Business Process Optimization is the act of taking your old business processes and optimizing them for efficiency. The general idea is to make it more efficient – the means of doing that, however, can vary a lot.
Business Process Optimization is one of the final steps for Business Process Management (BPM), a methodology that advocates for constant process re-evaluation and improvement. So, to make it work, you should have already carried out the first three steps critical for any BPM initiative. Specifically…
Process Identification – You should have already picked a process you’d like to work on. In most cases, you’d usually go for processes that are important for the company and are a profit-driver. What’s the point of business process optimization if it doesn’t have any impact?
Business Process Mapping – Unless you have the process mapped out, you’ll have a hard time finding potential improvements. If you don’t already a map for the process, you can do that by creating a flowchart using pen & paper, or using workflow software.
Business Process Analysis – Before you can start improving the business processes, you should first analyze each and every step. The analysis itself can either be super straightforward, with some glaringly obvious potential changes or a bit more difficult, if the problem is not too obvious. In the latter case, you can use some of the business process improvement tools to find the inefficiencies.
So if you’ve already got all that out of the way, you should have a clearly defined & mapped out process, and a couple of ideas on how to optimize it.
How to do Business Process Optimization
As we’ve already mentioned, there can be a lot of different ways to do business process optimization. This, of course, really depends on the process in question – there is no one size fits all solution.
In most cases, however, optimization is done through either of the following methods…
Process Improvement or Re-Structuring
This one’s pretty simple, and all it takes is a good look at each step of the process.
The idea is, you need to identify the processes or steps that are…
Wasteful – Each step within a process should, somehow, add a certain value to the end goal (which is either a product or some sort of output), and the process itself should amount to something in the context of organizational goals. Sometimes, however, you’ll find that certain steps or processes are actually useless, without creating any sort of value.
Inefficient or Improvable – This means that a step (or a process) is simply not as efficient as it could be. There might be a lot more steps than needed, for example. Approval processes tend to be guilty of this quite often. If you’d want to get a new project off the ground, you would need approval from the senior management within the company. Meaning, you might have to wait for 5+ extremely busy executives to get the time to read the document and give you a green light.
Once you found processes or steps that fall into these categories, all you have to do is improve them for efficiency. This can be done by restructuring the process (change the steps or order or steps), eliminating useless processes (or steps), or by doing a little bit of both.
Automation
No one likes manual work. Sometimes, it really does make you feel like a cog in the machine, doing something that even a robot could do. There are cases, though, where that’s exactly the situation – what you’re doing IS something a robot can do, and all you have to do is find the right tool or software.
Business Process Automation (BPA) can help take out any menial labor from your employee’s workloads, which leads to high productivity (employees work more on what matters) and morale (no one likes grunt work).
While how you’re doing automation varies by the task, here’s a few common examples…
- Social Media Management – Whatever your company does, you probably have a Facebook (or at least LinkedIn) page. The traditional way of managing these is to have someone manually log on and find something to post about 3-4 times a day. Rather than waste your time with this, however, you could use a social media management tool such as Buffer to plan out your posts throughout the next month.
- Customer Support – If you’re working with your clients online, you probably have a customer support form right there on your website. Let’s say there’s a bug in the new software update affecting around 10% of your user base. Chances are, your inbox is going to get real clogged. While the first bug report is useful, the rest is just clutter you have to waste time replying to. Software such as Intercom allows you to create events when you can send out automated replies to user complaints, depending on what keywords they mention on their ticket.
Technology Adoption & Complete Process Change
Adopting the right technology can really be a game changer; unlike the first two options, it doesn’t exactly optimize a process. Rather, it changes it completely.
So for example, let’s say you use a whiteboard to manage your daily to-dos within your company. By adopting a task management software such as Trello, you’d instantly be improving the efficiency of your business, without even changing any of the processes. With software in charge, you’d be seeing benefits like…
- Fewer Mistakes & Missed Deadlines – Humans are known to err. Everyone can mess up once in a while, forgetting a very important to-do or deadline. Task management software makes sure this never happens, reminding you of all the tasks and deadlines.
- Central Command Center – It’s a lot easier to just create a new task online and pin it to your employees, rather than send out a detailed email and hope it doesn’t get lost or overlooked.
