Reducing the risk in the business change process

Change can inject lifeblood into an organisation, if businesses don’t change and move with the times they often don’t survive. However, change also introduces one of the greatest risks that an organisation can impose on itself. This paper endeavours to explore how with the use of common sense and straightforward analysis, tools can significantly reduce the risks associated with process change.

All businesses constantly need to look at change, whether it be the re-layout of the manufacturing process to accommodate a new product or the complete re-design of parts of the business process in order to become more competitive. However the change brings with it a whole range of challenges. Where do you start? Should you simply go with what you think is a good idea? Should you consider ideas from other interested parties? How do you plan to implement? Does everybody understand and agree with the change? What level of new equipment will be introduced? Will the system work as expected?

Getting Started

Firstly we need to identify the objectives for the change, why is the organisation planning to revise the process? Secondly we should look to map out the existing process in order to understand how it works, thirdly we look to produce the revised system and fourthly we implement.

All very fine in theory, however the greatest barrier to achieving a successful outcome is the RISK factor. Risk of the unknown the unconsidered and the plain ignored. Many potentially successful ideas are never implemented because the risk is seen as being too great. As a result companies err on the side of caution and small tweaks are made to the process with little significant benefit. Alternatively where a more gung ho attitude to change is employed failures are all too common with potentially devastating effects.

So where to go? Although not ignoring the tweaking approach, as this is the Kaizen method to process refinement, it is not where significant gains in process improvement are largely made. We must therefore look more closely at the more adventurous changes and see why they fail? Being too close to a problem often leads to what appears to be the perfect solution, however it is rare that the solution takes account of all of the complex interactions within the process, as a result the solution is often far from ideal, a sub optimal which may or may not deliver any real benefit.

The ideal would be to develop a solution, build a prototype examine whether it meets all the objectives and then and only then look to implement within the organisation. However few companies can justify the time or expense of building pilot plants in order to convince themselves that a change will deliver the required benefits, yet it is impossible to predict what impact anything more than the most trivial of changes will have, so what is the answer. Technology such as Computer Aided Design (CAD) and Process Mapping tools have all found a place in the change process. CAD is an essential tool in order to confirm that a revised layout will actually fit within the constraints of the building. Process mapping will allow organisations to gain an insight into the breakdown of the various processes and document how each relates to each other. But neither technique will allow you to consider the most important factor….Will the process actually work!

Process Simulation

Enter the process simulator. We are all familiar with and accept the concept of a flight simulator, in fact I doubt if many of us would be comfortable flying with a pilot who had not spent significant time on a simulator, experiencing the potential outcomes of his actions whilst flying the plane. This training experience is invaluable when he has to make decisions which affect the lives of his passengers. The business equivalent tool is available and widely used to allow decision makers to examine the “what if “scenarios which affect the success or failure of the business. Like CAD, simulation is not an excuse for poor planning or design, it is though an effective way to gain an understanding of how a process works and what the outcome of any change might be.

The technology has been around since the mid sixties, although it has only been over the last decade that the technique has seen widespread acceptance. Now a whole range of process modelling packages exists. In general they allow businesses to rapidly develop models which help them consider all aspect of process change. The tools range from a few thousand pounds in cost, still not cheap by Microsoft standards, however the potential benefits which they can unleash can save organisations millions of pounds.

For more information or to learn more about the use of process simulation contact info@sakersolutions.com or telephone 01527 892296

The author has seventeen years of experience with process simulation tools and has worked with some of the worlds largest organisations to ensure successful tool selection and project implementation.