This multi-part blog post series presents practical answers to frequently asked questions on improving business entities. 

Its objective is to assist business leaders in these trying times, whether they are learning the basics of continuous improvement, planning their first business improvement project, or evangelizing process-oriented thinking throughout their organization.

We are in year 2021, yet, for the benefit of professionals who have just recently started out on business process improvement journey, I have included this FAQ on ISO 9001:2015.

Note: ISO 9001 is usually updated every five years. It was last updated in September 2015, hence it's referred to as ISO 9001: 2015. Therefore, until further update is announced, ISO 9001: 2015 is the current ISO 9001 standard.
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So let’s get started…

​The ISO 9001:2015 features two important changes, both in content and structure.
 
Firstly, ISO 9001:2015 describes more about processes (especially ‘non-conforming’ processes), process ownership and accountability. A clear definition of process enables better monitoring; better analysis and improvement actions tend to be more effective.
 
Although, this will require organizations to monitor processes and evaluate when they are non-conformant to specifications or user needs. This will also require (as appropriate) an investigation into the causes and taking action to prevent recurrence of the detected problems. Alternately, ISO 9001:2015 brings forth stringent supplier quality control.
 
Secondly, it puts ‘risk management’ as one of the focal points of organization’s attention. This is blessing to organizations in aerospace - that currently need to be AS9100 compliant and use the CMMI as a model for process improvement. The ISO-based standards are catching up with the ‘process’ focus that has always been integral to CMMI adoption.
 
ISO 9001:2015 is a positive move and smart organizations will be able to better leverage their investments in both ISO and the CMMI. Integration among all standards is one of many reasons for ISO revision.
 
ISO 9001:2015 prescribes risk-based management techniques and emphasizes on preventive actions. It not only works to assess risk to the company and to its customer, it also attempts to be supportive of service industries, office environments, virtual offices that have found ISO standard difficult to implement in the past.

You can read more about ISO methodology, advantages of ISO and limitations of ISO here.
 
I shall discuss more FAQs concerning effective & efficient business process improvement in upcoming parts of this blog post series. If you have any such questions about business process design or continuous improvement, please feel free to drop it in the comment section below.
 
By the way, if you run a company that is facing a challenge to thrive in these difficult times, I would suggest that you please revisit your business processes in order to accelerate growth and bring a quick turnaround.

This multi-part blog article presents practical answers to frequently asked questions on improving business entities. 

Its objective is to assist business leaders in these trying times, whether they are learning the basics of continuous improvement, planning their first business improvement project, or evangelizing process-oriented thinking throughout their organization.
​
So let’s get started…

The ISO approach is vital for businesses and organizations to strive and develop a good reputation, as well as, to excel in future aspirations of the company. However, there are some limitations, which can make it difficult to use ISO approach for quality management and continuous improvement.
 
One of the limitations with the ISO for quality is that it does not have much weight when it comes to an individual’s performance in a company. Individuals are not required to be responsible for their unique contributions since, the company’s effectiveness is viewed as a whole. It can often be quite motivating and more effective for a company to allow individuals to take responsibility for their contributions.
 
This also helps increase employee self-esteem and integrity, which can make them work harder for the company and produce effective results. Another way in which individual assessment is beneficial is that it encourages interest and concern within the company. Therefore, one needs to take appropriate steps in order to maintain employee morale during and after implementation of ISO.
 
Since individual contributions are not monitored closely, ISO can also take a lot of time to find the root cause, should a problem occur.
 
Secondly, ISO approach can waste a lot of money. ISO often encourages companies to scrap any defaults or defective produce altogether. This is fine if all produce is perfect, but it is quite common to have few of products that are defective and not the whole lot.
 
In addition, this is very subjective as ‘defects’ can also be classified as- critical, major, minor etc.
 
Moreover, it is industry based. For e.g. in pharmaceutical industry, even a minor product defect is not acceptable since it would potentially compromise safety and/or efficacy to the patient. While, in a packaged food industry, dented cans (containing quality product) is many a times classified as ‘minor’ defect, not scrapped, and instead sold at a discounted price.
 
