Once the decision has been made for top-down, bottom-up, or a combination of both approaches, the next step is to select the appropriate methods. You have a wide range of techniques at your disposal, which can be applied individually or in addition to each other. But which methods are suitable for your company and can be effectively implemented as part of your process management?
Business Process Reengineering (BPR)
Business Process Reengineering is one of the best-known methods of process management. BPR takes a fairly radical approach to transform a functional company structure into a process-oriented one. In BRP, you focus on the critical business processes, assuming that the business processes are aligned with customer requirements and that the company focuses on its core competencies.
The implementation then takes place in four phases:
- The Renewing phase serves to integrate employees into the process and train them accordingly.
- The second phase, Revitalizing, involves a process analysis in which the current status is ascertained, and a target status is defined.
- Then, in the Reframing phase, you make attitude changes to adapt your employees' thought patterns.
- The Restructuring phase ensures that the redesigned processes are implemented and concludes the BPR process.
Total Quality Management (TQM)
What is Total Quality Management? Behind it is a corporate concept that provides for continuous improvement in the quality of various business areas. The aim is to ensure the highest possible quality in all business areas to influence multiple factors such as customer satisfaction and the RMA rate (Return Material Authorization, i.e., the rate of returned goods) in the company's favor. TQM goes far beyond the usual quality control, as quality is controlled reactively and is also proactively incorporated into the product through various specifications.
For Total Quality Management to positively affect company and process development, two aspects are essential: firstly, that the application focuses on the prevailing organization in one's own company and, secondly, that the competition does not influence one's own TQM too much. In addition, there is a continuous company development behind TQM. In concrete terms, this means that you should not expect revolutionary improvements within a short time.
Balanced Scorecard (BSC)
The Balanced Scorecard is a straightforward and effective method for viewing and evaluating strategic corporate goals from four different perspectives.
- The first perspective is the financial perspective, which highlights typical key figures such as sales and profit.
- On the other hand, the customer perspective includes parameters such as customer satisfaction, return rate, or the incidence of complaints.
- The third perspective is the process perspective. Process-related parameters are collected with a view of costs, quality, and time, such as throughput times or warehouse and logistics costs.
- The employee perspective rounds off the four perspectives and describes, for example, employee satisfaction. It also provides information on the future developments the company is geared towards.
The BSC compares these four perspectives, so that the application of a BSC reveals the interrelationships and also conflict potentials very well. What you can draw from it? Whether you should confirm or rethink your company goals.
Six Sigma is a process improvement method based on statistical and analytical approaches. The name is derived from the Greek letter of the same name, which in mathematics represents the standard deviation.
Six Sigma aims to make the performance of processes measurable. If the standard deviation of a process is too high (equivalent to a large scatter), Six Sigma helps to identify and eliminate the causes of errors. This method follows the DMAIC cycle (Define, Measure, Analyze, Improve, Control) to enable iterative and sustainable process analysis and improvement.
Process mining is one of the process management methods that are most in vogue against the backdrop of digitalization. Process mining dives deeper into your business processes by mapping processes in real-time from a large amount of data. This enables the analysis of individual processes down to the smallest detail. During the analysis, the process mining software looks at the process from numerous angles. You can delimit the process using different filter settings and compare the various results in a process simulation. This analysis reveals the weak points in a process, enabling you to initiate targeted measures on a fact-based foundation. A decisive advantage of this method: You automatically receive an objective and comprehensive view of the analyzed processes.