11/23/2024
Better, Faster, Happier: Why Every Business Needs Process Improvement
Whether we’re talking about Google, or George the neighbourhood pizza guy, working smarter is better than working harder.
How do we make businesses and business people work smarter, not harder? Let’s start with some simple truths.
Every organization relies on processes to function,
These processes, no matter how well-designed, always have room for improvement.
Often, it is tough to see where and how we should improve them.
It’s a classic forest/trees thing.
Improving them is about eliminating inefficiencies, cutting costs, and boosting outcomes. It’s not just about fixing broken systems—it’s about creating smoother, more effective working methods that benefit everyone involved, from customers to employees.
Fortunately, it's a lot easier when we enlist the help of AI. AI's speed and access to umpteen terabytes of data make it the ideal assistant. That is if you know how to "talk" to it.
I think of AI as a brilliant but lazy employee who needs to be convinced to do his job.
The concept of process improvement, also known as business process improvement, is laid out clearly. It’s a structured way to look at how things get done in an organization, identify waste areas, and refine the steps to achieve better results. Before this can even begin, organizations need to ensure they have processes in place—clear, repeatable, and measurable ones.
That may sound obvious. It isn’t.
Why bother with process improvement?
First off, it gives businesses a competitive edge. When things run smoothly, companies can move faster, outpacing competitors in the market.
Then there’s the cost saving. Eliminating bottlenecks means cutting expenses. Things like costly overtime caused by delays become a thing of the past.
Let’s not forget the impact on employee morale. When processes are streamlined, it’s like lifting a weight off employees’ shoulders. They feel valued and supported, which leads to greater job satisfaction.
How to know if you need a process makeover?
The signs are usually there, waiting to be noticed.
Bottlenecks are a big clue—those frustrating delays that slow everything down. Outdated tools, manual approvals, or unclear communication most often cause them.
Another sign is a disappointing return on investment (ROI). For example, a company might invest in fancy software that no one uses effectively.
High customer churn is another red flag -- a big one. When processes fail to deliver on promises— whether it’s speed, quality, or convenience—customers will switch to a competitor.
Employee dissatisfaction is also telling. frustrated employees often signal broken or cumbersome workflows.
Finally, organizations stuck in a “we’ve always done it this way” mindset are ripe for process improvement. No, they are desperately begging for it.
Let’s not just diagnose the problem. Let’s offer solutions. Let’s introduce several well-known methodologies.
Take Six Sigma as an example. Six Sigma focuses on reducing defects and ensuring consistency.
Agile thrives in fast-paced environments, emphasizing adaptability and collaboration.
Kaizen champions improvement through small, steady, but continuous changes.
Lean methodology, as its name suggests, is all about cutting waste and focusing on activities that add value.
Some approaches, like Lean Six Sigma, combine the best of both worlds. Why not? If one thing is good, why not combine two? I tend to prefer Lean Kaizen. Then again, if I look at my last few projects I think I just threw all these methods together.
No matter the method used, the goal is the same. Making things better, bit by bit, process by process until there are no more processes to improve.
Then start over at the beginning, and do it again.
t’s not a one-and-done thing. It’s an ongoing commitment to finding and fixing inefficiencies. If you stop and think about it, it makes sense.
Industries, markets, and customer needs are in constant flux and evolution. Organizations must evolve with them, or be left behind.
A useful tool for this is the PDCA cycle—Plan, Do, Check, Act—which ensures that improvements are constantly reviewed and refined.
Get EVERYONE Onboard
I must emphasize the importance of involving everyone in the organization, from frontline employees to executives. After all, those on the ground often have the best insights into what needs fixing.
Speaking of involving employees - Conducting interviews or surveys can uncover valuable feedback. Encouraging employees to take ownership of their workflows ensures they’re invested in the outcomes. Recognizing and rewarding their contributions is another great motivator.
Putting a bow on it
Let’s wrap up by exploring how different industries approach process improvement.
In manufacturing, it might be about streamlining production lines, while in healthcare, the focus shifts to enhancing patient outcomes.
Retail looks at customer experiences, while tech companies aim for iterative development to keep up with rapid changes.
Hospitality zeroes in on delivering seamless service.
Regardless of the industry, the principles remain the same: listen, adapt, and improve continuously.
Ultimately, the message is clear: process improvement isn’t just a business strategy—it’s a mindset. By committing to constant growth and refinement, organizations can save time, cut costs, and create better experiences for employees and customers alike.
It’s not about perfection -- you’ll never get there. Just strive for better, every single day.
It doesn’t matter if you’re General Motors or Google, George the corner pizza guy, or Greg the Realtor. Just strive to be better, every single day.
Little by little gets you to phenomenal.
Paul
If you would rather listen to the Podcast. Here it is. It goes into greater depth.
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