journey to process excellence

What is Process Excellence? | Definition, Benefits and Tips

• November 1, 2022
• in Business Process Management

Businesses measure success by measuring their key metrics – growth , productivity , longevity , and profitability .  Leaders know that they must deliver consistent, quality output if their businesses want to crush their goals with these metrics. Both product and service-based enterprises need to tailor their approach to provide value . The best way to get an excellent product is to set up excellent, efficient, and effective business processes .  

At the end of the day, process excellence is a win-win for all concerned. Owners, leaders, and employees enjoy profits, while customers benefit from the value of the end product or customer service. Wh en we see the power of robust process management , it’s no wonder that process excellence is a goal that many successful businesses aspire to achieve.  This article will analyze what process excellence is, dive deeper into the obstacles businesses face, and share tips to attain process excellence.

What Is Process Excellence?

Process excellence, also called business process excellence , is a method for improving business processes to enhance efficiency, effectiveness, and productivity. To attain process excellence, a process is examined, changed, and tested until it fulfills the objective. Additionally, it sets a benchmark for quality against which processes are evaluated. The process excellence goal is to optimize the process while considering all variables in order to achieve continuous process improvement .

Process excellence emphasizes that there is never a final level to attain and that continuous monitoring is crucial. As long as a procedure is in place, there will always be opportunities to streamline it , make it more efficient , and produce better results . Businesses identify and address bottlenecks, fix issues that may arise in a process, and monitor the progress of a process.

What Are the Obstacles to Process Excellence?

As with many things in life, goals are rarely achieved without the right drive . Once leaders and employees get the motivation to improve, that’s when sustained expansion can occur. However, even with the best intentions, achieving process excellence is much easier said than done.   

On the flip side, some management leaders are overly pessimistic about the investment they would need to improve their processes and are unsure about the ROI. If they believe that the ends may not justify the means, they are less likely to make any changes to their current processes. Unfortunately, sooner or later, the gaps in processes usually widen if they aren’t resolved or improved, leaving these companies lagging behind competitors who focus on process excellence.   

What Are the Benefits of Process Excellence?  

When measuring sustainable business success, it’s important to look beyond profitability. The other benefits of process excellence include:   

• Satisfied, loyal employees  
• An agile workforce  
• Effective teamwork  
• Smooth integration of technology 
• Reduced risk of human error 
• High standards 
• Improved productivity  
• Value-based products and services  
• Happy customers  
• Sound market reputation, solid brand identity 

Now that we understand the benefits, how can businesses work toward process excellence ?  

5 Tips to Bring About Process Excellence 

1. keep an eye on it.

Peter Drucker famously said, “ If you can’t measure it, you can’t manage it. ” If you don’t measure, then how do you know how you are doing?  

The best way for companies to keep an eye on their processes is to visualize and track their progress . Looking at the big picture, efficient management methodologies and tools like the Six Sigma principles can help achieve the required results by delivering consistent, positive outcomes with minimum variation.  

As a business manager, when you break down each business process and analyze each step, you can clearly understand potential loopholes. Reviewing your processes regularly will help identify and eliminate risks on time. Business Process Management platforms align the delivery of business goals through the organization, management, improvement, and automation of simple or complex processes.

From time-tracking software to programs that monitor your budget and resources, the right technology can help you keep an eye on each step of your business process.   Even the most successful businesses may find it challenging to keep up with daily operational costs while working toward sustainability and growth.  You need working capital to:   

• Successfully maintain your processes  
• Account for emergencies   
• Tide through cash outflows   
• Fund new opportunities when they arise  
• Expand your services or product line(s)   
• Keep up with seasonal demands   
• Invest in new technology   
• Onboard skilled manpower

When you constantly evaluate and measure your requirements, you will know how much working capital you need at any time.   

2.  Keep It Lean

Shigeo Shingo, an expert on manufacturing practices and the Toyota Production System, said, “ The most dangerous kind of waste is the waste we don’t recognize. “  

Process excellence involves improving existing steps and tasks by planning, organizing, and preparing for long-term growth. When you know your business goals, you can then map out the best and easiest way to get there. However, it is equally important to recognize what to avoid.   

When you identify ways to save money, resources, and time without compromising on the quality of your output, you eliminate waste and keep your processes lean .   

3. Keep It Agile  

  “ Excellent firms don’t believe in excellence — only in constant improvement and constant change .” Tom Peters said. 

Businesses need to be more productive and innovative when they want to beat the competition and scale up. However, the last few years have taught us that we also need to expect the unexpected. So, staying on our toes and remaining agile is the key to survival and long-term growth.   

Keep up with the latest trends in your industry to identify which processes you can change or upgrade to build a business model that truly evolves with the times!

4. Keep It Customer-centric  

Customers keep businesses in business! So, it’s easy to understand why customers are the key ingredient to consistent growth.   

This is also why you must keep your customer’s experience in mind when planning your processes. Invest in the time and resources required to understand your target audience and their pain points, and evaluate their touch points with your business. Then, you can identify ways to optimize your processes to satisfy them with personalized experiences and exceptional targeted services. This is process excellence at its best!  

5. Keep the Culture Alive  

“ Coming together is a beginning. Keeping together is progress. Working together is Success .” Henry Ford, Founder of the Ford Motor Company and sponsor of the Assembly Line said. 

Creating a culture of process excellence starts from the top and makes its way down to the employees of any successful business. When the C-suite emphasizes the importance of continuously working on its processes, they lead by example.  

Develop an “all hands on deck” approach when working towards process excellence. Involve and empower your employees and team members while making changes so that they are equally invested in the outcomes.   

Another aspect of a productive culture is smoothening out kinks in the workflow.   

People can’t work efficiently if their processes hinder instead of accelerating their progress. According to industry research, 36% of employees said visualizing their organizational goals more effectively would amplify their satisfaction and job performance. When creating your processes, walk in your employees’ shoes to understand their obstacles and find practical solutions. Satisfied employees are more motivated and willing to achieve more, which in turn drives home the need for continuous process excellence .   

Conclusion    

Process excellence is a time-perfected endeavor that corporations need to improve upon existing workflows and introduce new methodologies to ensure not only organizational success but also long-term benefits to employees and executives alike. The shapes and forms it takes depend on the industry, timeline, and objectives of your corporation. Whether you are setting up a new venture or optimizing your existing operations, working towards process excellence provides you with an evolving , flexible , and outcome-based business model that can survive and thrive! Make sure to keep our 5 handy tips in mind when mapping out your process excellence goals!

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What do a Canadian energy company, a Dutch coffee retailer and a British multinational consumer packaged goods (CPG) company have in common right now? All are transforming their procurement operations by leveraging state-of-the-art process mining and intelligent automation technology.

Why process excellence matters

A mid-size organization will spend the equivalent of several billion U.S. dollars annually in direct or indirect procurement. For this reason, it’s worth examining how efficient the sourcing process is, how to control maverick buying and reduce revenue leakage and how to create a standardized buying experience across the organization. Additionally, compliance requirements around sustainable procurement need to be addressed based on supplier’s sustainability posture around logistics and distribution. An efficient sustainable supply chain process with optimized CO2 footprint is an enterprise requirement as well as a societal need.

Process excellence in action

This discussion is inherently connected to the 21 st century challenges and solutions related to process excellence. Process excellence is an intersectional play in the age of digital transformation. It requires a combination of capabilities around process optimization. The application of exponential technologies to digitally discover the process realities and technologically transform those processes for the best outcome. Along with defining and operationalizing the right level of governance across organizational layers for efficient value orchestration and continuous improvement. Let’s consider a few examples:

At a materials engineering corporation

An American materials engineering corporation, a global leader in the semiconductor industry, has been driving finance transformation through automation in partnership with IBM so the business can grow, even with a fixed finance headcount. With the success of initial automation deployment, the focus has shifted to optimization of adjacent business-critical processes, e.g. service order management, reverse value chain, and more, for cycle time reduction and quality improvement. A Process Mining exercise drawing data from enterprise SAP has helped measure KPI performance and define the transformation roadmap.

At a multinational financial services company

In another engagement, an American multinational financial services company leveraged IBM’s process excellence capabilities to investigate the internal journal transfer process that uncovered the potential for up to 50% reduction in rework rate and a 40% reduction in rejection rate.

Additional examples

• European Oil & Gas company transforming Enterprise Asset Management
• Multinational Bank transforming Fraud Operations process
• Global Travel booking company optimizing Talent Acquisition process
• Global Brewing company in value orchestration journey as part of S/4 Hana rollout
• Japanese auto manufacturer transforming Procurement and Logistics processes
• Leading US Reinsurance company transforming Claims, Payment and Policy Maintenance

Process excellence for enterprise transformation

While examples are endless, the common theme is enterprise transformation, the primary use case for the IBM Process Excellence offering . In a world that’s still recovering from the impact of a pandemic, facing economic uncertainties, geopolitical crises, and extreme climate change—all of which disrupt traditional value chains—the need for enterprise-scale transformation is a key imperative for global business. Shared Service Operations like Finance, Supply Chain, Procurement, HR, and Enterprise IT are the relevant horizontal domains to engage. At the same time, focused Industry processes with front-to-back office operations are also candidates for transformation prioritized by business owners (e.g., Lending, Customer Onboarding, Claims, Fraud Operations, etc.).

