Tag Archives: Non-Profit

The Leaning of America: The Case for Small Business Process Management is Unequivocal

As a consultant to small and mid-sized business, non-profits and government agencies (with a particular focus on healthcare), I often engage executives on the merits of BPM. Said executives wonder aloud if their time is well-spent documenting, analyzing and re-engineering work and processes.  The common refrain is that they believe they have bigger fires to fight and that their people simply need to be managed to be more productive. Other excuses involve blaming external factors such as unfair competitors,  legislators, suppliers, and fickle customers.

There’s no doubt that the economy is in terrible shape. All of my clients are struggling. However, the data is incontrovertible: organizations that run lean, slick, flexible processes in every dimension of their operations are doing well compared to their less BPM-savvy peers.

In retail, Wal-Mart is peerless. Japanese and European automakers have survived whilst GM and Chrysler went bankrupt. Amazon continues to disrupt the entire universe of commerce. Kaiser has revolutionized healthcare and health insurance. Tata is helping India’s GDP grow while the institutionalized first-world back-slides. The tech sector as a whole has fared better than most other sectors. The only incongruities are the BPM-centric banks that demonstrated ethics, morals, risk-taking behavior and greed can and will outsmart BPM any day.  While there are many factors at play in the world of business and global economics, it pays to study the common traits among the winners and apply them at home.

Think Small and Lean

It’s simply undeniable that investments of time, energy and money in becoming process-centric will pay off in a number of important ways. It is also a fact that the US economy is a function of small business. Our challenge is not in doing more to demonstrate how swell BPM serves multi-national, multi-billion dollar, multi-tech corporations. There is no question that aerospace and supply-chain giants know what they’re doing.

The great challenge lies in packaging BPM approaches, tools and methodologies in right-size, right-time, right-cost portions for healthcare, social services, job training, housing and other sectors. Government and non-profit organizations are crucial participants in our economy and generally suffer from a lack of process savoir-faire.  This is especially true at the local level. Small government and small business must become process-enabled.

This call to action is all the more reason to simplify and de-code the way we talk about BPM. The more cryptic and foreign something sounds, the more geeky the approach, the less accessible and more expensive it becomes in the minds of government and small business leaders. Similarly, the more BPM is a product of software developers and the more is aimed strictly at automation, the less attractive it becomes. Electronic medical records (EMR) are a terrific example. Software developers sell software in a way devoid of attention to the most basic workflow and implementation issues; 60% of implementations fail; and today a dismal 2% of hospitals and 10% of doctors offices have a fully-functioning EMR in place. No matter how badly our country needs EMR proliferation, if our approach is tinged with greed (which it is), the initiative will stall (which it has). Compare that performance to the spread of VistA (the VA’s answer to open source, simplified solutions to the same problems). VistA is standard across the DoD, VA and many other public health domains today and spreading quickly.

Lean Initiative

True, government, social service, health, and non-profit sectors – who are often smothered under the weight of social and economic pressures in ways you and I can’t relate to – need to modernize, get lean and automate. However, so long as the architects of change speak a foreign language and offer up expensive software solutions, progress will be glacial. I propose that this country needs a Lean Agenda as much as it needs a Green Agenda. Frankly, we need lean to get to green. But it has to happen in all sectors, fields, industries and domains. And in order for that to happen BPM ambassadors need to come back to Earth and engage people in a multi-cultural fashion. We should all be painfully aware that big business relies upon small business and affordable health and social services. Unhealthy, unemployed, uninsured, homeless and penniless people make lousy customers. Get real.

Advertisements

Non-Profits Benefit From Business Process Management and Improvements

Non-profit organizations are near and dear to my heart. I have worked for several (hospitals, social service agencies, quasi-governmental) and have volunteered as a board member for three. I am a current board president for a global organization serving children in poverty in India and Cambodia (www.lotusoutreach.org) so this affinity for charitable organizations is fresh.  Not unlike their for-profit counterparts, non-profits want to deliver their services effectively, efficiently and produce the outcomes they’d hoped for at a cost that is at least equal to the revenue (donations) they generate. In other words, in their business model, it’s “ok”  to break even though not ideal. Reserves and income on reserves are much better than breaking even. If that equation sounds familiar to profit-seeking capitalists, it’s because it’s essentially the same equation. What’s different, of course, is the mission, customers are “beneficiaries”, and there are no shareholders to answer to…only a board of directors and donors. Quite daunting, actually.

Like investors, major donors and grantors expect to see results. The demand for performance indicators is, frankly, equal to the demand for metrics in any business. Philanthropists, after all, are almost always successful business people.

Enter BPM

All of the conditions that underlie and are so fundamental to business  – from HR and finance processes to supply-chain and customer service processes – are present in non-profit organizations. The value stream is clear, waste is common and the benefits of automation are real. The role of process improvement – driving waste and inefficiency out of processes while infusing them with information and visibility – is best evidenced in healthcare settings. Hospitals and clinics are the closest cousins to  non-profit agencies and are proving that the application of methods like Six Sigma and Lean in addition to standardizing processes for the sake of quality, compliance and shared services is in every body’s best interest. Emergency rooms around the country are now simulating changes in their workflow using BPM tools like ProModel and Visio diagrams are as common in some public health clinics as PowerPoint presentations. Healthcare has caught on to BPM.

