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Processes are essential in every aspect of business operations, from product development to quality assurance. While this is widely acknowledged, many businesses find themselves constrained by entrenched habits and bureaucratic procedures, which can impede their digital transformation efforts.
This article explores strategies for refining processes to pave the way for a successful digital transformation.
What is process transformation?
Process transformation involves implementing strategic changes to a business's internal procedures, aiming to align with evolving market demands and achieve strategic objectives.
Recognizable? It's a common aspiration. Yet, the experience of process transformation frequently entails:
- transient shifts in productivity,
- disparities between ideal and practical procedures,
- inadequate tools,
- and employee resistance and misunderstandings.
How can these challenges be addressed to unlock the full potential of process transformation?
Processes are designed to deliver specific outcomes
Simply improving efficiency in a process doesn't constitute transformation. True process transformation is achieved through deliberate efforts toward specific outcomes.
Setting a goal to increase the speed of new product testing by 10 percent demonstrates a focus on outcomes. Achieving this goal may require the transformation of multiple interconnected processes.
These transformations may encompass
- Adopting new tools and technologies, such as automated workflows for manual tasks.
- Integrating core business systems to enhance management efficiency.
- Streamlining processes to drive cost reduction and operational improvement.
These activities are strategically aligned with specific outcomes, and their effectiveness can be further enhanced by integrating them into your digital transformation strategy.
An indication that processes need review is when they remain unchanged despite shifts in outcomes. This doesn't necessarily imply non-compliance with processes by your teams but rather suggests that the process itself may be outdated.
Given the frequent occurrence of such dynamic shifts, it's imperative to remain vigilant and proactive in identifying changes in outcomes. This proactive approach, commonly referred to as a culture of continuous improvement, ensures ongoing adaptation and optimization.
Strategies for Integrating Process Transformation into Your Digital Transformation Initiative
Process transformation necessitates starting from your top strategic objectives and working backward to define the necessary outcomes. This involves analyzing, re-engineering, and streamlining existing processes to facilitate those outcomes effectively.
It's important to acknowledge that embracing process transformation requires challenging the status quo and recognizing when current processes are ineffective. To maximize the benefits of this transformation, openness and adaptability are essential for you and your team.
1. Identify areas for process enhancement
Despite advancements in digital technology, process inefficiencies persist across many businesses. Studies indicate that 51 percent of workers spend at least two hours per day on repetitive tasks, which not only undermines productivity but also leads to significant financial inefficiencies over time.
To address this challenge, identify and assess back-office processes that employees perceive as inefficient. These tasks, though straightforward, consume a considerable amount of time for employees.
For instance, improving the efficiency of accounts payable and receivable processes could involve integrating them with your ERP system. Similarly, implementing automated testing can streamline workflows for development teams.
Consult with your departments to identify areas of inefficiency. Prioritize a select few opportunities for process transformation that offer significant benefits with minimal effort. Regularly review and analyze these processes to ensure adherence to established standards and continued achievement of desired outcomes. If necessary, adjust course to maintain compliance or foster innovation.
2. Engage your employees
"As the transformation will have broad implications for the entire organization, initiative teams should be diverse, encompassing key perspectives from across the firm. This approach ensures that potential opportunities and risks are thoroughly identified and addressed before finalizing the transformation strategy." - Gartner
Process transformations, akin to any change management endeavor, have a broad impact across all levels of your organization. Therefore, it's crucial not to focus solely on meeting the expectations of your executive leadership.
Engaging every employee, regardless of their role's size, is imperative. Without their support, they may resist process changes or revert to previous practices, undermining the transformation's success.
Encouraging enterprise-wide involvement before implementing tools or processes fosters employee engagement and allows them to:
- inquire,
- identify risks,
- comprehend positive intentions,
- demonstrate empathy towards change management apprehensions,
- and gain deeper insights into business expectations.
Within your workforce, there may be individuals who strongly adhere to traditional methods while others are enthusiastic about embracing innovation. Achieving the ideal equilibrium involves preserving key aspects of established processes while gradually integrating changes on a detailed level. For instance, rather than automating every aspect of a manual process, identify the critical 10 percent that yields the greatest benefits.
Furthermore, it's essential to recognize that process transformations are not fixed; they should evolve. As months and years progress, there are ongoing opportunities for refinement and innovation.
3. Embrace a Culture of Continuous Improvement
It's wise to pause and assess your future needs before embarking on process transformation initiatives. Gartner recommends identifying 'critical future capabilities' that will drive value in upcoming business models.
For example, if you anticipate scaling operations or expanding into new markets, consider adopting cloud-based software that integrates processes and tools. Enterprise resource planning (ERP) software, for instance, streamlines various processes onto a single platform.
Similarly, in heavily-regulated industries, anticipate evolving legislation and invest in tools that automate compliance tasks such as tax documentation or data management. The key is to prioritize continuous process improvement for sustained long-term success.
Assess, Adapt, Iterate
The essence of transformation resides in its perpetual nature. Transformation is not a one-time event; it requires ongoing commitment and adaptability.
To effectively support your digital transformation efforts, your process enhancements must remain dynamic and responsive. This necessitates:
- Establishing Key Performance Indicators,
- Evaluating Performance,
- Soliciting Employee Input,
- Incorporating Insights,
- and Cultivating a Culture of Ongoing Enhancement.
The final point is pivotal because ongoing enhancements allow you to address risks promptly, ensuring sustained efficiency as you progress through your digital transformation journey.
At Cedarsoft, we specialize in helping businesses achieve their digital transformation objectives while remaining agile and adaptive. To find out more, get in touch with our team today.
