Business process optimization step by step

Effective business process optimization is not an ad hoc action, but a continuous improvement. Recent trends indicate that ad hoc actions should be replaced by a systemic solution. Once a manager has armed the organization with a process optimization system, a glance is enough to find the weaknesses and strengths and we can easily manage them.

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Krzysztof Pimpicki
CEO, Harmodesk & Positive Productivity
Michał Stangret
Evangelist, Harmodesk & Positive Productivity

Management practitioners and theorists, striving to communicate their valuable knowledge and experience in the clearest and most effective way, enjoy comparing the mechanisms found in organisations to phenomena known from the natural world. It is quite common to refer to the example of living organisms. This allows us to illustrate well the complexity of business processes in organisations and their mutual relations.

Both in an organisation and in a living organism (e.g. a human being) we witness specialisation and cooperation of specific areas in achieving very particular goals. For these objectives to be successfully achieved, they should run without problems and in an optimal way.

If this is not the case, action should be taken to eliminate the problems. In organisations, these decisions are made by leaders and managers. In practice, this often happens only when troublesome symptoms appear, even though the real problems causing them originated much earlier and may have been building up and accumulating for a long time before they were noticed.

Diagnosis is therefore often only made when the problems have advanced significantly and additional complications have arisen. Not infrequently, if one process does not function fully properly, it may trigger a whole avalanche of complications and significantly disrupt the functioning of the entire system.

With such a stated assessment, it remains to acknowledge that perhaps everything could have been solved much more quickly and easily if an earlier reaction had been possible. Its absence can usually be attributed to a lack of sufficient knowledge, and this to a lack of reliable monitoring of key processes and a practical inability to achieve this goal.

For optimization of business processes, the first step is reliable and complete data

Business process optimization is sometimes perceived as an ad hoc activity: a problem appeared, so we look for a solution. Let us try to imagine process optimization as a systematic identification and elimination of problems based on an early warning mechanism.

The model of an organization permanently connected to a system monitoring key processes and providing managers with relevant data brings us closer to this. Leaders can identify problems based on this data in real time, so their response can be rapid. Because they are able to identify and eliminate problems at an early stage, they can prevent them from getting worse and spreading, preventing disruptive effects on the organization. At the same time, having quick knowledge of exemplary processes, they are able to immediately multiply best practices to entire teams.

Business process optimization is not only about eliminating weak points. It is also about fostering change in a company based on best practices

The most experienced employees have their own, long-acquired ways of performing specific tasks efficiently. Pick out the best practices and implement them throughout your team.
The best employees don't always want to share their practices with the rest of the team, but with a system we can change that.
The best employees don't always want to share their practices with the rest of the team, but with a system we can change that.
The application of best practice by the whole team can be very beneficial to the company.
Don't let the knowledge and experience of the best go to waste in your organisation. Use them in your company.
Don't let the knowledge and experience of the best go to waste in your organisation. Use them in your company.

Identifying process weak points and addressing them while at the same time finding process strong points and successfully spreading them throughout the organisation is one of the important steps on the path to business process optimization that makes process standardization possible.

Is it possible for business process optimization to become a feature of the working environment? Can a minimisation of the risk of emerging problems be a feature of this environment? Are we able to arm the organisation with a systemic solution, which once implemented will lead it along the path of continuous improvement to greater and greater efficiency? And how about if - as part of the benefits of the introduced solution - the employees themselves started to engage in business process optimization

Business process optimization in Business Services

In those organisations where human resource costs are a key burden, it is usually also the people (managers, employees) who make the essential contribution to added value, representing the fundamental value to the organisation. Their working time is therefore a key variable that should be taken into account when aiming to optimize business processes. The first and necessary step on the way to business process optimization is therefore a reliable, accurate and credible measurement of working time devoted to individual or key tasks or business processes.

The aim of the business process optimization should therefore be to free up the time of both employees and managers for activities through which they add most value to the organisation. This is possible, among other things, by eliminating or minimising activities by which employees and managers do not add value to the organisation.

