Updating processes in an organisation

Organisations need to be process-driven rather than people-driven. Even if a key person leaves the company, that function need not come to a standstill. Progressive organisations look at their processes at periodic intervals to ensure that there is continuous improvement. This not only ensures that efficient processes are being implemented, but also ensures continuity in the organisation's functioning by standardisation of processes.

To start with, the organisation needs to identify the full set of processes catalogue across each department. It is also important to identify the various touch points and see whether the processes are automated. Using these inputs one can identify which processes are defective. Also, there will be 20-25 per cent processes that are most critical to the organisation, and these need to be focused for continuous improvement.

It may not be impossible, but definitely time-consuming, to monitor hundreds of processes in an organisation. Prioritisation will focus energies of the people monitoring them, to maximise benefit for the organisation. Another aspect to look at is those processes that deal with customers. Processes that improve customer response time and customer delight are definitely important for any organisation.

Once prioritisation is complete, map the processes to determine the flow and activities happening at each stage. The visualisation will help the process owner to identify inefficiencies or breaks in process, and hence the areas of improvement.

You may also indicate what part of the process can be automated, to improve the process efficiency. The idea is to reduce as much as possible, human touch points.

For example, customer data may currently be captured only manually through physical reports filled by the sales team. There are chances of losing these if the salesman has not filed them. Also, retrieving information from hard copies is always difficult. This can be automated using an electronic database.

Process improvements help in cost reduction also. When business doubles, it may not be necessary to double headcount if the processes are efficient and automated. This exercise is also critical before an organisation implements an IT automation/ERP system, since it is not prudent to automate inefficient processes. Various methodologies and systems are implemented by organisations to improve processes.

Most process improvement initiatives are usually driven by quality or strategic planning departments. Some organisations also have process improvement departments.

However, these people can only co-ordinate the effort. The onus of improving processes lies with the people in that department where the process is being executed. There should be a process owner in that department to ensure that improvements are implemented and monitored.

Process improvements require team effort and cannot be implemented by an individual. It requires changes in working style and attitude across the organisation. Consider the effort spent in training staff for this initiative as critical investment rather than costs.

- The writers are managing director and director at Cedar Management Consulting International.