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Understanding Process Improvement Benefits: Crucial to Business Success

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Any business is meant to be a profit-making unit, so every dollar spent on it needs to be paid back with surplus profit. This is the golden rule of business. Whether you are continuing with your existing business models or looking for a complete process change, the output has to be positive.

Undergoing Process Improvement steps are no different:

Identifying, analysing and making changes to business process also require substantial effort, time and money. It heavily impacts the roles and responsibilities of your employees. Therefore, before embarking on process reviews and doing subsequent changes to your business process flows; it is necessary that you consider the type of benefits from this new initiative. Any Process Management initiative should be properly evaluated before you incorporate it into your existing business model.

Therefore every organisation, though different in structure, process and goals should know the common benefits of process improvements. It gives you a better way to plan your revenue model.

In this article, you will see how and why process improvement is beneficial for any organisation.

1. Revenue generation benefits:

Improving existing business processes and practices increases revenue: directly or indirectly. Though they are not easy to achieve, payback is always high.

First example:

A telecom company wants its call centre staff to make more sales to its existing customers:

How would the process reviews and improvements help in this?

Process analysis focuses on consumer behaviour analytics. This enables call centre staff to know what products the clients already have, what products might be of more interest and so on. Process review would also adjust the training process and performance management skills necessary for the call centre staff.

Second example:

A financial service company wants to ensure that its high-net worth clients get exemplary services. This is because strong correlation with such customers can help grow them in the competitive market.

How would process improvement function here?

Process analysis focuses on identifying business processes from the customer’s point of view; it ensures that all customer touch points are identified properly and internal processes are working seamlessly. Process improvement steps give an organisation the much-needed reputation of service excellence, effectiveness and efficiency. This attracts customers and helps retain the target market.

2. Cost saving benefits:

Process changes allow an organisation to avoid unnecessary expenses, new expenses and delays. By adopting BPM technology organisations can do cost-cutting and run their unit efficiently.

Let us see how it is done:

Through efficiency management: Process management tools make it simpler and faster for your team to get their work done in time. This saves valuable man-hours. It means either you can employ less number of people or you can use their free-time in higher-value projects. Both ways generates revenue.

Moreover, process improvement steps help in avoiding unnecessary hand-offs, long approval process and unnecessary storing of information (where using processing tools one time makes sense). Use of technology can also reduce manual handling and the overhead cost associated with it.

a. By getting rid of unnecessary reporting process:

Process improvement initiatives can eradicate time-consuming reporting processes that are of questionable value. There is no point in creating reports that are not used anymore, it should be as useful as it should be.

b. By training people faster:

Process improvement documentation reduces training hours for new people and the trainers.

c. By reducing one-man shows:

A process-centric organisation has the ability to function effectively, even when the key person is away from office.

3. Risk reduction benefits:

Process review and redesign provides security of data, organisation and its people. Client information security and customer privacy is also taken care in due course of time.

Businesses gain leadership by aligning information technology to process flows and process flows to employee empowerment.

Author Bio: Denis Butcher is a Business Process Management analyst and a writer who shares his knowledge on business functions and Business Process Improvement. He feels that with every organisation, small or large scale, should implement BPM in full fledge. If you want to discuss more about process improvement steps, visit Prime PMG ( in Brisbane, Australia.



Celia Barrymore Article's Source:

  • Posted On May 2, 2012
  • Published articles 10

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