Why Optimize a Company's Business Processes

In one of our previous articles, we examined the concept of business processes and provided several real-world examples. We discussed the indicators that a company needs optimization and explained the essence of this process. This topic is quite extensive, so we decided to split it into a series of articles, where we will gradually examine and review goals, methods, and results. You can read the first article on business process optimization via the link.

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In this article, we'll delve deeper into optimization. We'll share how to identify goals and choose an optimization method that suits your company best. We'll also talk about the four main steps and how to accurately assess the effectiveness of changes.

When Does a Business Need Optimization

Process management is used to manage business processes. It involves each department having its area of activity and its specific product, its scope of responsibility, and measurement of results. At each point, some metrics show how this entire business process is proceeding. For instance, if the advertising is showing poor results, sales will soon decline. All of this is part of process management.

Project management is used when a process needs to be changed somehow. For example, developing a new service that has never existed before. What we are currently doing: we are developing a product focused on mergers and acquisitions, aimed at helping a business owner quickly increase income by purchasing other companies. To get the owner started on the right track, they need assistance and explanation.

In a healthy company, there is always both project and process management, and they complement each other. If we want a well-organized company, project management is needed for creating new products. For the competent functioning of all existing parts, process management is necessary.

Optimization becomes a necessary element for further development when a company transitions from project management to process management.

How to Define the Goals of Business Process Optimization

Improving efficiency and competitiveness in business is similar to a race in which business process optimization is the primary mechanism for achieving the goal.

Imagine that your business is a mechanism that works like clockwork. It's important to consider each cog in this mechanism to understand what already works well and what needs to be improved.

Ask yourself these questions:

• Which parts of this mechanism work efficiently?
• Which ones need refinement?
• Where are time and resources being lost?
• Which improvements directly affect the company's income?

Then, carefully analyze your answers. They will allow you to formulate goals for further business process optimization.

Methods of Business Process Optimization

• BPM (Business Process Management)

In other words, business process management. BPM involves modeling, automation, control, and improvement of business processes. The main goal is to eliminate inefficient actions and increase the overall productivity of the department. Applying BPM can lead to a significant reduction in the time and resources needed to perform tasks.

• Lean Management

This is an approach whose goal is similar to the previous one - eliminating the waste of time and resources. However, Lean Management is primarily a customer-oriented approach. It focuses on creating value for the customer and eliminating what doesn't provide this value. Lean includes some methodologies and tools, such as 5S, Kaizen, and Just-in-Time, which help organizations identify and eliminate waste.