Improve your do! Review your processes to add value
From NZ Manufacturer, October 2023 -Ian Walsh, Partner, Argon & Co NZ All businesses deliver products and services according to their business processes. In the same way the central nervous system transmits instructions from the brain to various parts of the body, business processes provide the mechanism that turns objectives into action. So more effective processes make for more effective actions and, ultimately, better outcomes. The first step to improved processes is a clear and comprehensive understanding of the existing state of affairs. Do you know how well your current business processes perform? I recently asked a group of business owners what kind of service their help lines delivered. Out of the 30 that I asked, only one could tell me. None of the others had thought to pick up the phone to get an insight into their customers’ experience. A process map is the first step towards understanding how a process is performing – and how it might perform better. A process map provides a physical representation of the individual steps within a particular process, identifies who has ownership of each step, and may even incorporate timelines and other information. The act of creating a process map will itself likely highlight areas where resources are being wasted. We recently mapped a client’s enrolment process and discovered that it was possible for students to enrol in a course and graduate before fees were collected. It was no surprise that four staff were involved in chasing bad debtors! This waste of resources at the end of the workflow chain was a direct result of poor practices earlier in the process. Eight well known and well documented wastes are: Defects/Damage, Over Production, Non-Utilised Talent, Transport, Inventory, Motion and Extra Processing. Process mapping helps the whole team to understand the process […]