July 31, 2020
In order to help you develop an in-depth understanding of Business process analytical techniques, we are publishing a series of weekly blogs containing detailed information on various analytical techniques to improve your business processes. Here is the first article in the series covering all about ANALYSING PROCESS OUTCOMES.
The lifecycle of a business process, usually follows three stages –
- Documenting the current state (link to an existing article about Process Mapping if we have one published)
- Analysing the process outcomes of the current state and finding areas of improvement
- Documenting and Implementing the Improved To-Be Process
An organisation undertaking a Business Process Improvement journey starts with documenting of the current state with utmost competence and focused efforts. However, this effort investment and prowess drastically diminish when it comes to the analysis and improvement phase. This is a concerning trend and experience has shown that this is due to a combination of reasons. This article establishes the importance of analysing process outcomes and how to combat the loss of momentum after documenting the current state of a process.
What does ‘Analysing Process Outcomes’ mean?
Analysing Process Outcomes is the use of different techniques for evaluating various aspects of a process, generally to uncover inefficiencies or other issues and determine ways to improve it. Creating What-if analysis is a one form of analysis, but there are many techniques to analyze a process including simulation.
Why ‘Analysing Process Outcomes’ seems difficult?
The first reason is that the documenting of processes is one thing, but process analysis is somewhat more of a challenge. Hence, at times, the teams who are mapping the processes may not have the analysis skills to really deliver value.
The second reason is that insufficient process data and information is gathered during the current state process mapping phase. Having limited process data and information limits the analysis that can be performed.
How to make ‘Analysing Process Outcomes’ easier?
To address the first reason, we have compiled several process analysis techniques that will make the less wholesome Analyst a true star. In addition, if you have a team of analysts, no longer do you need to rely on their “inbuilt” analytical skills and see varying results across the team. Instead, use this checklist to exhaust business process improvement opportunities.
- Eliminate an Outcome
An outcome can be produced by an activity within a process or by the process itself once the process is finished. Hence identify these outputs and challenge if the output is required. An example of this is the old airline ticket, the ticket which had the carbon copy between it, it has been eliminated. Today, airline tickets have been eliminated. Instead, we hold an itinerary and receive a boarding pass upon online check in. Closely analyse your process for such an opportunity.
- Substitute an Outcome
If an outcome cannot be eliminated, let us aim for the next best opportunity. Can it be substituted with something more effective or cost effective? For example, in today’s information age, several reports are created and distributed. Investigate further if the recipient needs the complete report, maybe the report can be substituted with a summary report of the same information.
- Digitisation of an Outcome
Digitisation is the scanning of analogue sources such as printed photos, taped videos, audio or real word objects (3D scanning) into computers for editing, storing and transmission. Does your process produce any of these items as an output? If so, consider digitisation as one of your improvement options.
How can PRIME help you in ‘Analysing Process Outcomes’?
Perform process analysis with PRIME BPM Analyser Module and build a strong case to gain the executive commitment for change and improvement initiatives. Firstly, PRIME’s analytical engine analyses the value of tasks within the business process. Secondly, it analyses efficiency of the process cycle. Undertake process analysis by firstly calculating the annual time taken, and secondly the annual costs incurred for each process. In addition, the PRIME process analysis software uses Value Stream Mapping and Process Analysis Techniques to get figures on waste and the potential for cost saving. As a result, enabling you to make the right business improvement decision.
For example, cost analysis presents the opportunity to decrease the cost of performing the process. Either by removing tasks that do not add value or by decreasing the time spent undertaking tasks, and or removing delay time. Improving process cost can present the opportunity to do more with less and increase profitability. As these analyses are completely automated, even amateur process analyst can obtain highly specialised and professional analysis results using PRIME.
Post assessment of the current state, you can use the Simulation feature inside PRIME to create ‘What-if’ scenarios. Several scenarios can be made. Each scenario can be compared to the others and to the current process, to see how each scenario differs in process cost, time, efficiency and value. All analysis and simulation results can be obtained through automated reports in PRIME, providing clear summaries and insights to drive executive engagement and commitment. You are now set up to roll the next stage of your business process lifecycle – Documenting and implementing the improved To-Be Process.