Before you can improve any process in your business, you must first understand its current state. A business process assessment is the foundation of any successful improvement initiative. It helps you see what is actually happening—not just what you think is happening—allowing you to identify genuine gaps in operational efficiency.
The stakes are high: Research from IDC indicates that companies lose 20% to 30% in revenue every year due to inefficient processes. Assessing your current state is the only way to reclaim that lost value.
Here’s how you can effectively assess the current state of any process in your business, setting yourself up for meaningful and lasting improvements.
At a Glance: The Assessment Framework
Phase |
Objective |
Key Action |
| 1. Define | Separate “noise” from real problems | Evaluate frequency and impact. |
| 2. Document | Map the “real” workflow | Create a Goods and Information Flow. |
| 3. Envision | Establish a “North Star” | Write an Ideal Situation Statement. |
| 4. Analyze | Find the root cause | Identify where inconsistency lives. |
| 5. Plan | Build the roadmap | Prioritize actions and metrics. |
1. Defining Business Process Problems
Before diving into problem-solving, it’s essential to define what truly constitutes a problem in your business. Just because something is causing a headache today doesn’t mean it warrants a solution. Ask yourself:
- Does this issue occur frequently, or is it a rare event?
- What impact does this issue have on customer experience, efficiency, or cost?
- Is this a problem or merely a symptom of a deeper issue?
2. Documenting Current Operations: The Goods and Information Flow
To properly assess the current state, we must first document the entire operation as it stands today, with no changes or assumptions. This step is crucial and forms the bedrock of all process improvement activities.
One of the most effective ways to do this is through creating a Goods and Information Flow. This method captures every movement of goods and flow of information across the entire customer experience. It provides a clear, comprehensive picture of how your processes work in practice—not just how you think they should work.
Why the Goods and Information Flow?
- It’s straightforward and avoids the complexities of many traditional process mapping techniques.
- It breaks down silos by providing a holistic view of the process rather than focusing on individual functions or departments.
- It’s the method used by Toyota for all its operations—so you know it’s both practical and effective.
Unlike many overcomplicated process mapping methods, the Goods and Information Flow gives you a true understanding of your current state without disrupting ongoing operations.
3. Visualizing the Ideal State for Operations Excellence
Once you have documented your current process, define your “ideal state.” The ideal situation statement outlines your organization’s aspirational goals. It’s a concise description of the perfect scenario, such as a business where customers are enthusiastically recommending your products or services to others or where employees are passionate and motivated.
4. Identifying the True Pain Points and Gaps
With a comprehensive view of both your current state and ideal state, you can begin to identify the real pain points and gaps that are causing inconsistencies or inefficiencies in your process. Remember, inconsistency is often the root of operational breakdowns.
Questions to Ask:
- Where are the biggest gaps between the current and ideal states?
- Are there recurring issues that have a significant impact on your business?
- Which problems, if solved, will bring you closest to your ideal state?
Focusing on these gaps will ensure you’re solving problems that matter, rather than getting caught up in the noise of daily operations.
5. Developing a Solid Improvement Plan
With a strong understanding of your current state, ideal state, and the gaps between them, you can develop an actionable improvement plan. Focus on strategies that will close the gaps in the most efficient and impactful way.
Your Plan Should Include:
- Clear, prioritized objectives based on the identified gaps.
- Specific actions, responsibilities, and timelines for each improvement initiative.
- Metrics to measure progress and determine the success of your efforts.
Laying the Foundation for Lasting Improvement
By following these steps, you can effectively assess the current state of your business processes and lay the groundwork for meaningful improvements. Remember, a well-documented current state provides the essential foundation for identifying true pain points, defining your ideal situation, and developing a targeted improvement plan. By investing time and effort into this assessment, you’ll be well-equipped to drive positive change and optimize your service-oriented business.
Say goodbye to confusion and chaos. With our Flowstate Workshop, you’ll achieve a 100% accurate understanding of your current business state.
Get crystal clear insights and start driving meaningful improvements. Book a call to get started.
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Strategy Spotlight
Quick Win: The No-Fixing Process Walkthrough
Choose one core process and walk through it step by step with everyone involved.
The Rule: No solutions allowed. Only document what actually happens.
The Result: You’ll uncover hidden handoffs, workarounds, and inconsistencies that tools alone will never fix — and you’ll know exactly where to focus next.
