The Efficiency Edge: Powerful Methods for Process Improvement

In the first blog of our Efficiency Edge series, “Achieving Optimization through Smart Processes,” I talked about the positive impact that Business Process Improvement (BPI) can have on work processes and organizational performance. In this blog, I will highlight key approaches for implementing BPI.

The approach to process improvement should acknowledge the important connections among processes, technology, workforce skills, and data. By considering all four elements together, organizations can generate a more robust and comprehensive picture of their operational efficiency. BPI can also be used for new processes, existing processes, large scale transformation, or smaller, continuous changes that add up to big impact.

Approaches to BPI

There are many different approaches to BPI—each effective in their own way. Organizations should start by prioritizing which process they want to tackle first. This prioritization should focus on the expected value achieved from improvement, the potential negative consequences (loss of revenue, customers, employees) of failure to improve, and the effort needed to change.

A critical first step is to understand the current state of things. This initial assessment helps organizations define objectives or the outcomes they hope to achieve with BPI, understand the current state, and then define the ‘to-be’ or desired state. Oftentimes, leadership or process owners have a decent idea of where their processes may fall short, which can be a good place to start.

There are many industry-accepted approaches to BPI, each targeting a different problem and resulting in different outcomes. This means choosing the right approach is key to making the most out of your investment in BPI.

Six-Sigma[1] is a tool for enhancing the quality of goods and services using data-driven decisions to reduce errors and increase efficiency. This targeted methodology focuses on eradicating errors in systems following DMAIC – Define, Measure, Analyze, Improve, and Control. The focus of this approach is using data to identify errors and inefficiencies, and then also measure progress and improvement upon system changes.

Lean Thinking[2] is a flexible, organic approach to reducing waste and resources. Lean thinking comprises two pillars: continuous improvement and respect for people. In lean thinking, all process stakeholders are involved in identifying efficiencies or ways to add value to their processes with the shared goal of customer satisfaction.

Plan, Do, Check, Act (PDCA)[3] is an iterative approach to continuous process improvement, as you would find in Agile project management. First, you identify the problem you want to solve (plan), then you test and implement the improvements (do), next you assess the effectiveness of the change (check), and then review the results and determine if the change should be adopted or refined further (act).

Kaizen is another continuous improvement methodology that involves collective engagement from process employees, who are expected to suggest efficiencies and contribute to process improvement. The focus of Kaizen is to eliminate practices that do not add value, overproduction or too much time spent on tasks, and too much strain on resources, like overworked employees.

Total Quality Management (TQM)[4] is a customer-focused approach based on integrating quality into all parts of the organization—products, processes, and culture. While many of the other approaches focus on specific processes, or specific inefficiencies, TQM is an integrated, whole-organization approach to process improvement.

Considerations for Choosing an Approach

Informed by their needs, organizations should choose an approach to BPI based on how well the approach will help meet objectives, which can be determined by many factors (e.g., saving money, reducing duplication, improving customer satisfaction, quality, or efficiency). Important considerations for any BPI approach include:

• Project Objectives: Align process methodology with the existing goals.
• Process Complexity: More complex processes benefit from a more structured approach; simple processes may be suited for an iterative or continuous improvement approach.
• Resource Constraints:  Some methodologies (like Six Sigma) require an investment in time and resources along with trained or certified professionals to facilitate the process.
• Environmental Stability: Volatile environments may require a more flexible, incremental approach.

Implications for Technology and BPI

While the more traditional methods for process improvement have been evolving since the 1990s, there has been a more recent surge in interest in process automation. This focus area probes how we can leverage technology to continue to reduce the reliance on manual processes, which can be slow and clunky and susceptible to human error. Approaches for the use of artificial intelligence (AI), robotic process automation (RPA), and cloud computing are gaining traction. Embracing new technology can evoke feelings of uncertainty, but these advances shouldn’t be perceived as a threat. Instead, technology presents a powerful opportunity to enhance a company’s bottom line and service delivery by automating tasks that once required human intelligence, like decision-making, or handling repetitive, labor-intensive processes. By offloading these tasks to machines, employees can focus on higher-value, more strategic work and organizations can collect more comprehensive and accurate data on processes. Together, technology allows organizations to drive resource efficiency, resulting in greater operational and financial performance.

Remember, processes do not exist in a vacuum, but rather, are part of a larger interconnected system that supports organizational performance. It’s important to remain aware of how a new process or process change impacts all areas of the organization.

Interested in implementing BPI at your organization? FMP can help! FMP is a team you can trust to enhance your business practices with vetted, industry-standard skills. Our professionals are trained to work cross-collaboratively to help you break out of siloes and operate seamlessly with our applied multidisciplinary skillsets. We are system agnostic and can work in wide array of environments and platforms.

Marni Falcone has over 15 years working on and leading human capital projects for the public and non-profit sectors. Ms. Falcone’s areas of expertise include competency modeling, applied training and development, competency/skill gap assessment and analysis, job/competency analysis, and employee selection. Ms. Falcone is also a member of the Society for Industrial and Organizational Psychology (SIOP), the International Personnel Assessment Council (IPAC), and the 2022 President of the Personnel Testing Council of Metropolitan Washington (PTCMW). Ms. Falcone received her MA in Industrial/Organizational Psychology from George Mason University, is a certified Project Management Professional (PMP), and Certified Scrum Master (CSM).

[1] https://www.sixsigma-institute.org/

[2] https://www.lean.org/

[3] https://www.lean.org/lexicon-terms/pdca/

[4] https://asq.org/quality-resources/total-quality-management?srsltid=AfmBOoqQQKVLrtBKDP8g8NdS7HKc7kD7R7uC4gl16KmXhsEQuzh1tA4b