Generating Value by Improving Cross-Functional Processes

Are your processes fully documented – including listing your suppliers, customers, and critical-to-customer (CTC) characteristics? Do your employees know their roles and responsibilities within your processes? If not, I hope you find value in this chapter, which is intended to guide you through the use of three simple tools to document and improve cross-functional processes.

It is interesting how many times I hear folks say, “We don’t have a process for that.” In turn, I ask if they have performed the steps necessary to get the output, and the response is always “yes.” If it is “yes,” then there is a process, yet it is simply not documented. So let us consider these basic tools for documenting current processes – SIPOC, Swimlane Map, and RACI Matrix. I use these three tools the most for documenting current state and planning for future-state processes.

1. Start by documenting the process by using SIPOC (Suppliers – Inputs – Process – Outputs – Customers). A completed SIPOC includes a list of the suppliers to the process, the inputs to the process, the process itself, outputs of the process, and a list of customers of the process. Note: Included in my SIPOC is an additional column, titled “CTC,” or Critical-To-Customer; it contains a list of the critical-to-customer characteristics expected from the process by the customer of the process.

2. Follow the SIPOC by defining a Swimlane Map of the process, which is ideal for documenting processes that cross multiple functions or departments. Swimlane maps include a “lane” for each function or department involved in the process. The beginning of the process and its end are the mapping boundaries for the entire map; the flow of the process is documented as process steps, handoffs, decision points, and loop backs through various swimlanes.

3. After creating the SIPOC and Swimlane Map, you will define a RACI (Responsible, Accountable, Consulted, and Informed) Matrix for the process. A RACI Matrix is used to document the roles and responsibilities associated within the process. In this example of a RACI matrix layout, list the names of the swimlanes across the top, and list the process steps down the left side. The center of the RACI matrix is used to correlate the process steps with the roles or swimlane names. Then, simply assign “R” for the role or function that is responsible for the process step, “A” for the role or function that is accountable for the process step, “C” for whom must be consulted during the process step, and “I” for whom must be informed of the process step.

Before starting to document your process, identify the subject matter experts (SMEs) needed to help you complete accurate documentation. Schedule your mapping session. Assign the Process SMEs pre-work of sketching their version of the current process. Facilitate the mapping session by completing a SIPOC, Swimlane Map, and RACI Matrix. Note: It is very helpful to add titles, owners, and revision dates to each process document.

Now that you have your current-state process documented, you can use this documentation as a training aid or a starting point for process improvement initiatives. As a training aid, you might post the documents on your internal website or network, as well as posting at the point of use. Follow the process improvement cycle below to document and improve cross-functional processes.

Process Improvement Cycle:

1. Document the current-state process (SIPOC, Swimlane Map, and RACI)
2. Evaluate the current-state process looking for issues and opportunities for continuous improvement, such as
   1. Missing control points
   2. Duplication of efforts and tasks
   3. Sources of errors
   4. Unnecessary tasks and non-value-added activities
   5. Loop backs, decision points, and handoffs
   6. Illogical or inefficient sequencing of tasks
   7. Unclear lines of responsibility
   8. Standards that are no longer used
3. Define a future-state process, which eliminates issues and leverages opportunities identified in current-state process
4. Develop an implementation action plan, including who, what, and when to implement the new future-state process
5. Manage and control the future-state process
6. Rerun the process improvement cycle looking for new continuous improvement opportunities

An example of using these tools to improve a cross-functional process is a project team challenged with reducing the order-to-cash cycle time within a bicycle manufacturer. The team documents the current order-to-cash process using SIPOC, swimlane map, and RACI. The current process documentation is analyzed for issues, such as decision points, loop backs, redundant responsibilities, delays, and handoffs. A new process is defined to eliminate issues and reduce cycle time.    

Traditional problem-solving approaches analyze and fix outputs, without addressing the inputs and sources of waste; continuous improvement is an iterative process that focuses on minimizing variation and eliminating waste to bring products and services ever closer to customers’ changing needs. Regardless of your purpose for engaging in this exercise, it is an excellent way to generate value for your organization by clearly documenting and improving your current processes using three simple tools described earlier. As in any effort or initiative, one must always be on the lookout for the potential to jeopardize the overall process through isolated improvements. Approach these process improvement initiatives with the overall process in mind, as well as the organization’s strategy and culture.

Value Generation Partners wishes you much success in your pursuit of process documenting and improving your cross-functional processes, thereby generating greater value in your organization!

Improving Cross-Functional Processes is useful in combination with other LinkedIn Pulse posts found at this link.

Find more on related topics in Workshop Facilitation for Success Handbook, which is available on Lulu.com and other book distributors in paperback and eBook. With the purchase of any handbook, the reader has access to a companion toolbox file containing all referenced templates.