Cornerstone Business Solutions

Improve Your Processes, Improve Your Bottom Line

Ever calculated just how much you spend on software? Or does the thought of the money spent on IT to supposedly improve your business make you want to cringe?

Here’s something even more cringe-worthy. Many businesses are obliged to invest heavily in new software to ensure they are up-to-date with modern business practices – but very few spend the time ensuring these systems are used to their full potential, and that they actually save the firm time and money.

In today’s business environment, it’s foolish not to use systems to their full potential.Investing in new software is expensive and can be unnecessary – particularly when existing systems can be configured to do the job. Thankfully, there is a way to ensure your investment in software, hardware and other systems delivers real value to your practices. It’s called process improvement.

Don’t panic about the jargon – it’s an easy principle to understand. As the name suggests, process improvement improves the both the electronic and paper-based systems and procedures in a workplace. Simply, it’s a technique that assesses the merits of each and every process in a firm to work out whether they achieve the purpose for which they were originally designed. Systems that are not meeting the needs of the firm are modified or removed, and new systems are introduced where necessary to improve the smooth running of the operation. It’s a very effective way to maximize existing processes and cut out any redundant systems.

Here’s an example. Each morning at Count On Us, a small and varied accounting practice, Neil, the receptionist, opens the mail. Sophie, one of the senior associates, likes her mail opened and sorted. But Terrence, a partner, doesn’t like his mail opened at all, so Neil takes it straight to his desk. Then there’s Janice the part time clerk. She’s awfully fussy about her mail – she likes it sorted, date stamped and alphabetically organized in a special folder (but Neil sometimes forgets this because he’s busy and Janice only comes in two days). Clearly, this is not an efficient mail sorting system.

If Count On Us were to embark on a process improvement project, a standardized system of delivering the mail would be developed. Sophie, Terrence and the rest of the firm might grumble initially about not doing things ‘their way’ or ‘the old way’, but Neil wouldn’t have to waste time remembering each person’s idiosyncrasies, saving the firm time and, ultimately, money.

How does it work?

The first step in any process improvement exercise is to appoint a team responsible for the project. The team should have a leader who should be a senior member of the firm, but is not necessarily its principal. The leader’s role is to crack the whip to ensure the project stays on track and to co-ordinate the way in which various departments will work together to get the job done.

The rest of the team should include a representative from each division in the firm, whose role is to provide advice about processes needing improvement in their area. Team members are also responsible for ensuring others within their division are committed to the improvement project.

Step two is to identify goals and objectives. It’s important to work out from the start which systems need improving, and to put in place step-by-step plans to ensure objectives are met. Make sure goals and objectives are documented and refer to them regularly to ensure the project keeps moving in the direction that was originally intended.

Once a team has been appointed and a plan established, process improvement begins. It won’t always be easy to keep everyone focused, as more pressing jobs can mean process improvement is de-prioritized. To avoid this, it’s an idea to link the project to each employee’s performance review. This ensures the project is taken seriously and is not pushed aside when more ‘urgent’ work comes through the door.

An important part of process improvement is training, so make sure relevant people are trained properly over the course of the project. It’s usually a mistake to wait until the end of the project to train people, and staggering the training minimizes interruptions to general business.

Successful process improvement can streamline your operation and save you money. If you’re serious about maximizing the potential of your operation, consider implementing a process improvement project in your practice.


Copyright 2002, RAN ONE Inc. All rights reserved. Reprinted with permission from www.ranone.com.

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