Process and Technology have never been so closely linked. Enterprise workflows are often distributed across the entire application landscape, managed by different departmental IT teams and process owners with siloed focus. With the advancement of Process Mining technology, it’s now possible to virtualize and visualize the end-to-end workflow, drawing execution data from the underlying systems of record (aka enterprise applications) and even augment that with the process operator’s local desktop-level task execution view, digitally captured through Task Mining.

This technology-driven process visualization is revolutionizing the way we look at processes. For the first time, we can see intricate and complex processes clearly in action, identifying where they operate effectively and where they can best be simplified, optimized and automated.

Learn more about IBM Process Excellence

The IBM Process Excellence practice leverages the leading process mining tools across the IBM ecosystem and partners. This includes the IBM Process Mining tool, part of the IBM Cloud Pak for Business Automation platform, which is now powered by Process Application solutions from the IBM Consulting Process Excellence offering.

The IBM Process Excellence practice also leverages our partnership with Celonis and other client-mandated Process Mining  technologies to drive consulting engagements for enterprise process transformation. With our patented Process Excellence KPI framework and Automation Quotient driven process prioritization mechanism, we are co-creating the transformation roadmap for our global clients. This is further accelerated through a suite of ready-to-use Process Excellence applications, and a Digital COE platform for lifecycle governance.

“I am truly impressed with the approach IBM team has taken. It is very different from anything I have seen before in that it is very thorough and scientific. This would help enable the leaders to take easy decisions. When we walked our business stakeholders through the output, there has been no challenges, and this is due to the quality and robustness of the approach.” ~Head of Process Optimization, Multinational Bank

IBM Consulting provides a holistic process transformation solution for our enterprise clients, which top Analyst firms like IDC have noted.  

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PROCESS STRATEGY

The big picture on process strategy.

1. Every Action is Part of a Process

Everything everyone does in an organization is part of a process, whether acknowledged as one or not.

2. Get the Big Outputs and Big Processes Right

One of the largest drivers of org efficiency and effectiveness is aligned functional strategies with well-defined and reinforcing sub-strategies and initiatives.

3. Process Excellence is Everyone's Job

Process is about people, infrastructure and partners creating more quality outputs with fewer inputs.

4. Anyone can Learn & Apply the Process Toolkit

Everyone should learn the basics of the process toolkit to lift the overall efficiency and effectiveness of individuals and teams.

EVERYTHING IS PART OF A PROCESS

Every company is made up of hundreds to thousands of processes. Every action in an organization is part of a process, whether acknowledged as one or not.

A process simply takes inputs and creates outputs. Efficiency improves when a process creates more output with less input. Effectiveness is when a process creates the right output.

Processes are executed by team members, infrastructure, and partners. All of the costs of a company are inputs to a process or help execute a process.

PROCESS EXCELLENCE

Companies don't typically talk about or have a " process strategy ," but they should. Imagine if everyone, every team, and every function in a company could create more output with the existing resources. Over time, the company would be a lean, mean profit-making machine.

Process excellence is not a function, or a responsibility of one team, it is an organizational capability driven by the top down through strategic alignment and leadership and realized from the bottom up through process enablement and improvement. Processes make up the circulatory system of an organization, and it is everyone's responsibility to drive process excellence. You can define process strategy at the individual, team, functional and cross-functional levels.

TOP DOWN STRATEGIC ALIGNMENT & LEADERSHIP

A business model is one big process where the organization efficiently and effectively develops and delivers the value proposition and go-to-market to fulfill the needs of customers better than the competition to achieve the mission . Strategic alignment is making sure all of the elements of the business model have strategies that reinforce each other, which drives significant gains in efficiency and effectiveness. You can assess a company's strategic alignment by asking some basic yes and no questions :

• Is there a compelling and inspiring mission and vision?
• Are the target markets , customers, and geographies well-defined and understood?
• Does the value proposition create more value for customers than competitors?
• Do the go-to-market strategies amplify the value proposition to the target customers?
• Is the organization focused on developing and delivering the value proposition and go-to-market?

The next level of process excellence is at the functional level. Every function in an organization has some big process(es) that generate big outputs. Functional strategy simply defines the big output goals and the initiatives to improve the efficiency and effectiveness of the big process(es).

An organization that is strategically aligned and has strong functional strategies has the top-down process alignment to drive process excellence. The next element to process excellence is ensuring the leadership at all levels is committed to process excellence, which entails utilizing process language, solving big company bottlenecks, and holding people accountable for improving big processes and measuring goals and output.

Process excellence necessitates both top-down strategic alignment and leadership and bottom-up process enablement and improvement.

BOTTOM-UP PROCESS ENABLEMENT & IMPROVEMENT

Process excellence is about individuals and teams working more efficiently and effectively, which necessitates a bottom-up approach to process enablement and improvement. Process enablement takes training, accountability , and cultural reinforcement.

Process maturity is one of the most useful ideas to process excellence. It is simply the idea that every process is at a certain level of maturity starting at 1 - initial/chaotic to 5 - optimizing. In most companies, the majority of processes are level 1 or 2. The processes happen, but not consistently, and the knowledge of the process is typically in someone's head. Half the journey to process excellence is getting the majority of essential processes to maturity levels 3 and 4, where processes are well-defined and managed.

It can't be emphasized enough, to mature the majority of processes to levels 3 and 4. Once you standardize a process into a standard operating procedure, that other people can execute, then you can truly start improving the process. Furthermore, just by documenting and measuring processes, individuals, and teams will naturally begin improving them.

ANSWER THE BASIC PROCESS QUESTIONS

MAP THAT PROCESS

THE PROCESS TOOLKIT

The two main process improvement methodologies are six sigma and lean . While they both originated from manufacturing companies, they have permeated all industries and functions. Six sigma originated at 3M and lean at Toyota. We typically prefer lean methodologies, given the pragmatic and straightforward concepts are easy to apply to processes. The central idea of lean is to eliminate all non-value add activities or waste from a process. Below are the eight forms of waste to eliminate. We cover more of the lean toolkit in the process competency section of Stratechi.

When it comes to projects , agile has emerged as a leading project methodology, given it embodies many of the lean philosophies and ideas.

Typically, companies that want a step-function improvement in the efficiency and effectiveness of their processes and projects adopt six sigma or lean, and agile (for projects). They thoughtfully permeate and engrain the methodologies into their culture and empower their team members through training and application.

PROCESS TRANSFORMATION

Go deeper in process excellence, download strategy presentation templates.

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TYPES OF VALUE MARKET ANALYSIS PROBLEM SOLVING

OPTION CREATION ANALYTICS DECISION MAKING PROCESS TOOLS

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Process Workflow Automation – Your Roadmap to Achieving Process Excellence

Key takeaways

• Improving business outcomes requires a solid process excellence strategy that is aimed at improving all aspects of the process. 
• Business process excellence or process excellence is a combination of process design, process improvement, and process management techniques that are focused on optimizing performance.
• Process excellence must be made an integral part of the organization’s performance management system. 
• A process is assessed, modified, and tested continuously until the goals or objectives are met. 
• Process excellence helps build an agile and flexible workforce that can handle projects of all sizes and complexities.

What is Process Excellence? 

Business process excellence or process excellence is an ongoing activity that transforms a business process into a better performing and optimized version. Process excellence may be achieved by following any business improvement technique – Six Sigma, or Continuous Process Improvement, Total Quality Management, or Business Process Management. Which technique to choose for your business? What are the key components of process excellence strategies? How to go about implementing process excellence? This guide will guide you through all these questions and take you through the top 10 business process excellence tools and techniques. 

Table of Contents

Six Sigma, Continuous Process Improvement, Total Quality Management, Business Process Management – are just some of the methodologies adopted by businesses to improve the quality and efficiency of their output. The main focus of all these methodologies is to achieve process excellence.

Business process excellence is an activity through which a business process is transformed into a better performing and optimized version. Basically, process excellence strategy is more about improving the way businesses create and deliver value to customers. Read on to understand what process excellence is, various process excellence tools, and the difference between process excellence and operational excellence.

Process Excellence in Detail

The term process excellence is commonly used in business parlance. The process excellence definition varies for each business. For some it means better business outcomes, while for others it means optimizing process workflows . No matter what process excellence means to businesses, there is an undeniable need for a solid process excellence strategy for improving business outcomes. What is process excellence? Process excellence may be defined as the practice of continuously improving the effectiveness, efficiency, and quality of process outcomes through an operational excellence framework. 

Business process excellence is a combination of process design, process improvement, and process management techniques that focus on optimizing organizational performance. Process excellence techniques enable organizations to deliver better results and drive growth. Process excellence is an effort to improve the way businesses operate and create value for customers. Organizations utilize process excellence tools to identify opportunities for improvement and design innovative solutions. 