If the goal of the company is to be ‘defect-free’ or supplying only ‘high quality’ products, then ISO can end up costing the company quite a big chunk of money, in case of product/service defects. Strategic financial planning, considering this ‘all or none’ aspect, becomes vital before selecting ISO methodology for your organization.
 
ISO approach relies almost completely on presenting documentation that depict the system’s various procedures, which can be very time consuming and cause a company to loose focus of their business goals in the meantime.
 
Since those running/ managing/ leading the company, are in charge of arranging the documentation, the time spent gathering this information can take away their contributions to their routine job during that time. Companies therefore need to be up to date with their human resource planning prior to embarking on ISO journey.

You can read more about ISO methodology, advantages of ISO and limitations of ISO here.

I shall discuss more FAQs concerning effective & efficient business process improvement in upcoming parts of this blog post series. If you have any such questions about business process design or continuous improvement, please feel free to drop it in the comment section below.
 
By the way, if you run a company that is facing a challenge to thrive in these difficult times, I would suggest that you please revisit your business processes in order to accelerate growth and bring a quick turnaround.

Keywords and Tags:

#businessprocessimprovement #continuousimprovement #ISO #qualitymanagement #businessprocessmodification #businessprocessreengineering  #processimprovement  

This multi-part blog post series presents practical answers to frequently asked questions on improving business entities. 

Its objective is to assist business leaders in these trying times, whether they are learning the basics of business process improvement, planning their first business improvement project, or evangelizing process-oriented thinking throughout their organization.
​
So let’s get started…

​CMMI or Capability Maturity Model Integration is indeed, one of the most popular business improvement methodology within the IT sector, also within the aerospace industry.
 
CMMI has many advantages when it comes to implementing the methodology to an organization, whether in the organization’s entirety or in departments. However, there are some limitations worth noting before incorporating this methodology.
 
CMMI is not exactly designed to suit every organization. There are times when using CMMI will not enhance existing performances, due to the strict documentation requirements that are necessary to implement this methodology. This is unachievable for many companies, especially of smaller size.
 
In addition, CMMI requires a detailed process that lists all the stages. It is better for bigger businesses to use CMMI than smaller ones since, smaller businesses often do not have the adequate resources or data to fulfill the requirements of CMMI methodology.
 
CMMI methodology demands a large amount of effort and time to put the changes into action. It also requires a significant shift in the mindset and philosophy of the organization, which can be quite stressful and overwhelming if the introduction of the ideas of CMMI is not successful.
 
Moreover, a business’s work culture can change drastically by implementing strict administration of CMMI. This can lower the feeling of independence and creativity amongst employees or developers.
 
Further, the models used in CMMI are not processes in their own right and do not offer the expected descriptions. Organizations have a right to choose the processes depending on the factors that are important to the business and it can be difficult for organizations to choose the best method. Despite being easy to understand, the various techniques used by CMMI can actually be difficult to implement.
 
Yet another reason CMMI can be limiting to a company is because, it draws the focus of the organization to reaching each level as a ‘goal’. Therefore, each minor goal is constantly being pursued and efforts get drawn away from the bigger picture i.e. business process improvement itself.
 
Moreover, using CMMI does not mean that success will definitely be achieved, since each organization needs to adapt the various stages in order to fulfill their own unique needs.
 
I shall discuss more FAQs concerning effective & efficient business process improvement in upcoming parts of this blog post series. If you have any such questions about business process design or continuous improvement, please feel free to drop it in the comment section below.
 
By the way, if you run a company that is facing a challenge to thrive in these difficult times, I would suggest that you please revisit your business processes in order to accelerate growth and bring a quick turnaround.

This multi-part blog article presents practical answers to frequently asked questions on improving business entities. ​

Its objective is to assist business leaders in these trying times, whether they are learning the basics of continuous improvement, planning their first business improvement project, or evangelizing process-oriented thinking throughout their organization.

So, let’s get started … 

It is no secret that the internet plays a vital role in many businesses. Business interactions become quicker, easier through the internet and allow handling of business relationships/ transactions in many ways.
 
E-business describes the combination of an organization’s informative and communicative tools, technologies, otherwise known as “business software”. It allows for the improvement of processes by creating more value to the organization, clients and associates.
 
