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Optimising Processes with External Partners

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Especially in smaller companies, processes tend to become closely linked to those employees who are responsible for their execution. Over time, these employees have created their workflows according to their needs. The tasks along the process fit seamlessly into the daily workload, they exactly know what to do and the results are fine.

But when these employees quit their job, the new process owner faces the challenge to manage a grown and often not well documented process. Keeping the process functional is a tough task, and if external partners are involved in the workflow, complexity raises exponentially.

In such a situation, three steps help to ensure continuity and support optimisation of the process passed on to the new process owner.

1. Understand the Current Process Setup

First, the new process owner should understand how the process is actually working. In this step it is helpful to visualise the flow of information and products with the support of all internal partners, e.g. in a value chain analysis.

It is helpful to include the former process owner in such an exercise as he has both the relevant process knowledge and the necessary experience. However, to avoid conflict, focus on recording the status quo and do not question the way things are as this will be taken as criticism by your predecessor. Rather, ask questions on how the process actually works and how the former process owner has contributed to its success. In this way you will pay tribute to the leaving employee and get an accurate picture of the process.

2. Internal Process Optimisation

While you avoided questioning the status quo in the beginning, you should do exactly that in the next step, of course without the former process owner. The internal process optimisation is a task for the new process owner and should be supported by all internal process partners.

The optimisation should follow the procedure described in How to optimise internal business processes: Set the objectives, get to know the status quo (see Step 1), choose a suitable method, get the optimisation project done and integrate the improvements into existing structures. Besides, common pitfalls which unneccisarily slow down the process should be removed (see Three factors that slow down business processes)

3. Optimise External Interfaces

Finally, the interfaces with external partners should be improved. This step should be done as early as possible to avoid issues at the interfaces in the transition from the old to the new process owner. However, the internal processes should already be re-aligned before reaching out to externals.

The optimisation of external interfaces is best done in a workshop – either face-to-face or virtually. Within the workshop, a shared process understanding is established, interfaces are analysed, and weak spots are identified. An external facilitator with an unbiased view may support the process and mediate between partners if necessary.

It is important to create a positive atmosphere for the workshop where people feel appreciated to enable open and constructive feedback from all participants. Group dynamics need to be cared for from the beginning to avoid conflicts between individuals or groups. Here, different tools like a group exercise may be used to relax the atmosphere and create awareness for potential issues. Working with breakout groups, for example, allows for deep dives on selected interfaces.

The output of the external process optimisation should be an action list including all measures defined by all internal and external partners. Once implemented, these measures will help the partners involved in the process to contribute more efficiently and effectively to the process.

If you wish to know more about or need support with improving processes in a transition from one process owner to another, please get in touch with us and learn how we may support you.

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Three factors that slow down business processes

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In the past few months your company spent a lot of time and effort into optimising their internal processes. Jobs and the separate process steps were scanned closely for potential weaknesses, and improved where possible. In the end all identified weak spots were addressed – and yet, the actual lead time was way behind the set target.

We have already described options for process optimization and continuous improvement in previous releases and know that if individual process steps are analysed and enhanced, the overall processes can be accelerated considerably. But often the real reasons why they are too slow go unnoticed as they are hidden in the interfaces between process steps.

Factor 1: Loops

In most cases delay is caused by the necessity to do rework whenever you have to loop back to a previous process step already completed. Just as there are different root causes for such rework, there are different approaches to identify and remove it.

Whenever rework is necessary to correct a mistake, this creates an unnecessary process loop. Process analysis, statistical data about errors or faulty products are useful tools to find out what flaws trigger the loop. The best way to address this problem is, obviously, to improve the workflow in a way that it runs smoothly. Alternatively, recognising errors as soon as possible minimises the waste of time due to rework.

Often, particularly in administrative processes, loops are the result of missing bits of information. Any query about earlier stages of a process costs time, especially so if the person responsible for the issue is not available. A systematic record of queries or direct interviews with relevant process participants can help identify possible weaknesses. Once the problem has been pinpointed, the interfaces between the respective process steps have to be adjusted I a way that all relevant information is being passed on, thus making further inquiries unnecessary.

Factor 2: Missing input

Just as loops caused by further inquiries waste time, so does information not gathered in time slow down business processes. The timing of when this specific input is being provided is particularly relevant in complex processes with two (or more) sub-processes.

In principle, there are two approaches to remedy such problems concerning interfaces. One straightforward fix is a Kanban system, so that the entire and complete input necessary for a certain process step is available when needed. Whenever the flow of goods and information has to be actively regulated, this method should be chosen. If, however, active input management is difficult to realise, it is advisable to work with a check list. In this way you can make sure in advance if all necessary input parameters are at hand before you start a process.

Factor 3: Idle time

In most cases it is idle time in the form of waiting that slows down processes. Whenever you do not directly move on to the next process step but keep your goods or data on hold, you are stuck in idle time.
To identify such periods of unproductive waiting, you have to scan critically the flow of goods and data within a process. Once you have found in the process chain the bottlenecks responsible for regularly creating idle time lost with waiting, you need to adjust the respective interfaces, either by a Kanban system or by implementing an early warning system preparing for the next process step.

As has been shown in these three instances slackening the processing pace, the process lead time is not only determined by single process steps, but, to a considerable degree, by their different interfaces and the flow of goods and information. This means that, in terms of process optimisation, these issues should be examined just as closely as the process activities themselves.

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