fbpx

Optimize business processes in times of crisis

Properly organized and systematic business processes deliver maximum profitability and exceed the expectations of all stakeholders, from business owners to the end customer.

On April 24, the Ukrainian Association of Furniture  Manufacturers organized a webinar on “Optimization of business processes in times of crisis”.

Speaker of the webinar was:

Iryna Latanska – Process Management Implementation Expert, co-founder of the consulting company LABRO Transformation Hub. Among the cases, the transformation of the processes of companies such as Toy House, UkrLandFarming, Zammler, BackStage, TOTUM.

Adept of system business and maximum process efficiency, a consultant with extensive experience in process management at all levels of the company: from management circuit to workflow automation.

Irina provided up-to-date information on the use of tools for organizing and organizing business processes and answered questions from the audience.

 

The process begins with clearly defined external events. If this is not the case then “Garbage at the entrance, prayers at the exit”

For maximum effect, Irina divided the webinar into two parts:

the first part is theoretical and answers the question: “What are processes and process management?”

the second part – practical tools: “Where to start and what processes to focus on in the current environment?”

Irina began her presentation by highlighting the top priorities that need to be addressed in business for the highest efficiency.

The result is instead of a stack of papers

Every business consists of certain functions performed by the employees of the company. Standardization performed by describing responsibilities within one function is not an effective tool. “This description is valid when more than five people are employed in one department. In other cases, it is just paper folding, ” Irina emphasized.

Just exploring and describing the interaction between different departments that perform different functions can lead to the desired result.

We observe the links of information flows

When we talk about moving to process management, we need to stop considering business functions as separate elements and understand their relationship.

“That is, a business process is a so-called conveyor that digests, transforms and reorganizes a set of data information and performs certain tasks. So we need to start looking at business through its business functions, ”says Irina.

In this way, the functions are stored, but the focus is on the links between them. This allows the company to operate as a single organism in which all information flows are well-organized and clearly understood to fulfil its business functions. Among these straits, you can easily spot the bottleneck and figure out where to invest to expand it.

The business process is a relay race

Cross-functional processes are global processes that flow throughout the company.

All other processes that take place within departments must be subject to their logic. After determining the process link between the functional units, it is possible to output metrics for the units of time, goods, raw materials, and other aspects that the functional unit can perform over a period of time and pass to the next unit. That is, the process is a so-called relay race. It is important to measure how long the object is transformed at each stage of its stay. This allows you to deduce norms and identify bottlenecks. By making efforts in these bottlenecks, you can expand the flow. This makes it possible to get more results using the same amount of resources.

In manufacturing companies, all pre- and post-production processes must be sharpened to capacity. That is, the bottleneck should not be buying or selling, all processes must work on the result of the production of a product or service. Thus, the only bottleneck should be production, the expansion of which must extend the processes of the cycle “before” and “after” respectively. Production should not be idle so that the company does not lose the money invested in production capacity.

If there are actions in the department that do not lead to the end result of the process, the question should be asked: “Do we really need to do this?”

Concentration on the main flow of the operating process and monitoring of the processes of departments allow to identify and remove unnecessary processes, thereby optimizing production.

Business Process Architecture

It should be built from the top down in the form of a pyramid with the highest level being the contextual diagram of the business. Strategic points are identified at this level:

● why the company works;      

● what product is made;      

● for which client the company works      

The process context should be subordinate to the process groups that lead to the implementation of the strategy. It is important that the business involved and performed all the necessary processes. If a process is lacking or not properly implemented, the company loses money.

If the process is of no value to the business and, as a result, to the client, it should be disposed of

Production can be optimized based on an understanding of this logic.

To accomplish this, you need to understand the needs of the client and direct all process flows to meet his needs. It is important to understand that all the process part that is in the company is a cost part. All actions performed within the company are spent. These costs are paid by the customer purchasing the product. Therefore, it is important to configure all processes so that the customer is satisfied.

What to do in times of crisis

In times of crisis, you need to focus on two major cross-functional processes that exist in the company:

  1. Define the boundaries of an operational business process from working with a supplier (for a manufacturing company) to working with your client. It is important to optimize and clean the process of unnecessary actions, to maximize automation.
  2. Understand who your customer (or customer group) is and how he/she buys the product from you.
  3. Understand how a customer learns about your product or service, how you influence your purchase through marketing.

Process indicators

After understanding the operating flows, it is possible to measure process indicators, the so-called KPIs.

Three KPI planes:

  1. Pass Time: How much time is spent on a cross-functional business process. It is necessary to measure the term of the complete cycle of the passage of the operating mechanism of the company. The measure of the term will give an understanding of the norm and the opportunity to continue to work on reducing this term.
  2. product quality. Not only the permissible percentage of the defect but also the total flow.
  3. cash costs of the company to operate a certain process.

To perform the normalization of the entire process flow it is important to form:

● understanding the logic of processes and their participants;      

● subprocesses that occur within departments,      

● isolate extra;      

● set process indicators,      

Based on real business case studies at different companies, Irina Latanskaya analyzed the existing mistakes and gave advice on auditing the business processes of the audience.

She also drew attention to the importance of properly constructed marketing processes in the context of understanding the client’s profile and communication processes. Separately, she focused on the processes of internet marketing, namely the construction of a customer journey map, which can also be analyzed and directed to manage product demand and sales conversion.

Marketing and marketing analytics in times of crisis – one of the key analysts’ companies need to gather to manage demand

Irina advised to create a list of hypotheses of possible influence and test online consumer reactions. She also drew attention to process software, BPM engines that allow you to optimize exactly the set of actions that a particular process requires. The software can be embedded in an existing system to speed up the exchange of information and data within the process rather than the whole function. Such software allows you to be flexible to the market and quickly rebuild the logic of the processes, not only in terms of performers but also to adapt to the changing demands of consumers in the new realities, thanks to the placement within the system of the scheme, which can be easily changed.

In times of crisis, Irina offered to automate only that part of the process that is most necessary and will lead to results, namely sales.

Irina summarized her speech and invited the audience to a dialogue. In answering the questions, Iryna kindly provided an hour of a personal consultation to the participant who addressed the most interesting, in Iryna’s opinion and showed the most activity, speaking on the educational function of business processes in the company.

The Ukrainian Association of Furniture  Manufacturers is grateful to everyone who participated in the webinar, and to Iryna Latanska for up-to-date information that should help create the best furniture environment in Ukraine!

 

 

Share This: