Maturity level of business process

Recently, process management has been covering an increasing number of companies, and the effectiveness of this approach to management is beyond doubt. However, many companies, implementing process management and launching systems for managing business processes, do not understand what to do next. They assume that the process-related work will be done.

Mature companies know that the focus should be on assessing whether the process is working and producing the desired results. And in order for process management to contribute to the achievement of set goals, processes must be optimized and continuously improved. Understanding the maturity level of a process gives companies direction to improve the process as well as make effective decisions.

In this article we will explain how assessing a process in terms of maturity levels allows you to understand how a business process works and what results it achieves.

What is the maturity of a business process and process management

Process maturity is an excellent indicator of how well a company's business processes are identified, structured and controlled. The more mature the process, the higher the productivity.

A company with a high level of process maturity comprehensively documents its processes, employees accurately and consistently follow established regulations and procedures, and a culture of continuous improvement is developed and encouraged.

Process maturity can refer either to the maturity of a single process or to all processes in a department or company. In any case, this indicator is critical for assessing the health of business processes.

When a company's processes are well identified and designed, the company has a high degree of process maturity. This contributes to improved product quality, customer satisfaction, cost reduction and efficient use of resources.

A process is considered mature when it has the following characteristics:

• Defined. Process boundaries are clearly defined. Inputs lead sequentially to the expected outputs.
• Effective. The value created by the process is higher than the cost of implementation.
• Documented. The process is clearly detailed. Employees know where to find all the necessary information.
• Automated. Routine and repetitive tasks are automated.
• Effective. The process invariably produces the expected results.

If we are talking about assessing the maturity of process management of a company as a whole, mature process management in a company meets the following criteria:

• Process standardization. The company describes the business processes and how they should be performed.
• Process Measurability: The company uses key performance indicators to measure process results.
• Regular process monitoring and analysis. The company monitors the status of processes, evaluates their efficiency and effectiveness.
• Continuous improvement: The company continuously implements improvements in processes, all employees are involved in the constant search for opportunities to transform processes.

What are the levels of maturity?

In an effort to ensure consistency, management and control of processes, many companies use maturity models - a structure of levels of development of process management. Maturity models are road maps that show the next steps that need to be taken to create a robust process management system and improve its effectiveness.

There are five main levels in maturity models: initial, repeatable, defined, quantitatively managed and optimized. Each level of the model is explained below:

MATURITY LEVEL 1 - INITIAL

This level is characterized by disjointed or chaotic processes. Success often depends on the competence and motivation of individuals within an organization rather than on the use of standardized processes. At this level, products are produced and services are provided, but their production often exceeds budget and schedules. Often companies cannot evaluate results and repeat success; processes are not controlled.

How to move to the next stage?

Identify and describe the company’s current business processes and familiarize employees with them. Develop job descriptions indicating the tasks performed and resources used; start training staff and involve them as much as possible in the ongoing innovations.

MATURITY LEVEL 2 - REPEATABLE

At this level, processes are identified, executed and controlled. Standards, process descriptions and procedures may vary, but an established process management methodology helps ensure that processes are carried out in accordance with regulations. Processes are reviewed as necessary and reviewed and monitored against requirements, standards and objectives. As a rule, processes do not extend beyond the boundaries of the department or business unit, and there is little or no management support.

How to move to the next stage?

Continue to document processes, decompose top-level processes into subprocesses, identify main and auxiliary processes, and comply with regulations. Update and monitor employee compliance with process instructions.

MATURITY LEVEL 3 - DEFINED

At this level, the company's processes are described in more detail and with greater rigor than at maturity level 2. Stage 3 defines standards for enterprise-wide processes, although manual control is allowed in accordance with management decrees. Processes are accessible and transparent to all employees. Process owners have been identified. The result of processes is qualitatively predictable, but, as a rule, is not measured.

How to move to the next stage?

Implement process monitoring and performance indicators to quantify processes.

MATURITY LEVEL 4 - QUANTITATIVE MANAGEMENT

Stage 4 measures the status of the process, processes are controlled and measured using key performance indicators. KPIs are developed based on the organization's goals and the needs of customers and end users. Indicators are analyzed to identify weaknesses in processes and reduce potential risks. Processes become more predictable, and there is an understanding of opportunities to increase their productivity.

How to move to the next stage?

Pay attention to KPIs - analyze and refine indicators, consider approaches to their assessment. Implement automation systems, review current processes.

MATURITY LEVEL 5 - OPTIMIZATION

At this maturity level, processes are continuously improved based on quantitative monitoring and analysis. The focus is on continuously improving productivity through both incremental and innovative technological improvements. Improvements are quantified against organizational goals. The organization responds quickly to changes and opportunities, and employees actively participate in continuous improvement.

What should you pay attention to at this stage?

To ensure the smooth functioning of processes, constantly analyze market trends, introduce innovations, involve employees in searching for opportunities for improvement, and remain flexible.

Why do we need information about the maturity level of processes?

In Russia, an increasing number of companies are currently interested in process management and are implementing appropriate tools, but so far few companies are aware of the need to assess the maturity of their processes. At the same time, these companies try to describe current processes and, if possible, improve them, but without formal procedures.

A process maturity model is a useful tool that helps companies understand, manage and control processes. Using this tool, companies can achieve many benefits, including cost savings, increased employee involvement in process optimization, improved quality of goods and services, and increased productivity.

Ultimately, the level of process maturity reflects how well employees understand what and how to do, and helps management make the right management decisions.

 

The SILA Union system has all the necessary capabilities for working with business processes and quickly scaling improvements - development of performance indicators, data analysis, shared access to process models, storage of information about processes in a single repository, automatic generation of documents and much more.

If you want to manage your processes efficiently, write to us at sales@silaunion.ru, and our experts will tell you how to increase the maturity of processes to achieve business goals with the help of SILA Union.