All You Need to Know About Process Standardisation: Benefits and Best Practices

Many organisations grapple with inconsistent processes that lead to inefficiencies, errors, and wasted resources. The absence of standardised processes can pose a myriad of challenges for businesses, from increased operational costs and prolonged cycle times to compromised quality and customer dissatisfaction. According to a study by McKinsey, businesses with standardised processes experience a 20% reduction in operational costs and a 50% decrease in errors compared to those without standardised processes.

Enter Business Process Management (BPM) software – the framework that helps businesses achieve process standardisation. BPM not only helps in documenting the process but ensures it is adhered to across the organisation. By providing a centralised platform to model, execute, monitor, and optimise processes, BPM software empowers organisations to define clear protocols, eliminate redundancies, and adapt swiftly to changing demands.

Our guide to process standardisation aims to unravel the complexities surrounding disparate workflows. We’ll delve into the intricacies of standardisation, exploring how it serves as a cornerstone for operational excellence.

What is Process Standardisation?

Process standardisation refers to the establishment and implementation of uniform and consistent methods, procedures, and practices within an organisation to achieve greater efficiency, reliability, and quality in its operations. The goal is to create a standardised framework that streamlines workflows, reduces variability, and ensures that tasks are carried out in a systematic and repeatable manner. This systematic approach is particularly crucial in industries where consistency and precision are paramount, such as manufacturing, healthcare, and information technology.

Process standardisation involves documenting and communicating best practices, defining key performance indicators, and fostering a culture of adherence to established protocols. By standardising processes, organisations can enhance their ability to monitor and control various activities, leading to improved productivity, reduced errors, and better overall performance. Standardisation also facilitates easier training of employees, as they can follow well-defined procedures, resulting in a more skilled and adaptable workforce.

Additionally, process standardisation provides a foundation for continuous improvement initiatives, as organisations can identify areas for optimisation and refinement. This not only enhances operational efficiency but also contributes to the organisation’s ability to adapt to changes and challenges in a dynamic business environment. Ultimately, process standardisation is a strategic tool that empowers organisations to deliver consistent results, enhance customer satisfaction, and achieve long-term success.

How Process Standardisation Works

A key concept driving the effectiveness of business process standardisation is compartmentalisation. This involves perfecting a solution in a way that it can be easily copied and applied wherever necessary, fostering efficiency and consistency across the organisation.

Compartmentalisation in Business Process Standardisation:

Compartmentalisation is at the core of business process standardisation. It entails breaking down complex business processes into discrete, manageable components or compartments. Each compartment represents a specific aspect or step in the overall process. By doing so, organisations can focus on perfecting individual components, ensuring they are efficient, error-free, and well-documented.

Creating Replicable Solutions:

The essence of business process standardisation lies in creating solutions that are replicable and scalable. Once a particular component of a business process is perfected, it becomes akin to a standardised widget—a ready-made solution that can be easily copied and slotted into various parts of the organisation where it is needed. This approach ensures consistency and uniformity, eliminating variations and errors that may arise from disparate processes.

Efficient Deployment Across the Organisation:

With standardised components in place, organisations can efficiently deploy solutions across different departments and functions. This adaptability is particularly advantageous in large and complex organisations where similar needs may arise in various contexts. Instead of reinventing the wheel for each instance, standardised components can be seamlessly integrated, saving time and resources.

Doing More with Less:

Business process componentisation enables organisations to do more with less. Instead of investing resources in developing unique solutions for every department or process, they can concentrate efforts on perfecting one system or component. This optimised approach allows organisations to achieve economies of scale, as the standardised solution can be deployed widely, solving the same need wherever it appears across the organisation.

Importance of Process Standardisation

Process standardisation, a concept rooted in the late 19th century with Frederick Taylor’s principles of scientific management, has evolved into a critical strategy for optimising business operations in the 21st century. From the early days of factory work to the complexities of modern businesses, the importance of standardising processes has only grown. Below we will explore the historical evolution of process standardisation and delve into its contemporary significance, highlighting key advantages that contribute to organisational success.

Historical Evolution:

In the late 1800s, Frederick Taylor pioneered the analysis of factory work, identifying opportunities for standardisation. His influential work laid the foundation for Taylorism, a system advocating work rationalisation and increased productivity. Henry Ford later enhanced these principles in vehicle production. Today, this historical evolution underscores the enduring importance of standardised processes in enhancing efficiency and productivity.

Advantages of Process Standardisation:

• Avoiding Variation in Processes: Standardising workflows ensures that activities are consistently performed across the entire organisation. This mitigates variations in processes, reducing delivery inconsistencies, maintaining quality standards, and allowing for the automation of recurring activities. Standardisation ensures that processes are not dependent on individual employees, creating a more reliable and predictable operational environment.

