Process Mapping

The Business Case for Process Mapping

While many organizations use process mapping as a valuable improvement tool, very few think of process mapping as the foundation of their organizational improvement strategy. Defining, deploying, and improving strong business processes is an effective strategy for creating competitive advantage.

Process mapping drives organizational improvement

All business processes include inputs and outputs, suppliers and customers. Find out what your business needs to do to make your processes more reliable, efficient, and valuable.

10 reasons business process management improves performance

1. Process defines how work gets done.

A process is a series of tasks, events, and decisions that receives a product or service from a supplier, adds value to that product or service through some transformation, and then delivers a product or service of more value to a customer. Organization workflow consists of a series of processes (e.g. Accounts Payable) that connect to deliver a larger business system purpose (e.g. Financial System).

2. Process provides a common language.

By using process language to describe the organization’s workflow, leadership creates a common understanding that provides many organizational benefits, including the ability to compare performance across a variety of processes, to cross train people and develop their capabilities, and to benchmark performance against other organizations’ best practices.

3. Process makes things better or worse.

High-quality processes make an organization much easier to manage and employees much happier. Employee frustrations typically come from processes that are loaded with manual, non-value added activities that prevent employees from doing their job well. A good process makes it easy to do the right thing and a poor process makes it virtually impossible to do so.

4. Process gives measurement meaning.

Most organizations measure what’s easy, not what’s important. By assessing process elements and aligning process-based performance measures with strategic purpose and intent, leadership can drive organizational performance improvement that creates a sustainable competitive advantage.

5. Process feeds organization scalability.

Many leaders struggle to scale their organization due to inadequate process infrastructure. By engaging staff to define, build, and deploy strong processes that create customer value and deliver repeatable outcomes, you create a long-term foundation for predictable, scalable, and sustainable performance.

6. Process predicts management quality.

Strong process is a predictor of a well-managed organization. Best practice performance is enabled through clear accountability established by process so that work is actively managed and improved to create the desired outcome.

7. Process enables employee engagement.

Process provides the context through which employees can engage with their work. A process that is designed and continually improved by those who do the work will deliver the most meaningful value to the organization.

8. Process deploys strategy.

Strong, reliable and capable processes make the execution of a leader’s intention possible. Understanding how processes perform relative to their expectations and capabilities provides a significant contribution to strategy formulation and deployment.

9. Process aligns structure to workflow.

A horizontal organization that aligns management with workflow is an essential element to building strong business systems and processes. And strong business processes provide the engine that powers enterprise performance.

10. Process delivers profit improvement.

Process improvement drives better performance in many ways, all of which contribute to increased profitability. Process improvement strategies include business model standardization, better customer experience, reduced costs, shorter response time, and increased revenues.

See how process management delivers superior business performance in our free white paper.
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Perigon Improvement

Perigon is a process mapping methodology that has no peers. See the types of business improvement and results that the Perigon Method drives, including increased customer loyalty, productivity, and revenue. How do your current processes connect, and where are there disconnects?

6 potential business results from process mapping

1. Define Processes

Process maps provide the foundation for how work gets done and how it can be improved. To define and deploy strong processes, an organization engages its employees to define the problems they face every day, implement their own solutions, and be held accountable. Strong processes are easier to manage and reduce stress in the workplace.

2. Improve the customer experience

Behind every unhappy customer lays a broken process. Improving the customer experience begins by systematically studying customer wants and needs, and then building robust internal processes that consistently align with customer needs over time. This will deliver better external customer outcomes.

3. Reduce costs

By understanding process-based cost drivers, an organization can improve its cost effectiveness. Costs come from four basic areas: inputs, conversion, people, and overhead. When organizations operate through strong standard processes, the costs of goods and services become transparent. This ensures that a process is delivering a return on invested capital, providing a successful economic outcome for all stakeholders.

4. Increase process efficiency

Efficiency defines the extent to which a process performs relative to its full potential. Greater efficiency comes by delivering a greater output of goods and services relative to the assets required for that purpose. Less efficient organizations operate at a competitive disadvantage that manifests itself in many ways, including higher costs (often leading to non-competitive prices), less reliable and dependable solutions, and slower response times.

5. Improve resource productivity

Organizations acquire assets with the express purpose of using them to produce profits. The productivity of those assets is derived from the ratio of outputs produced by processes relative to the resources required to produce those outputs. Assets include people, tools and equipment, facilities, information technology, and intellectual property. Few organizations measure the extent to which assets serve their intended purpose.

6. Reduce response time

By understanding processes, an organization can systematically analyze the time and activities behind value creation. When we study task time to total cycle time in clients, we generally see that value-added time is well under 10%. By removing non-value added tasks and time, balancing supply and demand, and understanding what equals a competitive advantage in the customer’s view, any organization can dramatically reduce cycle times.

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