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Target Audience: Business Decision Makers
How to Find the Most Profitable Place to Begin Your BPO
Regardless of what line of business you are in, anything that you do to reduce waste and improve efficiency in your business processes saves you two valuable commodities: time and money. Business process optimisation (BPO) helps your organisation identify areas where things aren’t operating as efficiently run as they should. Once the leads are properly analysed, BPO paves the path to a more efficient organisation as you develop a course of action that breaks up those hidden bottlenecks that are keeping your company from realising its full profit potential.
BPO isn’t Just About Conserving Resources, Reducing Costs and Saving Time
There are few processes that won’t benefit from a well-designed BPO, but it’s important that you begin improving processes that have the most direct impact on your company’s bottom line. After all, the amount of revenue that you earn matters very little if it’s all lost to costs; few companies remain in operation very long without a healthy profit margin.
When you focus first on processes with the most dramatic effect on your bottom line, you improve the financial stability of your organisation, and you also ensure a speedy return on investment (ROI) so that you can keep the momentum moving forward as you seek to implement changes and improvements.
Selecting the most profitable place to begin your BPO can be a bit tricky, however. Use the following strategies to help you pick the optimal starting point for your BPO.
Visualisation is the Key to Understanding
It takes more than a “gut feeling” to know which processes can and should be improved. Do you really understand what processes are involved when your business uses its resources to create products and services?
Take some time to think about the various departments in your organisation that must work together in order for the work to get done. It’s likely that each department has numerous processes, and some may even overlap.
Mapping out the steps of your processes gives you a clear picture of your current state, and makes it easier to identify potential areas for improvement in your processes. Whether it’s physically writing all of the steps down, or using software to diagram the steps, compile the steps into a chart, or map, that gives you a visual record of the workflows for each of your departments.
Begin with the Squeaky Wheels
As you begin to analyse your processes, you should seek to identify signs of dysfunction that could be areas for potential improvement for your workflows. Are there departments that have frequent slowdowns, or backlogs? How satisfied are your clients or customers with what you are producing for them? Are there any processes that may “get the job done,” yet still has room for improvement? Are there any targets and goals that are not being met by current workflows due to certain restraints in the current process?
When looking at the efficiency of your processes, look for ways to quantify and measure your results, as well as compare them to performance benchmarks within your industry. In addition to data, seek input about potential inefficiencies directly from those who do the work in your various departments.
As you analyse the processes, look at which processes use the most resources, and have high costs associated with them. While your analysis may identify a number of processes that could be improved, which ones have the most immediate impact on your financial performance in both the short and long term?
Create a prioritised list of processes that you want to improve, beginning with those that will have the most immediate impact on your organisation.
Develop and Implement an Action Plan
Once you know what processes to change, it’s time to come up with your action plan and implement change.
At this stage it is important that you solicit feedback from those who stand the most to gain and lose from changes to your processes. Doing so will help you correctly identify the root issues that need to be corrected or changed in order for the actual cost to be lowered and efficiency increased.
As you seek feedback and listen to advice, use the mapping technique to write out the list of new steps that your organisation will follow for each of its workflows and implement your new plan.
Establish Benchmarks, Measure the Results, Tweak for Additional Improvement
After some time has passed, measure your results. Take a look at your current performance and measure it against your past performance. Did your BPO actually improve efficiency, lower your costs, and/or improve your production or your performance?
If your BPO didn’t work well, what additional steps can you take to improve your performance? Continue to map out new steps and changes in your processes, measuring results and changing your approach, until you have reached your target goals.
Benefits of Unbiased BPO Design
Getting started designing and implementing an effective BPO can be a daunting challenge. Many organisations find that bringing in an outside firm that specialises in BPO is helpful because it gives them a more objective, and unbiased view into what processes that truly need to be changed to improve efficiency.
If you would like to learn more about how BPO can help you to lower your costs, conserve your resources, increase your performance and otherwise improve your organisation’s bottom line, we are here to help, so get in touch today.
1300 302 679