A wide range of process-based activities can be grouped under the process excellence framework. Any activity that focuses on business processes can be considered to contribute towards process excellence. Activities like process mapping, process automation, process improvement, and process reengineering are all focused on improving the speed, quality, and cost efficiency of processes. Process excellence activities help organizations to identify weaknesses and areas of improvement, and design better solutions. 

Process excellence is regarded as an important part of the organization’s overall performance management system. The number of enterprise businesses recognizing the potential of process excellence in contributing to organizational success, is increasing exponentially. The right process excellence strategy aligns their processes with strategic objectives, improves customer service, and improves efficiency. 

Key Components of Process Excellence

While business process excellence means different things to different people, the following key activities can be regarded as key activities that fit into the process excellence framework. 

Process mapping

This is a key activity that helps analyze a process. Analysis of the process is a must for any process improvement initiative. A process map helps identify the steps, resources, and objectives of a process. The as-is process can be analyzed, and the to-be process can be designed based on the findings of the process map.

Process improvement

Processes need to be improved on a regular basis to ensure that the process stays compliant and aligned with the overall organizational goals. Process improvement helps identify opportunities for reducing costs and improving efficiency. 

Process design

The process map helps identify the resources, steps, and objectives of a process. The process design must focus on creating an ideal path for processes to meet customer needs and organizational goals. 

Process monitoring

Processes need to be monitored continually to ensure that it is on track. Monitoring processes closely makes sure that they meet the objectives and deliver quality results. 

Process optimization

Optimizing the process requires evaluation and improvement of processes for maximizing effectiveness and efficiency. 

Process automation

The use of technology or software to automate manual tasks is the most efficient way to improve process outcomes. 

Process standardization

Processes need to be standardized so that they are compliant with business policies and standards. Standardizing processes also helps establish consistent processes across the organization. 

Process governance

Governing a process entails establishing policies, standards, and guidelines for process management. Process governance helps organizations establish and track adherence to these policies. 

How do organizations achieve process excellence? Some organizations have a dedicated department or dedicated process excellence managers to drive process excellence initiatives, while in other organizations, the management may take care of establishing a culture of process excellence. Organizations that practice a culture of excellence are capable of driving innovation, improve performance, and create competitive advantage. Process excellence tools can be useful in driving excellence initiatives through process automation and optimization. 

Tested Recipe for Process Excellence

To achieve process excellence, a process is assessed, modified, and tested until the objectives or goals are met. The quality standards against which processes are measured can be established with process excellence. Achieving business process excellence depends on a number of factors, including –

• Productivity
• Compliance and Security
• Consistency
• User or customer experience
• Alignment with business strategy
• Ability to meet targets and achieve goals

Achieving process excellence requires consistent effort in the right direction for improving process outcomes. Teams need to regularly revisit their processes and reassess them in response to their changing circumstances. The following 5 best practices will help organizations in achieving process excellence in the long run. 

Ownership and alignment

Having clarity on who is responsible for the process in the organization and defining clear roles for all stakeholders contributes in a big way to improving ownership and accountability across the organization. On average, a medium-sized organization will have around 100-200 processes that govern their daily operations.

In a majority of these processes, there is a lack of clarity on roles and responsibilities. The lack of clarity on ownership results in chaos and confusion, and tasks slip through the cracks. Process mapping helps in clarifying roles and resources associated with each task. All the processes in the company and their interconnection can be clearly mapped out by the process map. A process map eliminates confusion and overlap of roles and responsibilities within a process. 

Continuous process improvement

Business processes do not conform to the “fit-and-forget” model. All processes need to be evaluated and improved continuously in order to ensure that the outcomes are aligned with evolving business and customer requirements. Continuous process improvement also helps in identifying redundancies and areas of improvement. For instance, a company that has decided to implement a work-from-home policy must update/upgrade its onboarding process to facilitate remote work processes and IT support to ensure that the process workflows are still relevant and effective. 

Definition, documentation, and knowledge sharing

Detailed documentation of the process like process maps or flowcharts, and other documentation that shows the flow of data is a must to ensure that all team members are aware of the process flow, roles, and responsibilities. Not just for understanding the process, accurate documentation is required for compliance and audit purposes.

Process documentation and instructions create consistency across the board. Process documents make it clear the way processes are organized and why they are set the way they are. Take, for example, the insurance claim dispute verification process. Having a clear, documented verification process involves several escalation stages starting with complaint logging to issue resolution.

A clear, documented explanation of the protocol and the manner in which the company resolves disputes, means that all stakeholders are clear about the how and why of issue resolution. Accurate and updated documentation paves way for future improvements to the process. 

Process performance management

Tracking and managing the performance of each process is a must for process excellence. Spotting issues within the process becomes easy when you are continuously tracking the performance of the process. Continuous monitoring of the performance can effectively identify and also fix any issues that arise during run time, as opposed to late detection and resolution in manual processes. Implementing process improvement methodologies helps streamline the process and accelerate the identification and resolution of issues. 

Automation technology

The introduction of business process excellence initiatives like process automation allows companies to automate processes and ensure that they are managed more efficiently. Processes that are data-intensive, repetitive, and do not require human intelligence to be executed, can be automated by workflow automation tools like Cflow . A no-code BPM automation tool like Cflow makes it easy and efficient to automate key business processes, which saves countless hours of data processing or managing approvals.

Benefits of Process Excellence

Achieving excellence is in itself beneficial to the organization. Business profitability and improved productivity are the obvious benefits of process excellence. The other benefits include- 

• An agile and flexible workforce – Process excellence helps build an agile and flexible workforce that is capable of handling projects of all sizes and complexities. 
• Optimal resource utilization – Implementation of process excellence initiatives ensures that the resources are optimally utilized. 
• Seamless technology integration – Most process automation platforms enable seamless integration with existing systems and processes that the business utilizes. 
• Better quality of deliverables – Process excellence initiatives streamline business processes, leaving no scope for redundancies or bottlenecks. The deliverables of such streamlined processes are of high quality. 
• Collaborative work environment – When process excellence initiatives like process automation are implemented in an organization, teams are able to collaborate and communicate better. 
• Strong market presence – Processes are executed in a streamlined manner when process excellence is in place. Businesses start delivering value-based products and services when processes are streamlined. When high-quality products are delivered, businesses are able to establish a strong market presence and stay ahead of the competition as well. 
• Reduced risk of error and bias – When repetitive and mundane processes are automated, the rate of delivery is accelerated and the risk of human error and bias is eliminated. 

Process Excellence versus Operational Excellence

In business parlance, terms like process excellence, process improvement, and operational excellence are used interchangeably. But, do they both mean the same thing? Process improvement and process excellence are closely related terms with the same focus and mode of operation. They both focus on improving organizational performance. Process excellence techniques can actually be considered as a subset of process improvement. All the techniques that are implemented to achieve process excellence are part of process improvement initiatives. 

Now, coming to the difference between process excellence and operational excellence . By definition process excellence refers to the practice of continuously improving efficiency, effectiveness, and outcome of business processes and business operations. Operational excellence on the other hand may be defined as all those activities that focus on streamlining and optimizing daily operations and activities. Operational excellence is a discipline that aims at improving all aspects of operations, from the bottom up. Change is achieved via operational excellence initiatives by addressing issues with the company’s culture or technology, and building on those changes. 

The focus of operational excellence is broader than that of process excellence. Process excellence focuses on specific processes, while operational excellence focuses on overall business operations that include several processes. Operational excellence involves –

• Building an infrastructure for changes
• Developing the discipline to complete processes consistently
• Shifting the focus of the team from product quality to customer experience
• Prioritizing process effectiveness and business agility
• Creating a system of active engagement that solves data silos and gaps
• Achieving the extensibility of stack to get the most out of existing apps and systems

Operational excellence is all about changing the culture, perceptions, and mindset of everyone in the organization. It is a comprehensive strategy that positively affects business productivity.

5 Tips for Implementing Process Excellence

Track continuously.

Continuous evaluation and tracking of process performance is a must for successful process excellence initiatives. The best way to keep an eye on business processes is to visualize and track their progress. Efficient process management methodologies and tools like Six Sigma, Lean Management, Kaizen, etc can help achieve the required results. Implementing these methods helps deliver consistent, positive, and accurate results with minimum to nil variations. 

Potential loopholes and bottlenecks in the process can be analyzed by breaking the process into individual tasks. Regular review of the process helps in identifying and eliminating risks on time. 

Plan-organize-prepare

Process excellence entails improving existing steps and tasks by planning, organizing, and preparing for long-term growth. When there is clarity on the business goals, figuring out a way to achieve those goals quickly and efficiently becomes easier. Proper planning also ensures that you are aware of what to avoid in order to achieve these goals. When you identify ways to save resources and time without compromising on the quality of output, then the waste is eliminated and processes are lean. 

Keep up with industry trends

Reaching and maintaining high levels of productivity and innovation are a must for businesses that aim to scale up and beat the competition. Keeping up with industry trends and remaining agile holds the key to survival and long-term growth. It is not enough to just focus on growing your business, rather focusing on the latest industry trends and aligning your processes to these trends is what will help you achieve sustainable growth. 

