Common Errors in Business Beliefs

The Process Re-engineering Experiences of our organisation have revealed the following misconceptions by many business managers.

• You can simply reduce costs by reducing staff.


Reducing staff without reducing the workload, or improving process so that less people can do the same amount of work, can only lead to short term savings. As many failed businesses have found, these are false savings and in the end result, are no savings at all.

The only satisactory way to reduce the cost of operation is by improvement in the process to minimize effort in obtaining an end result.


 

• Automating the process will result in significant productivity improvement.


Automating a process will only result in major productivity improvement if the process is efficient and applicable to effectively achieveing an appropriate end result. Automating a bad process will result in an automated bad process (not a desired result).

Before automating any process, it should be reviewed in terms of relativity and efficiency to achieveing the objective.

In most cases the process will neeed to be re-engineered, and the automated process will look quite different to the original process if it is to ensure major improvements in productivity.

 

• Divisional and Departmental Managers in organisations generally identify and implement major process improvements.


Whether capable or not, division and department managers are usually so caught up in the running of their operation to produce and end result, that they just do not have the time to step back and objectively review the processes under their control.

 

• Continual Improvement Programs generally lead to large productivity improvements.
  


Continual Improvement Programs are good at identifying, and sometimes modifying, processes to make minor modifications or adjustments. They rarely identify major changes in process. This is particularly true where such a change would have a major impact on the position of a particiant in the program.

How to achieve a Real result !

• Bring in someone who has the experience to review the process:

- Its interaction with other processes
- How it fits the bigger picture
- How it impacts customer service
- How automation can be achieved
- What expected improvements would be
- How it could impact the "bottom line"

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