The specific objectives of the evaluation and diagnosis of processes basically represent the fundamentals of Reengineering, so keeping them in mind will help to find the true utility and relevance of said philosophy and through it to determine if the processes and / or their activities components:
a) They are necessary or are internal requirements of the institution.
b) They add value to the business or the customer.
c) They can be done in another way
d) They are adequately distributed within the company.
e) They help to achieve and achieve the objectives of the company.
The evaluation and diagnosis of processes, allows a review of the activities that are currently carried out, grouping them as follows:
a) Activities that are currently being carried out and should continue to be carried out.
b) Activities that are currently being carried out and should not continue to be carried out.
c) Activities that are not currently carried out and should be carried out.
Activities that are currently being carried out and should continue to be carried out:
These are those essential activities for the development of the company's processes, they can hardly be ignored since the achievement of the objectives of each of them depends on their execution.
It is here where the work of the analyst plays a very important role, because although activities cannot be eliminated, they can be facilitated or improved.
Activities that are currently being carried out and should not continue to be carried out:
They are all those activities that can be dispensed with without altering the objective of the process.
Normally this group of activities is made up of internal company demands and inadequate distribution of functions within the organization, as well as unnecessary requirements and controls.
Activities that are not currently carried out and must be carried out:
They are all those activities that have not been given importance, but that their performance would help improve the quality of the processes and therefore of the products and / or services that are offered to customers.
The philosophy that underpins Reengineering indicates that for the elaboration of the processes one must start from scratch, however there is no methodology that indicates for sure how to carry it out, there simply are particular interpretations of that philosophy and the elaboration of proposals appropriate to said criteria.
Any methodology can achieve the desired success, if it is clearly based and above all if it is adapted to the particular characteristics of the organization where it is applied.
All methodologies can be summarized in four stages, which are:
- Knowledge Interpretation Analysis Design
Knowledge:
Reengineering does not seek to modify what exists, but to create what does not exist, however ignoring existing processes can create high risks. Many companies fail to implement entirely new processes in existing operations.
It is difficult to redesign what is not known, so this stage definitely helps to gather information on the process that is going to undergo changes.
Understanding the existing processes is important to perform the redesign. However, you should not carry out an overly detailed analysis of the existing processes and rather focus on the new one. The scope of changes that Process Reengineering often requires means that many of the challenges exist, not so much in understanding processes and how they can be redesigned, but rather how to implement the change necessary to achieve potential improvement.
You don't need to go to the level of detail required for a systematic redesign. However, it is important to identify the core processes. Generally, there will be approximately 6 to 8 central processes and the key stages of each of them can be analyzed before the study is terminated. This step will include an analysis of the results that these processes are currently yielding.
There must be a balance between knowing what is happening in the processes and between new thoughts of how tasks could be performed in a different way.
The knowledge of the process is not in the person who designed it, it really is in the person who executes it or puts it into practice, so it is the closest opinion to obtain success in its evaluation.
The techniques to obtain this knowledge are nothing new, what is different is the application that is given to them.
The interview:
Interview the people who are involved in the process, especially those who carry out the tasks, regardless of the hierarchical level they occupy within the organization's structure.
It is not convenient to believe and only take into account the information provided by a single person, since in many cases the information does not meet all the expectations that must be considered to carry out the redesign of the process.
In the case of bosses, it may be the case that the information they provide is based on:
- Justify the raison d'être of the position they occupy. Insecurity about the ability of their subordinates. Resistance to change and justify their form of administration.
On the contrary, in the case of subordinates, the foundation may be:
- Justify the reason for the position you occupy Opportunity to seek personal benefits.
Carrying out the interview seems to be simple, however it is one of the most important parts of the evaluation, since it cannot be ruled out finding in people, resistance to change, insecurity and adaptation of the responses to their needs and particular interests.
It is here where the role of the interviewer plays a very important role since only he is the one who can minimize these negative aspects in people. The key to this is based on creating trust and encouraging the participation of the interviewees, highlighting the importance of the tasks they perform, in this way it is very likely to find sincerity and frankness in the answers.
