Most organizations already have an idea about which processes require optimization – be it due to a high number of complaints from customers, a noticeable inefficiency due to endless cycle times, or an observation of repeating loops and escalations. Moreover, many companies also have regularly running process assessments, or might be doing analyses based on their process landscapes.
However, on top of clearly defining and stating the scope of your optimization initiative, it’s equally as important to narrow it down, before you specify the concrete objectives for the measure at hand. Do you intend to optimize the generic production process, or rather the production process of a specific good? Are all your submission-to-bind processes in scope for optimization at your insurance company? Or rather only the vehicle insurance business segment? Such a detailed scope definition is paramount, in order to determine who needs to be involved and ultimately to define the actual optimization measures themselves.
Lastly, make sure that your optimization targets are clearly defined and understood by everybody involved. Shall the processes in scope be optimized for quality, time or cost? What is the concrete target, and how can potentially conflicting interests be managed?
Based on the optimization goals and targets, you’ll then be able to derive your concrete performance indicators (KPIs). These indicators are aimed at making your goals measurable, as well as helping you assess and understand the results of your optimization initiative. On top of that, the KPIs can be of further assistance in ensuring that your processes stay “on-track” and can be further improved upon, once the measures from your initial optimization initiative have been implemented.
After the goals and KPIs for your initiative have been aligned and communicated transparently to the business/process analysts and their sponsors, the deeper analysis can begin.