The Power of

Business Process
Improvement
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The Power of
Business Process
Improvement
10 Simple Steps to Increase
Effectiveness, Efficiency, and Adaptability

Susan Page

American Management Association

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Library of Congress Cataloging-in-Publication Data
Page, Susan (Susan Ann)
The power of business process improvement : 10 simple steps to increase effectiveness,
efficiency, and adaptability / Susan Page.
p. cm.
Includes bibliographical references and index.
ISBN-13: 978-0-8144-1478-1
ISBN-10: 0-8144-1478-8
1. Workflow—Management. 2. Organizational effectiveness. 3. Management. I. Title.
HD62.17.P34 2010
658.5 1—dc22 2009023530
2010 Susan Page.
All rights reserved.
Printed in the United States of America.
This publication may not be reproduced, stored in a retrieval
system, or transmitted in whole or in part, in any form or by
any means, electronic, mechanical, photocopying, recording,
or otherwise, without the prior written permission of AMACOM,
a division of American Management Association, 1601 Broadway,
New York, NY 10019
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Printing number
10 9 8 7 6 5 4 3 2 1
 To Greg . . .
without his encouragement and ongoing support,
this book would never have happened
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 Contents

CHA PTER 1:
The Roadmap: Learning How to Navigate 1
Can You Do It? 5
The Journey 6
The Ten Simple Steps to Business Process Improvement 8
Step 1: Develop the Process Inventory 8
Step 2: Establish the Foundation 9
Step 3: Draw the Process Map 10
Step 4: Estimate Time and Cost 11
Step 5: Verify the Process Map 11
Step 6: Apply Improvement Techniques 12
Step 7: Create Internal Controls, Tools, and Metrics 12
Step 8: Test and Rework 13
Step 9: Implement the Change 14
Step 10: Drive Continuous Improvement 15
The Executive Summary 15
Case Study 16
Chapter Summary 16

CHA PTER 2:
Step 1: Develop the Process Inventory: Identifying and Prioritizing
the Process List 18
The Process Inventory 19
Process Prioritization 23
Developing Criteria 23
Scale 29
Applying Weighting 43
Chapter Summary: Step 1 47
Time Estimate 48
Build the Business Process Inventory 48

vii
viii CONTE NTS

Sponsor Meeting 49
Establish Categories, Criteria, Scale, Weighting 49
Complete the Process Prioritization Table 49
A Second Sponsor Meeting 49
What You Have Achieved 50

CHA PTER 3:
Step 2: Establish the Foundation: Avoiding Scope Creep 51
The Eight Sections of the Scope Definition Document 54
Section 1: Process Name 54
Section 2: Process Owner 56
Section 3: Description: 56
Section 4: Scope 64
Section 5: Process Responsibilities 66
Section 6: Client and Client Needs 68
Section 7: Key Stakeholders and Interests 69
Section 8: Measurements of Success 71
Chapter Summary: Step 2 72
Time Estimate 74
First Project Team Meeting 74
Sponsor Meeting 76
What You Have Achieved 76

CHA PTER 4:
Step 3: Draw the Process Map: Flowcharting and Documenting 77
Process Map Overview 78
Drawing the Process Map 82
Box 1 84
Box 2 88
Box 3 91
Boxes 4–7 93
The Cross-Functional Process Map 96
Continuing the Work from Meeting to Meeting 97
Documenting the Process 102
Chapter Summary: Step 3 106
Time Estimate 106
Second Project Team Meeting 108
Postmeeting Work 108
Follow-on Project Team Meetings 108
What You Have Achieved 109
 C ONT E N T S ix

CHA PTER 5:
Steps 4–5: Estimate Time and Cost and Verify the Process Map:
Introducing the Process and Cycle Time and Gaining Buy-In 110
Business Process Timing 110
Process Time 111
Cycle Time 115
Process Cost 119
People Costs 120
Tool Costs 126
Overhead Costs 128
Putting It All Together 128
Alternative Cuts of the Data 129
Analyzing the Cost Estimate Columns 131
Verify the Process Map 135
Process Workers 135
Stakeholders 136
Sponsor 136
Chapter Summary: Steps 4–5 137
Time Estimate 138
Project Team Meeting 138
Postmeeting Work 138
Sponsor Meeting 139
Verify the Process Map 139
Postvalidation Work 139
What You Have Achieved 140

CHA PTER 6:
Step 6: Apply Improvement Techniques: Challenging Everything 141
Eliminate Bureaucracy 143
Value Added 147
Eliminate Duplication 151
Simplification 154
Reduce Cycle Time 156
Automation 160
Chapter Summary: Step 6 164
Time Estimate 165
Project Team Meeting 165
Postmeeting Work 166
What You Have Achieved 166