Maintain customer-centricity

You are in the business due to your customers! So, it is imperative that you understand customer expectations clearly and make sure your processes are aligned with those expectations. Keeping your customer experience in mind when planning your processes is a good way to ensure that their expectations are met. Investing the time and resources required to understand the target audiences and their pain points is a must to identify processes to satisfy your target customers. Process excellence implementation that is guided by this type of research can successfully deliver personalized customer experiences and exceptional targeted services. 

Build a culture of excellence

Creating a culture of excellence starts from the top and trickles down to the employee level. When the C-suite emphasizes the importance of continuous improvement, each employee imbibes the culture. Developing an “all hands on deck” is an important part of building a culture of excellence. It is important to involve and empower the employees while implementing changes so that they are equally invested in the results. As per an employee satisfaction survey , 36% of employees said that visualizing their organizational goals more effectively amplifies their satisfaction and job performance. When you create new processes, walk in your employee’s shoes to understand their obstacles and implement practical solutions. Employees that are satisfied are highly motivated and strive to achieve more, which is exactly what you need for continuous process excellence. Another important ingredient of a productive work culture is smoothing out the bottlenecks in the process workflows.  

Implementing process excellence initiatives requires consistent and targeted efforts to optimize and improve processes. The techniques and tips to achieve process excellence are subjective, and businesses need to choose the ones that are aligned with their business objectives. 

Business process excellence tools and techniques

Process excellence can be considered as a combination of science and technology. A toolkit of different methodologies or systems helps businesses achieve process excellence in the workplace. The top 10 process excellence tools to consider for your business are listed below- 

This is a data-driven methodology that focuses on reducing variability and defects in a process. The Six Sigma model utilizes statistical analysis for identifying the root causes of problems and implementing improvements. The 2 main frameworks associated with the Six Sigma methodology are DMAIC (Define Measure Analyze Improve Control) and DMADV (Define Measure Analyze Design Verify). 

Lean management technology aims at maximizing customer value while minimizing waste. This methodology seeks to create more value with fewer resources by streamlining the process and eliminating non-value adding activities or processes. Continuous improvement, respect for people, pull-based production, standardized work, and just-in-time production, are some of the principles under lean methodology. 

This is a Japanese term that means continuous improvement. Kaizen methodology involves small, incremental changes that aim at optimizing processes and eliminating waste. This methodology also encourages employee involvement and teamwork, fostering a culture of continuous learning and improvement. 

Total Quality Management (TQM)

This is a management approach that aims at achieving long-term success via customer satisfaction. The main focus is on continuous improvement, employee empowerment, and employee involvement.

Business process reengineering (BPR)

This involves a radical redesign of the organization’s processes to achieve significant improvement in performance. Cost reduction, speed, and quality improvement of existing processes are made possible by business process reengineering. 

This is a workplace organization methodology that originated in Japan. There are 5 steps in this methodology – Sort, Set, Shine, Standardize, and Sustain are the steps in the 5S methodology. The main aim is to create a clean, organized, and efficient work environment that fosters safety and productivity. 

Value stream mapping

This is a Lean tool used to visually represent the flow of materials and information within a process. The bottlenecks, waste, and opportunities for improvement can be easily identified by value stream mapping. 

Plan-do-check-act (PDCA)

PDCA is a continuous improvement cycle that is adopted to solve problems and improve processes. The plan (planning the change), implementing change (Do), reviewing results (check), and making adjustments (act), the cycle is repeated for continuous improvement. 

Balanced Scorecard

BSC is a strategic management tool that translates an organization’s vision and strategy into a set of performance measures. This methodology provides a comprehensive view of an organization’s performance by evaluating 4 perspectives – financial, customer, internal processes, learning, and growth. 

This is also a Lean management practice that involves managers and leaders visiting the workplace (Gemba) to observe processes, engage with employees, and identify areas for improvement. This methodology promotes continuous improvement, employee engagement, and a better understanding of the work environment. 

End-to-end workflow automation

Build fully-customizable, no code process workflows in a jiffy., process excellence with cflow.

Process workflow automation is one of the most efficient ways of achieving process excellence. Cflow is a no-code BPM workflow automation software that can automate any type of business workflow within a few hours. The visual workflow builder in Cflow can be used to create a process workflow by simply moving workflow elements. You don’t need to write even a single line of code to create a workflow. Key features of Cflow include – 

• Document management – Quick searches and access with centralized document management. 
• Rules engine – One-click setup for setting up fully customized rules using multiple conditions and operators.
• Integrations – Cfloe can seamlessly integrate with 1000 popular and essential third-party applications. 
• Auto approvals – This makes it very easy and quick to auto-approve repetitive and non-critical tasks.
• Encryption and security – Best-in-class security that offers the highest level of security and protection for your data.

The rich feature set of Cflow makes it the right choice for implementing process excellence at your organization. The insane levels of customer support provided by the team at Cflow make it super easy to implement and maintain the workflow automation solution.

Final Thoughts

Process excellence is a time-perfect endeavor that businesses need to improve upon their existing processes and introduce new methodologies to ensure organizational success. The shapes and forms business process excellence takes depend solely on the industry, organizational objectives, and timeline. Workflow automation is one of the most efficient ways of achieving process excellence. Cflow is your process excellence partner that simplifies automation with the visual form builder.

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What is process excellence?

Kazyna turdibayeva july 18, 2024 business process management (bpm).

Table of Contents

Process excellence is a commonly used term within business process management. It can mean different things to different people. In this article, we look at different perspectives and summarize what enterprise leaders need to know about business process excellence.

What is Process Excellence?

Process excellence is the practice of continually improving the efficiency, effectiveness, and quality of business processes and operations through an operational excellence framework. It is a combination of process improvement, process design, and process management techniques that strive to optimize organizational performance. Process excellence enables organizations to deliver better results and drive growth.

Why is process excellence important?

Process excellence is an ongoing effort to improve the way businesses operate and create value for customers, employees, and stakeholders. Organizations use it to identify opportunities for improvement and create innovative solutions. Process excellence focuses on a range of different process-based activities, such as process mapping, process automation, and process reengineering. Process excellence is a powerful tool for organizations to improve the quality, speed, and cost of their operations. It helps organizations identify process weaknesses and design better solutions.

Process excellence vs Operational Excellence vs Business excellence

Process excellence, operational excellence, and business excellence are related concepts that focus on improving organizational performance.

• Process excellence (PEX) is the practice of continually improving the efficiency, effectiveness, and quality of business processes and operations.
• Operational excellence (OpEX) focuses on streamlining and optimizing daily activities and operations.
• Business excellence (BEX) focuses on creating customer value and achieving long-term organizational objectives. All three approaches are essential to achieving organizational excellence and creating a competitive advantage.

Top 10 process excellence tools and methodologies

Process excellence is neither an art nor a science. In fact, it’s a combination of both. You can leverage a toolkit of different methodologies or systems to achieve process excellence in the workplace but there is no one standard way to achieve results. The top 10 tools to consider include:

• Six Sigma: Six Sigma is a data-driven methodology focused on reducing process variability and defects. It utilizes statistical analysis to identify the root causes of problems and implement improvements. The methodology follows two project management frameworks: DMAIC (Define, Measure, Analyze, Improve, Control) for existing processes and DMADV (Define, Measure, Analyze, Design, Verify) for new business processes.
• Lean: Lean methodology aims to maximize customer value while minimizing waste. It seeks to create more value with fewer resources by eliminating non-value-adding activities or processes. Lean principles include continuous improvement, respect for people, standardized work, pull-based production, and just-in-time production.
• Kaizen: Kaizen is a Japanese term that means continuous improvement. It involves small, incremental changes aimed at optimizing processes and eliminating waste. Kaizen encourages employee involvement and teamwork, fostering a culture of continuous learning and improvement.
• Total Quality Management (TQM): TQM is a management approach that aims to achieve long-term success through customer satisfaction. It focuses on continuous improvement, employee empowerment, and efficient processes. Key TQM principles include a customer-centric approach, management commitment, continuous improvement, and employee involvement.
• Business Process Reengineering (BPR): BPR involves a radical redesign of an organization’s processes to achieve significant improvements in performance, such as cost reduction, speed, and quality. It requires a thorough analysis of existing processes and the development of new, more efficient ones.
• Value Stream Mapping (VSM): VSM is a Lean tool used to visually represent the flow of materials and information within a process. It helps identify bottlenecks, waste, and opportunities for improvement. VSM enables organizations to optimize their processes by focusing on value-adding activities and minimizing non-value-adding ones.
• 5S: 5S is a workplace organization methodology that originated in Japan. It consists of five steps: Sort, Set in order, Shine, Standardize, and Sustain. The goal is to create a clean, organized, and efficient work environment that fosters productivity and safety.
• PDCA (Plan-Do-Check-Act): PDCA is a continuous improvement cycle used to solve problems and improve processes. It involves planning the change (Plan), implementing the change (Do), reviewing the results (Check), and making necessary adjustments (Act). The cycle is then repeated to ensure continuous improvement.
• Balanced Scorecard (BSC): BSC is a strategic management tool that translates an organization’s vision and strategy into a set of performance measures. It provides a comprehensive view of an organization’s performance by considering four perspectives: financial, customer, internal processes, and learning and growth.
• Gemba Walk: Gemba Walk is a Lean management practice that involves managers and leaders visiting the workplace (gemba) to observe processes, engage with employees, and identify areas for improvement. It promotes continuous improvement, employee engagement, and a better understanding of the work environment.

