How do you use process management to optimize resource utilization and reduce costs?

When creating new processes, it’s crucial to build them around the employees who will execute them day-to-day. Too often, processes cater to leaders or operational needs rather than empowering the end user. This outside-in vs. inside-out distinction is key.

My experience has been that many organizations don't understand the impact of their actions on the upstream and downstream processes. Mapping out the end-to-end process helps to achieve that and remove redundancy and waste, improve cycle times for quicker and more effective processes.

Some suggestions: ? Homogenize protocols you will use to identify and map processes ? A dictionary of roles, activities, departments,… will be helpful to map utilizing the same criteria ? Determine how detailed the mapping will be and make sure that all processes are mapped out in a similar way ? Identify the main goals we are trying to achieve: are we trying to better understand how the company’s activities are being conducted, are we trying to identify activities that could be automated, activities that are duplicated, inefficient processes,…? As we map out processes we should also focus on identifying those key goals we are trying to achieve ? Select mapping tools that are easy to use and friendly to visualize and share processes

Uma empresa de fabrica??o de automóveis mapeou seu processo de montagem de veículos, identificando oportunidades de melhoria, como tempos de espera desnecessários e transporte excessivo de pe?as. Ao mapear esses processos, a empresa conseguiu otimizar a utiliza??o de recursos e reduzir os custos de produ??o.

For better resource utilization and long term cost reduction, i have found Process Cycle efficiency to be a critical parameter. Once you are able to define this effectively, targeting the improvement brings in effective resource utilization, making the work visible and leading to increased team satisfaction. the long term result is better costs and timeline adherence.

It's important to understand what you're measuring, why you're measuring and how you're measuring it. Establish a baseline at the start of any process improvement effort to validate the effectiveness of the effort once it is up and running. Be consistent when measuring the same KPI at different locations and regions.

Suggestion #2 – Make sure that mapping teams are autonomous to avoid political issues within the company ? When analyzing processes, it is common that the teams that map them out identify inefficiencies that sometimes make some teams or managers look bad. ? Managers can also be reluctant to identify inefficiencies since they may lose power, teams, resources,… ? It is important that the teams are autonomous and allowed to objectively identify cost reduction opportunities without managers interfering.

After the mapping stage, the next step is to identify inefficiencies, wasted resources and friction points. This involves identifying delays, redundancies, non-essential steps and bottlenecks, while examining wastage of time, materials and under-utilized human resources. At the same time, collecting data on process performance makes it possible to quantify identified problems and prioritize improvement actions. Involving stakeholders in this analysis is also crucial for obtaining diverse perspectives and understanding the challenges encountered in process execution.

Pensando no ecossistema da saúde. Um hospital analisou e mediu seu processo de admiss?o de pacientes, identificando gargalos, como longos tempos de espera na triagem e falta de coordena??o entre os departamentos. Com base nesses dados, o hospital implementou mudan?as para melhorar a eficiência, resultando em uma redu??o nos custos operacionais e aumento na satisfa??o do paciente.

Suggestion #1 – Don’t focus only on cost reduction. Identify missed revenues ? Traditionally, there tends to be a preference to always seek cost reductions when mapping and analyzing processes. However, many times we miss opportunities to identify revenues that are not hitting our P&L due to process inefficiencies. ? Sometimes, we need to add resources to the process instead of reducing them in order to generate more revenues or generate revenues sooner than planned with the current processes. ? I have come across many cases like this specially when getting feedback from customers in onboarding processes or in-house project implementation processes. Customers can be very helpful identifying bottlenecks

Suggestion #2 – One of the biggest mistakes when trying to improve processes is that we do not assign a process owner ? Many process improvements fail because there is nobody responsible to optimize them, nobody accountable for the KPI goal achievement ? Processes usually flow through different countries, departments,… It is complicated to assign a person that can have full power over the whole process but it is critical if we really want the process to be optimized end-to-end

Optimization is the next step after analysis, and involves meticulous analysis of existing processes to identify inefficiencies and wasted resources, followed by their elimination through measures such as simplifying steps, automating repetitive tasks, and standardizing procedures. By reducing lead times, eliminating waste and optimizing workflows, organizations can not only save financial resources, but also improve product or service quality, which can lead to greater customer satisfaction and market competitiveness.

Suggestion #1 – Start with improvements in processes that can impact positively customers and employees ? In the case of customers, any significant process optimizations will generate higher satisfaction during onboarding, less customer attrition, more revenues,… ? In the case of employees, eliminating bottlenecks, reducing bureaucracy in processes,… can generate increased employee satisfaction and reduced turnover. Additionally, if you involve employees in those process improvements with the right resources, they will be more engaged and willing to help. Apart from that, when you implement a culture of constant process optimization where employees are free to identify inefficiencies, they will step up and embrace change

While various process improvement methodologies exist, Lean Six Sigma offers a particularly powerful framework for optimization. Its data-driven approach, emphasizing statistical analysis and root cause identification, allows for a systematic elimination of waste and reduction of defects.

Improving and optimizing processes is about turning insights from analysis into action. This involves brainstorming creative solutions, getting to the root cause of problems, and implementing changes that eliminate waste and streamline operations.

Suggestion #1 – Avoid analysis paralysis ? Many times we tend to wrongly choose dozens of KPIs focusing more on the data than on the process itself ? If every KPI does not improve rapidly we interpret that the process is not improving ? It is necessary to choose: o A few KPIs o Easy to understand by every party involved in the process improvement o Clear to calculate avoiding miscalculations due to wrong interpretations ? It is critical to determine: o The range for each KPI to determine success, right trend of improvement or to alert that the process is not being properly changed o The time span. Some KPIs should start improving right away, while others will take more time (i.e. an NPS score from our customers)

Monitore e controle seus processos; se, durante a constru??o, você n?o definiu como fará isso, volte algumas etapas e redesenhe. Essa fase é crucial para garantir o sucesso do processo, pois aqui os resultados s?o comparados aos objetivos, e ajustes podem ser feitos para manter tudo alinhado

Effective process management hinges on the ability to monitor and control your processes. This involves not just collecting data, but also translating it into actionable insights. A well-designed dashboard serves as a command center, providing real-time visibility into key performance indicators (KPIs) and allowing for swift course correction if a process starts to deviate from its target. For example, a dashboard that tracks cycle time, error rates, and resource utilization can provide early warnings of bottlenecks or inefficiencies. This allows you to proactively address issues before they escalate, preventing costly delays and ensuring that your processes remain optimized for maximum efficiency and cost reduction.

Processes should be continuous cycles of learning. You should always be looking at the effectiveness and how that can be improved cycle-on-cycle. That's not to say you're re-inventing the wheel every time, but you should always be aware of how you can improve.

I've found that using a combination of quantitative and qualitative methods during process reviews provides a comprehensive understanding of performance. Quantitative data, such as KPIs, offer objective insights into efficiency and effectiveness, while qualitative feedback from surveys or interviews provides valuable context and uncovers nuanced challenges.

Suggestion #1 – Don’t start all over again ? Many times when we analyze and identify process improvements we cannot implement every single idea that was identified: process re-engineering or automations require resources that we may not have ? We should always keep a log of those improvements that for one or another reason we have not been able to implement and based on the KPIs and the process review we should implement as resources are made available

From my practice, visualizing a process helps to identify challenges within processes like: - Legacy steps - Poor authority setup in decision making - Lengthy, written processes that few people read - Serving a person's ego - Long-term players using their own workarounds Each would require different steps to fix the issue, and by making improvements, the optimization of resource utilization happens leading to reduced costs. A strong leader is essential to implement and maintain these changes.