The preparation of the interview must be scheduled in advance, formally notified and adapted to the interviewee's time, thus highlighting the importance of their participation within it. In addition, it must be done in the interviewee's workplace and if this is not possible, in an impartial place that offers confidence and freedom to the person, to respond openly. It should not be done in offices or jobs that differentiate between interviewer and interviewee, being at the same level will help create trust and security in the person.
The interview should be a dialogue and should not become an interrogation or examination, the opinion and criteria of the interviewee must be respected, not debating, much less showing disbelief at the answers.
The duration of the interview must be programmed and appropriate to the person interviewed and not be lengthy. If the importance of the interviewee's opinion is very broad, it is suggested to divide it into several sessions.
The interviewer must write down all the responses of the interviewee even if some of them are not relevant in his opinion, do not keep the information in memory, as it tends to be forgotten or misrepresented when preparing the information.
In addition, it is also important to take into account the opinion of the people, who know the processes only from the outside and who do not know the inside of them, since the opinion is valid to perceive the image that the organization gives.
The observation:
It is very useful to make observations that provide additional information about the characteristics of the processes, they must be made for those aspects inherent to the process, as well as all those aspects that are interrelated with it and that are part of its environment.
Assuming the role of client is the main recommendation in this technique, since from there it is possible to observe the relevant aspects of the process, without the need to enter the insights that justify the tasks involved, because in reality the client is not interested in aspects related to paperwork, controls, authorizations etc. On the contrary, they become their greatest source of discontent.
In addition, insignificant aspects must be observed, such as the physical location, furniture and the environment of the work station that performs the tasks.
Interpretation:
This stage is where the information collected during the interview is classified and shaped and complemented with observation, adapting it to specific formats and standards that facilitate its evaluation and analysis.
The interpretation of the information is to properly write the answers obtained in the interview, adjusting to the standards and conditions that the analysis stage requires. It is here where much of the information collected can be discarded, but the lack of information or secondary data that does not allow it to be adequately prepared can be detected, which will determine the convenience of conducting secondary interviews or looking for support information to fill those gaps.
The wording of the information when interpreting it is important so as not to create confusion when carrying out the analysis.
One of the most effective ways to understand existing processes is to present them graphically. The diagrams or maps of processes commonly known as flowcharts facilitate the understanding and interpretation of the processes. The graphical representation of processes has become increasingly popular in recent years and is no longer the exclusive province of information systems professionals.
The flowcharts allow to clearly explain the sequence of activities that make up the processes, as well as the relationship and dependence between them. They also allow analysts to clearly visualize the process and identify bottlenecks that hinder or complicate its effectiveness.
Often from the moment in which the flowcharts are elaborated those unnecessary activities that integrate the processes are detected and motivates so that the analyzes want to modify and improve them.
Analysis:
Without a doubt, this is the most important stage of Reengineering, since it is here that the foundations are laid for the creation of new processes.
The objective of the analysis is to verify the specifications of the processes and question each of the activities that comprise them to propose the changes that are considered could make them more effective. The most important, but above all the most difficult thing is to identify the rationale behind these activities, because even those responsible for carrying them out many times cannot answer this question and if asked why they carry out the activities in this way, it is common hear some of the following justifications:
- This is how it has always been done This is how they taught me to do it This is how my Boss wants it It is the only way to do it
Specification checking is useful for highlighting alternative ways of working, but should not be seen as the very purpose of the matter. Brainstorming and fantasizing, especially from the customer's point of view, can be a great way to generate new ideas. These ideas should not be dismissed too quickly, and those with the greatest potential should be studied in greater depth.
The key to being successful at this stage is simply to let your imagination run wild, use common sense, and be fully convinced that what seems impossible today may become the norm of tomorrow.
