Together with our customers we have made quite some interesting process changes over the years. I wanted to share some of the most important insights we have gained and give a few examples that might help you rethink your processes.
It may seem superfluous to say, but many processes can be simplified. Many companies are doing things the way they do just because they have always done them this way. A good way to start, is at the data that is used in the process. Look at every field of data used in the process such as for example employee number, customer social security number, etc. For each of these fields find out why you need it. If you can’t find out why, simply cross it out.
We have noticed that many times data is used in a process that is needed by law. However, laws change and it is easy to then forget that the data in a process is linked to it. One of our customers was once still storing customer’s identity information while that was no longer needed by law. We changed the process to a much simpler one, which got rid of everything related to the customer’s identity information.
#2 Automation and exceptions
One of the most interesting changes to make in a process is to automate it so that it becomes manageable by exception. This means that most of the times the process is executed, it can be handled completely automatically. Only if there is an exceptional case should a human employee intervene. This may sound a little bit abstract so let me give you a real world example.
A customer had a process where they hired external people on a regular basis to supervise exams. Those supervisors would declare their travel costs and time they spent. All this information was sent by regular mail. The information was then typed into SAP after being checked. Before paying the amount the entire declaration was checked again. This took a lot of time obviously and was seriously error-prone.
What we designed together with our customer is a process that is almost fully automated. From their online exam booking system we get all the information needed to determine the declaration; home address of the supervisor, address of the exam location, the duration of the exam and whether the supervisor was present and the financial information to transfer the money to the supervisor. With this information we use an internet service to automatically calculate the travel expenses. The duration of the exam is used to calculate the declaration for the exam.
All declarations for a month are combined for the supervisor, who can then simply download the declaration for his administration. The declaration is automatically transferred to the supervisor, who has an option to file a complaint if he thinks something is wrong (which is an exception, because most information is provided by the supervisor in the first place through the online exam booking software).
In this example the success rate is higher than 95% which is a good rule of thumb to aim for when designing such processes. You want to be able to achieve as close to 100% automation as you can, but certainly not lower than 90%. The process in this example eliminates a lot of copying of data manually, almost fully automates the process and provides time saving for both the company and the supervisor. Win-win.
#3 – Responsibility and self-service
A final tip on automating and rethinking processes is to take responsibility into account. Some processes require some input from a customer, supplier or employee. It helps enormously if you can design it in such a way that the person who has most to gain, is the one responsible for supplying the information. This creates a natural pressure to perform, which can then be further helped by sending a reminder if the data is not yet supplied after a certain amount of time.
One example of such responsibility is when we designed a process for an educational institute where the participant could indicate his company would pay. In this case, we would send an email to the company asking them to sign off on paying for the education, which would expire after 7 days. This places the responsibility to make sure the employer will sign off right where it is best put: at the participant who wants to take the course.
This step greatly reduced the amount of time spent handling requests, both because the educational institute no longer had to call after the employer, but also because there were far less issues with people trying to get a course paid by their employer without permission.