Organisation of the activities performed in the company according to their value to the organisation

Large proportion of employee activities in a company are cost centres instead of adding value and can be disposed of.
Large proportion of employee activities in a company are cost centres instead of adding value and can be disposed of.
Value Added - VA (green)

All activities that change the product or service and bring it closer to the way the Client expects it to be:

  • Something that clients are willing to pay for
  • What changes the product or information content in a way that is meaningful to the Client
  • Something done right the first time
Opportunity Time - OT (blue)

Activities that increase the potential to generate profits in the future. Time for activities that affect efficiency, productivity, quality of tasks performed from an individual or team perspective:

  • Working on improvements
  • Trainings/workshops
  • Project meetings/projects
Necessary Non-Value Adding - LB-NNVA (yellow)

All activities that do not add value but are necessary due to current business processes:

  • Enable the effective delivery of value, although it does not deliver value itself
  • Required by law or internal procedures
No Value Added - NVA (red)

All other activities that do not add value for the Client in the business processes

  • Something that consumes time and resources but does not add value from the Client's point of view
  • Something that can be eliminated immediately without a noticeable loss to the process

Potential for business process optimization as a result of the value to the organization of the team members' actions

Determining the processes to be improved is an important part of business process optimization.
Determining the processes to be improved is an important part of business process optimization.

Our experience in over five hundred Business Services and Back & Middle Office teams shows that within just a few months of implementing system solutions in organisations, the business process optimization results in the release of even approx. 20-30% of employees' and managers' time. This has a significant impact on reducing company costs, and the implementation of best practices also helps to stop uncontrolled cost growth. 

Effective business process optimization in organizations of the Shared Services type (carrying out repetitive tasks) makes it possible in this way to free up from a few to several dozen full-time jobs. It is possible for managers to use this to reduce headcount, but this is not absolutely necessary in order to feel the effects of the changes. Business process optimization can also significantly help to set aside additional resources to carry out further work and projects, which means it is possible to experience significant organic growth without bearing additional, often quite disproportionate costs.

Data visualisation as key to effective business process optimization

Quick, accurate full diagnosis is usually impossible without the right data as a sure starting point and foundation for analysis. To be able to embark on the simple and beautiful path of process optimisation in Business Services, one needs a solution that provides absolutely reliable measurements of working time.

Only such data allow managers to effectively identify weak and strong points in processes without the risk of missing important things. They allow managers to plan effectively and make the best decisions based on facts, rather than assumptions or estimates.

System collects real data, which provides managers and employees with a true overview, increasing their engagement in improving quality, productivity and on time performance.

True view of reality and effective data visualisation ensures that improvements are implemented effectively.
True view of reality and effective data visualisation ensures that improvements are implemented effectively.

Reliable measurement of critical data is only half the battle. Clear and easy-to-read data visualisation is needed. An intuitive and easy-to-use tool should provide a simple and transparent way to use the collected data for process optimization

Many Shared Services managers perceive that the majority of employee time measurement systems available on the market, however, do not take into account these requirements and the specificity of their teams' operational work and do not fully respond to their needs.

How do you deliver solid data and clear visualisations in a practical way?

Valuable and accurate data, which is the engine for effective process optimization that is impossible to achieve with other tools, is at Harmodesk's fingertips. How is this possible? Detailed measurements of working time, split into tasks, breaks and pauses, are collected online in the background, i.e. as you or your staff work in the Harmodesk application. They are displayed on visualisation dashboards in Harmodesk itself, making it easier and more effective to monitor task performance levels and manage team performance on an ongoing basis.

Optimising business processes in the short term - why is it easy?

Everyone knows what tasks are due today, which tasks have been completed and which are behind schedule.
One common source of truth, what needs to be done and for when, what is in the backlog, allows you to manage timeliness effectively.
Data on task suspensions support quality management of business processes (as well as production processes) and planning of organizational changes.
Understand what is delaying your team's tasks and preventing them from working fluently.
Data on task suspensions support quality management of business processes (as well as production processes) and planning of organizational changes.
Data on task suspensions support quality management of business processes (as well as production processes) and planning of organizational changes.
You know what time is allocated to which tasks and how many tasks have been completed.
Time measurement for individual tasks allows for effective productivity management
Time measurement for individual tasks allows for effective productivity management

Harmodesk is therefore much more than a very popular timesheet for Business Services teams. It is a comprehensive solution for managing tasks and organizing the team work in the short term, but also in the medium and long term.

Medium-term and long-term perspective in Business Process Optimisation.