Process excellence in the workplace

Process excellence can be seen as a key part of an organization’s overall performance management system. Increasingly enterprise businesses are recognizing business process excellence as an important element of organizational success. It helps organizations align their processes with their strategic objectives, improve customer service, and increase efficiency.

Key steps of a process excellence framework

While process excellence is a broad term that can mean different things to different people, there are eight key activity stages or steps that fall within its framework:

• ‍Process mapping: Identifying the steps, resources, and objectives of a process.‍
• Process improvement: Identifying opportunities to reduce costs and improve efficiency.‍
• Process design: Creating ideal ‘happy path’ processes to meet customer needs and organizational goals.‍
• Process monitoring: Monitoring processes to ensure they are meeting objectives and delivering quality results.‍
• Process optimization: Evaluating and improving processes to maximize efficiency and effectiveness.‍
• Process automation: Using software or other technology to automate manual tasks.‍
• Process standardization: Establishing consistent processes across the organization.‍
• Process governance: Establishing standards, policies, and guidelines for process management.

1. How do you achieve process excellence? Achieving process excellence involves identifying, analyzing, and optimizing an organization’s processes to improve efficiency, quality, and customer satisfaction. This can be done by implementing various methodologies, such as Six Sigma, Lean, and Kaizen, among others. Therefore, to achieve business process excellence, organizations should establish a culture of continuous improvement, engage employees at all levels, use data-driven decision-making, and regularly review and refine their processes.

2. Why is process excellence important? Process excellence is important because it helps organizations reduce costs, minimize waste, improve efficiency, and deliver high-quality products and services. By achieving process excellence, organizations can enhance customer satisfaction, gain a competitive advantage, and ensure long-term success. Furthermore, business process excellence contributes to a better work environment, increased employee engagement, and a culture of continuous learning and improvement.

3. What are the stages of process excellence? There is no universally agreed-upon set of stages of process excellence. However, a general framework could include the following four stages:

• Assessment: Evaluate the current state of an organization’s processes, identify areas for improvement, and set goals.
• Implementation: Apply process excellence methodologies and tools, such as Lean or Six Sigma, to optimize business processes, eliminate waste, and improve efficiency.
• Monitoring: Continuously track the performance of optimized processes using key performance indicators (KPIs) to ensure improvements are sustained and desired results are achieved.
• Continuous improvement: Regularly review and refine processes based on the monitoring stage’s findings, fostering a culture of ongoing learning and improvement.

4. What does a process excellence team do? A process excellence team or department is responsible for facilitating and promoting the adoption of process excellence methodologies and tools throughout the organization. Their tasks may include providing training and resources to employees, leading process improvement projects, analyzing and monitoring process performance, and driving a culture of continuous improvement. Additionally, the department may work closely with other functional areas to identify opportunities for improvement, collaborate on cross-functional initiatives, and ensure that process excellence goals are aligned with the organization’s overall strategy.

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Why driving process excellence is key to sustainable business success

Agility will enable your organization to be more productive and innovative — and ultimately, achieve long-term growth and competitive advantage..

In 1976, Dr. Albert Yu and Dr. David Chung founded Umtech, a company that developed and manufactured the first personal computer to be sold in department stores — VideoBrain. However, for a variety of reasons, the consumer market wasn’t ready, and three years later, the company was assimilated into the structure of its biggest investor.

In 1976, another computer company was also founded: Apple Computer Company, the brainchild of Steve Jobs, Steve Wozniak and Ronald Wayne. Despite a challenging start in a market with strong competitors such as Microsoft and IBM, the company — then named Apple Computer Inc. — went public at $22 per share on December 12, 1980. Its IPO generated more capital than any other since that of Ford Motor Company in 1956.

The rest, as they say, is history. Apple went on to become the first public company to be worth an astounding $1 trillion in August 2018.

There are undoubtedly many reasons why two companies that sold similar products met with such contrasting fates . The examples illustrate how of the literally thousands of companies that are started each year, the majority eventually either fail or are acquired by bigger, more powerful competitors. Only a handful survive — and even fewer go on to achieve a track record of long-term growth.

So why is this?

One contributing factor might be that not every company has the drive for process improvement that’s needed for sustained business expansion. According to recent research , process excellence is an actual and sustainable foundation for long-term business success. In fact, when it comes to high-level metrics such as growth, productivity, longevity and profitability, companies that have strong managerial processes have been proven to perform significantly better.

What stands in the way of achieving process excellence?

Achieving process excellence is much easier said than done . There are two common obstacles — and both originate from within the organization itself. First, there’s often an overly optimistic perception of existing management processes, resulting in a failure to acknowledge issues. And second, there may be an overly pessimistic view of the investment required to improve processes, as well as of the returns that investment would yield.

Unfortunately, sooner or later, this type of complacency and inability to see the lack of effectiveness of existing processes are bound to place any company at a disadvantage to those competitors that  do focus on process excellence. And that might be precisely where the leaders of high-performing companies differentiate themselves — they recognize that aspiring to process excellence by focusing on effective process management is a key component of sustainable business success.

Achieving process excellence

Achieving process excellence is crucial to the sustainability and growth of business. So how do you go about achieving it?

First of all, it’s important that the leadership team commits to process excellence. When the CEO and the rest of the C-suite emphasize the importance of continuously optimizing internal processes, they lead by example — and the rest of the organization will follow.

In addition, before embarking on your process excellence journey, it’s helpful to evaluate your company’s current beliefs and practices around process. Think about the following:

• How clear is your leadership’s commitment to process excellence, and are your employees on board with this objective?
• How do your employees perceive your processes? And what do your clients or customers think about how you operate? Do you encourage — and incorporate — feedback?
• Does your operational capability hinge on certain key players? What provisions are there in place in case one of those individuals is no longer available?
• In the past, have you been able to respond effectively to external pressures? What were the processes used in those instances? Could or should they be improved upon?
• How are any changes to processes designed, implemented and communicated organization-wide?
• What process excellence tools, capabilities and incentives for teams do you invest in?

Answering these questions objectively and comprehensively will allow you to attain comprehensive insights about the importance of process excellence within your company culture. This in turn will form the foundation for any adjustments you need to make.

Finally, you should commit to strong managerial processes. This means making sure that your leadership team’s commitment to operational excellence is clear, both in words and in actions.

As a part of this endeavor, establish a governance structure to make process excellence part of the company culture. Empower process owners throughout the organization to drive process excellence within their scope of operations. Investigate investment in a centralized process knowledge platform, so everyone in the company has access to process documentation and can participate in an ongoing conversation about process improvement.

The continuous drive for process excellence is a critical competitive advantage

If process excellence is critical to sustainable business success, then it’s important to understand that excellence is a variable metric. Internal and external pressures change continuously — so you should never be satisfied with the status quo. Instead teams should be encouraged to constantly re-evaluate your processes to see where they can be improved to better meet your business needs.

As Tom Peters, an American writer on business management practices, said: “Excellent firms don’t believe in excellence — only in constant improvement and constant change .” It’s this agility that will enable your organization to be more productive and innovative — and ultimately, achieve long-term growth and competitive advantage.

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The 5 steps required to achieve process excellence

Picture a company that has grown rapidly in recent years. It’s likely that its innovative products and friendly service meant it delights customers every time. However, as the business expands geographically, staff have begun to notice problems – from customer complaints about poor service to disputes with suppliers whose invoices are getting paid late. Before these problems get out of hand, the company realizes it needs to focus on process excellence.

If a company experiences repeated problems around customer service, onboarding, payroll, supplier relationships, or HR, it’s usually a sign that it is falling short of process excellence. There are several process improvement methodologies and digital process automation tools that can help fix these problems.

But first, what is process excellence and how can you achieve it?

What is process excellence?

Process excellence is achieved when an organization’s processes are consistent, highly efficient, and have minimal variations or waste. All processes deliver their intended outcomes and work seamlessly together to make the business function as effectively as possible. If a company is achieving process excellence, it can be confident that when a new process kicks off—be that invoice payments, compliance audits, or document management—the process will always be completed as efficiently as possible.

Process excellence is not an end state. Instead, it involves a continual effort to improve how processes are designed and implemented and involves adapting them to shifting circumstances. For example, a staff onboarding process might have been working perfectly in 2019, yet would need to be readjusted for the post-pandemic world of hybrid work. Process improvement, therefore, has to be continuous to achieve this.

