Business Process Design: What Every MBA Needs to Know

A business process is a series of repeatable steps that works toward an organization’s goal. Business process design simply refers to the act of creating a new process from scratch. The more efficient the design, the better a business performs. If you’re interested in building an efficient business, try taking a course in operations management and process management, such as the one offered in Southern Illinois University Edwardsville’s online MBA with a Specialization in Management. You’ll learn about process design, capacity, flow time, and supply chain and logistics in manufacturing and service organizations.

How Can Business Process Design Help Customers?

When drafting a new business process, one question should weigh heavily: Would a customer pay for this activity? Keeping your customer in mind ensures fewer complaints when the business process is finally implemented. If certain steps don’t add value for a customer, they should be scrutinized.

One example of this may be a telecommunications company that’s developing a new app to display real-time data usage. During the development and design phase of the new business process (which includes hiring tech support and software engineers to manage the app), employees may discuss the possibility of charging a fee for the real-time service. If the added cost will drastically reduce customer interest, the development team should consider offering the app for free.

How Do I Design a Great Business Process?

By developing a business process that’s efficient and sustainable, your company can avoid costly setbacks down the road. A streamlined process must be agile as well, adjusting for increases and decreases in demand. These tips can help you succeed:

  • Anticipate and reduce handoff delays: Handoffs occur any time a task is transferred between business teams. One example of this is the handoff of a new employee from hiring manager to human resources onboarding. If your company doesn’t include a process for ensuring that the transition happens in a timely manner, a new worker may end up waiting days before he or she can become a productive team member.
  • Avoid over-automating: Automating assumes that a process will be done without delegating an individual employee to oversee the process. A well-designed business process defines who will be responsible for each step, thereby allowing for accountability if and when delays occur.
  • Validate the business process first: Never assume that a new business process will work until it’s been tested. This can be done through simulation. Employees should feel free to ask questions at this time.
  • Simplify whenever possible: Business process design may not be simple, but the results should be simple, and reliable. Avoid confusing language and redundancy whenever possible. A heavily bureaucratic process will only result in unexpected expenses, errors, delays and low productivity.

Advance Your Career With Business Process Design

A deep understanding of process design can give you key insights that other MBA programs may not offer.

Learn more about the Southern Illinois University Edwardsville’s online MBA with a Management Specialization program.


Sources:

Heflo: The Nine Principles of Process Design

Tallyfy: Business Process Design

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