E-business process improvement is not only applicable to companies that exists virtually, but it can be applied to all types of businesses that use IT or work with digital products. The desired result of e-business process improvement is to complete processes in a quicker manner, while spending less funds and adding value to the company.
 
E-business process improvement is a vital part of e-continuous improvement program.
 
E- business process improvement enhances the workflow in a company effectively and efficiently. Also, it allows large and fast changes to take place which are essential for e-businesses, since they are always changing and expanding. Organizations must integrate their e-business processes with best-in-class process improvement methodologies in order to reach their goals.
 
The outcome of adopting e-business process improvement program in an organization is to generate value. Often, creating value brings forth an increase in employee motivation, customer satisfaction, a rise in profit margins and favored affiliations with associates.
 
E-business process improvement campaigns also aim to lower the mistakes caused by individuals because of misunderstandings or miscommunications, while motivating employees.
 
It is a common belief that executing e-business process improvement requires high-level technology. While high-level technology can help, it is definitely not the only way that implementation can and will take place.
 
E-business process improvement requires both the IT and managerial departments to work together in order to come up with decisive ways in which, e-business processes of the organization are made to work more efficiently and effectively.
 
Some of the proven e-business process improvement methodologies are Lean, CMMI, Hoshin, Scrum, Agile, Kanban etc.
 
Be it a brick and mortar workplace or an e-business, both need to stay in business to sustain and grow. The problems faced by brick & mortar and e- businesses are not same, but there are quite a few ‘similar’ problems. Therefore, e- continuous improvement methodologies must be appropriately selected, enforced, monitored and continued for business efficiency, sustained growth and consistent increasing profits.
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I shall discuss more FAQs concerning effective & efficient business process improvement in the upcoming posts. If you have any such questions about business process design or continuous improvement, please feel free to drop it in the comment section below.
 
By the way, if you run a company that is facing a challenge to thrive in these difficult times, I would suggest that you please revisit your business processes in order to accelerate growth and bring a quick turnaround.

Keywords and Tags-
 
#businessprocessimprovement #ebusinessprocessimprovement #cmmi  #businessprocessmodification #processimprovement #continuousimprovementfor IT #continuousimprovementforebusiness

This multi-part blog post series presents practical answers to frequently asked questions on improving business entities. 

Its objective is to assist business leaders in these trying times, whether they are learning the basics of continuous improvement, planning their first business improvement project, or evangelizing process-oriented thinking throughout their organization.
​
So let’s get started…

Business process improvement or re-engineering campaigns are broadly classified as - Breakthrough, Streamlined and Continuous improvement.
 
Breakthrough Improvement is a methodology that incorporates vital improvements to the main areas of the business. It is a quicker and more intense method of improvement. It is common for breakthrough improvements to be conducted by a few employees whose purpose is to come up with a new method of problem-solving. It is common for long-lasting and continuous problems to be solved through Breakthrough improvement technique by dedicating time and effort into coming up with a solution for a designated time. Breakthrough improvement has large and obvious advances, but the results can also be extremely varied. A popular example of Breakthrough improvement is Six Sigma methodology.
 
Streamlined Improvement refers to the improvement of a process by reducing and shortening the number of steps in a process in order to lower its intricacy. It is beneficial since it helps cut back on costs, uses time more effectively and efficiently, as well as improves supervisory observance. A popular example of Streamlined improvement methodology is 5S.
 
Continuous Improvement focuses on undergoing constant improvements that take place over time. These increments allow for less disruption to the organization and allow individuals to perform necessary tasks on the agenda in steady and continual stages. Many organizations find that, performing small continual improvements has a profound effect in the long run. A popular example of Continuous improvement methodology is Lean.

Out of the three types of business process improvement, Continuous improvement is often preferred, since the small changes end up adding more 'value' than that of a Breakthrough improvement.

My recommendation is that organizations must invest time in Continuous-Breakthrough improvements (for example Lean Six Sigma) in order to truly excel. Continuous as well as Breakthrough improvement can have a better chance of working properly if-
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• Both data and facts are used.
• Employees are involved and encouraged to find solutions.
• Methods are established and duly implemented.

