7 Steps To Streamlining Processes In Your Business

Tuesday 10 May, 2011

by Daniel Lock

It makes sense to limit the number of steps in any process, thereby decreasing complexity. How do you simplify a process quickly and easily? Here is a step-by-step approach.

For every step you introduce into a process, the complexity increases exponentially. Actually, it increases by the ‘square' of the number of steps involved. That is, one step has a complexity factor 1 squared = 1. A two-step process has a complexity factor of 2 squared = 4, and ten steps has a complexity factor of 100.
It makes sense to limit the number of steps in any process, thereby decreasing complexity. How do you simplify a process quickly and easily? Here is a step-by-step approach:

1. Map out the current process and ask yourself if there is a better way
   
   Be willing 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 can be fixed with a better staff member, or more discipline. Think of mistakes as process and system problems.
   
2. Define the current reality clearly
   
   By defining the problem exactly, the solution often presents itself easily. Or at least the immediate next steps. Be absolutely honest with yourself and your team about what the situation is - 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.
   
3. Re-organise the process
   
   After mapping out the process, it should become obvious where and how you can re-organise it. Processes and functions often evolve over time:
   
   
   • Identify which parts of the process are a Customer Value Add (CVA) - that is, 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, eg. finance, meeting government regulations, and so on
     
   • Identify and eliminate the Non Value Add (NVA)
     
4. Restructure your resources and distribution channels to where you get the most results
   
   Look for the places where 80% of the problems or opportunities come from 20% of the causes. In every process I have ever come across, this 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 you time and resources.
   
5. Re-engineer. Look for newer, cheaper, faster ways to do certain activities and processes
   
   Introduce technology to do what people previously did, and re-use the people on higher value tasks.
   
6. 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.
   
7. Implement control plans
   
   Now that you have a new process, don't lose the gains you've made. Implement simple and effective control plans and Key Performance Indicators (KPIs), 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 market needs change - and they will - re-visit your processes and amend accordingly.

Author Credits

Daniel Lock is Principal of Daniel Lock Consulting, a firm focused on organizational and individual performance improvement. Contact him at www.daniellock.com & Blog at www.daniellock.com email Daniel@DanielLockConsulting.com and phone 0413 033 703 

 

 

Source:ceoonline.com