5 Major Mistakes in Business Process Improvement: What Can Go Wrong

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maksudasm
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Joined: Thu Jan 02, 2025 7:09 am

5 Major Mistakes in Business Process Improvement: What Can Go Wrong

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To figure out what can go wrong, it’s important to know what steps to avoid. Let’s highlight five key mistakes that can hinder business process improvement.

Mistakes when choosing a business idea

Lack of a systematic approach
In order for any purposeful activity to be manageable, it must include three main components:

Actions. A cycle of regularly repeated influences of an employee on some object (material, equipment, etc.).

Information. Recording and transmission of data on the results of actions performed.

Motivation. A system of rewards skype database and punishments developed at an enterprise that encourages employees to perform their duties in accordance with the rules and strive to achieve results.

The first part is usually established, regulated and supported by various regulations of the organization. The second is provided by modern and relevant means of automation of this business. The third can include regulation and control using the remuneration system.

It is obvious that any business process is a targeted activity that should lead to an increase in the company's profit. To increase the efficiency of this work, it is necessary that all three components listed above interact harmoniously with each other.

Traditionally, regulation has played an important role in Russian enterprises. This meant creating various instructions and documents describing rules and requirements. Most often, a large-scale quality control service is created in the organization, which is obliged to monitor the implementation of regulations. Obviously, the work of such a department requires additional costs. In the modern world, where data is increasingly moving into the digital plane, some enterprises, in order to reduce costs, go to the other extreme. They implement an information system in which business process regulations are spelled out with utmost precision.

At first glance, this approach may seem more effective, but there are pitfalls here too. Firstly, not all business processes can be described in detail in the system. To formulate them, it is necessary to define certain rules, that is, regulations. Secondly, even if companies operate in the same area, each of them is unique. It is necessary to take into account the mentality of consumers and their requirements for the product, the management culture adopted in the region of operation, distinctive features that allow the company to gain advantages over competitors, etc. There is no single automation system. When implementing it, it is necessary to take into account all the above factors and develop an individual project. Only in this case will digitalization have a positive impact on the development of the company.

If the order of physical actions is built incorrectly, then you will not be able to check the reliability and relevance of the data. It is not enough to simply describe the improvement of business processes in the internal documents of the organization and regulate them.

The result of any activity is an object that can be assessed. There are two types: information (represents the registration of data on the action performed in a specific database) and a physical product (it can be, for example, a handbag sewn and transferred to a warehouse or a contract for the provision of services that a company has concluded with a consumer).

The process must be organized in such a way as to include a set of rules for the implementation of work and obtaining data on the results of the operations performed. Therefore, the most important rule in improving business processes is the following: any change in physical activity must be supported by adequate algorithms and restrictions of the information system.

As an example, we can consider the process of intermediate quality control in production. If the regulations are recorded only on paper, this will give employees a certain amount of freedom of action. Perhaps someone will distract them or ask them to do another check instead of the one provided for by the production cycle. This will lead to a failure in the process and will negatively affect its further implementation. The human factor still has a fairly large impact on the work.

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