The Value of Nimble Process
The percentage of legacy systems in use is astounding. Thousands of users still use applications that were developed in the 1970s. These systems are creaky, old, and large but still functioning. Unfortunately, most of the developers who had conceptualized the system are long gone, and the documentation for such systems is non-existent. As a result, adding new features to the system is impossible. Over time, the system becomes gargantuan, with replacement costs running into billions of dollars. Organizations suffer from being saddled with sclerotic, indurate and inflexible software applications.
Processes are akin to applications. Over time new scenarios, use cases, and exceptions get added, increasing their complexity. Enhanced service offerings, changing market conditions, and government regulations all add to the increase in sophistication. By some yardstick, an average process doubles in complexity every 18 months.
Such a process then becomes rigid and loses its flexibility. A rigid process is error-prone and difficult to maintain. Improvement initiatives falter because one does not know the complete scope and breadth of the process. Transitioning operations and implementing transformation initiatives are fraught with risks when a process is rigid.
Agile processes indicate a healthy process. A healthy process evolves with time seamlessly, is flexible and manages exceptions flawlessly. An agile process also leads to higher productivity levels amongst agents with minimum oversight. Such an efficient and effective process also dramatically enhances customer satisfaction.
Before embarking on any digital transformation initiatives, one has to ensure that the process is agile. Trying to improve a broken process is like adding oodles of features to a legacy software application. A new feature breaks the software elsewhere. A process is very similar. An attempt to improve may lead to unintended flaws in some other part of the process.
Any process can be converted into an agile process. The initial efforts required vary based on the degree of rupture in the process. So here are some of the critical steps:
Step 1: Digitize the process. Document every exception, validation and all paths in the process.
Step 2: Create a continuous digitization infrastructure. This means that every change in the process goes through approval mechanisms and is ultimately updated in the digital version.
Step 3: If the process is being transferred to a new location or is being insourced, create an automated mechanism to onboard and certify on a simulated process. Creating a live process environment for apprentice users can be costly and time-consuming. Instead, use technology to communicate process changes to all the stakeholders seamlessly. Also, have mechanisms to ensure that the changes are internalized by the agents comprehensively.
Step 4: Process improvement, automation, and digital transformation initiatives will now help uncover flaws, inefficiencies and bottlenecks in the process. Create a continuous cycle of
- Process hypothesis, that is, assumptions of process performance.
- Capture data to verify the hypothesis.
- Based on the hypothesis, fine-tune the process. This may include automation, remedial training, fixing the software application, simplifying the process etc.
- Embark on the next cycle of process improvement.
If done correctly and comprehensively, such an approach makes a process nimble and agile and impacts the organization's top and bottom lines. Based on our (Epiplex) customer feedback, we have observed that the top line can be improved by as much as 10-40%, and the costs can be reduced by over 25%. Besides the intangible benefits of higher employee satisfaction, enhanced customer satisfaction makes pursuing an optimal digital journey worthwhile, even if it is sometimes arduous.