A successful process improvement initiative is the key to a company’s ability to maintain an edge over the competition. Unfortunately, many company executives are so fixated on rapid growth and profits that they overlook the importance of evaluating the processes that they implemented when the business was launched. Failure to devote adequate focus to process improvement can lead to operational bottlenecks, poor service, and a low rate of customer satisfaction.
A company can seize extra-ordinary opportunities only if it is very good at the ordinary operations.Marcel Telles
Below is a look at the key benefits of a process improvement initiative and 10 steps to using it successfully in your business.
How Does a Process Improvement Initiative Benefit an Organization?
A Process improvement initiative yields a number of tangible and intangible benefits for companies. Tangible benefits are easier to quantify and often take center stage in the process improvement arena. They include reduced operating costs, higher revenues and improved compliance with industry standards. Intangible benefits are difficult to measure but are important for an organization’s image. Examples of some of the intangible benefits of process improvement include an improved brand image, higher levels of customer satisfaction, and time savings. Organizations should keep these benefits in mind as they begin investing their resources in process improvement.
Key Steps to Launching an Effective Process Improvement Initiative
A successful process improvement initiative requires the participation of all employees, including managers and front-line workers. Company training programs and tools should exhibit consistency and accuracy, and employees should be rewarded for adopting work behaviors that reflect their commitment to process improvement. Below are 10 specific steps to help organizations launch a fruitful process improvement initiative.
Improve company culture
There is a big difference between building a process improvement program and a process improvement culture. Building a culture that values process improvement requires you to identify the behaviors that you would like employees to exhibit on a daily basis. Successfully crafting a culture of ongoing process improvement involves the following:
- Employees remain engaged by proposing ideas and discussing suggestions
- There is no variance in the way that different employees perform the exact same job
- All employees understand their roles and how their performance is tied to outcomes
- Every employee is focused on continually improving their job processes
- Stress consistency between departments
Tie process improvement to key objectives
Your employees need to see the connection between their efforts to improve processes and your company’s mission. By linking process improvement strategies to organizational goals, you will be more apt to earn the support of employees across the board.
Request employee feedback
Your front-line employees are the best embodiment of your company’s processes. They perform the same tasks every day and often have firsthand information regarding procedural strengths and weaknesses. Suggestions and feedback from front-line employees can play an incredibly vital role in improving your processes. Below are some strategies to help encourage employees from every department of your organization to submit suggestions and feedback:
- Set up an email address to which employees can send their suggestions
- Make sure your company has an actual suggestion box on the premises
- Encourage employees to verbally share ideas and suggestions during meetings
- Establish a private group for sharing feedback on Facebook or LinkedIn
- Ensure that managers are open to hearing both positive and negative feedback
Optimize everyday operations
Many companies are never able to grow because they spend all of their energy fixing broken processes. While addressing bottlenecks and other problems is an important part of process improvement, a more productive approach is to evaluate procedures that are not broken. Sometimes this can be achieved by making an adjustment that is as small as a minor tweak to the order entry process.
Enhance training programs
Your company’s focus on process improvement should first be noted during the employee hiring process and then reemphasized in detail during the training process. Below are some steps to cover during employee training:
- Outline the scope of your existing processes
- Teach employees how to spot inefficiencies and opportunities for improvement
- Educate employees about documentation of roles and assigned tasks
- Highlight the need for consistency
Use blended learning
Your training program should exemplify process improvement by engaging employees and exhibiting consistency in approach. A blended learning approach engages employees by using a multi-media approach that involves a combination of live and online learning activities. A Learning Management System (LMS) also uses a standardized online approach to training which provides a quantifiable means of assessing training effectiveness. Below are some key reasons why an LMS facilitates process improvement:
- An LMS allows companies to measure and improve upon employee training success
- Companies can monitor training completion rates through use of built-in analytics
- Acquired knowledge can be measured through an online exam following the completion of training
- Companies can measure employee satisfaction with the online training process
Empower employees
By delegating key process improvement responsibilities to your managers and supervisors, you help ensure that key employees remain actively involved. Additionally, managers and supervisors are aware of key problem areas that require sustained attention. Some strategies to empower employees to manage process improvement include the following:
- Assign a team of employees to conduct an internal process improvement audit
- Establish regular reporting procedures to track results
- Delegate responsibility to employees who consistently model process improvement behaviors
Use process improvement tools
Some operational inefficiencies can be easily addressed. More complex issues, however, are best addressed with the help of new software or workflows that help prevent bottlenecks and ongoing operational challenges that organizations face. Below are some of the most common process improvement tools used by companies to identify and address problems:
- Process mapping: Creation of workflow diagrams to clarify processes
- Scatter diagrams: A graph that plots two variables along two axes to illustrate a correlation
- Histograms: Illustrations of frequency distributions
- Cause and effect diagrams
- Pareto analysis: A statistical technique to solve problems that operates under the principle that 80% of problems are caused by 20% of causes
Focus on long-term success
The most successful process improvement initiatives value future solutions over short-term fixes. You should expect to encounter obstacles as you focus on process improvement and strive to maintain a positive attitude towards process improvement. Success requires patience and a long-term commitment to documenting strategies and outcomes from start to finish. This allows you to review your execution in detail to determine when and where a process faltered.
