Unlocking Efficiency: The Evolution of Business Process Diagrams

Introduction

In today's fast-paced business environment, companies are constantly seeking ways to improve their operations, increase efficiency, and reduce costs. One tool that has been gaining popularity in recent years is business process diagrams (BPDs). BPDs are visual representations of a company's processes, allowing teams to communicate more effectively, identify areas for improvement, and streamline operations. In this blog post, we will explore the evolution of business process diagrams and provide examples of how they can be used to improve business operations.

According to a study by Gartner, companies that use business process diagrams can expect to see a 20-30% reduction in process cycle time and a 10-20% reduction in costs (Gartner, 2020). These statistics demonstrate the potential impact that BPDs can have on a company's bottom line.

Early Days of Business Process Diagrams

The concept of business process diagrams dates back to the early 20th century, when companies began to recognize the importance of documenting their processes. In the 1920s, Henry Ford introduced the "flow process chart," which was a simple diagram that showed the flow of materials and activities within a factory. This early form of BPD was instrumental in improving manufacturing efficiency and reducing production times.

As the years went by, BPDs evolved to include new features and notation systems. In the 1960s, the development of the Program Evaluation Review Technique (PERT) and Critical Path Method (CPM) allowed for more complex process modeling. These techniques enabled companies to identify critical tasks, estimate completion times, and allocate resources more effectively.

Modern Business Process Diagrams

Today, business process diagrams are created using software such as Lucidchart, Microsoft Visio, or SmartDraw. These tools allow users to create complex diagrams quickly and easily, using pre-built templates and notation systems.

Modern BPDs can include a wide range of features, such as:

• Swimlane diagrams: These show the roles and responsibilities of different teams or departments within a process.
• Decision trees: These allow users to model complex decision-making processes.
• Integration with other tools: Many BPD software tools can integrate with other business systems, such as project management software or customer relationship management (CRM) systems.

A study by Forrester found that 70% of companies using BPDs reported an improvement in process efficiency, while 60% reported an increase in employee productivity (Forrester, 2019).

Examples of Business Process Diagrams

Example 1: Order-to-Cash Process

The order-to-cash process is a critical business process that involves taking orders from customers, fulfilling them, and receiving payment. A BPD for this process might include the following steps:

• Receive order from customer
• Check inventory levels
• Ship order or place on backorder
• Send invoice to customer
• Receive payment from customer

By using a BPD to map out this process, companies can identify areas for improvement, such as reducing inventory levels or streamlining the shipping process.

Example 2: Employee Onboarding Process

The employee onboarding process involves bringing new employees into an organization, ensuring they have the necessary training and equipment, and integrating them into the team. A BPD for this process might include the following steps:

• Receive job offer from new employee
• Set up new employee account and equipment
• Schedule training sessions
• Assign mentor or supervisor
• Conduct performance review after 30 days

By using a BPD to map out this process, companies can ensure that new employees are properly onboarding and set up for success.

Example 3: Customer Complaint Process

The customer complaint process involves responding to complaints from customers, resolving issues, and following up to ensure satisfaction. A BPD for this process might include the following steps:

• Receive complaint from customer
• Review complaint and assign to team member
• Resolve issue and contact customer
• Follow up with customer to ensure satisfaction
• Document changes in CRM system

By using a BPD to map out this process, companies can ensure that customer complaints are handled in a timely and effective manner.

Conclusion

Business process diagrams have evolved significantly over the years, from simple flowcharts to complex diagrams that include multiple features and notation systems. By using BPDs, companies can improve their operations, increase efficiency, and reduce costs.

If you're new to BPDs, we encourage you to try creating one for a simple process within your organization. You might be surprised at the insights you gain and the improvements you can make.

Do you have experience creating business process diagrams? Share your experiences and tips with us in the comments below!

Sources: Gartner (2020). "Business Process Modeling: The Foundation of Digital Transformation." Forrester (2019). "The State of Business Process Management, 2019."