What Are Profitable Processes?
Profitable processes can be described as attaining the best possible productivity from processes while delivering the best possible quality outputs, i.e., products or services. It is about finding the efficiency and effectiveness sweet spot.
Popularly, profitable processes are referred to as process excellence, which not only takes place at the process level. Also, at the enterprise level as the entire organization drives towards higher standards defined by the customer.
Achieving Process excellence is Essential in today's world
The market continues to place increasingly higher demands on businesses’ products and level of service. For a business to remain competitive and retain its customers, it has to deliver an experience that delights repeatedly.
To achieve this, a business must drive excellence throughout its value creation processes, a process that stretches way beyond the borders of the business itself. The balance of consistency and predictability of process outputs, and agility and flexibility to meet customers varying expectations, are essential.
By nature, businesses are typically in business to create value for all their stakeholders, including shareholders and employees. These stakeholders drive businesses to deliver increasingly better results. “Stretch” goals are put in place often with the promise of attractive rewards when achieved.
These goals are to be achieved by carefully utilizing available resources, the levers in the hands of leadership, to effectively navigate challenging external factors. The bridge that allows for successfully aligning the company’s levers to maximise external opportunities and counter challenges that may arise are processes functioning at full excellence.
process excellence in the current business climate
Process Excellence is ultimately about the efficient use of input resources used in the creation process to effectively maximize the output results of the product and/or service created in the processes.
This is the common goal of a business, right? So why is it often not applied with due common sense? The answer is that firefighting has become the easier yet deadlier management practice in use today.
Since 2008, you and I have been witness to increased business uncertainties and volatility, with customers becoming increasingly demanding and competitors more aggressive.
our take on achieving process excellence
Process excellence is the best possible use of information and resources to create a competitive advantage to fully satisfy customers. The result is increased profits.
Allow me a few lines to establish a common understanding of these three words – ‘achieve process excellence.
- Achieve – to obtain or realize your business objectives or goals.
- Process – a concurrent sequence of action steps with a defined start and endpoint aimed at delivering a specific product or service output or outcome.
- Excellence– the highest appropriate level of performance measured as internal efficiency or productivity and effectiveness or quality to meet the customer’s needs.
Our view of process excellence has two main components. The first is centred on value creation and the second is on prioritized focus.
- Business is about the creation of value. Value for all stakeholders, including the customer, society, suppliers, employees, and the business itself.
- The prioritized focus is centred around identifying and optimizing the vital few inputs that most impact a process’s performance.
Profitable processes are associated with
- Increased agility and flexibility of your business while retaining internal standards and predictability.
- Reduced risk and a better ability to deal with uncertainties.
- Sustained improvement in performance.
- Maximized productivity, reduced costs and delivery of ever better product / service quality.
- Significantly increase savings.
To achieve one or more of the above, and increase your competitiveness in this increasingly dynamic and challenging environment requires that you know your operational and transactional processes and the key levers (inputs and variables) in each that influence its outcome.
This is how you achieve process excellence
Achieving business process excellence requires a thorough appreciation, understanding and strategic intent to inculcate three key elements in a business. These are:
Process Excellence Competencies is a combination of the most valued tools and techniques from the following disciplines and practices.
On AchieveProcessExcellence.com we show you how to achieve process excellence using proven best practices that will lead to your business’ success. We bring you a holistic knowledge solution, incorporating proven practices and techniques from various process improvement and management disciplines.
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