The benefits of process improvement

Achieving process excellence provides many obvious benefits. These include:

• Cost savings: If processes are running efficiently, companies can save significant sums of money. For example, in one organization , invoice process improvement reduced the cost of paying each invoice from $12.44 to $4.98 on average.
• Identifies bottlenecks: Using a process improvement methodology such as process mapping allows you to identify where there are bottlenecks in your workflows.
• See the bigger picture: Process automation solutions allow you to visualize how all processes across the organization connect to one another and feed into wider business excellence.
• Onboarding and training: By being able to view your processes mapped out visually, it’s easier for new starters to familiarize themselves with how your company works and where they fit in.

5 ingredients of process excellence

Since process improvement is a continuous activity, organizations must frequently revisit their process maps and reassess them in response to changing circumstances. The following five ingredients will help your organization implement a continuous process improvement culture to help you achieve excellence in the long run:

Ownership and alignment

This is about knowing who is responsible for processes in an organization and defining clear roles. Most organizations have hundreds of processes, yet it is not always clear who is responsible for each one. Unsurprisingly, this means no one feels it’s their job to improve many of your processes.

Example : A minimarket’s logistics manager needs to know which processes they are (and are not) responsible for. Ensuring goods are delivered on time would be an obvious responsibility for this individual. But are they also responsible for managing waste from your stores too? If not, who is responsible for that process?

By completing a process mapping initiative, you can identify all processes in your company, see how they’re connected and allocate responsibility for each process to specific named individuals – eliminating confusion and overlap.

Continuous process improvement

Since processes are always being affected by outside events, you need to continually assess your processes and find areas for improvement.

Example : A technology company has decided to introduce a policy to let employees work remotely as a result of the pandemic. They must therefore update their onboarding processes, remote work request processes and IT processes to ensure that the workflows are still relevant and effective.

Definition, documentation, and understanding

This is about producing written documentation and instructions that create consistency across the board. It needs to be clear how processes are organized and why they are set up the way they are.

Example : An insurance company’s dispute verification processes involve several escalation stages from initial complaint through to resolution. A clear, documented explanation of the protocol and why the organization resolves disputes in this way means that anyone can view it (including auditors) and understand the logic behind each stage in the process.

Performance management

How easy is it to spot issues in the process? What is the procedure for dealing with these issues? Process excellence requires you to identify process problems and fix them fast.

Example : An experienced finance officer has just joined a fast-growing new startup. He notices there is a lot of manual work involved in managing payments. By implementing process improvement methodologies to streamline payment management, he can identify the problems and introduce solutions.

Technology development and automation

Introducing business process automation software allows companies to automate processes and ensure they are managed more efficiently.

Example : A state school board decides to automate its payroll, onboarding and child protection processes, among other workflows. By using digital tools to manage these workflows, they can boost efficiency and save staff countless hours collecting data or managing approvals.

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6 Key Process Excellence Capabilities to Consider 

In this series, we highlight operational and process excellence capabilities, providing best practices and steps to identify and address gaps or opportunities..

Is your company looking to improve operational or process efficiency? Or perhaps initiate a program or center of excellence (COE) focused on operational and process excellence, Lean, Six Sigma, or all three?

Are there known quality and customer service issues within your company? Maybe you’re just curious about all the hype around operational process excellence. Regardless, we’ve got you covered in a six-part blog series on the topics.

We believe operational excellence (OE)  requires a holistic roadmap with the proper balance across people, process, information and technology. A company can definitely advance by focusing on only one of these areas or by executing individual projects to address specific issues, but a holistic, balanced roadmap is necessary to truly achieve operational excellence.

In this blog series from some of our foremost thought leaders, we address the details of each of these process excellence capabilities to help you get started on developing this roadmap. Each post will provide best practices and steps you can take to identify and address any gaps or opportunities within your organization as it relates to critical OE processes.

We’ll also share examples of how other companies have addressed similar issues as well as how operational and process excellence fit into a company’s overall business transformation efforts.

Read the Series

Part 1 – getting started: what is a process assessment why do you need one.

The first step is to assess your organization’s process effectiveness and develop a strategic roadmap based on the findings. Even a brief self-assessment with process participants and change sponsors will help you identify any upfront inconsistencies to address before you start on your path to operational excellence.

But why should you do this work? Everyone’s “why” will differ, but they usually align with six different value drivers: financial performance, business agility, scalability, reliability and predictability, customer experience and quality, and visibility and transparency. However, all of these value drivers share one thing in common: improving processes .

This blog will also help you answer some basic questions about process improvement so that you can build a roadmap made up of opportunity areas and needs organized into logical chunks of work or projects. Finally, we discuss tips and best practices on sequencing the projects into a roadmap based on priority, dependency and organization readiness for change.   Read the blog

Part 2 –  People: The Foundation of Your Company, Culture and Process Excellence Programs

What would a process initiative be without people to drive it? In this post, we look at two scenarios for process excellence (PEX) programs that will provide a coordinated effort and game plan for including your people in your improvement plans. The first scenario starts with projects that can grow into a PEX, and the second starts with PEX but is more focused on organizational change management and executive support.

We then dive into the components of excellence programs: center of excellence, change enablement and technology enablement. However, throughout we keep the focus on how to drive process improvement initiatives and establish an operational excellence culture at the enterprise level. This includes program sponsorship, process governance, center of excellence development, organizational change management, and more.   Read the Blog

Part 3 – Process: Five Factors for Business Process Improvement Success

This segment will focus on the need to establish high-performing processes that grow with your company.

We will discuss the different disciplines you can apply – Lean, Six Sigma, “Just Do It,” and the DMAIC approach.

Many people have heard of these initiatives or participated in efforts to implement such examples of Business Process Improvement (BPI). While BPI initiatives have become essential in every organization, 70 percent of all BPI projects fail, according to ASQ. In this blog, you’ll learn how to lead organizations through change while keeping an eye on customer needs and five key factors that are critical to the success of any business process improvement initiative.   Read the Blog

Part 4 – Performance Metrics: “If You Can Measure It, You Can Manage It”

Effective metrics are essential to measuring and driving ongoing improvement. That also means you need to measure performance in such a way that many aspects of your organization build alliances so that your team is more proactive. Performance measurement allows you to focus on your company’s health by keeping an eye on what decisions impact both internal and customers and how those decisions affect the bottom line and future processes.

In this installment, we will discuss how to use performance measurement to measure, communicate, manage and improve overall business performance.   Read the Blog

Part 5 – Technology: What’s the Right Way to Automate a Process?

There are lots of buzzwords out there when it comes to using technology to drive process optimization. But when it comes to improving your processes, the last thing you want to do is pick the flashiest product. Before you can choose the best tool for your organization, you need to know your company’s current technology environment and needs. Moreover, you’ll need to fix some processes before incorporating technology — after all, automating a bad process only gets you inefficient or bad results faster.

We’ll help you sift through the technology, including process modeling tools, BPMS , rules management, robotic process automation , and the application of emerging digital technologies.   Read the blog

Part 6 – Bringing It All Together: How Operational Process Excellence Enables Business Transformation

Again, a company can surely advance by focusing on only one of the areas that we’ve discussed so far. But operational excellence does not exist in a vacuum — instead, as the core of everything companies do, it exists as an essential puzzle piece for any large-scale business transformation.

And as more and more organizations adopt a “ Rethinking Business Transformation ” mindset, in which business transformation must be agile rather than a five- to- 10-year effort, we discuss the importance of bringing all the key process excellence capabilities we discussed in this series together to develop a balanced roadmap. In the conclusion to this six-part series, you’ll truly learn how operational and process excellence help create a better future.

But to truly achieve process excellence, we believe that a holistic and balanced roadmap is essential. In the final installment of the series, we will discuss how all of the key capabilities come together, like puzzle pieces, to develop a balanced roadmap. Read the blog

Final Thoughts

In each of these blogs, we go into greater detail on each of these process excellence capabilities. Read each to learn the steps you can take to assess and improve your organization’s position in each of these areas.

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What Does a Process Excellence Manager Do?

Find out what a Process Excellence Manager does, how to get this job, salary information, and what it takes to succeed as a Process Excellence Manager.

The Process Excellence Manager plays a significant role in enhancing organizational efficiency and effectiveness by leading continuous improvement initiatives. This position involves a strategic approach to streamline operations, reduce waste, and optimize workflows across various departments. By employing methodologies such as Lean, Six Sigma, and other process improvement techniques, the Process Excellence Manager collaborates with teams to identify areas for enhancement, designs solutions to address inefficiencies, and oversees the implementation of these strategies. Their efforts are geared towards achieving higher productivity, improving quality, and fostering a culture of continuous improvement, ultimately contributing to the organization’s overall performance and customer satisfaction. Through a combination of analytical insight and collaborative leadership, the Process Excellence Manager ensures that the organization remains agile, competitive, and ready to meet the evolving needs of the market.

