Streamlining business processes leads to an increase in the efficiency of an organization. It involves using the latest process modeling techniques to cut waste, simplify tasks, and bypass unnecessary steps. The best advice is to adopt the right approach and foster efficiency throughout a business by developing a sustainable strategy.
Studies have proven that an increase in organization boosts productivity. This means that streamlining the most complicated internal processes in a business catalyzes a business’ success. Several approaches increase efficiency and, as a result, increase productivity as discussed below.
1. Examine the Existing Workflow and Set up Business Goals
Building a solid organizational foundation is vital in the creation of an organized business ecosystem. The first step to achieving this is to gather senior team members in a cooperative environment. Every detail of the business is to be then looked over with close examination done into each department’s role.
The purpose of doing this is to provide comprehensive insight into the workflow, identifying any potential inefficiencies. These inefficiencies can be in terms of cross-departmental and process communication.
Any newfound information is then used to set or readjust the business’s goals based on definitive KPIs (Key Performance Indicators). The development of a desirable strategic direction involves scrutinizing the workload and setting straightforward business goals. This empowers the team to make knowledgeable decisions that ultimately lead to streamlining the business.
2. Value Chain Analysis
The analysis of a process chain’s tasks enables one to know which tasks to eliminate and which to improve on. Finding this out involves looking into how much value each task adds to the process.
For instance, packaging layout and logo development add immense value to designer clothes businesses’ finished product. For such businesses, topmost efficiency is necessary to carry out these steps. If a business instead focused on having the lowest prices, then the process would be less important. The development of the logo could undergo further simplification through outsourcing.
3. Automate Accounts Payable
Accounts Payable refers to when a company buys something from a seller on credit, which will be paid within an agreed period. It is used to hold and distribute petty cash. Automating accounts payable has benefits including process streamlining, fixing audit issues, and bringing transparency to the organization.
4. Analyzing Handoffs
A handoff process is the passage of information from one person or system to another. Within this process lies the risk of incorrect or late passage of information, leading to errors or bottlenecks. Businesses should carefully look at these processes over and, if necessary, automated.
Bottlenecks are the points in a chain that “block” workflow. They originate from inadequate access to resources and the technical inefficiency of personnel.
5. Focus on Processes and Catalog Any Discoveries
At this stage, analysis of the workload is complete, and business objectives have been set. The next step involves prioritizing the business processes through the documentation of solutions or ideas while working.
The goals of the business, including their associated KPIs, are to be thoroughly looked into. A hierarchy is then created that aims to prioritize sections of an organization that require the most attention. A hierarchical list helps form a blueprint on how to streamline the vital aspect of the business while simultaneously managing existing workloads and commitments, which ensures that any initiatives are set up to be reliable long-term practices.
The methodical prioritization of the workload also provides insight into which of the internal operations to automate. Automation software in businesses helps to reduce the degree of manual tasks, which boosts overall output.
6. Efficient Employee Management
Employees are the core of any organization. Businesses suffer greatly when the engagement and motivation levels of their employees subside. The most common cause that leads to demotivated employees is poor organizational structure. This means that effective staff management is vital in streamlining a business and improving organizational efficiency.
Take advantage of scheduling software to create schedules to manage the employees. These schedules should be precise and easily understandable.
The scheduling software offers everyone within an organization the key to empowering information, which leads to the improvement of their time management skills. Improvement of a business’s efficiency is possible through the automation of certain aspects of the time scheduling and employee management processes.
7. Automate Repetitive Tasks
Certain processes are considerably more efficient and economical when automated. It is especially true when it comes to repetitive tasks such as packaging, filling, or weighing.
However, certain repetitive tasks can be responsible for the addition of high value to a chain. In such a case, it is advisable to avoid automating the task. An example of such repetitive tasks is at high-class restaurants where expert chefs prepare the same dishes every day.
The automation of accounts payable takes advantage of technology to automate and streamline accounts payable processes. It also helps in removing manual tasks and in providing better control over key financial data.
By Abby Drexler, BOSS contributor