The Value of Understanding the Current State: Why Process Analysis Matters

While working on process improvements, I’ve often encountered this question: “Why bother analysing our existing processes? Can’t we just create a new one and avoid all the problems?” On the surface, this seems to be a perfectly valid inquiry, especially when we’re feeling the time pressure to get something done – surely we can make an improvement faster if we forget the old and embrace the new? But in my experience, understanding the current state is crucial before leaping into process redesign.

The Allure of Starting Fresh

Creating a new process from scratch can be tempting. It feels like a clean slate, a chance to wipe away past mistakes and build something better. But here’s the catch: without analysing the current state, we miss an opportunity to learn from our experience, and can open ourselves up to some pretty severe risks. Let’s delve into some of them:

1. “Dollar Dollar Bill, Y’all”

- Jimmy Spicer, Money (Dollar Bill Y’all), 1983

- Wu Tang Clan, C.R.E.A.M, 1993

- Akon, Sweetest Girl (Dollar Bill) ft. Akon, Lil Wayne, Niia, 2007

Say you’re having engine trouble with your car – the equivalent here would be to ignore the problems with the old engine and just buy a new one! After all, you’ll save money and time by not getting a mechanic to figure out the problem, right?

Maybe. But if all you needed was some new sparkplugs, you’ve actually spent far more time and money on a new engine than you would have if you had identified what was wrong before jumping to a (very expensive) solution.

Implementing an entirely new process incurs costs—both tangible and intangible. Here’s what’s at stake:

• Financial Costs: Developing, testing, and rolling out a new process demands resources. Think about software licenses, training, and potential disruptions during the transition. These expenses add up quickly.
• Time Investment: Creating a new process takes time—time that could be spent improving the existing one. Rushing into a new design without understanding the current state might lead to wasted effort.
• Employee Experience: Change can be unsettling. Employees may feel overwhelmed or resistant to a radical shift. If the benefits are comparable, you’re far better off going with a solution that minimises disruption to the people working in the process.

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2. “It’s a Trap!”

-????? Admiral Ackbar, Star Wars Episode VI: Return of the Jedi

But maybe your problem isn’t a simple fix, like sparkplugs. Maybe the engine really does need replacing. In that case, you would have solved the problem with a new engine…

Unless there was a reason the old engine broke. And that reason wasn’t an issue within the engine, it was outside of it. If you’d been filling the old petrol engine with diesel, replacing it with a new petrol engine isn’t going to stop you from doing the same thing again and ending up in the same mess!

This is the risk we run when we fail to identify why the engine failed in the first place. The same principle applies to processes – you might miss things like:

• Unidentified Bottlenecks: Without analysing the current state, we might miss critical bottlenecks or dependencies. These issues could persist in the new process, rendering our efforts futile.
• Undetected Root Causes: Underperformance always has underlying causes. By understanding the current state, we uncover these root issues. Failing to do this means we could be building them right into our new process.
• Unintended Consequences: Well-meaning policies can create unforeseen effects, sometimes holding performance hostage. Without uncovering these, we can’t adjust our organizational rules or norms to make sure they are doing what they are intended to do while avoiding the creation of waste or underperformance.

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3.? “Take That for Data”

-????? David Fizdale, April 17th 2017

How did you know your car was having engine trouble before? Presumably there was some indication – did it make a weird knocking noise, but only when conditions were wet, except during full moons when it was more of a tapping, but only when you were alone in the car? That’s data! And that understanding of the old engine means you can compare it to the new engine to see if it has made things better.

The problem is, it’s not great data. It will be hard to tell right away if the problem is fixed, because you’ll need to drive it in different conditions at different phases of the moon before you can be confident if the solution has worked. But spending the time to get high-quality data would enable you to make informed, data-driven decisions.

Analysing the current state provides valuable data:

• Baseline Metrics: We need a benchmark to measure improvement. Current performance metrics serve as our starting point, which we can refer to after implementing a solution and see how (or if!) the process has improved.
• Patterns and Trends: Data reveals patterns—seasonal variations, peak hours, and recurring issues. This knowledge can inform the design of the new process, making it more effective than one designed blindly.

Conclusion

?Yes, ignoring the current process and designing something new feels quick initially. But understanding the issues with the current process is an investment that can pay dividends in time and money. By identifying bottlenecks, we avoid using a machete when a scalpel would do and stop ourselves from hitting hidden roadblocks down the line.

So, before you tear down the old process, take a step back. Understand the current state—the good, the bad, and the ugly. It’s not about clinging to the past; it’s about learning from it. By doing so, we pave the way for cost-efficient, meaningful and above all successful improvements.

Luke is a Lean Six Sigma Black Belt and chair of FMG’s Continuous Improvement Community of Practice.