Business Process Design
Business process design creates a sequence of events that lead to success. When reduced to writing, improvements can drive profit. Every business needs this type of workflow, but some hesitate.
If a process reduces expenses by 15% and increases revenue by 10%, would you use it?
Business process design is all about working smarter, not harder. This article will help you understand how to create a new process or workflow from scratch.
Business Process Design
Business process design is a systematic approach. It's about analyzing and optimizing the flow of work in an organization. Everything works toward the organization's success.
The ultimate goal is to create processes that provide efficiency and effectiveness.
The International Organization for Standardization (ISO) defines business process design. They say it is the "configuration and documentation of desired business processes."
When you're trying to come up with a new process or workflow, try keeping these three things in mind:
- How does this new process impact me?
- How will it improve our organization?
- Is there a way to make it more efficient?
Business process design can help you create a new or improve an existing process. It's necessary to develop new business processes and improvements. When documented, workflows analysis and changes are easier.
Business process design helps businesses rank activities. This helps bring perspective to the processes. Then you can reduce costs where possible and improve business performance.
The design work includes the following five components:
- Identifying and documenting the current process(es)
- Measuring and analyzing how well each step works and its value
- Developing alternative processes that could support improved business performance
- Choosing the best alternative and shifting to that new process
- Measuring and analyzing how well each step works and what value it creates after the shift, including monitoring the ongoing performance of the chosen process(es)
Research shows companies with great business process design outperform others by 3X.
Business Process Design Job Description
For clarity, we can look at business process design from the perspective of a job description. The job responsibilities of a business process designer include:
- Identifying and prioritizing improvement opportunities
- Analyzing processes to identify the source of problems or bottlenecks
- Analyzing data to uncover drivers contributing to those patterns
- Interpreting change impacts processes or systems capacity
The job may also involve:
- Developing novel solutions for designing workflows
- Modeling processes/systems
- Creating policies and standards
- Ensuring coordination between project teams
- Conducting risk analyses
- Preventing disrupting system dependencies such as existing proprietary software
Business Process Design Process Steps
There are a variety of steps that can move the process forward. The following are the five core steps to creating a business process design:
Define Scope of Work
Define the factors involved in the process. This includes the level of analysis, scope, compliance, and policies. These all need documentation.
Identify Improvement Opportunities
Look at the process from the customer's point of view. Identify business or technical changes to improve processes or systems.
Identify and determine gaps in work instructions. Also analyze the critical paths, bottlenecks, duplication, and resource constraints including people.
Create a model of the process and identify potential improvements or changes.
Outline Work Instructions
Document the future state of processes and systems including:
- Details on how business analysts should test new policy
- Document communication paths between systems
- Determine resource allocations including people
- Budgeting allocation for expected costs
You may also want to consider outline standards and policies. These activities can include creating documentation for new standard operating procedures. Also consider business rules, data definitions, and roles and responsibilities.
Some companies outline the roles each person will play within the project team. These can include:
- Business analyst
- Process owner
- Process administrator
- Change manager
- Reengineering lead
Some individuals will have more than one role.
Business Process Design Example
Let's say you have an automotive repair shop. There are certain repeatable steps that occur every day and lead to achieving a goal. There are other steps that aren't necessary but seem to happen anyway.
Most of the time, repetitive work is implicit—using the same process but not mapping it out. Other times, there is a specific set of structured steps mapped out. This might include filling out a work order with the customer's input.
Design efforts would create a flow diagram of those repetitive activities. Once analyzed, unnecessary steps get removed. The end result is a streamlined business practice.
The structured work order must also need an assessment. The focus might include shortening the customer's time at the counter. This would allow for a more efficient intake of cars in the morning.
Business Process Design PDF
It's a good idea to have a PDF file of the current process flow. This will allow team members to share information about the current process. All changes get defined, analyzed, and documented.
PDF files also make it easier to gather feedback from stakeholders. PDFs can also help with some of the document creation.
Team members can export or output their designs as PDF files. They can email them to associates and stakeholders for quick review. This is more efficient than sending a large volume of emails and attachments.
Working with a PDF file also makes it easy for designers to attach images or project plans. It allows them to review the file and save it to their local workstation. Using a single file reduces errors and lost documents.
Business Process Design SAP
Business process design may be beneficial for the SAP. You might want to research what other companies have done and how it has benefited them. By focusing on SAP, inputs and outputs will drive new streamlined workflows.
Since SAP uses API, a well-designed process can help you take advantage of this powerful tool. Keep in mind that it doesn't have to be perfect on day one. The systems are flexible to shape your project.
This will allow for more effective, efficient, and adaptable change.
Leverage Your Understanding
You now have a better understanding of business process design. Both implicit and structured workflows need documentation for improvements.
Get rid of the unnecessary steps and create more efficient ones. By using the five design steps, you'll be able to reduce costs and increase revenue.
Are you ready to take your business to the next level? Contact us today and let's discuss your needs.