Repetitive routines define workdays. In project management, your business will need to follow a series of steps to raise a new project request, delegate, or assign new tasks. This series of steps forms a repetitive routine that is called a process. Each process has a set of tasks that must be carried out in a strict sequence. Eventually, following these sequences to the letter makes a recurring workflow.
However, processes need to be optimized to meet requirements, as they can quickly become outdated and crumble. That is why you will have to review the processes to understand if they are effective. These reviews are collectively referred to as a business process analysis (BPA). These process analyses, when done regularly, are integral to your business growth. In this explainer, we will understand the ins and outs of business process assessment.
Defining business process analysis or BPA
BPA is a method for analyzing business processes. Every process is a recurring group of steps in a workflow. Following a process can help produce a defined result. Like, there is an onboarding process for new hires. Likewise, there may be a process to review quarterly goals. Similarly, larger processes may help with decision-making and planning. BPA is part of a broader concept called business process management (BPM). A BMP umbrella comprises analyzing processes, their maintenance, and optimization.
How is business process analysis different from business analysis?
The main difference between business analysis and BPA is that the latter is focused on processes. On the other hand, business analysis analyzes the whole business. For instance, if you want to upgrade your organization’s onboarding process, then you will need BPA. On the contrary, questions about how to analyze a business are answered through end-to-end business analysis.
If you want to analyze business profitability, you could use an end-to-end business analysis and not a niche process analysis.
The importance of carrying out business process analysis
You may ask, what does BPA stand for in business? BPAs, if done strategically, can have a sizable impact on businesses. Airtight analyses go beyond traditional inputs and outputs to evaluate a process’s core values; they can identify areas within a process with scope for improvement. Here are some of the most evident benefits BPA offers.
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Locating gaps in the processes and plugging them
BPAs reveal the chinks in the operations armor. If you do not address these operational gaps, your bottom line will be affected. You will find plenty of operational gaps when you look closely at the processes for hiring, closing deals, or invoicing.
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Building new processes that align with current business needs
BPAs show key missing pieces that are important to the success of your business operations. More often than not, these missing pieces can affect the bottom line, especially if processes for invoicing, hiring, and sales are in question.
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Outlining available resources
Are you unsure when you must decline a project request? If so, your uncertainty can be turned into certainty with BPA. Well-executed business process analysis can outline the available resources for each process, thereby serving as a form of capacity planning. That is how BPA can help you know whether you have resources for a new project request.
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Improving the employee adoption rate
If your business processes are better, then all your employees will look forward to using them. When you periodically review your business processes, you will do two things: first, you will show your employees that you want to make their workflows easier; second, you will optimize your business.
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Developing a strong process flow
Your business processes need to be dynamic; they need to change and adapt to changes in the business environment. When you conduct BPAs regularly, you will take a concrete step towards making processes more robust and simpler. Regularly analyzing business processes can help carry out routine changes and update them in real time.
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Mitigating redundancies and bottlenecks
On average, most knowledgeable workers spend a lot of time doing duplicate work. However, BPAs can help reduce or eliminate duplicate work. Several business process analysis techniques can help you uncover opportunities to minimize bottlenecks, introduce reusable templates, and lean towards automation.
The 5 phases of business process analysis
Your team will need to follow business process analysis steps to implement BPA effectively. Unless you are a business analyst, you will not be able to handle BPAs directly. Hence, one must hire a dependable BPA specialist, depending on your organization’s needs. Or you may even build a dedicated in-house team to oversee these operations. Here are the five steps involved in BPA.
1. Reviewing how processes fit in the grand scheme of things
Every business process should contribute to the larger initiatives or goals. You can understand processes as the means to achieve your business goals.
2. Gathering information on the current status
Before carrying out an end-to-end business process analysis, you need to understand how your business processes work in the first place. The ideal way to do that is to speak with process stakeholders —the people who will use the process.
3. Analyzing and mapping data
This is the step where everything related to the business analytics process begins. In this phase, you will compile data on process steps, process diagrams, current metrics, and other KPIs to measure success, the teams that are or will use the process, etc.
4. Figuring out the areas of improvement
Part of the analysis step involves identifying gaps and redundancies. These gaps are key areas for improvement in your processes.
5. Proceed to execution
The process of business process improvement highlights areas where you have taken action. Once you are done with BPA, you will use BPI to implement key process changes, with a keen focus on maximizing profitability. If you hire a business analyst for your BPAs, they will likely have their own ways, mythologies, and tools, such as business SWOT analysis and gap analysis.
When should business process analyses be used?
In general, business processes can benefit from continuous improvement. Nonetheless, there are some situations where a BPA is way more helpful than the others. A business process analysis works best for:
- Outdated and aged processes
- Processes that are facing a high turnover in some specific areas
- Businesses that are ready to launch new team structures
Finding the right partner to power your BPA journey
If you are unable to invest time in conducting business process analysis for your organization, partnering with the right business coach to meet your goals is the way forward. Enter Dr. Ameet Parekh, a seasoned business coach with a wealth of experience and deep expertise in reengineering and priming your business processes, from conducting detailed BPAs to structuring business functions. Connect with Dr. Ameet Parekh today to accelerate business growth with a tailored plan designed by the experts.
