Understand the strategic importance of your processes and how to improve efficiency
To ensure efficiency within your team and increase the competitiveness of your business, understanding what business processes are and how they relate to your strategy is key.
A business process is a collection of linked tasks or a series of steps performed with the aim of achieving a specific goal or delivery of a product/service.
Every organization depends on several processes to support their operations and create value for their customers. The core and strategic business processes vary in nature, complexity and importance, as shown below:
(Harmon, 2007)
Part of an organization’s strategic decision is to decide whether the internal process needs to be redesign completely, changed and stay the same.
By identifying the complexity and importance of each existing processes in place, management can make strategic decisions and decide which approach to take.
Four approaches can be taken by management to when it comes to the company’s internal processes:
1) Minimum Effort [Low complexity, Low strategic importance]
A straightforward, repetitive and static process that adds little strategic value to your business, will either need to be automated using an ERP software (if internal resources are available) or outsourced (if the particular service is available). You will also benefit from economies of scale if volume increases.
E.g. Security, Canteen, Payslips.
2) Outsource [High complexity, Low strategic importance]
A complex and demanding process which does not form part of your business core competencies and also add little strategic value in trying to reach business objectives, will need to be outsourced.
E.g. Financial services, Tax calculations, internal audits
3) Automate [Low complexity, High strategic importance]
A straightforward, static but valuable process will need to be automated to increase efficiency and reach a high standard. These processes are necessary to a successful business and rarely changing in nature.
E.g. Assembly work, factory produced foods
4) Improve [High complexity, High strategic importance]
This is your core competency and where you create value for your customers.
A complex, dynamic and high value process which is the core of your business and evolving in nature will need to be improved. Improved efforts that focuses on your internal Human capital will also be crucial. These activities are performed in-house and tailored to your business needs.
E.g. Production of innovative products, services where negotiation and problem-solving are required.
BYRD Consulting can help you understand where process improvements are needed and support the implementation of these changes successfully.
