Moving from Reactive to Proactive Decision-Making With Business Process Assessment

One of the best problems to have in the manufacturing business is the growth “problem.” But scaling and expanding brings its own challenges, especially in the area of operational efficiency.

I’ve seen this time and again. Family-owned manufacturing companies come to us for help identifying the right ERP solution for their business, and it’s usually a case of “we’ve outgrown our current solutions.”  They know what they have is no longer working, but they’re not sure about how to approach what comes next.

It’s easy to assume that a whole new ERP system is the best option — but that isn’t always the case.

In this post, we’ll look at how a business process assessment moves you from reactive to proactive. We’ll dig into how it lays the groundwork for an informed decision on what your company really needs in an ERP solution, and how it enables a requirements-driven approach that takes all your business priorities into account.

The Downside of Being Problem-Focused

When clients come to us for help in mapping out their business transformation, they often have some version of this story: “We’ve been using our current system and processes for a long time, but they are no longer keeping up with our growth and evolution; something has to change.”

What that often looks like in real terms is something like this:

• Their people are doing more and more things manually because the existing system wasn’t built for some of the new processes the business needs.
• There are more bottlenecks in their business than there used to be because the volume of work and production has increased, but the systems and processes they’ve been using to manage them haven’t scaled alongside.
• There are a lot more Excel spreadsheets floating around as their teams struggle to track all of the items and tasks that the current system just wasn’t set up to manage.

While these business leaders know their friction points, and can list their biggest challenges, they don’t always see those challenges in the larger context of their end-to-end business operations.

Their first instinct is to react to those specific issues without regard for the bigger picture, or the upstream and downstream impacts that may result. And they aren’t always thinking about the people aspect and their operational roles when they’re seeking a remedy.

Under these circumstances, it’s natural to assume the problem is with their existing ERP system and jump to the question of how to “fix” it — or even replace it.

The problem with focusing on what isn’t working is that it can lead to tunnel vision when you start looking for a solution. You end up being reactive in your decision, rather than intentional.

When you’re issue-driven, you’re operating from a place of deficiency. And that inevitably leads to missing some key elements when you start to design a solution.

On the other hand, if you’re requirements-driven, you’re far more likely to come to an informed decision that will truly address your problems — and even create some opportunities.  This is where a business process assessment can really turn things around.

Stepping Back Provides Perspective

When you take the time to evaluate all of your existing business systems (and all of their cooperative components — the people, the processes, the technology), you get a holistic view of what your business needs to have in place to succeed.

It’s easy to focus on the technology solutions you have in place. But the reality is that your business doesn’t only run on technology.

You need to have the right people and the right processes in place to ensure you’re supporting your business activities appropriately. And you need to understand how they work together. And until you do, you’re in danger of missing the forest for the trees.

A proper business assessment helps you build a complete picture of where you’re at in your business operations. You see the gaps and bottlenecks. You can identify the processes, resources, and skills you need in place to support your business outcomes.

You’re in a position to ask yourself “What do we need to stop doing, what do we need to start doing, and what do we need to keep doing, in order to be successful?”

This cuts across all the pieces of the puzzle — your people, your processes, and your technology. This evaluation may show you that the challenges aren’t with your existing ERP system at all — but you need a foundation for determining whether or not that’s true.

A business process assessment empowers you to make that call.  

Once you’ve mapped out all of your existing business processes in detail, you can have a more informed conversation about whether or not your existing ERP solution can actually help solve your challenges.

But there’s also a strong business case to be made for doing a business process assessment up front.

An ERP implementation is a significant investment for any manufacturing company, big or small. For a fraction of that cost, a business process assessment (guided by expert help) gives you the data you need to make an informed decision about your ERP, and reduces the risk of unforeseen obstacles down the road.

The Investment That Always Pays Off

A business process assessment is critical to making any decisions about your ERP system, whether you already have something in place, or are considering a new solution to keep up with your business.

When you have a detailed picture of what your business needs to operate day-to-day, you’ll have more confidence in charting a path forward long-term — instead of reacting to the issues you experience in the short-term.

Are you looking to improve your existing business operations? I’d love to help you chart a path forward. Schedule your complimentary consultation right here.