Process Transformation: Your Questions Answered
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The document presents insights from Nina Brown, director of engineering at Datamark, on issue analysis, business process re-engineering (BPR), and outsourcing options, emphasizing the importance of identifying root causes of problems rather than merely addressing symptoms. It discusses effective tools for issue analysis and outlines how BPR can lead to significant improvements by focusing on value engineering guided by customer needs. Additionally, the document addresses concerns about outsourcing while retaining employee knowledge and highlights the concept of 'compassionate outsourcing' as a potential solution.
Process Transformation: Your Questions Answered
- 1. Process Transformation: Your Questions Answered •Issue Analysis •Business Process Re-Engineering •Assessing Outsourcing Options Background: Mail Systems Management Association, a professional development organization dedicated to the advancement of the mail distribution industry, invited DATAMARK Director of Engineering Nina Brown to present a series of seminars at the organization’s largest educational conference, MAILCOM 2014. This Q&A is based on Nina’s presentations on Issue Analysis, Business Process Re-Engineering and Assessing Outsourcing Options. Q&A September 2014 www.datamark.net
- 2. ©2014 DATAMARK, Inc. www.datamark.net 2 Q: Sometimes managers address only the symptoms of a problem or issue with a business process. Why is it important to uncover the root cause of the symptoms? A:Addressing business problems starts with fully understanding the root cause of the issue. Treating symptoms instead of the root cause will certainly not solve the issueand moreover may exacerbate ill effects in the long run. Thus it is critical to identify and address the root cause itself. This is generally done using one or more of various tools available which seek to organize critical thinking in order to arrive at a succinct result. Each tool is designed to bring order to simple common sense by engaging analysts in repeatable activities that systematically document answers to deeper and deeper questions until finally the root is uncovered. Q:There are a number of useful tools available for issue analysis. What have been some of the most effective tools you have used for business processes? A: Many useful tools exist to assist in the issue analysis process.It is important to be aware that different situations may be best suited for different tools. Therefore, it is best to be familiar with several analysis tools, such as 5-Why, BPR 20-Questions, Fishbone Analysis, and the Interrelationship Digraph method in order to focus the best tool for each issue to be solved. Additionally, it is not uncommon that analysis of a single issue may actually require the use of multiple tools in order to bring the analysis to conclusion. Some tools rely on the use of objective data while other tools utilize subjective exploration. Therefore, the decision of which tool(s) to use is often dependent on a review of what kind of information and stakeholders are available during the analysis. “Treating symptoms instead of the root cause will certainly not solve the issueand moreover may exacerbate ill effects in the long run.” Issue Analysis
- 3. ©2014 DATAMARK, Inc. www.datamark.net 3 Q:BPR involves radical rather than incremental re-design of workflows. How do you approach a BPR project in order to unleash this kind of radical transformation? A:In order to start a successful reengineering initiative, the first step is to conduct a detailed analysis of the processes for which improvement is desired. With a reengineering effort, the target is no longer small incremental improvements, but rather a full-scale rethinking of the functions that take place. Companies must be willing to think outside the box and overturn their business norms in order to be able to achieve breakthrough improvements. BPR is about ‘value engineering,’ where process analysis is guided by customer needs. These needs then drive the construction of the functions that support those needs rather than allowing processes to dictate outcomes. Q:What are some common misconceptions of BPR? A: Upon hearing “business process re- engineering," many people automatically think about downsizing and layoffs. However, although BPR may sometimes include these steps, that is not the foundational goal of a BPR effort. Specifically, BPR is about VALUE and all aspects of the re-engineering effort focus on ensuring that all steps of the business process are designed to bring value. Where current processes allow for redundancy or non-value- add activities, BPR seeks to eliminate such waste. This frees up resources that can actually then be reallocated to other value-add functions without having to increase resource count. Thus, many companies look to BPR specifically when they want to expand their business without having to hire additional employees. “BPR is about ‘value engineering,’ where process analysis is guided by customer needs.” Business Process Re-Engineering
- 4. ©2014 DATAMARK, Inc. www.datamark.net4 Q:You discussed BPR as a way to deliver a radically transformative solution for a business process. When does it make sense for outsourcing to be a part of that solution? A:The number one key to the outsourcing question is to understand what your core competencies are; that is, what are the capabilities that give you a distinct competitive advantage. Outsourcing functions that fall outside of that category will open up resources for you and allow you to focus on and improve your core competencies. However, outsourcing is not a quick-fix solution. Rather, it is an opportunity to leverage best-in- class industry practices to achieve your business goals. By forging a solid partnership with your outsourcing vendor, you may institute governance practices that ensure process improvements by instituting more rigorous controls. Q:Is there a way to outsource while being able to retain the talents and knowledge of the people in my organization who are familiar with the process? A:One of the biggest concerns of a company considering outsourcing is the risk of losing years of knowledge housed within the minds of current employees who perform the work functions in question. The first and most direct line of defense is to mitigate this risk via thorough documentation of processes and practices as well as comprehensive training during the transition. Alternatively, a company may select an outsourcing vendor that offers "compassionate outsourcing," whereby the vendor directly hires existing employees to continue performing the work processes. This generally requires the vendor to set up their facility directly on-site or at a very nearby location. Such a setup also brings with it an opportunity for direct observation and validation of the outsourced processes while establishing a trusting comfort level and strengthening the partnership. “A company may select an outsourcing vendor that offers ‘compassionate outsourcing,’ whereby the vendor directly hires existing employees to continue performing the work processes.” Assessing Outsourcing Options
- 5. ©2014 DATAMARK, Inc. www.datamark.net 5 Nina Brown Director of Engineering DATAMARK, Inc. Nina leads DATAMARK’s team of Lean Six Sigma trained experts tasked with the analysis and redesign of clients’ business processes. An ASQ-certified Six Sigma Black Belt and certified Project Management Professional (PMP), Nina has led the successful implementation of enterprise mailroom operations for Fortune 500 companies and other large-scale business re-engineering projects. About DATAMARK For more than 20 years, DATAMARK, Inc. has provided bilingual (English/Spanish) multichannel contact center services, mailroom management, data entry, document processing, business process improvement consulting and other outsourcing services for Fortune 500 companies across all industry sectors. If you have questions or need assistance in developing your organization’s case for outsourcing or business process improvement, DATAMARK’s business process outsourcing specialists are available for a complimentary initial consultation. Contact us at: www.datamark.net Toll-free: 800.477.1944 Info: info@datamark.net