Finding broken processes can feel like a treasure hunt - but what if you don’t like the prize?
Just because a process is broken doesn’t mean it needs to be fixed. Yes, process improvement projects can be totally transformative for a business and help it scale in a multitude of ways. I have run many and there can be huge benefits. But there will never be enough resources or a valid business case to address every possible issue.
“Your broken process may never be a priority - and there are a lot of valid reasons to potentially accept and ignore it.”
I also get that there is an increased focus on process improvement in the current economic climate. Companies are focused on saving money or unblocking as many paths to revenue as possible. These are admirable goals and there are many ways of achieving them. That’s not what today’s newsletter is about. We’ll talk about that next week once we’ve learned first how to evaluate if the process is even worth fixing.
Questions to ask before fixing a process
Why has nobody tried fixing this process before?
What is the expected outcome of fixing this process?
Will this cause any externalities and have we listed them?
Do we have the capacity to manage the change effort of the fix?
This is the handy-dandy checklist I use before evaluating if a process change is worth even pitching to leadership as a project. Let’s walk through each one:
Why has nobody tried fixing this before?
People are smart. They typically know if something is broken and would prefer to have it fixed. When a process is highly cross-functional not every team may be aware of other team’s inputs which can result in overall issues. Always start by asking the relevant team leaders if they know the process is broken and if they have made efforts to fix it.
What is the expected outcome of fixing this process?
Processes are improved to get three outcomes:
Increased revenue
Reduced costs
Regulatory requirement
Does your process have a tangible ROI? Can you calculate when the benefits will be achieved. Increased revenue projects are fun because they are about scaling the company and means there is more money to retain or increase staffing. Reduced cost projects either require eliminating a fixed or recurring cost (eg. eliminating an office and going WFH or cutting a software subcription) or reducing headcount. These are not fun and many managers will push back on these projects because they know it means their team will be reduced in size or they will forfeit future headcount. If you are interested let me know and I can do a future newsletter on this topic.
Will this cause any externalities and have we listed them?
Processes rarely exist in a vacuum. They are usually connected to something or have an external consequence. For example. if you are cancelling a service think about if there is a contractual cancellation timeline or penalty for cancelling. For a revenue increase project is there a seasonality to your business where the improvement makes sense to achieve before a certain time period? Think about these before just jumping in.
Do we have the capacity to manage the change effort of the fix?
Process improvement is effortful. You need to identify the issue, map current and future state, make a project plan, execute the project and have change management training materials. Before proceeding check to see if anyone is free to work on the project and if it is worth the effort.
If you have satisfactory answers to all these questions then you are ready to make a pitch to improve your process!
How fixes get prioritized
How do broken processes become projects to fix? (Hopefully) by prioritization.
The easiest way to prioritize is by calcucating a quick ROI. Just because your process is broken doesn’t mean there is sufficient financial benefit to overhauling it.
There are many ways to calculate ROI and payback period which I’ll address at a later date but at a high level think about ROI = (How much will I make or save this year) / (How much will this fix cost me this year).
If this is >1 then great - you have a potential winner.
If this is <1 and not a regulatory requirement then re-evaluate.
Many companies have an ROI threshold for completing a project. Ask your friendly PMO if they have any pitch documentation to share to make your life easier.
But I still want to fix it anyway
If your process isn’t picked but you worked through the whole checklist and have an ROI you still have hope - but it will require overtime and potentially burning bridges with uncooperative managers.
Really think about if you want to spend your time and social capital on something the organization doesn’t value. My recommendation would be to further break out the process to see if there is a sub-process that you find interesting and pitch again. This way the prize at the end of your process improvement treasure hunt may be worth it.
I hope you enjoyed this read and let me know what you want to learn! I have 10+ years of experience in Process, Project, and Change Management and my goal is to help you get the skills you need to run any project effectively.
Have the best day and thanks for spending the time reading this week’s newsletter!