This stage is based on five questions, which must be analyzed together, they cannot be analyzed separately, because although each one of them seems to have different objectives, the relationship and dependence they have on each other is very close and their conception in a global way helps to achieve impressive results, since the process can be much more likely to be redesigned if it is analyzed from the five points of view, which logically increases the options for change and elimination of unnecessary activities, thereby reducing the time of response and the achievement of objectives more effectively.
The numbering from first to fifth does not describe greater or lesser importance for each of them, it is only used for methodological purposes that facilitate their understanding and interpretation, but the sequence of questions must be flexible and adapt to the criteria of the evaluating entity or of the the particular characteristics of the process and its component activities.
It is likely that the evaluated process can be redesigned just by answering one of the questions, but it is recommended that even if this is the case, the others are not discarded, since it is possible that the evaluated activities can be redesigned with the support of the others., with which a much more drastic and successful redesign will be achieved.
First evaluation:
The key questions are:
- What is done Why is it done What is it done for
Its objective is to evaluate the need or usefulness of the process, but above all what would happen if it was stopped or what would happen if any of the activities that comprise it are stopped.
The answer alternatives can only be two:
a) Conclude that the process is not necessary and that eliminating it completely would not cause any problem or mismatch within the company.
b) Conclude that the process is necessary and that eliminating it completely if it would cause problems or imbalances within the company.
If the conclusion is the one described in part A, it is definitely a process that can be eliminated and the decision made to stop doing it.
If the conclusion is the one described in section B, the same questions should be focused on each of the activities that make up the process.
In this case, for each of the activities, the same questions and the same two response alternatives once again exist.
c) Conclude that the activity is not necessary and that eliminating it completely would not cause problems or imbalances within the process.
d) Conclude that the activity is necessary and that eliminating it completely if it would cause problems or imbalances within the process.
If the conclusion is as described in part C, it is definitely an activity that can be eliminated and the decision to stop being made can be made.
If the conclusion is the one described in section D, the questions should focus on the way in which the activity is carried out, through a second evaluation.
Second evaluation:
The key question is:
- How is it done?
Its objective is to determine if the way in which the activity is carried out is the most appropriate or it can be carried out in some other way that could be more effective and that helps facilitate the process in general.
It is important that this evaluation is supported by a third one, which will help facilitate the diagnosis of each of the activities under analysis.
Third evaluation:
The key question is:
- When is made ?
Its objective is to establish if carrying out the activity at that moment is essential so as not to hinder the sequence of the process, or if it can be carried out at another time or even merged with another activity, which would help the process in general to be reduced in time response and thus obtain the same results but in a more efficient way.
There are many activities that are apparently part of the process, but that can be done before or after those activities that have been identified as strictly necessary.
This questioning will help to establish if the moment in which the activity is carried out is the most opportune and if its temporary absence causes interruption to the process in general.
Obviously, after carrying out the first two evaluations, the conclusion can be reached that the activity is necessary, but even so, it may be the case that carrying it out at another time does not interrupt the sequence of the process, but rather speeds up the time of response for the achievement of objectives.
When making these questions, another complementary evaluation approach arises for the diagnosis of the process, which is based on the place where each activity is executed.
Fourth evaluation:
The key question is:
- Where is it done?
The approach is of a structural nature and its objective is to determine if the department or area where it is carried out is the most appropriate or can be changed to another area within the structure that facilitates its realization and obtain better results.
It is common that within companies many of the departments or areas that make it up carry out activities that are totally far from the mission for which they were created, thereby achieving duplication of functions.
This evaluation should be analyzed with greater objectivity because probably redistributing the activity to other departments may have the consequence that instead of facilitating the process, it may become even more complicated.
Under the main guidelines of Reengineering, the structure of the organization must be adapted to the characteristics of the processes and not vice versa, however, it cannot be ruled out that on some occasions the specialization and mission of each of its component areas help to streamline the activities of the process.
This questioning is broadly linked to the previous questioning, since if after analyzing the moment in which the activity should be carried out it is concluded that it does not affect the sequence of the process, it can probably be carried out in another place, thereby creating purer processes and less complex for its performers and for clients.
