Common problems in a non-business process enterprise

Why is it that most people dread phoning their bank with a query? Or their insurance company with a claim? Or their medical aid...? Chances are it`s going to take talking to at least three different people in three different departments and sending three different faxes or e-mails with the same information before they are satisfied with the outcome.

This customer nightmare occurs when dealing with what are termed non-business process enterprises - organisations that have different processes for what appear to be different queries, applications or claims. While the nature of the issue may be different, is an altogether different process really required for each one?

Service-oriented organisations laud the customer as king. The question that needs to be asked, however, is: why do most of them remain non-business process enterprises, essentially operating as silos, focusing on products instead of the customer? In their product-focused stance, what challenges do they face and how do these impact the bottom line and the customer?

Becoming a business process enterprise involves improving business processes in support of the business strategy and organisational performance by simultaneously addressing processes, structures, people, culture, technology and systems.

Processes are owned and controlled by `process owners`, who are responsible for their definition, design and implementation. Processes are end-to-end across all relevant divisions and focus on addressing customer needs.

Non-business process enterprises are not customer-centric: customers are not looked after because it becomes difficult to service the customer efficiently at enterprise level.

Gys Hyman, consulting services director, Ovations

Non-business process enterprises are generally structured in silos, making them product silo focused as opposed to customer focused. Each silo has its own business process, resulting in different processes across the entire value chain. Processes are neither end-to-end nor uniform. Because many organisations do not know what their processes look like, they are unable to manage them. They generally do not have tools in place to map them either.

While the products in each silo differ, the processes could be the same. In the insurance industry, for example, underwriting is underwriting - what differs are the rules for each product.

The silo approach has an inherent high cost base, duplication of processes and an inability to realise synergies. These enterprises typically create channels, such as Internet and call centres, for each silo, instead of creating one channel across the organisation. Furthermore, a separate strategy extends from the business level to each business unit.

Non-business process enterprises are not customer-centric: customers are not looked after because it becomes difficult to service the customer efficiently at enterprise level. Information received is not synergised between departments, resulting in different parts of the same query being settled by different departments at different times.

Businesses are reluctant to take ownership of processes that cross functional areas, therefore separate business silos handle different processes. From an IT perspective, the business runs multiple systems and infrastructure across silos, resulting in resource and skills constraints, slow business delivery and dissatisfied customers. As there is no handshake between different systems, effort is duplicated and individual processes are independently implemented. Where architectures differ, components cannot be reused, training is required for each system and costs cannot be reduced.

There is an absence of synergies in non-business process enterprises and because the performance of the silo is measured in isolation sharing across silos is not encouraged. Silos are not driven by service level agreements, responsibility is not shared and people are not concerned once work leaves their department. Without a seamless internal experience, it is impossible to provide the customer with a seamless external experience.

Some organisations implement incremental improvements to processes. Separate projects may be initiated in different business areas, sometimes within similar processes, but without any benefit being shared across the organisation. While this approach may simplify areas, it is unlikely to do so at the required speed. The result is slow benefits realisation. Efficiencies will not be as powerful as the development of an overall process.

A non-business process enterprise is not process-centric - and where service is a key differentiator, process centricity leads to customer centricity. It is therefore critical to always listen to the customer, and ensure that the process or part that affects the customer is the most important.

Because the organisation does not have a common business plan or strategy, processes are not continually improved and change initiatives are not synchronised. When acquisitions are made, new silos are added.

While many organisations run projects to achieve efficiencies in areas, they focus on technology, forgetting that technology is merely an enabler. If you want to make a difference to the customer and to costs - change the process. But, always remember that becoming a business process enterprise entails changing people`s mindsets and gaining buy-in regarding new ways of working - an objective that is achieved gradually over time.

In today`s economy, organisations either work together or fail together. Whereas silos protect their territory and regard themselves as independent and different, the objective of business process enterprise is to achieve synergies across product silos and across groups within an organisation, creating one interface and achieving a competitive-edge by putting the customer first. Competitive advantage has become a combination of an innovative product offering and excellent customer service. To be increasingly agile and competitive, organisations will become all the things they are not.