Ability to use the potential of Business Intelligence class systems, such as Qlik or Tableau, additionally opens up new areas for the analysis of collected data. In our implementation practice, the Management Dashboard and a predefined set of worksheets found in BI systems enable analysis in the mid-term and long-term perspective.

What does using data for interim analysis look like in BI?

The manager has a Management Dashboard and a set of 100 ready-to-use and tested support sheets:

  • Setting and evaluating the extent to which periodic objectives are met,
  • Periodic measurement of performance indicators, monitoring changes in performance,
  • Assessing process wastages and potential for improvement, monitoring the effects of improvement implementation,
  • Decision making on changes in task allocation and work distribution,
  • Developing process standardization and preparing business office processes for automation,
  • Benchmarking analysis of processes, clients, tasks, teams, etc.

In addition, the BI tool enables the development of sheets tailored to the specifics of specific processes, these sheets, among other things, allow you to:

  • Preparation of dedicated reports e.g. for the management board, clients,
  • Preparation of a handy set of several sheets placed on a single dashboard, enabling ongoing monitoring of key indicators, processes and key areas for improvement.
The combination of both perspectives makes the business process optimization a natural element of managers' and employees' work environment.
Software tools for Business Services have long lacked products with tangible changes and real benefits.
Software tools for Business Services have long lacked products with tangible changes and real benefits.

Engaging employees to optimize business processes.

As a platform for managing timeliness, quality and productivity, Harmodesk addresses the specific needs of companies in the industry. Accurate and detailed data, which is obtained on-line and in real With clear and field-proven visualisations, the tool provides real management support to managers, making business process optimization truly simple and intuitive.

What is important is that all this becomes a conscious participation of team members, whose role in the process optimisation increases, simultaneously strengthening their morale and motivation as well as relieving the leader and freeing up their time.

  • The detailed measurement data provided by the system also means that employees know exactly how much time each individual task takes. This means that they are no longer merely the subject of business process optimization, but become its subject and willingly engage in changes. They track the process themselves, see the bottlenecks and get involved in removing them what makes the workflow more efficient.
  • The leader, with full knowledge of what time is spent by specific employees and entire teams, is able to build an effective and realistic action plan on this basis and implement effective backlog management. Effective planning is supported here by the ability to create accurate forecasts of the workload of team members and the time taken to complete new tasks. Optimisation significantly frees up employee time, which can be spent more on optimisation activities and actions.
  • By becoming an actor in the process, employees no longer fear optimization as a change that could result in them losing their jobs. Similarly, they, as well as the leader, are able to monitor the progress of the teamwork on an ongoing basis, and an easy-to-use and intuitive tool gives them a detailed insight into the current work of the team and historical data in one place. With the guarantee of accurate data on their work metrics such as timeliness, quality and productivity - but also the certainty that the rules and principles applied in daily work, such as task prioritization, are secure - they are more committed to improving them, freeing up their time for activities that give the greatest added value to the organisation.

Every leader wants an engaged team and the comfort of making decisions based on hard and reliable data. This is much easier and more effective when there are always easy-to-interpret reports and clear visualisations at hand. By the way, having a quick overview, it is much easier for him to find and present arguments to employees, business and customers. This is a basic thing to ensure if you, as a leader, are serious about business process improvement.

The specific Harmodesk features (reports, worksheets, visualisations) were created directly in response to the needs of SSC / BPO and Back and Middle Office teams and are the result of many years of learning about the needs of business process management in their teams. They have been simplified and automated (according to the rule: define-measure-analyze-improve-automate-control) saving managers valuable time and giving solid benefits to stakeholders.

How to avoid the risks related with business processes optimization that many organisations run into?

You can benefit from various existing examples of process improvement methods to achieve business goals (like Six Sigma, etc.) and implement process automation via many different apps and software. What is sure is that while optimizing operations eventually the number, variety, excess and the problems surrounding them will begin to overwhelm you. How to reliably avoid technical risks (application incompatibility, implementation problems, integration, errors) and be sure to meet your needs for quality, productivity, timeliness, compliance, problems with workflows, etc.?

The unique value of Harmodesk software is that it combines in one tool everything that is essential for processes to be optimized in a reliable and effective manner in the businesses like Shared Services organizations.