Any company, production or business is an organized structure of workers who fully perform all the tasks. The duty of the leader is to provide the production process with tasks that together help achieve the main result – increasing profits. The optimization of processes in the organization of business activities is an integral part of a successful developing project.
When deciding on which industry to build your business in, it is impossible to predict all the risks, features and shortcomings of the market in advance. Any market is a dynamic for better or worse, so you need to be able to correctly and timely conduct optimization processes to reorganize the existing concept of doing business.
Optimization of work begins with the definition of tasks. In order to carry out effective work to improve an existing project, you must initially decide on the goal: what is the purpose of optimization, what is its role, at what stage it is advisable to improve, and what is the outcome of the entire campaign.
With the satisfactory operation of the enterprise, the manager intuitively understands that it is possible to serve customers faster, better, cover a larger potential client base. For this, it is necessary to carry out a set of works that are aimed at improving the work of each employee, department, and responsibility center. Business optimization is necessary in the following cases:
• if necessary, increase the productivity of the enterprise;
• to increase the quality of service;
• in case of high competition in the market;
• to modernize individual company processes that will meet new requirements;
• to increase profitability;
• if necessary, reduce jobs, but increase the productivity of the entire business;
• when expanding a business;
• in case of reduction in productivity;
• for the planned improvement of the business in order to obtain greater profit.
Business optimization work is carried out at any stage of development. However, most often, such actions have a clear structure, which helps to see current problems and methods for their elimination.
The goal of business optimization is to improve sales, increase work efficiency, and reduce deficiencies. However, in order for such a structure to work, it is necessary to carry out a number of procedures that are aimed at studying and drawing up a business model at this stage.
Methods for optimizing processes are currently represented in large numbers. They differ in duration, implementation principle, effectiveness. However, in order for each method used to be really useful for a particular business, it is worth observing 4 basic optimization rules.
1. In essence, the main task of optimization is to group all business processes in such a way that in the end it works more productively, efficiently, and better. Therefore, before making an improvement in an industry or business, in general, it is necessary to isolate and separate business processes, draw up a conditional pictogram that answers the questions:
• business duration;
• efficiency and effectiveness (in terms of profit);
• the number of departments, people in each of the departments, the number of managers and workers;
• success in the market during its existence;
• market risks;
• features of doing business, its specificity;
• the course of the processes.
Such a clear structure allows you to see “from the side” all the important points and features of a particular business, what are its “mistakes” and what actions have yielded results. Simply put, the basis of optimization should consist of a detailed review of a particular business, its goals and set, but unrealized tasks.
2. From “private to the general.” That is, it is worth paying attention to certain disadvantages of productivity, its unrealizable moments. Our experts, when analyzing this situation, takes into account such moments as:
• business duration;
• number of staff;
• market specifics;
• price policy;
• the presence of attractive moments for the buyer;
• quality of the goods sold.
Based on the data obtained, you can draw up a schedule that shows the number of sales, and what was done previously. The specialist evaluates the prospects, gives recommendations that will help improve sales, subject to specific rules. That is, the goal was initially set, the optimization model is evaluated and its implementation is carried out. This essence is defined by the term “optimization”. If it is advisable to apply “from general to particular”, then the process will be called “reengineering” or a complex, systematic change in the entire business, starting from the foundation.
3. If a business has been working smoothly for several years, there is a certain stability that does not improve in dynamics, but does not deteriorate, then it is advisable to conduct an additional study of the interaction of all internal processes of a harmonious system before optimizing. In some cases, optimization is a complete redirection of the business, which may adversely affect individual, previously profitable structures. Therefore, flexibility in optimization should “smooth out” possible negative aspects that may appear both immediately and some time after the restructuring.
4. When carrying out optimization, it is worthwhile to be prepared for the fact that not all employees will be able to evaluate any innovations. Therefore, there is often a reduction in jobs at enterprises with process optimization. In any case, it is worthwhile to understand that optimization does not set a goal to reduce jobs, it sets a goal – to redistribute work moments in such a way that the whole business only wins. In fact, such a concept as an “unnecessary” person in the office disappears, each employee is engaged in his own business, clearly performs tasks, follows the schedule.
Not every employee may like the optimization introduction algorithm. Especially for those who do not work productive, not aimed at the main goal – profit. You can give an example of the distribution of work responsibilities in a standard office, where one department of 5 people performs the task of attracting customers, improving marketing products, and another department of 10 people is engaged in the delivery of products to the client. In fact, business profits depend on customer acquisition, and the delivery system can be optimized.
Step-by-step optimization of business processes, their concept and organization options depend on the goals, the specifics of the business and the intended result. The first methods for optimizing the company’s business processes, which provided for a complete market analysis and options for expanding the project, are described in the literature of M. Hammer and J. Champi.
Until now, the monograph “Business process reengineering” is considered the best training material for business restructuring. However, with the development of the market and business, in general, new, more modern methods of analysis and optimization of business processes appear.
Optimization method engineering. Engineering is a complex of introducing new technologies of an informational nature that help simulate the existing organizational structure of a business. When providing paid engineering services, a businessman receives consultations of a different nature, which will help in the future to ensure the production process, improve the operation of facilities, maintenance of economic facilities, sales of products. There is advisory, technological and financial engineering.
Reengineering Method. Reengineering is a complete rejection of existing business processes and methods. Such an internal method allows attracting investments, introducing new technologies, improving technical means, and increasing the growth of technological progress. They use methods to reduce resources, personnel, gaps in blind spots, and combine the work of several departments into one. Risk is a possible shutdown of the production process, as some points require a complete reformatting of the existing process.
Continuous Improvement Method (CPI). Business optimization systems must be constantly improved and adjusted to the new needs of a developing business. CPI-method allows you to plan the process in such a way as to improve all its stages. A process management methodology is the basis of planning for a dynamic market that is difficult to predict. This method differs in that the entire optimization process is lengthy, and the production process does not stop, but simply gradually improves.
Total Quality Management Method. Creating a new product that meets the needs of the modern market. In this case, the plan can be developed both in parallel with the existing project, and with the replacement approach of old products. The activities and activities of the program are aimed at the phased improvement of work processes, production of products initially in a limited period of time.
Optimization of a business or its individual processes is a mandatory moment in development. However, choosing a specific method, it is worth paying attention not only to the duration of its implementation, but also to the final result. In some cases, improper and unprofessional optimization leads to lower profits and productivity of the entire business.
Alfa Resonance Capital Ltd, using both classical and non-standard business approaches, provides the necessary range of services to companies representing small, medium and large businesses to optimize business processes in order to increase profits, reduce costs and expand the portfolio of loyal customers.