Reward employees
Linking incentives and bonuses to process improvements is an effective way to stimulate employee interest in process improvement. Below is a step by step process to use to reward employees for remaining engaged in process improvement strategies:
- Identify specific process-related goals for employees to attain
- Tie goal attainment to employees’ receipt of rewards
- Choose rewards that are relevant and desirable to employees
- Make sure that employees also know how their goal attainment is influencing company goal attainment
Enlisting the Support of a Process Improvement Expert
Not all process improvement strategies produce desirable results. The best way to achieve desired results for your company is to seek the guidance of an experienced professional. The process management experts with Tallyfy help companies of all sizes improve their processes and workflows. Tallyfy’s commitment to providing companies of all sizes with cost-effective solutions has made them a trusted leader in the process improvement industry. With a free 30 day trial, your organization can experience the benefits of Tallyfy’s process improvement solutions.
Related Questions
What are the 7 steps of the improvement process?
The 7 stages of the improvement process are a great guide to improving any process. They are:
1) Identify the problem, 2) Gather data, 3) Analyze the cause, 4) Develop solutions, 5) Implement changes, 6) Monitor results, and 7) Standardize improvements. This process encourages teams to further develop their practices and generate more efficiencies, more innovations. sdf
What is the 5 step method for process improvement?
The 5 step process improvement or known as DMAIC model is a’s elegant approach to process improvement. It is an acronym standing for Define, Measure, Analyze, Improve, and Control. This procedure helps the teams to define issues, measure financial and root gap analysis, propose solutions and sustain the improvement process. It’s sort of a health check-up for your workflow, a fitness plan for your systems.
How do you initiate process improvement?
Process improvement requires making a start which is the first step in sowing seeds for change. It begins by creating a culture of candor in which people are comfortable pointing out how things could be improved. Next, identify one process you want to concentrate on. Build a cross-functional team, define success metrics, and get to work doing the dirty work of mapping the as-is process flow using tools like process mapping to help visualize that. Keep in mind, the key to building better habits is to start small, get a quick win and gradually work your way up to something more.
What is an example of a process improvement initiative?
For example, let’s say a local coffee shop is looking to streamline its ordering process. They see long rush-hour wait times. Their strategy to change the trajectory is one that includes a new mobile ordering app through which customers can order before entering the restaurant. Simple to adjust, removing time spent waiting, improving customer experience and sales. It’s a great example of how a small change can have a big impact on efficiency — and customer experience.
What is the main purpose of PI?
Process Improvement (PI) is about making things better, easier, and more…efficient. It’s as if your workflow goes on superpower mode! The objective of PI is to reduce waste, errors, and improve quality. But it’s not just about fixing issues – it’s about enabling areas for growth, innovation and competitive advantage. In the end, PI enables companies to provide greater value to their customers with less effort.
Why is process improvement important?
Improving processes is critical because they can help keep a company healthy and competitive. It’s akin to a workout for your organization — it keeps things in working order and serves as prevention for symptoms as they arise. Better processes equal better quality products or services, happier customers, and more satisfied employees. And, it keeps companies attuned to evolving markets and technologies. No process improvement? An organization runs the risk of being antiquated and inefficient in a speedy world.
What are the benefits of process improvement?
The dividends from process improvement are the gift that keeps on giving. It results in greater similar and standardised efficiencies, lower costs and better quality. At the same time, as your employees’ work gets easier and becomes more meaningful, they’ll work more productively and will be more satisfied. Customers have better products or services, and receive them more quickly. Organizations grow to become more agile, able to react with speed to rapid changes in the market. And most importantly, process improvement fosters a culture of continuous learning and innovation, providing the foundation for sustainable success.
What can continuous process improvement do for your business?
This never ending stream of improvement can turn your company into a lean, mean, efficient machine. It’s the equivalent of giving your organization a permanent upgrade. You’ll be ahead of the game, better able to adjust to market shifts and you’ll keep your customers delighted, just by continually seeking ways to improve. It encourages new ideas, cuts down on waste and boosts employee morale. Small incremental gains, repeated thousands of times across thousands of people and millions of operations, can be the difference between winning and losing. Translated into productivity, profitability and market share.
How to identify process improvement opportunities?
Process improvement is like playing detective in your own company. Begin by listening to your employees and your customers — they often have the best insights. Search for bottlenecks and repeated work, as well as functions that result in multiple errors. Leverage data analytics to identify trends and inefficiencies. Promote a culture of perpetual asking, “How can we do this better?” And remember, sometimes the most significant improvements come from the littlest and most surprising of places. Keep your eyes and mind open!