For a more process-oriented example, there’s workflow management software. Instead of having to manually keep track of workflows through email or chat, you can use a dedicated system to manage all of your processes through one dashboard. This can automatically eliminate a lot of issues you’d encounter with process management, such as…
- Lack of Process Standardization. It can be hard to force all of your employees to follow a strict procedure. Workflow software ensures that everyone completes every step of the process in the right order.
- Easier Tracking & Analysis. Compared to your average process map, workflow software allows for easier tracking and analysis. Without software, you’d have to manually keep track of the process & deadlines through chat or email with. In addition, to actually measure process efficiency, you’d have to manually gather data from different software & employees. With software, you get all of this in a single dashboard.
Conclusion
Now that you know the ins and outs of business process optimization, all that’s left is actually putting it into practice. Theory, after all, can only take you so far. So, do this…
- Identify weak or inefficient processes
- Map it out
- Analyze it. Find if there are any better ways of doing it
- Optimize the process, by either restructuring it, automating it, or adopting some tech that will completely change the way it works
Have any other questions about process optimization? Did we miss anything important? Do let us know in the comments!
Related Questions
What are the objectives of business process optimization?
Business process optimization aims to make workflows smoother, faster, and more efficient. The main objectives include cutting down on wasted time, reducing errors, saving money, and making customers happier. Think of it like tuning up a car – you want all parts working together perfectly, using less fuel, and giving you a smoother ride.
What is process optimization in the workplace?
In the workplace, process optimization means finding better ways to get work done. It’s about looking at how tasks flow from person to person and finding ways to make them simpler. For example, instead of having five people approve a document, maybe only two people need to look at it. Or rather than doing something manually, you might use software to do it automatically.
What are the focus areas of business process optimization approach?
The key focus areas include workflow mapping, bottleneck identification, automation opportunities, and employee training. It’s like being a detective – you look at where work gets stuck, where mistakes happen often, and where people spend too much time on simple tasks. Then you find ways to fix these problems using better tools or simpler steps.
What is an optimal business process?
An optimal business process is like a well-choreographed dance – every step flows naturally into the next, with no wasted movement. It uses the least amount of resources while delivering the best possible results. The process should be clear to everyone involved, easy to follow, and produce consistent outcomes every time.
What are the major goals of process optimization?
The major goals include making work faster, cutting costs, improving quality, and making employees’ jobs easier. It’s about working smarter, not harder. When processes are optimized, companies can deliver better products or services while using fewer resources.
How do you measure process optimization success?
Success in process optimization is measured through key metrics like reduced completion time, lower costs, fewer errors, and improved customer satisfaction. You might track how long tasks take, how many mistakes happen, or how happy customers are with the final result.
What tools are used in business process optimization?
Modern process optimization relies on workflow software, automation tools, and analytics platforms. These tools help map out processes, spot problems, and track improvements. They’re like having a super-powered microscope that helps you see exactly where and how work happens.
How often should businesses optimize their processes?
Process optimization should be ongoing, with regular reviews every few months. Think of it like maintaining a garden – you need to constantly watch for weeds (inefficiencies) and adjust to changing conditions. Markets change, technology improves, and new challenges arise, so optimization needs to be continuous.
What role do employees play in process optimization?
Employees are crucial in process optimization because they know the daily work best. They can spot problems and suggest improvements that managers might miss. It’s like having local guides who know all the shortcuts and trouble spots in their neighborhood.
How does technology impact business process optimization?
Technology acts as a powerful enabler for process optimization. Modern tools can automate repetitive tasks, catch errors automatically, and provide detailed insights about how work flows. It’s like having a smart assistant that helps make everything run more smoothly while keeping track of all the details.
What are common barriers to successful process optimization?
Common barriers include resistance to change, lack of proper tools, unclear goals, and poor communication. Sometimes people get comfortable with old ways of working, even if they’re not efficient. It’s like trying to convince someone to take a new route to work when they’ve been using the same path for years.
How does process optimization affect customer satisfaction?
Process optimization directly impacts customer satisfaction by reducing wait times, improving service quality, and ensuring consistent results. When internal processes work better, customers get faster, more reliable service. It’s like upgrading from a slow, unreliable delivery service to one that’s quick and always on time.
