Do Exceptions make our processes more complex and costly?
The end goal of every organization remains same. It is 'how' the goal is achieved it what differentiates one from other. It is how the internal processes are defined separate out one from other.
The process or how things are accomplished, always would have a finite set of steps which one might need to accomplish remains codified in the culture.
As more and more check and balances are being added into the process, the process starts to grow from a simple few step process to an inherently complex one.
Under usual circumstances, this complexity arises due to addition of more and check & balances arising by incorporating more and more real world scenarios (or exceptions) into the process. It is these exceptions that make the process complex, making it grow from a simple few step to mammoth monster.
As digitization slowly picks up the first steps would always remain the same i.e. Map out the current AS-IS process.
The next question which often gets to be asked is how to incorporate the scenarios into the process. The question which needs to be asked is rather Is how often do these exceptions occur?
In many process, the most frequently traversed path would be not be the one being it is designed. It will be normal the simple or 'Happy' path which will be set the stage of the most of steps taken by the process.
As with mapping any process, the first step is to finalize on this happy path.
The next step would be to take into account the various exceptions that could 'potentially' arise. The multiple iterations of this result in making it more complex and eventually increasing the overall cost associated with the process, arising due to increased complication.
It is as this stage, I would propose an alternate approach.
Once the happy path is decided, automate it. Employ the Robotic Process Automation (or RPA) to digitize it as much as possible so that it can be executed with minimal or even no supervision. Handle all the other exceptions manually, with expert supervision. And then Stop.
This would cover the maximum volume of the business operations.
When the threshold of the manual task gets breached, Iterate another cycle which the objective to identify what all again can be automated from manual process, into the same/ another digitized process. Utilize various statistical tools such as pareto’s chart to identity the potential manual automations. Repeat the cycle as needed.
Even though this goes against the conventional approach, the approach can have various advantages:
- Keep cost and complexity down. Don’t try to do to everything. Attempt to only take care which serves the maximum benefit.
- Keep the process simple which can be automated quickly with quick results
- Reduce manual intervention keeping manpower need to minimum
- Automated process can serve as an initial training bed for new hires, before they are assimilated into a higher value addition task
- Statistical Data based to approach towards identifying what to digitize.
- Invest only when a threshold is crossed, which to get the most benefit.
Comments and suggestions welcome!!!