Module 10: Business Process Foundations

Projects vs Processes

  • Processes

    • Something that is done over and over again. Repeatable.

  • Projects

    • Something that is done one single time. Unique.

What is a business process?

  • Eddie Davila defines a business process as a series of interconnected activities or tasks that collectively achieve a specific organizational goal.

  • An activity or group of activities that takes an input, adds value to it, and provides an output to an internal or external customer.

  • Step by step breakdown that aids in providing:

    • High quality results on a consistent basis utilizing minimal resources.

3 Values of Business Process

  • Consistency: Standardized processes ensure uniformity in operations, leading to predictable and reliable outcomes.

  • Efficiency: Streamlined procedures reduce waste and optimize resource utilization, enhancing productivity.

  • Scalability: Established processes facilitate growth by providing a framework that can be expanded or adapted as the organization evolves.

Characteristics of A Good Process

  • Good intentions- process is goal oriented, stakeholders considered, effective and efficient, outputs are desired.

  • Reproductible results- documented and easily understood steps

  • Measurable and manageable- define good outcomes in a measurable way. Use good metrics. Who is accountable for each step? Make it easy to identify problems. Have a plan to fix problems.

Common Reasons Business Processes Fail

  • The Process was NEVER good

    • Poor goals and/or poor priorities- goals unclear. What’s most important?

    • Misalignment of goals and actions- not doing what they say they are doing.

    • Unreasonable expectations- employees do not understand goals, process… Too many options.

  • The Process USED to be good

    • Poor training or no training- employees don’t know what to do or why to d it.

    • Miscommunication- fractured culture. Poor training.

    • Market evolution- market needs and/or technology have changed

  • The Process had LIMITATIONS

    • Demand is too high- market growth, new channels. Can’t hire or expand fast enough.

    • Human resource challenges- lack of qualified people, poor pay, work environment, training.

Cow Path Theory

  • Sometimes processes suck- we only have so much time to figure things out and have even more limited time to improve that process.

  • Sometimes overnight success can kill you. When a process comes out that works well but could be improved, but it blows up and everyone wants it, there is now no time or really reason to improve it when it's in such high demand.

  • Empower your employees to ask dumb questions.

  • A new set of eyes can give insight into improvement in a process. This is why we need to give employees comfortability to speak up and ask questions or make suggestions.