The complement to this questioning is based on the human factor, which is the subject of the last evaluation within the diagnosis of the process.
Fifth evaluation:
The key question is:
- Who does it ?
Its objective is to analyze the characteristics of the human resource, the powers it has to develop the activities that make up the process and determine if it is the right one to carry them out.
The diagnosis of this question revolves around the previous evaluation, since definitely the structure of the company bases the aptitudes and characteristics of the personnel that make up each of its areas and / or component departments.
On some occasions the activities are carried out by unqualified personnel and they need to be carried out by personnel with some characteristics, skills and some type of specialization that suits them to be more effective.
In other cases, the activities are carried out by over-qualified personnel, which becomes a waste of human resources and, at the same time, discontent on their part.
Design:
This stage starts from the desired results and works from them, to design a new process from scratch, it must be carried out by independent analysts and started in parallel with the stage of knowledge of the process, to later exchange criteria with those responsible for its implementation.
During this stage, process change ideas can be truly creative because they have no basis in the existing process design.
The process design will be very interesting when you examine it and question it several times. When passing the ideas to design it is important that the redesign considers the service task in more detail, the capacity of the human resources that will have new ways of working, the technological capacity and finally, the verification of the organizational structure to ensure that the people don't go back to doing things the traditional way.
These considerations can be limiting for process designers, as well as highlighting new possibilities. Although in final replicates the design must operate within these constraints, it is vital that these constraints are thoroughly examined and, where possible, simplified.
The design of the new process can be adapted to some of the following solutions:
- Delete or simplify Integrate (merge) Automate
Remove:
All steps that do not add value in the process should be eliminated. From a new conception of the process, it is sometimes concluded that a large number of activities do not add value. Over the years the ways of working evolve and few people detect waste when working on a functional procedure.
After you've eliminated as many unnecessary tasks as possible, it's important to simplify the ones that remain.
Mapping the flow of materials or documents through an organization, both logically and physically can reveal opportunities for simplification. Sometimes departments are located in separate offices and documents are sent between them via an internal mail system.. In the same way that the factory is moving away from areas of specialization to favor cells, the same is happening in offices. By reorganizing staff into customer-focused teams, with the appropriate people from each department sitting close to each other, unnecessary document submission is eliminated.
To integrate:
Simplified processes must be integrated to achieve an unhindered flow in the delivery of the customer's requirement and the service task.
It is possible to combine several activities in a single position. By giving one person the authority to complete a range of simplified tasks, rather than having them carried out by a chain of people, the flow of material or information through the company will be greatly accelerated. Whenever work has to be passed from one individual to another, there is the potential for mistakes to be made.
Automate:
As mentioned in chapter five, it is important to use technology and adapt it to new processes.
The cost-benefit of the technology that can be acquired to facilitate the new processes must be evaluated in each of those automation possibilities.
Many of the activities that use large amounts of human resources can be facilitated with the simple purchase of machinery and equipment that today make the difference in terms of productivity and quality of products and / or services.
Finally, it is important to remember that in order to reinforce the new processes, it is necessary to readjust the organizational structure to the characteristics and objectives of the changes to be implemented.
It implies the organizational redesign, decentralization and modifications of the work flow, clear definition of responsibilities, creation of the least number of areas and / or departments, definition of the lines of authority and the sections of control, autonomy and freedom for decision-making, definition of positions and functions.
To achieve the above, the following restructuring scheme can be used, which must be applied at the beginning for the creation of the new organization chart of the organization; later, for the creation of the new dependencies or departments that will conform it; and finally, for the creation of new job descriptions and distribution of functions within each of them.
First step
Design the new processes
Second step
Prepare a general list of all the activities that must be carried out within the new processes, taking into account the mission or objective for which they were created.
Third step
Prepare an Organization Chart, locating the departments and / or positions in the best way that they could carry out those activities, adequately complying with the objectives of the main business processes.
Fourth step
Assign each of the activities to the department and / or the position that corresponds to it within the new structure, "Regardless of who currently performs it, or why."
