Why a process improvement strategy is a valuable investment for your business
Why a process improvement strategy is a valuable investment for your business
Amid ongoing trade uncertainties, a business process improvement (BPI) strategy can help your business grow by reducing waste and saving costs.
Read on to learn more about the benefits, essential steps, and different approaches to BPI so that you can choose the best fit for your business goals.
Efficiency is more important than ever as your business weathers an uncertain economic environment. A business process improvement (BPI) strategy can help improve the way your business works, expedite desired outcomes, and sharpen your competitive edge in a volatile marketplace.
What is business processes improvement?
Processes are formalized activities that ensure your organization operates smoothly. These can include tasks such as financial reporting, customer relationship management, onboarding new employees, and manufacturing.
A BPI strategy reviews each of the processes within your organization. This helps you identify inefficiencies and make adjustments to reduce waste, save costs, meet customer demands, and improve performance — thereby increasing the profitability of your business.
Still, with numerous process improvement methodologies, it can be overwhelming to choose the right one. To help you get started, we’ve summarized the benefits of a BPI strategy, provided tips for initiating business process improvement, and outlined some of the most popular methodologies.
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What are the benefits of business process improvement?
A BPI strategy can help your business grow in several ways, including:
Increased efficiency
Investing in a BPI strategy can help streamline operations, reduce waste, improve productivity, and increase the overall efficiency of your business — leading to cost savings and increased profitability.
Improved quality
By evaluating your current processes, you can identify and address quality issues. Implementing solutions to eliminate bottlenecks will enhance the quality of your products and services, increasing customer satisfaction and loyalty.
Better decision-making
Analyzing existing business processes can help you gain a better understanding of how your business operates and make informed decisions about how to distribute resources, reduce human error, improve performance, and invest in new initiatives.
Competitive advantage
Introducing effective processes can help differentiate your business from competitors, giving you a significant edge in the marketplace.
How does business process improvement work?
While a BPI strategy may appear complex, most process improvement methodologies employ a variation on the following five steps. You can get started within your business by:
Different approaches to business process improvement
We have summarized a few of the most popular process improvement methodologies below to help you choose the approach that works best for your organization’s unique needs.
Six Sigma
The Six Sigma methodology aims to remove defects and minimize variability in processes to improve quality and reduce costs. This approach to increasing productivity, reducing errors, and quality control can be especially advantageous to companies in the financial services, manufacturing, and supply chain and logistics sectors.
Lean
Lean is a systematic approach that focuses on identifying and eliminating waste in processes to reduce costs and increase efficiency. The Lean methodology was initially developed for businesses in the manufacturing industry to maximize efficiency. However, its approach to waste reduction and continuous improvement can also support the success of businesses in the healthcare, supply chain and logistics, or services sector.
Total Quality Management (TQM)
This management philosophy emphasizes customer focus, continuous improvement, and employee involvement to achieve superior quality and customer satisfaction. TQM originated in the manufacturing sector with an emphasis on reducing defects. However, this approach to achieving quality excellence can also benefit companies in the service, educational, or IT sectors.
Business Process Re-engineering (BPR)
BPR aims to restructure and redesign business processes to improve efficiency, customer experience, and the quality of your products and services. It provides a host of benefits to large enterprises, public sector organizations, and the services sector through its emphasis on efficiency, performance, and effectiveness.
Kaizen
The Kaizen methodology focuses on making small, incremental changes to improve business processes over time. This approach to business process improvement provides benefits to small businesses and start-ups through its focus on incremental improvements, employee engagement, and workflow optimization.
Agile
The Agile method was originally created for software development and focuses on iterative, collaborative, and adaptive approaches to process improvement, with an emphasis on delivering value to customers quickly and effectively. This methodology also delivers benefits to companies in product development, marketing, and advertising with its focus on customer experience, collaboration, and flexibility.
Take the next steps toward success
No matter how you choose to approach process improvement, a BPI strategy is a worthwhile investment that can expose inefficiencies in your operations and pinpoint opportunities to optimize your existing processes. Adopting a continuous process improvement mindset can help you grow your business by overcoming obstacles, achieving successful outcomes, and increasing profitability.
Contact us
To learn more, contact Yohaan Thommy, PMP, LSSBB, CMC, Partner.
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