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Impact of Ineffective Processes
In the world we live in today, it’s the little things that define the success or failure of people, opportunities, and outcomes. To stand out as a company that can truly deliver on its promises, you must have highly effective protocols that can deliver consistent output. Let’s take a quick look at the outcomes associated with ineffective vs effective processes.
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Ineffective processes may result in
1. Reduced quality output
2. Increased production times
3. Over worked employees
4. Reduced employee morale
5. Customer complaints
6. Returns
7. Increased reworks
8. Additional expense
9. Lost sales opportunities
While effective processes may result in:
1. Consistent quality output
2. Reduced production times
3. More skilled and capable staff
4. Increased employee morale
5. Glowing customer reviews
6. Fewer reworks
7. Reduced expense
8. Increased sales opportunities
As you may have guessed, every company should be striving to use optimal processes. This “optimal” level will change over time based on the company’s stage of development, customer opportunities, resources, and more. Whatever the situation, every company should make it point to perform periodic process reviews. Those reviews reveal where opportunities for improvement exist. And every improvement could potentially lead to reduced expense or possibly increased sales.
Importance of Mindset
Effective strategies are the tools and processes that make your business operate most efficiently. Since every business is different, this means each business will have its own set of unique tools and processes. In the BPI (Business Process Improvement) arena, the most efficient methodologies are Lean and Six Sigma. Some would argue that Lean Six Sigma is the most efficient since it combines the best of both Lean and Six Sigma methodologies. Nevertheless, what’s most important is that every organization incorporate the idea of continuous process improvement in every area of the business. Change is inevitable and it is only through the mindset of adapting to change that businesses can remain on the cutting edge of progress and development.
Three Benefits of Process Improvement
Every business wants to get better and to do better. In this fast paced and competitive world, it may seem there isn’t enough time to work on improvements or that the effort to do so may not be worth it. Below are 3 benefits of process improvement that could make your business run more smoothly and impact your bottom line
Increased Speed
Process improvement is about being more efficient. And increasing efficiencies in your processes means reducing those things that slow down the tools you utilize in that process. Sometimes an increase in speed can be achieved by using an alternative tool, eliminating redundant steps, or increasing the efficiency of machines.
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Increase Accuracy
As you reduce the number of ineffective steps and increase the efficiency of machines you often find that the accuracy of output is increased. Accuracy can also be increased by designing processes that proactively think about trouble areas and deliberately seek to eliminate them.
Increase ROI
When a process reduces redundancies and unnecessary steps and increases its accuracy, an increase in ROI and often bottom-line profit becomes apparent. When you find ways to run at optimal efficiency greater ROI is never far behind.