A business organization is composed of business system that contains individual processes. The individual processes are composed of series of tasks or activities. To be able to deliver quality product or service, a business process needed to be utilized. When the company’s process is effective, it will give a positive outcome that the business can benefit from.
A business process analysis is a methodology that allows you to grasp every detail of the process and build a solid basis for improvement. It is a system used by companies to reach their goals. It is a set of steps to create value for customers. Managers analyze the process and review it. Then the management decides on whether to change the process entirely or change for improvement. Usually, they would go for the latter.
With an effective business process, a company will be able to operate at a lower cost, perform at a higher competitive level and improve the bottom line. When the process is not effective or there is no business process at all, it can result in high overhead cost and lower revenues. Business process analysis helps a company to avoid financial setbacks and losses from deficiencies and implement performance improvement.
There are steps that needed to follow to analyze a business process. These steps will help the business to improve in general.
1. Identify the Process
Before the management starts to analyze a process, they need to identify which process should be analyzed. A single business comprised of several processes and it is impractical to change everything. To start the analysis, it should be identified which of the process should improve and which ones are not going to be touched.
2. Document the process and Separate the Process by Type
Separating the process that you have documented will help you to analyze the process faster and make improvements. If two or more process is of the same type, their process improvement may be similar, giving you enough time to plan for the improvement.
3. Analyze the business Process for Signs of Inefficiency
Every process has an input and an output. When you analyze the process and the input and output did not coincide, there must be an inefficiency within the process that needs to be acted on immediately. This can greatly affect the process improvement if not changed.
4. Create a Team to Analyze the Process
Analyzing a business process is not done by one person only. All significant person must be part of the team to analyze the business process. They are the ones who can answer questions needed to for the fulfillment of the analysis. They will be able to resolve process inefficiencies that will uncover.
5. Create a Flowchart
An analysis does not stop into talking and discussions only. There should be a timeframe for when a process should be done. It may take a longer time, but tracking the procedure is vital. The flowchart can be a basis if there is an expected outcome or the process is improving.
6.Conduct a Brainstorming Session to Come up with Improvements
After analyzing and putting everything on the flowchart, there should be a brainstorming among members to identify the inefficiencies that impacted more than one process. It will also be the best time to talk about process improvements.
A business’ needs to be analyzed to avoid inefficiencies and improve a business. It will not be only beneficial to the process, but also to the output of the company.