Process Excellence Manager Job Duties

• Lead and facilitate cross-functional teams to identify and implement process improvement initiatives aimed at increasing efficiency, reducing waste, and improving overall operational performance.
• Develop and maintain a comprehensive process mapping system that documents current processes, identifies bottlenecks, and highlights opportunities for improvement.
• Design, implement, and monitor key performance indicators (KPIs) and metrics to track the effectiveness of process improvements and ensure alignment with organizational goals.
• Collaborate with department heads and senior management to prioritize process improvement projects based on potential impact, resource availability, and strategic importance.
• Utilize Lean, Six Sigma, and other continuous improvement methodologies to drive process optimization projects from inception through to successful completion.
• Oversee the development and delivery of process excellence training programs to build organizational capability and embed a culture of continuous improvement.
• Facilitate the adoption of new technologies and automation tools that support process improvement and operational excellence initiatives.
• Conduct post-implementation reviews for completed projects to assess outcomes, quantify benefits realized, and identify lessons learned for future process improvement efforts.

Process Excellence Manager Salary & Outlook

Factors influencing a Process Excellence Manager’s salary include industry sector (e.g., manufacturing vs. healthcare), company size, years of experience in process improvement roles, expertise in specific methodologies like Lean Six Sigma, and the scope of responsibilities, such as global versus regional process oversight.

• Median Annual Salary: $99,750 ($47.96/hour)
• Top 10% Annual Salary: $184,000 ($88.46/hour)

The employment of Process Excellence Managers is expected to grow at an average rate over the next decade.

This growth is driven by increasing demand for operational efficiency and quality improvement across industries. Process Excellence Managers play a crucial role in implementing lean methodologies and Six Sigma techniques, optimizing workflows, reducing waste, and enhancing overall organizational performance, making their expertise highly sought after.

Process Excellence Manager Job Requirements

Education: A Process Excellence Manager typically holds a Bachelor’s Degree, with common majors including Business Administration, Engineering, or related fields. Coursework often encompasses statistics, project management, and quality control. Some may pursue further education, such as a Post-Baccalaureate Certificate, focusing on specialized areas like Six Sigma or Lean methodologies. High School Diploma holders often complement their education with college courses in business or management to enhance their qualifications for this role.

Experience: Process Excellence Managers typically emerge from a background rich in operational improvement and process optimization. Their journey often includes hands-on experience in leading projects aimed at enhancing efficiency and reducing waste within various organizational contexts. This role demands a deep understanding of lean management principles and Six Sigma methodologies. Successful candidates usually have a track record of applying these techniques effectively in real-world scenarios. On-the-job training and participation in formal training programs related to process improvement and project management are common stepping stones. These managers often have a history of collaborating across departments to drive change and achieve measurable outcomes.

Certifications & Licenses: Certifications beneficial for a Process Excellence Manager include Six Sigma (Green, Black, or Master Black Belt), Lean Management, and Project Management Professional (PMP). No specific licenses are typically required for this role.

Process Excellence Manager Skills

Lean Six Sigma: Employing statistical analysis and quality control methods, a Process Excellence Manager identifies, analyzes, and implements improvements in various operational processes. The goal is to minimize waste and boost efficiency, thereby fostering a culture of continuous improvement that empowers teams to innovate and optimize workflows for enhanced performance and customer satisfaction.

Continuous Improvement Frameworks: Utilizing structured methodologies like Lean, Six Sigma, and Kaizen, a Process Excellence Manager works to pinpoint inefficiencies, cut waste, and boost productivity across organizational processes. This expertise supports the development and execution of strategic plans that drive lasting improvements, promoting a culture of excellence and innovation.

Process Mapping: By creating detailed visual representations of workflows, a Process Excellence Manager can spot inefficiencies and bottlenecks within an organization’s operations. This capability is crucial for designing and implementing more streamlined processes that improve productivity and reduce costs, thereby positively affecting the company’s financial performance.

Benchmarking: The skill to systematically compare an organization’s processes and performance metrics against industry leaders or best practices from other sectors is invaluable. It helps in recognizing areas for enhancement and in formulating strategies that push the organization towards operational excellence and a competitive advantage.

Root Cause Analysis: A Process Excellence Manager excels in identifying and tackling the underlying causes of inefficiencies or failures in business processes. Implementing sustainable solutions that boost operational performance and customer satisfaction is a direct outcome of this skill.

Change Management: Orchestrating the transition of processes, systems, and technologies with a nuanced approach ensures teams navigate change with minimal disruption and maximum adoption. This capability is critical for aligning organizational objectives with individual adaptability, promoting a culture of continuous improvement and innovation.

Process Excellence Manager Work Environment

A Process Excellence Manager typically operates within a corporate or office setting, where the ambiance leans towards the professional yet encourages a collaborative atmosphere. Their workspace is often equipped with the latest technology, including computers with specialized software for process mapping and analysis, to facilitate their primary role of enhancing operational efficiencies.

Work hours for this role tend to follow a standard business schedule, but there’s a growing trend towards flexibility, acknowledging the need for a healthy work-life balance. This flexibility might include options for remote work or adjustable hours to accommodate personal commitments.

The social environment is one of continuous learning and interaction, not just with team members but across departments, to understand processes deeply and foster improvement. Companies usually support professional development through training and conferences, recognizing the importance of staying abreast with the latest methodologies in process excellence.

Safety protocols are strictly adhered to, even in an office setting, ensuring a secure environment. The pace of work can be dynamic, reflecting the ongoing projects and initiatives aimed at process improvement.

Advancement Prospects

A Process Excellence Manager can ascend to senior management roles, such as Director of Process Improvement or Vice President of Operations, by demonstrating significant impact on operational efficiency and cost reduction. Achieving these advancements requires a track record of successful process optimization projects and tangible improvements in performance metrics.

To position oneself for these roles, a Process Excellence Manager should focus on mastering Lean Six Sigma methodologies, as these are often considered the gold standard in process improvement. Gaining experience in a variety of industries can also be beneficial, as it showcases the ability to apply process excellence principles across different operational contexts.

Leading cross-functional teams on high-impact projects is another critical step. This not only proves leadership capabilities but also enhances visibility within the organization. Engaging in strategic planning and aligning process improvement initiatives with the company’s long-term goals will further demonstrate the ability to contribute at a higher level of management.

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Process Excellence explained: What is the difference between Lean, Six Sigma, and Business Process Management (BPM)?

Thank you for visiting PEXNetwork.com. For more recent articles on process improvement and operational excellence, check our latest articles .

PEX Network takes time out to outline the fundamentals of the Lean, Six Sigma and BPM disciplines. Consider this essential reading for beginners, and a handy recap for seasoned process professionals

What is the definition of Lean?

Lean is a production practice with the key tenet of preserving value with less work. Operations that fail to create value for the end customer are deemed "wasteful." Eliminating waste and superfluous processes reduces production time and costs.

The seven wastes listed by Japanese founders Toyota are transport, inventory, motion, waiting, overproduction, over-processing and defects. The tools for implementation include value stream mapping, kanban pull systems and poka-yoke (mistake proofing).

Lean’s mantra of " doing things better " leads many companies to view it from a cultural standpoint. Think of it like recycling – for it to work, it has to be more than an arbitrary process, and actually be engrained in society. For Lean to be successful, it has to permeate the business silos and receive universal backing amongst senior management and employees.

Why would you use it?

Lean’s strength is its fast implementation . Immediate benefits relate to productivity, error reduction, and customer lead times. Long-term benefits include improvements to financial performance, customer satisfaction, and staff morale.

The three principles of Lean leadership and thinking – challenge oneself to meet goals, kaizen (continuous improvement) and genchi genbutsu (going to the source - the "factory floor" – to make informed decisions) are well respected.

Process-orientated industries with clearly defined value chains – particularly those with manufacturing or supply-chain elements -are the most receptive to Lean methodology. These include automotive, industrial engineering and pharmaceutical industries.

Lean and Six Sigma are often used in conjunction with one another in value chain improvement. Six Sigma process mapping does not distinguish between information flow and product material flow, because they all come under the process umbrella. The Lean discipline of value stream mapping leads many exponents to miss how information processing by departments can hinder the order to delivery cycle. Combining techniques makes it easier to measure and execute on lead times.

Who created it?

Lean was based on the 1980s Toyota Production System , and covered all facets of the manufacturing business, from quality assurance to human resources.

The concept of Lean emerged over time, as Toyota engineers developed solutions to overcome problems that beset the company as it grew from humble beginnings into a global superpower. In this respect, Lean is an organic, flexible system.

What is the future of Lean?

Lean’s relatively simple methodology and ability to attack a very transparent evil – waste – make it an integral part of manufacturing and service industries. It is a far less abstract than BPM, for instance.

Lean’s future may rest on the translation of its methodology from the manufacturing floor to more unconventional settings. 5S standardized work stations may have a future in research and development labs, but not the everyday office.

According to Gartner’s "Hype Cycle" of new technologies, Lean and Six Sigma are past the peak of inflated expectations and the trough of disillusionment, and depending on the company, are climbing the slope of enlightenment or traversing the plateau of productivity.

