Publications

• 30 Second Ideas
• Accounting Updates
• Alerts
• Articles
• Business Surveys
• Construction Edge
• Healthcare Edge
• Insurance Edge
• Legal Talent
• Manufacturing Edge
• Not-for-Profit Edge
• Quick Links & Good Ideas
• SEC Edge
• Strategy Insights Blog
• Surviving the Upturn
• Tax Highlights

Organizing the Journey of Continuous Improvement

Part Two in a Series on Continuous Improvement. Read Part One.

Driven by the need to reduce costs, eliminate waste, and improve productivity, the manufacturing industry is focused on improving processes. These manufacturing improvement projects have been used in manufacturing operations, quality, supply chain, and sometimes accounting. These projects appeal to the management team because they address the core operations of the company. They begin to establish a culture of continuous process improvement.

Many of the companies that have seen positive results are realizing that they can take process improvement into other areas such as product development, sales and marketing, customer service, and all accounting. They are realizing a need for a continuous process improvement culture throughout the company.

It is at this point that the company must transition “operations-based” improvement efforts to a culture of continuous improvement throughout the rest of the company. Often, we see organizations falter when management issues a decree to improve processes beyond the shop floor. If process improvement programs are decentralized, results are mixed and momentum can be lost.

The new culture needs to be supported by the entire organization. How do you organize to support this culture?

The culture needs to be driven by top management. The culture of “continuous business process improvement “should be supported by a process improvement playbook that is included in the annual business plan.

The culture should be supported by a matrix organization aligned by major business process. The organization should include the following:

• Steering Committee of the top management of the company that are to be affected by the current year’s business process improvement projects
• Chief Process Officer (CPO) that is responsible for planning and managing the execution of all BPI projects
• Process Owners that are responsible designing and implementing the approved BPI projects

The Chief Process Officer (CPO) becomes the major focal point for all process improvement projects in the company. This role may be filled by the CIO, or it may be a new position filled by a leader in the business user community.

The Process Owners are selected by the Steering Committee and the CPO. They are responsible for insuring that their processes are continuously being improved. They manage their user organization to be educated on current, new and best practices for the industry.

The BPI organization is normally a matrix organization that supports the BPI process. It does not replace the primary company organization.

The organization becomes the clearing house for all BPI activities in the company. They have an annual plan and each project can be measured based on its affect on business performance improvement.

Consider these ideas when implementing an enterprise culture to improve all business processes. Improving information business processes is a journey not a destination.

Author Profile
Jeff Carr is the founder of Ultra, a consulting company focused on ERP and business-process improvement for the manufacturing industry. Learn more about Ultra at www.ultraconsultants.com.

This publication is part of Blackman Kallick’s marketing of professional services, and is not written tax advice directed at the specific facts and circumstances of any person and/or entity. Contents of this publication are of a general nature, and you should not act on this information without obtaining professional advice from your business advisor that is appropriately tailored to your individual needs and circumstances. This written advice is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.