Developing a Business Process Improvement Plan

Tax Professionals' Resource
June 13, 2013 — 1,794 views  
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Business Process Improvement, or BPI, refers to a strategic approach that helps organizations to make the best use of the available processes to achieve effective results. BPI aims at enhanced performance, increased profits, and reduced costs within a shorter timeframe. BPI could also involve changes in a particular process, targeted at improving the quality of a product or a service in order to meet customer expectations.

Making a Beginning with BPI and the Stages

Identifying the area of concern, carefully analyzing it, and coming up with strategic ways to further improve the existing business process, is the very base of Business Process Improvement. BPI emphasizes on leaving no room for errors, removal of barriers that obstruct workflow, and elimination of unnecessary processes in order to maximize benefits, while minimizing costs and preventing wastage of time.

For the success of such a plan, the strategy needs to be designed very carefully. The successful implementation of the same is possible only through proper guidance and training of the entire workforce, spanning across all departments, business units, and geographical locations irrespective of hierarchy.

There are five stages of Business Process Improvement:

  • The first stage of BPI is designing the strategy, aimed at improvement.
  • The second stage involves modifying the process, after careful analysis.
  • The third step is the actual implementation or execution of the strategy.
  • The fourth stage involves monitoring the effectiveness of the approach.
  • The last stage aims at ensuring a continuous improvement of the process.

The BPI program is first discussed, modified, and put into practice by the high-ranking officials of the company, such as the directors and the heads of the business units. Once approved, a BPI leader or an Executive Improvement Team (EIT) is appointed. The BPI leader or the EIT must have the expertise and the right attitude to ensure the successful execution of the program and this is possible only through relevant training and orientation.  

Building a BPI Model

The next step is the preparation of the BPI model which acts as a blueprint. It gives a detailed account of the processes included, the methods to be used, deadlines, and the cost factor involved in the entire program. This ensures that the entire workforce has a clear picture of the program, making the goals and objectives easier to achieve.

The Business Process Improvement Plan must have specific and realistic goals that can be achieved and assessed easily. The program must be designed in a manner which ensures that the organization will progress and meet the improvement requirements. It must also make provision for the elimination of redundant methods and wastage of time as well as resources, two obstacles that can hinder the growth of any organization.            

Impact of BPI

The successful execution of a Business Process Improvement Plan has many benefits:

  • When implemented well, the reduction in the costs ensures higher financial gain, which is essential for any organization. This money, in turn, can be directed toward further improvement projects – leading to further progress. 
  • Improved quality within a shorter time span strengthens customer trust and improves creditability in the market.
  • The sensible usage of resources and enhanced performance in a shorter timeframe ensures higher productivity.
  •  The removal of redundant processes leaves more time for the completion of more productive work.

So, we see that a Business Process Improvement Plan focuses on doing things correctly without the wastage of manpower, time, and resources. It emphasizes on doing things in a better way so as to attain a major improvement in the business process, rather than trivial changes with marginal cost reductions. If executed and monitored well, a BPI plan will definitely ensure quick-paced growth of any organization.

Tax Professionals' Resource