• Meeting Regulatory Requirements: Regulatory compliance, such as ISO standards, is a critical aspect of business operations. Process standardisation plays a key role in ensuring that organisations meet these regulatory requirements. Standardised processes provide a structured framework that facilitates compliance, contributing to a secure regulatory environment and minimising the risk of audit notes.

• Delegating Responsibilities: Lack of process standardisation can lead to confusion about task responsibilities. Standardisation ensures that each process has a designated owner, clarifying accountability and optimising task deliveries. This organised approach enhances control and ensures that responsibilities are clearly defined, reducing the likelihood of errors and delays.

• More Quality for Deliveries: Clear processes, assigned responsibilities, and standardised models contribute to the application of the best skills to each task. This optimised allocation of resources and expertise enhances the quality of deliveries, leading to improved overall results. Standardisation provides a structured approach that fosters consistency and excellence in outcomes.

• Cost Reduction: Efficiency improvement at every stage of a standardised process leads to resource optimisation and, consequently, cost reduction. By eliminating redundancies, minimising errors, and streamlining workflows, organisations can produce more with fewer resources. This cost-effective approach enhances the overall financial health of the business.

• Learning About Processes: Process standardisation promotes a better understanding of workflows among team members and leaders. By having a standardised model to follow, everyone gains a more accurate and comprehensive understanding of the processes involved. This shared knowledge contributes to improved collaboration, communication, and a collective awareness of the desired results.

How to Know that Your Organisation Requires Process Standardisation

If you’re confused about whether your organisation should adopt process standardisation systems, examining the symptoms below can provide clarity. Recognising these indicators is crucial for reevaluating your current working model and addressing potential inefficiencies.

1. Variation in Final Products or Services:

One prominent symptom of a lack of process standardisation is the consistent variation in the final product or service. Without standardised workflows, processes may deviate, leading to inconsistent outcomes. Standardisation ensures that each step is clearly defined, reducing variations and enhancing the overall quality and reliability of the result.

2. Non-Standardised Delivery Deadlines and Delays:

In the absence of process standardisation, delivery deadlines are often not standardised, leading to frequent delays. Standardised processes establish clear timelines, enabling better planning and coordination. If your organisation faces challenges in adhering to deadlines and experiences recurrent delays, it indicates a need for standardising processes.

3. Difficulty in Locating System Data:

A lack of process standardisation can lead to a disorganised and chaotic data system. When processes are not standardised, data may be scattered, making it challenging to locate and utilise crucial information. Standardising processes ensures that data is organised, and accessible, and contributes to informed decision-making across the organisation.

4. Lack of Assigned Responsibilities and Delegation Challenges:

When there is no clear process standardisation, employees may lack designated responsibilities, leading to confusion and inefficiency. Additionally, leaders may find it challenging to delegate tasks effectively. Process standardisation assigns specific roles and responsibilities, promoting clarity, accountability, and facilitating more efficient task delegation by leaders.

5. Customer Dissatisfaction with Product or Service Quality:

A significant consequence of a lack of process standardisation is often reflected in customer dissatisfaction. Inconsistent processes can result in varying product or service quality, impacting customer satisfaction negatively. Standardising processes ensure a consistent and high-quality outcome, meeting or exceeding customer expectations consistently.

6. Complicated Planning and Measurement of Results:

Without standardised processes, planning goals and measuring results become complicated tasks. Lack of clarity in workflows makes it challenging to set realistic goals and track progress effectively. Standardisation provides a structured framework for goal-setting and result measurement, allowing organisations to align objectives with outcomes more efficiently.

How to Standardise Processes for Business Improvement

Process standardisation is a strategic undertaking that involves a systematic approach to mapping, redesigning, and implementing workflows within an organisation. Following a structured series of stages is essential to ensure successful standardisation and subsequent improvements. Below are the key steps to standardise processes effectively.

1. Define Standardisation Goals:

Begin by defining clear standardisation goals. Are you aiming to improve activities in a specific area or conducting an end-to-end review? Clearly articulating your objectives helps guide the standardisation process. Companies seeking a comprehensive review often focus on results, especially in enhancing customer perception. It’s advisable to initiate standardisation with simpler processes before moving on to more complex, global changes.

2. Map Activities:

Mapping out current activities is a critical step in process standardisation. The AS-IS mapping process involves identifying and documenting all existing activities and their current execution methods. This stage is crucial for recognising improvement opportunities and understanding potential variations in how tasks are performed by different employees. Collaboration with teams is essential, engaging employees in achieving a consensus on the most effective and efficient processes.

3. Involve Others in the Definition Phase:

Process mapping is a collaborative practice, requiring the involvement of multiple teams from the outset. Teams should exchange opinions, comprehend the interdependencies of their roles, and identify processes that can be enhanced for the benefit of all areas. This inclusive approach ensures that various perspectives contribute to a more comprehensive understanding of the processes under consideration.