Whether it is as a philosophy, a fixed state (being Lean), a methodology (performing Lean) or a cultural transformation (becoming Lean), it has a veritable future.

What is the definition of Six Sigma?

Six Sigma is a set of tools and strategies to limit defects and variability in business processes, with the overarching goal of process improvement.

Its two project methodologies – DMAIC (define, measure, analyze, improve, control) and DMADV (define, measure, analyze, design, verify) are based on Deming’s Plan-Do-Check-Act cycle.

Six Sigma’s implementation rests on a dedicated improvement team divided into hierarchies based on a "belt" accreditation system. The team leverages advanced statistical techniques such as pareto charts and root cause analysis to reach quantified value targets.

Why would you use Six Sigma?

Six Sigma is a multifaceted methodology. To the statistical engineer in manufacturing, it might simply be a production quality metric, but to a customer service employee or CEO, it may embody the corporate culture.

Broadly speaking, it is a quality improvement methodology that provides a framework for a company to train its employees in key performance areas, shape strategy, align its services with customer needs, and to measure and improve the effectiveness of business processes. Fundamental to the latter is the identification of KPIs, and a focus on process quality variation.

Who created Six Sigma?

It was first outlined by Motorola in 1985 as a statistical modeling of manufacturing processes. A "sigma rating" relates to the percentage of defect-free products. A sigma rating of 4.5 (3.4 defects per 1 million) was initially touted as a realistic benchmark, with 6 sigma representing the holy grail.

Six Sigma was popularized by then CEO of General Electric Jack Welch in 1995, and by 1998 he claimed that it had led to $750 mn in cost savings . By the late 1990s, two thirds of Fortune 500 companies had incorporated Six Sigma projects, and by 2000, the discipline had spawned its own training and consultancy programs.

What is the future of Six Sigma?

Six Sigma’s traditional stomping ground – manufacturing – seems to be looking beyond quality control to foster an innovation culture. But for industries such as financial services, which demand a unique customer focus and struggle with a glut of data, Six Sigma represents the perfect partner.

Criticism of Six Sigma centers around its lack of originality beyond traditional quality improvement methods, implementation time (a minimum of 3 months), potential to stifle innovation, and the 1.5 sigma shift.

However, the proliferation of training courses, support organizations, and the fact that the average Six Sigma Black Belt commands a salary of $90,000 all point to its longevity. The skills to identify and quantify variation are strongly valued. As long as companies continue to see a positive ROI from Six Sigma projects, it will survive.

Business Process Management (BPM)

What is the definition of BPM?

BPM is a management approach that looks at an enterprise holistically as a set of business processes.

Contrary to popular belief, the software associated with BPM is only a means to an end – a tool to understand, engineer and analyze processes. BPM leverages a five-step design model – design, model, execute, monitor and optimize. Six Sigma may be used to improve processes, before BPM looks to automate and manage them.

Most enterprises are divided into departments with idiosyncratic functions. The customer has a different perception of the enterprise, understanding it through the business processes through which he or she interacts. For example, a customer applying for a loan views the company as a loan provider, not as a group of departments such as sales, underwriting, legal and compliance, I.T. etc. Customers demand transparency and a seamless, cohesive experience. BPM looks at mitigating the effects of "siloization" by helping organizations manage complex, cross-departmental processes, and synchronizing them with customer demands. It’s the methodology to link improvement and process design efforts directly to the management system and organizational strategy.

Although it is somewhat of an abstract term, BPM initiatives – in one guise or another - have been adopted by financials services, telecoms, healthcare and military sectors.

Who created BPM?

Some experts trace BPM back to 1993, when consultants Michael Hammer and James Champy published a seminal book on business process reengineering .

This is disputed by champions of Smith and Fingar’s book: Business Process Management, The Third Wave, who denounce BPR for its shirking of execution. Execution is facilitated by the business process management suite. If the precise origins of BPM are somewhat hazy, it’s safe to say that the 2000 dot-com boom created a flourishing vendor market where integration focused platforms merged with pure-play BPM.

What is the future of BPM?

The exponential growth of BPM vendors (Appian was north of 50 million in revenue last year) points to a rosy future for an approach credited with helping companies emerge from the recession with their processes still intact.

BPM as a group of factory-style sequential workflows may be outdated, but BPM as a dynamic model that incorporates business and process intelligence, and tools such as predictive analytics, is very much alive. Going forward, mobile, social, predictive and cloud BPM appear to be the hottest trends.

Are you interested in learning more about the fundamentals of Lean Six Sigma? Our PEX Institute Online Learning Courses may just be what you need to take the extra step. As all the courses are conducted online, all you'll need is an internet connection and to have booked your course & the best thing is you can benefit from group and individual learning.

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Embrace the Present: Strive for Excellence in Every Role

Focus on excelling in a current role to build a foundation for future success..

Updated July 13, 2024 | Reviewed by Margaret Foley

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In a world that often glorifies the future and the pursuit of long-term goals , it is easy to overlook the significance of the present moment. Whether making cappuccinos at your local café, working the counter at McDonald's, or honing your customer service skills in any job, the value of being the best you can be right now cannot be overstated. Focusing on excellence in your current role sets the foundation for future success and enriches your personal and professional life with growth, satisfaction, and unexpected opportunities.

The Power of the Present

Living in the present means fully engaging with the task at hand. It is about channeling your energy, skills, and attention into what you are doing right now rather than being preoccupied with future aspirations or past regrets. This mindfulness has profound benefits. When you focus on being the best you can be in your current role, you enhance your skills, build a strong work ethic, and positively impact those around you.

Take the example of making a cappuccino. To the untrained eye, it might seem simple—just a combination of espresso, steamed milk, and foam. However, achieving the perfect balance and texture requires precision, practice, and an understanding of coffee-making. By striving to make the best cappuccino, you develop a keen eye for detail, patience, and a commitment to quality. These attributes are transferable to any future endeavor, demonstrating that excellence in small tasks can build the foundation for tremendous success.

Building Customer Service Skills at McDonald's

Working at McDonald's, or any fast-food establishment, might not seem glamorous or particularly impactful at first glance. However, this service job offers a unique opportunity to develop essential customer service skills that are valuable in any industry. Serving customers efficiently, handling complaints gracefully, and maintaining a positive attitude under pressure are all part of the job. By being the best you can be in this role, you cultivate resilience , empathy, and the ability to work effectively in a team—indispensable qualities in any career .

Consider the story of a young McDonald's employee who initially viewed the job as a temporary stepping stone. By dedicating herself to excelling, she became a respected team leader and gained invaluable experience that later helped her secure a managerial position in a different company. Her journey illustrates how excellence in seemingly modest roles can lead to significant professional development and opportunities.

The Importance of Being Open to Change

In today's rapidly evolving world, being your best means being open to change and new experiences. Adaptability is a crucial skill that allows you to thrive in diverse environments and embrace opportunities as they arise. Whether learning a new skill, taking on a different role, or adapting to technological advancements, being open to change keeps you relevant and resilient.

For instance, imagine a barista who, after years of perfecting the art of coffee-making, decides to learn about the business side of the café industry. This willingness to step out of one's comfort zone and acquire new skills enhances one's current role and opens doors to future opportunities, such as managing or owning a café. He transforms his career trajectory by being open to change and discovering new passions and capabilities.

Embracing New Experiences and Opportunities

Being the best you can be in the present involves embracing new experiences and seizing opportunities that come your way. These experiences often provide insights and skills you might not have considered valuable. For example, volunteering for a challenging project at work, taking a course in a different field, or participating in a community event can all lead to personal growth and expanded horizons.

A real-world example is the story of a retail employee who volunteered to organise a local charity event. Through this experience, she developed project management skills, networked with influential community members, and discovered a passion for event planning. These newfound skills and connections eventually led her to transition into a fulfilling career in nonprofit management. By embracing new experiences, she excelled in her current role and uncovered a new path aligned with her passions.

The Ripple Effect of Excellence

Excellence in your current role has a ripple effect that extends beyond personal gain. When you commit to being the best you can be, you inspire those around you, contribute positively to your work environment, and set a standard of quality and dedication. This influence can lead to a more cohesive and motivated team, a better customer experience, and an overall improvement in organisational culture.

Consider a customer service team member who consistently delights customers with excellent service. Her dedication and positive attitude improve customer satisfaction and motivate her colleagues to elevate their performance. The result is a more effective and harmonious team, a reputation for excellent service, and a work setting where everyone feels valued and inspired to contribute their best.

In a society that often emphasises future goals and achievements, it is essential to remember the power and importance of the present moment. Whether you are crafting the perfect cappuccino, excelling in a fast-food job, or developing customer service skills, being the best you can be in your current role lays the groundwork for future success. By focusing on excellence, embracing change, and seizing new opportunities, you enhance your personal and professional life and positively impact those around you. The journey of being the best you can be begins with the commitment to excel in what you are doing right now, creating a foundation for a fulfilling and prosperous future.

Nigel R. Bairstow, Ph.D. , is a researcher and academic at the University of Technology Sydney (UTS).

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