually restructure your activities and resources to those which produce the best results. Concentrate exclusively on the highest and best uses of your time and resources.
- Re-engineer. Look for newer, cheaper, faster ways to do certain activities and processes. Introduce technology to do what people previously did, and reuse the people on higher value tasks.
- Eliminate. Simply eliminate all Non Value Add activities. Eliminate and reduce all waiting times. Often files are only touched for a couple of hours but spend weeks in holding patterns. Outsource non-core tasks, this is a form of eliminating.
- Implement control plans. Now you have a new process and business, don’t lose the gains you have made. Implement simple and effective control plans and key performance indicators, and explain to everyone what they mean. When the process starts to go out of kilter you will know where to look to fix the problem.
Then wash, rinse, and repeat. Move on to the next process and do the same. When the needs of the market change, and they will, then re-visit the processes and amend accordingly.
Finally, cycle time is critical, as customers perceive speed to equal quality. Not to mention they may have signed with another business.
You can begin to implement these steps immediately. These apply to every area of business and no problem is so complex that it can’t be improved. These steps are quite painless and the results are profound and compounding.