Business Process Analysis (BPA) is the systematic examination of a business process to understand how it works and how its different parts interact.
A business process is made up of activities that work together to achieve a specific outcome.
For example, a customer booking process may involve receiving an enquiry, collecting customer information, checking availability, confirming the booking, processing payment and providing confirmation to the customer.
Business Process Analysis looks beyond the individual tasks to consider the whole process.
It can examine the people involved, the activities they perform, the information they use, the decisions that need to be made and the tools or systems that support the process.
The purpose is to develop a clear understanding of the current process and identify areas that may require attention.
A business may start with one person handling a particular activity. As the business grows, additional employees become involved, new responsibilities are introduced and different ways of working develop.
The process may continue to function, but it may become increasingly difficult to understand.
For example, a business may find that:
Employees are unsure who is responsible for certain activities.
Different employees perform the same process differently.
Information is captured more than once.
Tasks are dependent on information from another person or department.
Employees spend significant time performing manual activities.
It is difficult to determine the status of work.
A process has become more complicated as the business has grown.
These situations do not necessarily mean that the process is fundamentally wrong, they may indicate that the process would benefit from being examined more closely.
Business Process Analysis provides a structured way of doing this.
A business process involves several interconnected elements. Looking at these elements together helps create a more complete picture of how the process operates.
1. People and Responsibilities
People are responsible for carrying out the activities within a process.
Business Process Analysis considers the different people, roles or departments involved and how responsibility moves through the process.
This can help provide clarity about who performs particular activities and how different roles interact.
2. Activities
The activities that make up a process are examined to understand what work is being performed.
Looking at the activities individually and in relation to one another can provide a clearer understanding of how the process progresses from its starting point to its intended outcome.
3. Information
Information is an important part of most business processes.
A process may require information to be collected, reviewed, updated, transferred or stored.
Understanding what information is used within a process can help a business see how information moves between different activities and people.
4. Decisions and Approvals
Many processes involve decisions.
For example, an employee may need approval before a purchase can be made, or a manager may need to review information before a customer request can proceed.
These decision points form part of the overall process and can therefore be considered during analysis.
5. Handoffs
Work often moves between employees, teams or departments.
These points are known as handoffs and can be important to understand because the completion of one activity may depend on another person receiving the correct information or completing a particular task.
6. Tools and Systems
Businesses use different tools and systems to support their processes.
These may include software, spreadsheets, documents, email or industry-specific applications.
Business Process Analysis considers these tools as part of the overall process rather than looking at them independently.
This helps establish how the process and the tools supporting it fit together.
A business does not need to have a major problem before examining its processes.
There are several situations where Business Process Analysis can be useful. For Example:
1. The business is growing
A process that worked well when a business had a small number of employees or customers may become more complex as the business grows.
2. Work is being duplicated
Employees may find themselves repeating activities or capturing the same information in multiple places.
Different employees have different approaches
When employees have developed their own ways of completing the same process, it may become difficult to maintain consistency.
3. Responsibilities are unclear
Employees may not always know who is responsible for a particular activity or when responsibility should move to another person.
Processes involve several departments
The more people and departments involved in a process, the more important it can become to understand how the different parts connect.
4. Manual activities have increased
As businesses grow, additional manual steps may be added to processes. Over time, this can make a process more difficult to manage.
5. The process has evolved over time
A process may have been changed repeatedly in response to new customers, employees, services or business requirements.
Looking at the process as a whole can help determine whether it still supports the way the business operates.
One of the main purposes of Business Process Analysis is to develop a clearer understanding of what is happening within a process.
Depending on the process being examined, the analysis may reveal:
Activities that are duplicated
Unclear responsibilities
Unnecessary complexity
Dependencies between employees or departments
Information that is being captured or transferred multiple times
Areas where manual work is concentrated
Points where work is delayed
Gaps in the flow of information
Differences in how employees perform the same process
Areas where the current process may no longer support the needs of the business
Not every finding will require a change. The purpose of analysis is to provide the business with information that can support better decisions.
There is no single point at which every business should conduct Business Process Analysis. It can be useful whenever a business needs a clearer understanding of how a particular process operates.
This may be when:
The business is experiencing growth.
A process has become difficult to manage.
A new process is being introduced.
Responsibilities have changed.
Several employees or departments are involved in the same process.
The business is experiencing recurring challenges within a process.
Management wants greater visibility into how work is performed.
The business is considering changes that could affect an existing process.
Business Process Analysis can also form part of a periodic review of important business processes. As a business changes, its processes change as well. Reviewing them can help ensure that the way work is being performed continues to make sense for the business.
Business Process Analysis is not only relevant to large organisations. Small and medium-sized businesses can also benefit from understanding how their processes operate.
In smaller businesses, processes often develop naturally. A business may initially rely on one person to handle several activities. As the business grows, those responsibilities may be divided between employees and additional tools or systems may be introduced.
The original process may still be in place, but it may no longer be as simple as it once was. For a growing business, understanding how a process currently operates can provide useful insight into what is working, what has changed and where there may be opportunities to make better decisions.
Business Process Analysis provides information about the process being examined. What happens next depends on the findings and the objectives of the business.
A business may determine that a process is working appropriately and requires no significant change. Alternatively, the analysis may identify areas that warrant further attention.
For example, the business may decide that it needs to:
Review a particular part of the process
Clarify responsibilities
Document the process
Consider changes to the way work is performed
Review how existing tools or systems support the process
Investigate a particular issue in greater detail
The important point is that decisions can be made based on a clearer understanding of the process rather than assumptions about how it operates. Business Process Analysis Is About Understanding Before Changing
Businesses often look for solutions when they encounter operational challenges. However, before deciding what needs to change, it is useful to understand what is happening today.
Business Process Analysis provides a structured way to examine a process, understand the people, activities, information and tools involved, and identify areas that may require further attention.
It does not assume that every process needs to be changed. Instead, it gives the business a clearer picture of its current way of working so that decisions can be made with better information.
For small and medium-sized businesses, having this understanding can be valuable as the business grows and its operations become more complex.
If you want to gain a clearer understanding of how a particular process operates within your business, P&U Technical Systems can analyse the process and provide findings that can support your business decisions.
You can have a look here to see what we offer during Business Process Analysis or Contact Us for a consultation.