4. Design New Processes:

Once activities are mapped, the focus shifts to designing new processes. Emphasise simplicity and speed in execution while eliminating unnecessary steps. The design should be clear, precise, and easily understood by all involved parties. Adopt the principle of “less is more” to ensure that the streamlined processes are accessible and efficient.

5. Incorporate Business Rules:

Ensure that the standardised processes incorporate the business’s rules, regulations, restrictions, and guidelines. Aligning processes with established rules facilitates uniformity and helps mitigate any shortcomings related to compliance. This step ensures that the standardised processes align seamlessly with the overarching principles governing the business’s operation.

6. Train Employees on the New Model:

Employee training is crucial for successful implementation. While employees may have been involved in the development and design of new processes, managers play a key role in ensuring that everyone is trained in the structured working model. Beyond merely disseminating information, provide clear explanations of the changes, and develop methodologies for monitoring progress. This empowers employees to confidently carry out their activities within the new framework.

7. Regularly Review Documentation:

The standardisation process doesn’t end with implementation. Regularly review the documentation and designs created during activity mapping and process standardisation. The market is dynamic, requiring continuous adaptation. Management should focus on continuous improvement, simplifying workflows, and proposing changes whenever necessary to keep the processes aligned with evolving business needs.

The Role of BPM Software in Process Standardisation

Business Process Management Software (BPMS) plays a pivotal role in the standardisation of processes within an organisation. This software is designed to leverage process automation and modelling, tailoring its functionalities to the specific needs of each business. Below are some advantages of Business Process Management Software in Process Standardisation:

1. Accurate Process Mapping:

BPM (Business Process Management) software allows organisations to create detailed and standardised process maps. This ensures a clear representation of workflows, decision points, and subprocesses. Seamless integration with enterprise systems guarantees that mapped processes align precisely with actual data flows. With real-time monitoring capabilities and analytics, BPM software empowers organisations to identify and standardise best practices, fostering a culture of efficiency and consistency in their operations.

2. Transparent Processes and High-Level Control:

BPM tool enhances process transparency, making workflows easily understood by all stakeholders within the organisation. The software provides a comprehensive view of business processes, enabling employees at all levels to grasp the intricacies of each task. This transparency contributes to a high level of control over processes, ensuring that standardisation efforts are effectively implemented and maintained.

3. Efficient Resource Utilisation and Task Optimisation:

One of the primary benefits of utilising BPM Software for process standardisation is the elimination of unnecessary tasks through a thorough understanding of the workflow. The software enables intelligent and efficient resource utilisation by identifying and streamlining processes. This optimisation leads to more agile and efficient processes, reducing manual intervention and enhancing overall operational efficiency.

4. Real-Time Monitoring and Decision Support:

Last but not least, the software provides real-time monitoring capabilities, allowing organisations to track the progress of standardised processes as they unfold. This real-time visibility into workflows is crucial for identifying bottlenecks, addressing issues promptly, and ensuring continuous improvement. Additionally, BPM Software offers support in decision-making by providing data-driven insights derived from the ongoing monitoring of processes, enabling informed and strategic decision-making.

Process Standardisation Benefits: Real-Life Example 

The case study of a leading Australian bank illustrates the transformative impact of process standardisation. Serving 381,000 members, this customer-owned bank was confronted with issues including unclear task ownership, insufficient governance, and undefined user access. The bank chose PRIME BPM as their solution to mitigate such difficulties.

PRIME BPM’s robust features, including a strong audit trail, approval processes, and version control, enabled the documentation of up to 2,100 processes, meticulously segmented by roles and procedures.

The impact was profound: the bank gained unprecedented visibility into its product life cycles, established defined process audit frequencies to ensure compliance, and achieved a single source of truth for processes and procedures. With PRIME BPM, the organisation not only enhanced compliance adherence but also achieved clarity in process ownership.

This case study exemplifies how ensuring process standardisation with tools like PRIME BPM can help organisations implement tangible improvements, gain efficiency, and enhance overall organisational performance.

Harness the Power of PRIME BPM to Create Standardised Processes

Achieving process standardisation is not just a goal but a necessity for organisations striving for delivering consistent customer service. The key to success lies in leveraging robust BPM tools. PRIME BPM software stands as the catalyst for achieving unparalleled success in business process standardisation. By providing the ability to map, analyse, improve, and automate business processes from a single platform, PRIME BPM empowers organisations to create a unified and consistent customer experience. Its user-friendly interface caters to both process experts and business users, ensuring accessibility across all levels of an organisation.

PRIME BPM’s robust features, such as its in-built methodology and BPMN 2.0 for standardised documentation, one-click analysis for efficiency, and process approval capabilities, position it as a comprehensive solution for end-to-end improvement. The software not only streamlines processes but also maximises the output of the entire business process management journey. With PRIME BPM, organisations can harness the full power of process standardisation, fostering efficiency, reducing errors, and ultimately enhancing overall operational excellence.

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