In today’s competitive environment, organisations need to maximise the value derived from each business process, while reducing the associated costs. The optimisation of these processes is absolutely critical and helps organisations to deliver competitive advantage, improve customer service, increase business efficiency and keep operating costs as lean as possible.

So what is Business Process Improvement? Business Process Improvement – or BPI - is an approach that helps companies to identify and improve processes to achieve better results.

Realisation of the importance of Business Process Improvement is growing and if it is performed correctly, it can significantly increase the company’s performance and reduce operating costs. But how do businesses ensure that they minimise risk and maximise the potential of process improvement projects? This article outlines seven key steps to ensure the successful implementation of Business Process Improvement projects.

Step 1 – Defining the need for change

Before thinking about implementing a process improvement project, organisations need to understand the reasons and drivers for change and to decide whether there is a strong case for Business Process Improvement. An organisation’s strategic goals should provide the core direction for any process improvement exercise.

High value, high volume processes are the ones that will benefit most from Business Process Improvement projects. However, process improvement can be successful in any environment driven by performance targets, regulatory requirements, customer service and best practice principles.

2. Obtaining and maintaining project sponsors & stakeholders

In order for the Business Process Improvement project to be successful it is essential to obtain and maintain project sponsors who are committed to the projects success.

It is also important to identify and engage with stakeholders, these may be customers, staff, process users and owners. Organisations need to consider how these stakeholders may react to change and how they will be impacted by any improvements.

It is essential for communication to be strong across the organisation. Staff at all levels need to understand what the organisation is trying to achieve and the expected outcomes and benefits of any Business Process Improvement project.

3. Identifying success

Every project needs to have a clear goal and it must be clear how each goal is going to be achieved and measured. Key performance indicators (KPIs) must be clearly set and measured.

KPIs can also be compared against project objectives to ensure that the project is on track and is not deviating from the desired goal.

4. Management Information

Implementing up-to-date management information is the key driver of process improvement projects and is critical to its success. If this information is available early, it is advisable to add it to the project plan.

5. Project Simplicity

Organisations should focus on creating the easiest paths to process outcomes to deliver the most benefit for the least effort wherever possible.

6. Managing Risk

Many organisations underestimate risk and fail to manage risk effectively; many Business Process Improvement projects fail as a result.

It is essential to manage risk effectively by conducting on-going risk assessments and to categorise risks according to impact, probability and severity.

7. Maintaining an Evolutionary Approach

Business Process Improvement projects should be implemented in an evolutionary fashion, involving a gradual process of change and development. This reduces risk, supports change management and enables the work to be carried out in manageable phases.

This article has looked at seven steps to ensure successful implementation of a process improvement project. Companies that aim to follow these guidelines realise many benefits when undertaking process improvement projects. However, one size does not fit all and each process improvement must be tailored to fit the unique goals and requirements of each company, This is why many companies are turning to SkillSet Consulting to help them realise the promised savings of business process improvement projects. So, no matter what business you are in, you can benefit from a dedicated business process improvement project.