 
Both Breakthrough and Continuous improvement methods use PDCA (Plan-Do-Check-Act) sequence for successfully running the process improvement campaigns.
 
Organizations can benefit from using both Continuous and Breakthrough improvement methods. The use of either improvement method depends on the circumstances and the desired outcome. 

Another possibility is for organizations to perform a series of Breakthrough improvements that allow employees, to progressively make continual improvements in their everyday work life. Organizations that choose to implement this method often reach more desirable results than those that choose either Continuous or Breakthrough improvement.

Another important business improvement technique is Kaizen.

Kaizen is a Japanese technique of improvement. Translated, Kaizen means 'make better'. 

Note that, contrary to popular belief, Kaizen is not a type of Continuous improvement technique. Rather, Kaizen creates a culture of continuous improvement. Therefore, if you wish to initiate and sustain continuous improvement at your workplace, then start with Kaizen.

Kaizen is a business process improvement methodology in itself. Kaizen is also an effective change management technique. Therefore, if a company practices Kaizen alone (and doesn't go-in for any Breakthrough, Streamlined or Continuous improvement campaign), yet it will achieve efficient and effective workflows. 

​In fact, I would suggest that if a company doesn't wish to go for any formal process improvement technique due to whatever constraints, be it- limited resources, less number of employees, regulations etc., then go for Kaizen. 

Tip: As it requires minimal cost for implementation (while giving phenomenal returns), Kaizen is especially beneficial for startups.   
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Moreover, Kaizen can be practiced both by individuals as well as corporates.

Further, Kaizen can be implemented in all types of organizations viz. manufacturing, services, educational institutes, government offices, non-profit associations etc. Kaizen implementation exhibits fastest returns in both big and small organizations (regardless of organization's culture or industry sector).

There are nine types of Kaizen. You can check more about Kaizen here.

Tip: Coupling Kaizen along with Continuous improvement technique such as Lean, augments rewards exponentially.

I shall discuss more FAQs concerning effective & efficient business process improvement in upcoming parts of this blog post series. If you have any such questions about business process design or continuous improvement, please feel free to drop it in the comment section below.

By the way, if you run a company that is facing a challenge to thrive in these difficult times, I would suggest that you please revisit your business processes in order to accelerate growth and bring a quick turnaround. ​

Note that there are over 18 different time-tested process improvement techniques. And one does need to wisely choose when, which and how to apply each of these improvement methodologies to their business.

This multi-part blog article presents practical answers to frequently asked questions on improving business entities. 

Its objective is to assist business leaders in these trying times, whether they are learning the basics of continuous improvement, planning their first business improvement project, or evangelizing process-oriented thinking throughout their organization.
 
A common question faced by me during my practice as a Continuous Improvement Expert is- What is the difference between Business Process Improvement and Business Process Re-engineering? I will answer this question (in FAQ 1), but this and many such common queries drove me towards writing this blog post series...
 
So, let us begin with the first FAQ …

A business process defines the various activities involved in achieving a particular goal. Business processes briefly describe the chain of events that are involved in an activity or a group of activities such as- running a business, manufacturing of products or selling products or services.
 
Business Process Improvement (BPI) and Business Process Re-engineering (BPR) are two widely used terms while attempting to modify business processes in order for organizations to sustain and grow.
 
As the name implies, both BPI and BPR deal with business process modification, however, they are two widely different terms. Allow me to ask few questions to explain these terms:

• Is your process broken?
• Does it have a high impact on your company’s strategic direction?
• Is it antiquated?
• Does it fall far below ‘best-in-class’ or desired ‘state-of-the-art’?

 
If your answer to the above questions is ‘Yes’, then its BPR, meaning- those said processes have to be re-engineered or re-designed.
 
BPR technique assumes that the current process is irrelevant, does not work and therefore needs overhauling completely from A to Zee.
 
For all those business processes that do not need re-engineering, but essentially need modification for benefiting the business, it is BPI - business process improvement.

I shall discuss more FAQs concerning effective & efficient business process improvement in upcoming blog articles. If you have any such questions about business process design or continuous improvement, please feel free to drop it in the comment section below.
 
