It is impossible to improve what you do not understand or even know about, but a business process improvement tool in the form of a simple structured assessment is a good place to start. The major cause of process related problems and small business failure and inefficiencies are broken processes. This is because many of their processes were created by default rather than by design and have continued to remain in that state aside from minor tweaks even as the business grew.
Process Related Problems – Use a Business Process Improvement Tool
3 Process Related Problems that prevent businesses from increasing their profit margins
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Systems and Processes Cause Most Problems
One of the earliest fathers of quality management, Edwards Deming, stated that 94% of most business problems and opportunities for improvement actually come from the systems and processes and are not usually caused by individuals as we like to believe. It is always easy to find someone to blame.
There are at least 9 causes of broken processes in a business. These are :
the presence of undefined processes, a lack of process ownership, duplicate of alternate use processes in different departments, process is too complicated, process is not understood, the process creates excessive waste, supplier processes are not well defined, the needs of the customer are not understood, and finally, relevant metrics are not used to assess performance.
Conduct an Assessment with The Business Process Improvement Tool
A business operating inefficient or broken processes will be at a competitive disadvantage within its industry with slower or delayed customer response time to deliver products or services with escalating costs. In the long term, such an operation is unsustainable.
Could your business processes be literarily “costing” you – loss of customers or employees or a decreased profit margin? Download the template and learn about 3 process challenges and how to fix them!