The Impact Of Poor Process On An Organization
- March 14, 2016
- Tag: Business Agility,Business Processes,Business Solutions,Collaboration,Communication,Organization,Process Optimization,Profit,Small Business
- Published Author: Tanya Amaya
Did you know that inefficient business processes have five times more impact on the customer than the delivery of a poor product? In today’s competitive global marketplace, that’s simply not an option.
Business processes are meant to be simple but often get complicated by organizational structure, complex systems, and inadequate process development. Forward thinking managers understand the need to streamline business processes in order to stay relevant.
Without reviewing and identifying process inhibitors and enhancements, and cutting redundancies while implementing sound process improvements, business and profits will ultimately dwindle. However, effective business processes can increase accountability, profitability and transparency for business operations at all levels.
Efficient communication and collaboration are critical to the coordination and delivery of customer service, especially given the increasingly mobile nature of today’s businesses. Unfortunately, there are many ways companies unintentionally set their employees up to fail. Under the guise of cutting expenses, valuable corners are cut instead, resulting in loss of employee and customer satisfaction and high employee turnover that inevitably requires time-consuming measures to keep production flowing while profits flow out the door.
Profits are lost when inadequacies in implementation and poor process optimization restrict business agility. Changing customer requirements and competitive cost pressures require firms to rapidly adjust, redesign, and adapt their processes and capabilities. Regardless of the type of business, the ability to sense, shape, and respond to dynamic customer needs, emerging business opportunities and unprecedented threats are considered a critical business capability.
A clear symptom of inefficient business process management and design is visible in
highly reactive organizations creating business processes due to issues at hand instead of creating proactive processes to eliminate potential issues. Unmet expectations affect customer satisfaction and poorly implemented business processes result in a lack of training and communication within the organization, creating a cycle of customers and employees seeking to fulfill their business and employment needs elsewhere.
A simple process that is often overlooked is spending the time and money to properly train and cross-train employees. Poor performance helps no one. Refusing to invest in proper employee training results in redundancy in business processes and lessened productivity, only to cost significantly more over time.
For management, the ability to satisfy the need for more efficient communication and productivity must be balanced with investment in streamlined business processes. If the organization continues to rely on weak communications and unsatisfactory performance, inefficiencies result with a considerable economic and productivity impact.
Successful business process analysis, design, and implementation can redirect valuable resources more efficiently and strategically, and re-focus your internal resources on strategic capabilities to innovate and grow your business. Integration, process optimization, and best practices all affect business agility.
JuzSolutions can help create effective business processes such as performing process reviews to remove non-value added activities, prioritization of projects, identifying and implementing cost savings, while using proven process design methodologies to ensure consistent design and implementation across the organization.
Simply put, process improvement methodologies can result in tremendous direct savings to any business or organization. One of the greatest benefits comes in an overall improvement of the image of the organization as it is held by the customer. By adapting to the changing landscape, rather than reacting as issues arise, improved business processes increase the ability to compete globally by aligning people, processes, and technologies more efficiently.