What Is Business Process Analysis And How Do You Use It?
Bryan Scott(Amarjit), December 27, 2022
Regardless of the size or industry a company belongs to, it has several business processes that ensure it delivers its product or service. And these processes are made up of a series of activities and tasks.
For the smooth functioning of any organization, each business process must operate optimally. This reduces cost and drives productivity, enabling the company to grow and thrive.
But to do this, frequent checks must be conducted. An organization must systematically study its business processes. This will help avoid financial setbacks or losses in the future and address business operations that need to be improved for the organization’s overall growth.
And a way to do this is to conduct a business process analysis. Here, we’ll discuss what this is and how you can use it to benefit your company.
What Is Business Process Analysis?
Conducting a business process analysis means undertaking a review of how a company is operating. It involves studying the various components such as controls, data technologies, applications, inputs, and outputs individually as well as in combination with each other.
Some ways in which business process analysis benefits your company are,
- Identifies areas that can be reworked to reduce costs
- Increase efficiency in existing business processes
- Reveals gaps and bottlenecks
- Strengthens company culture by improving business operations
How to Use Business Process Analysis?
1. Identify A Business Process to Analyze
The first step in business process analysis is selecting an ‘as is’ process to analyze. It must be a current process that is part of your business operations. It is important to observe how the process functions before questioning if it’s doing so efficiently.
This step helps you establish a benchmark against which you can measure the changes you propose in subsequent steps. You must define the business process clearly to understand what parts must be studied.
For instance, if you’re studying the business process of scheduling appointments. You will have to define what tasks within that business process will be assessed. Right from the responsibilities of the employees in the department to the method you use to book the appointments. Whether it’s manual data entry or dedicated software, it must be identified for the assessment.
Knowing where the business process ends and a new one starts is essential to get the most out of your business process analysis.
2. Collect Data on The Process
Once you’ve decided on the business process to study, next is to collect as much information on it as possible. This step includes gathering data on how the process operates. From which employee does what, how, and the tools they use to the intended goal of the process and how often it is met.
This is the stage where you need to observe the operations. You can watch how the work is done and gather feedback from employees. Since they are on the ground, they can shed light on any shortcomings and even give suggestions to improve them.
Document every piece of information you collect carefully to make it easier to study further down the line.
3. Analyze the Data
The next step involves studying the data and analyzing it through various techniques. You can run different assessments to better understand how the business process is functioning.
For instance, a value analysis will help you understand which tasks within the business process are of value and which ones are wasting time, and resources and hindering productivity.
Similarly, conducting a gap analysis will help shed light on what is missing in the process. If there exists a gap between two tasks, implementing this analysis technique will help you recognize it.
Lastly, a root cause analysis will let you work back your way from a problem to identify what’s causing it.
These techniques are immensely helpful as you begin studying how your business processes are faring.
Additional read: 8 Go-To Strategies for Building a Robust Sales Pipeline
4. Specify Improvement Areas
Once you know your problem areas, the next step is to find ways to improve them. At this stage, you will be looking at how to increase efficiency to drive KPIs. Employee feedback, your observations, and the data collected will guide you in determining what needs to be changed to better the functioning of the business process.
Additional read: 5 Steps to Setting Smart Sales Targets and Goals for Your Business
5. Develop A Plan
After working out where improvements are required, it is time to develop an action plan. This crucial step entails studying all the suggestions for improvements and assessing how they work together.
The idea behind a business process analysis is to review how the company’s internal operations are doing.
And it is natural for certain tasks within the process to become obsolete over time due to better technology or change in business strategy. And so, after you have analyzed how the business process is working ‘as is’, you need to develop a plan to improve it for it to better align with productivity goals.
6. Implement the Plan
The last step in conducting a business process analysis is to implement your strategy. You should communicate the changes to all stakeholders involved for a smooth transition. In case you are introducing new software, you must conduct training sessions to help employees navigate it and understand its capabilities.
Lastly, implementing a new plan can be a tedious process. It involves learning as well as unlearning. And so, allocating enough time to this stage is important.
An essential point to keep in mind is that business process analyses are not a cut-and-dry method. It must be revisited and reevaluated from time to time to keep the company running optimally.
Business Process Analysis Benefits
Companies by systematically studying each operation and determining whether it’s functioning optimally. It allows you to assess and evaluate every aspect of the company and determine the best course of action for a profitable future.
To Sum Up
And by following the six steps mentioned above, you can effectively analyze your business operations. Periodic checks on internal processes help you streamline problem areas and improve efficiency by ensuring no unnecessary actions are causing unjustified delays.
References
- https://www.heflo.com/blog/process-mapping/business-process-analysis-methodology/
- https://www.frevvo.com/blog/business-process-analysis/
- https://www.businessmapping.com/blog/seven-steps-business-process-analysis/
