While the basics of a business process are generally understood, there are many elements in the successful execution of a process that are typically missed. These elements often include the knowledge requirements necessary to deploy and manage a high performing business process. Shown here are ten must-knows for successful business process deployment.
1. Process Context
A process is comprised of tasks that combine to accept an input and produce an improved output. Processes align in series to form a business system that delivers a valuable purpose for the organization. Process context includes who owns the process and where the process fits relative to upstream and downstream processes in the business system and the purpose it fulfills.
2. Process Definition
Over 70% of all organizational opportunities derive from a lack of process definition. Those who do the work in a process should define the process. Where differences exist, a consensus best practice should be selected and standardized for all process users. Process definition should include inputs, outputs, and process flow, but also task instructions, responsibilities, risk, and proprietary subject matter expertise.
3. Process Customer
The customer of a process is the entity (process, system, person, enterprise, etc.) that receives the product or service produced by the process. The customer is defined by the transaction executed by the process. The customer’s requirements should be defined by four characteristics, quality, speed, cost, and relationship.
4. Process Value Proposition
The value proposition defines the customer, their problem to be solved, the solution delivered by the process and the net benefit of that solution to the customer. This includes the specifications and requirements for all inputs and outputs that contribute to the value proposition. The more critical the need of the customer, the more essential is the process to the organization.
5. Process Supplier
As outsourcing has increased in recent times, the need for supplier integration has become more important. Supplier knowledge should include information such as supplier requirements, supplier performance to those requirements, supplier capability, and supplier compliance to standards.
6. Process Measurement
Process measurement should include a balanced set of metrics that monitor effectiveness (the extent to which the process achieves its targeted value proposition), efficiency (the relative use of resources to deliver that value proposition), and compliance (the extent to which the process meets operating standards).
7. Process Resources
An organization procures assets to deliver its value proposition. Those assets are deployed and made productive through business processes. The resources utilized by a process are defined through five asset categories, people, facilities, equipment, information technology, and money. Business processes utilize assets to create value for the organization.
8. Process Performance
Every business process should be operated in a basic state of control, which includes performance measurement, feedback, and review. Regular monitoring of process performance is a necessary prerequisite to process improvement.
9. Process Improvement
Continual improvement should be a goal of every process. There are plenty of ways to capture process problems and opportunities and the list should be active with regular review. As problems are solved, tougher, more sophisticated problems come into focus, and, over time the process should become ever stronger and more capable.
10. Process Potential
Along with knowing current process performance, it is equally important to know process potential, particularly in a growth environment. A strong business process is an essential element to successful scalability as an organization grows.
The High Performing Business Process
A high performing business process delivers a competitive advantage for its organization. The knowledge requirements discussed here provide the foundation for deployment of a high performing business process that delivers a value proposition both effectively and efficiently.
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