Monitoring, analyzing, and planning ahead are key principles of Business Process Management (BPM), and logically so. Businesses are responsible for their success, and every step of every process they conduct should ideally provide value to both the business and its customers. To assess this, a business must be concerned with Process Value Analysis—a qualitative analysis procedure allowing a business to apply questions to specific process steps to measure their success.
It is best to consider the term “value” in this context as referring to the value a customer expects and is willing to pay for. That value originates from the steps and processes a business performs to create the value—what some call a value chain, meaning every step within a process adds some amount of value to the final product or service.
Again, each step of a process should ideally provide value to both the business and its customers—this is what Process Value Analysis is meant to measure. Obviously this is not always clear-cut, since some steps don’t directly add value to a service but rather facilitate the adding of value. Those steps, though, are considered value-enabling steps—and still, though indirectly, give value to the final product. Non-value-adding steps are steps that have been incorporated into a process for some reason or another, but no longer add any value to the final product by any means. It is these non-value-adding (and money-eating) steps that should be eliminated.
Process Value Analysis is all about asking questions—after all, tough questions typically reveal the most accurate answers. These three categories and accompanying questions are useful for describing the types of value a specific process step may have:
Value added to customers: steps that directly impact customer satisfaction
- Do customers recognize the value of the process step?
- Does the step specifically impact the service requirements of its customers?
- Is the step necessary to meet the timelines and expectations of those served?
- Are customers willing to pay for this step?
Value added to operations: steps that support the ability to deliver services to the people served
- Does the step meet legal, health, safety, or environmental regulatory criteria?
- Is this process step being performed efficiently, or can it be refined?
- Could this process step be eliminated if a preceding step were performed differently?
- Could a technology application eliminate or automate this step?
- Does this process step fulfill an external regulatory requirement?
- Most importantly, would eliminating this step impact the quality of the service positively or negatively?
Non-value-added: steps that could be eliminated or changed without harming service levels or the organization
- What specific direct or indirect value does this step have for customers or operations?
Praecipio Consulting collaboratively assesses clients’ needs, priorities, and budget to improve clients’ processes and business operations. A huge part of our service is analyzing our clients’ process value and developing consistent, efficient task-flows to monitor the success of specific process steps. We believe Process Value Analysis is essential for maintaining a competitive advantage in business and dedicate our expertise to enabling our clients to get the greatest value out of their operations.
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