By the way, if you run a company that is facing a challenge to thrive in these difficult times, I would suggest that you please revisit your business processes in order to accelerate growth and bring a quick turnaround.

Keywords and Tags:
​
#businessprocessimprovement #businessprocessmodification #businessprocessreengineering #PDCAcycle #kaizen #processimprovement #breakthroughimprovement  #streamlinedprocessimprovement #continuousimprovement

Transforming organization in this era of Covid-19 induced crisis features on To-Do list of every business leader. 

In the previous part of this article, I had commented briefly on how product portfolio can facilitate successful business transformations. Further product portfolio is built on four pillars-

1. Company’s definition of a new product.
2. Portfolio project management technique employed.
3. Product development pathway.
4. Marketing & Sales processes abilities to gain market share.

Part 1 of this article covered pillar 1- Company’s definition of a new product, Part 2 covered pillar 2- Portfolio project management technique employed, while Part 3 covered pillar 3- Product development pathways.

In this part, I shall elaborate on pillar 4- Marketing & Sales processes ability to gain market share.
 
The fourth important parameter of building a profitable portfolio is introspecting and assessing your marketing & sales process(es) efficiency and effectiveness.
 
Start by asking questions such as- Where is sales growth coming from? Are sales happening from new products or from new markets or are they happening from growth in existing markets or increase in market share? How do you want your product portfolio to look like in coming 3 to 5 years? What is your historical level of R&D spending as a percentage of sales?
 
Answers to these questions will throw light on your organization’s operational capacity and capability to develop and sell new products.
 
Also, it is vital to establish which products must be developed for self-commercialization and which should be licensed out on fee-for-service basis. Doing this will amplify portfolio’s productivity and profitability.
 
Further, modifying all underlying business processes involved in the sales & marketing of products, by using suitable process improvement techniques will maximize company’s revenue. For example- A struggling pharma company increased 30% of its market share in mere 3 months by implementing Kaizen to its sales and distribution process. Know more about Kaizen for pharmaceuticals here.
 
There are more than eighteen scientific and effective business process improvement methodologies to choose from.
 
For instance, using Lean Kaizen or Agile Kaizen in improvements of processes underlying sales, marketing and distributions functions is a sure and effective way to get fastest and highest ROI.
 
Lean identifies waste and hence improves profit figures. Agile increases quality & speed of product development, while Kaizen improves process efficiency & effectiveness and increases rate of returns.
 
To ensure portfolios are managed to give best rewards, it is vital to prune it regularly. Further advanced analytics may be used to identify optimal combinations of pruning candidates. 

A strategic mix of ‘new’ products is vital for profitable portfolio. Equally important is effective portfolio’s project management process. Kanban integrated with traditional project management techniques bring out the best rewards.
 
Applying Lean, Kaizen and other process improvement techniques to technical and business processes (regardless of industry sector) brings about successful business transformation. And applying Kaizen to sales, marketing and distribution processes augments increase in revenue.
 
Moreover, all three product development pathways that is Incremental change, Me-too and Disruptive development pathways are beneficial for digital products as well as the physical products such as toys, cosmetics, non-medical machinery, chemicals, over-the-counter pharmaceuticals, herbal supplements, consumer health products, telecom, healthcare etc.
 
Equally important is to identify right product candidates from the product mix to develop the line extensions for.
 
Driving process improvement to create incremental changes along the value stream increases market share of existing products. For example, Hoshin integrated with Kaizen may be used for product development processes to improve product features. As Hoshin encourages voice of customer, it brings about customer-centric product development.
 
In fact, one market research study revealed that the built-in kitchen traditional RVs (Recreational Vehicle) provided were going unused. Instead, RV owners relied on outdoor grills. The company therefore developed a slide-out kitchen that was a hit with customers and increased RV sales.
 
With cashflow drying up due to the challenges posed by the pandemic, companies more than ever before need to re-balance their product portfolios and increase efficiency of underlying processes to create value to customer, transform businesses, accelerate growth and generate higher revenues for the organization.

​And, now is the time to get started …