Friday, September 8, 2017

How to identify which business processes has to be focused for improvement?

This doodle will guide you to evaluate how much your application is helping business to perform their processes and identify the efficiency of the processes. This evaluation will let you determine which business processes can be focused for improving the efficiency.


Step 01- Create business processes list

List all the business processes that are performed by business within the application. For this illustration I will be referring the below listed recruiting business processes.

BP#
Business Process
BP-R01
Plan Recruiting
BP-R02
Recruit Applicants
BP-R03
Evaluate and Select Applicants
BP-R04
Hire and Enable Resources
BP-R05
Analyze Recruiting

Step 02 - Identify stakeholders

Identify all the stakeholders involved in completing each of these business processes.


BP#
Business Process
 Stakeholders
BP-R01
Plan Recruiting
 Human Resource Manager
 Recruiter
BP-R02
Recruit Applicants
Human Resource Manager
Line Manager
Recruiter
Candidate
Employee
Employment Coordinator
BP-R03
Evaluate and Select Applicants
Human Resource Manager
Line Manager
Recruiter
Candidate
Employee
BP-R04
Hire and Enable Resources
Human Resource Specialist
Line Manager
Recruiter
BP-R05
Analyze Recruiting
Human Resource Specialist
Line Manager
Recruiter
Data Administrator
Human Resource Analyst

Step 03 - Define business value of the processes

Initiate discussion with the stakeholders and define the business value for each business process. This business value should be agreed by all the key stakeholders.

In this example I have rated the business value in the scale of 1 to 10. Scale 1 meaning low business value and 10 meaning high business value.

BP#
Business Process
Business Value
Process Efficiency
BP-R01
Plan Recruiting
7

BP-R02
Recruit Applicants
7

BP-R03
Evaluate and Select Applicants
8

BP-R04
Hire and Enable Resources
8

BP-R05
Analyze Recruiting
4


Step 04 - Evaluation criteria

Define evaluation criteria and prepare survey questionnaire. For each business process create evaluation questionnaire which has to be shared for survey with stakeholders. Below listed few sample survey questions for Plan Recruiting business process.

#
Plan Recruiting Process questions
Stakeholder rating (Scale 1 to 10)
01
Ability to define recruiting goals and objectives

02
Ability to define organization competencies and accomplishments

03
Ability to assess workforce competencies

04
Ability to create competency strategy

05
Ability to access and analyze pool of available applicants


Step 05 - Survey the process efficiency

Ask users to specify how efficiently they are able to perform the tasks for a business process through the application.

In this example I have rated the process efficiency in the scale of 1 to 10. Scale 1 meaning low efficiency and 10 meaning high efficiency.

#
Plan Recruiting Process questions
Stakeholder rating (Scale 1 to 10)
01
Ability to define recruiting goals and objectives
4
02
Ability to define organization competencies and accomplishments
5
03
Ability to assess workforce competencies
3
04
Ability to create competency strategy
1
05
Ability to access and analyze pool of available applicants
4

Step 06 - Consolidate the survey results and plot in graph

Calculate the average process efficiency score for each business process. Below are the process efficiency score for each business process.
Note: In this doodle, I am not detailing the methods that can be used for calculating average score.

BP#
Business Process
Business Value
Process Efficiency
BP-R01
Plan Recruiting
7
3
BP-R02
Recruit Applicants
7
8
BP-R03
Evaluate and Select Applicants
8
5.5
BP-R04
Hire and Enable Resources
8
4
BP-R05
Analyze Recruiting
4
4

Plot the survey score as shown in the below graph. X axis for Process Efficiency and Y axis for Business Value. X and Y axis have units 1 to 10 representing the business value and process efficiency score. Divide the graph into four equal quadrants.


Quadrant 1 (Q1) - Low business value processes and their operational efficiency is rated low.
Quadrant 2 (Q2) - High business value processes and their operational efficiency is rated low.
Quadrant 3 (Q3) - High business value processes and their operational efficiency is rated high.
Quadrant 4 (Q4) - Low business value processes and their operational efficiency is rated low.

Low business value, Low process efficiency (Q1) quadrant will have the the processes that are defined as low business value and rated for lower efficiency by stakeholders. These processes need not be focused for improvement immediately as business value derived from these processes are low.

High business value, Low process efficiency (Q2) quadrant will have the processes that are defined as high business value and rated for lower efficiency by stakeholders. Business value derived from these processes are high and their operating efficiency is rated as low. These are the top priority processes to be focused for improvement.

High business value, High process efficiency (Q3) quadrant will have the processes that are defined as high business value and rated for higher efficiency by stakeholders. Business value derived from these processes are high and their operating efficiency is already rated as high. If you have any processes identified in Q2 then these processes are lower in priority for improvement consideration.

Lower business value, High process efficiency (Q4) quadrant will have the processes that are defined as lower business value and rated for higher efficiency by stakeholders. Business value derived from these processes are lower and their operating efficiency is already rated as high. These processes need not be focused for improvement.

These steps will let you identify the business process that can be focused for improvement so the overall business efficiency can be achieved.