Business Process Management (BPM) – Process Stability as a Prerequisite to Process Improvement
After a long business cycle that saw the creation and expansion of performance improvement programs, we have undergone tremendous change that has forced every initiative at every company to re-evaluate its goals and validate its existence. At some companies, continuous improvement has been repatriated to operations. At others, it has mistakenly been eliminated and will undoubtedly have to reconstitute at a later date. And for a lucky few, economic changes are providing an opportunity to start for the first time or reorient their efforts to contribute to a new set of challenges.
Those that seek to prosper in the new normal get excited by the prospect of implementing or applying a responsive system that offers such promise. It is a pretty appealing prospect and there are a number of books that paint this picture as attainable using a variety of methodologies (i.e. Lean, Six Sigma, etc). The challenge is that with all the turmoil of the last several years few have the infrastructure needed to really identify or sustain high value improvements, and this presents a major dilemma.
So, how can you overcome this dilemma? If you want to implement any improvement methodologies effectively, there are some pre-requisites must exist, possibly even before you attempt your first improvement project. You can’t put an improvement in place if staff doesn’t follow standard work in a disciplined way – improvements rely on control to actualize the planned benefit.
The very arguments that support the exciting prospects of improvement methodologies often neglect to mention these issues, perhaps because they assume that the desire to improve makes you “ready”. But sometimes that’s not the case and you must build a foundation before you try to put up the building. The term that’s normally used for being “ready” is Basic Stability. It means that you can pretty much rely on your people and equipment to do what they are supposed to do, and you have a way (i.e. metrics) to verify. Basic Stability usually involves establishing (or re-establishing) standard work processes and key process metrics. Everything need not be perfect, but operations should repeat in a consistent manner or any change will soon be lost and thus the effort will prove to have been worthless.
Download “BPM – A Structured Approach to Delivering Customer Value”
A good Business Process Management (BPM) program establishes the cornerstones of repeatability and thus Basic Stability. Along with establishing alignment and cross-functional thinking, it identifies and characterizes processes, identifies data sources, identifies key metrics, and provides for process analysis and control. If this is in place, soon enough you will get to the place from which you can make those improvements and have them stick.
And, the good news is that establishing a foundation Business Process Management (BPM) does not have to be overly expensive or resource-consuming. See more about our BPM approach with our complimentary power point download or contact me directly if you want to discuss.