Invest-able Change

I suspect the biggest determinant for hospitals’ and public health agencies’ enthusiasm for BPM has been their ability to pay for the consulting support they receive. It’s quite common to see firms like KPMG, Accenture, FCG, IBM, BCG and other global firms competing for BPM work with large state and federal public health entities related to Medicare and Medicaid as well as large county general hospitals who are taking great strides toward electronic medical records. The money is there so the consultants are eagerly positioned to deliver their BPM offering and support.

Most non-profits are of the social service ilk and have much shallower pockets. $300 and $500 per hour consultants in Italian suits are not an option. Similarly, top-flight MBA grads who have never imagined serving soup in a shelter or working with children in slums are not a good fit when it comes to maintaining the integrity of a process. The truth is, we’re out there. There are seasoned professionals and subject matter experts who bring to bear an abiding commitment to mission-driven work in addition to a proficiency in quality improvement and business process management.

Don’t Let The “B” Fool Ya

I think the hang-up people in the non-profit sector have with BPM is with the B.

“But we’re not a business. We’re not in business. We need to be effective, not profitable.” – I hear these refrains often and I gently remind folks that they are an organization of people, process, systems and tools organized to deliver a service or product to a consumer. And they get paid to do it (whether they’re volunteers or not, money is coming in the door somewhere). Non-profit does not mean broke. They are just as bound to a continuous need for quality improvement, safety, efficiency and measurable results. Anyone who doubts the future course of non-profits should take a look at the Gates Foundation expectations for efficiency and results. Donors care whether or not their contributions are paying for results or being squandered on wasteful practices.

BPM is in no way incongruous with the purpose, cause and mission of any non-profit. From this day forward, I pledge – when addressing the non-profits in my life – to use the term Organizational Process Management. OPM it is!

I’d love to hear how your non-profit organization benefited from or could benefit from some old fashioned OPM. Chime in…and thanks for listening.

Non-Profit Organizations & Workflow: Doing More for the Cause

Anyone who has ever worked in a non-profit organization knows all too well that slim administration and operations budgets translate into hard work. I’m not talking about gleaming hospitals and health insurance companies that meet non-profit status criteria. I’m talking about the small and mid-size social services agencies, group homes, charitable missions and advocacy programs that provide invaluable services in this country and the NGOs that do similar work around the globe.

Non-profits are staffed by intelligent, educated, experienced, mission-driven and hard-working people. The salary structures and the nature of the work do not tend to attract people who are looking to make a buck, climb the corporate ladder and get out. Similarly, because the organization is not so much “selling” something, it provides services in the trenches with whatever resources happen to be at its disposal. Slim margins mean there is little investment in technology and innovation. Not because managers, leaders and the board of directors don’t want to or don’t see the value in it, they simply can’t afford radical investments in technology to automate some of the back-breaking work.

Improved Workflow Can Stand-In for Automation (for the time-being)

While a non-profit may not be able to afford new technology-enabled tools that would drastically reinvent their delivery systems, they can afford to emulate systems and work backwards. By visiting a large for-profit that provides similar services – as a soup kitchen may be to a successful restaurant chain – the non-profit manager can learn something about how automation and systems make restaurant work more efficient and satisfactory. It may be in the way that the customer is greeted and moved quickly to a table or in the way an order for food can include some customization and accommodate allergies and diet preferences. It may be in the way that money is handled on the back-end or in the way that supplies and inventory are managed.

Bringing these lessons back to the non-profit to model the current state and the future state so it looks and feels more like the automated solution is not only possible, everybody benefits and it costs little.

Analysing and Managing Workflow for Improvement Doesn’t Necessarily Involve Information Systems

In this day and age, much of what is said in the press and in workshops and books on the topic of managing business process and workflow is spoken by software developers and consultants who can improve workflow and automate processes using technology. Often, the approach leads to new, tailored systems. That is not – by definition – the only reason to engage in workflow improvements. Workflow and business process can and will improve by applying the fundamentals to a white-board and then implementing them using sound project management principles.

Change Means Disruption – Addressing the Beliefs that Maintain the Status Quo

By virtue of their budgets and scant IS/IT resources, non-profit agencies tend to resist innovation and change. It makes sense in the context of organizations that cannot afford to develop new processes in parallel and test-mode. “Too many people would suffer in the interim. Programs might grind to a halt. What if there were mistakes? The founder’s unique approach cannot be challenged. The board will never approve it. We can’t afford it!”

All of these are the beliefs that maintain the homeostasis of things – people, processes, outcomes – and, with care, they can be “entered” and challenged for the purpose of producing a better outcome. Working with a non-profit involves challenging sacred cows that are often very different from the sacred cows one encounters in a for-profit setting. Greater care has to be exercised in challenging them because drivers of behavior like beliefs, values, vision and mission are very strong and give way only when the organization can be assured that their purpose will be met. Making the case for doing more with less and producing better quality outcomes is the best bet. Secondarily, a higher-performing non-profit does, in fact, attract greater funding but that is always secondary to the mission.