Process optimisation describes the various tools and tactics designed to analyse and improve business processes with the goal of optimising efficiency and quality. It involves reviewing workflows and refining steps to ensure that processes align with organisational objectives and deliver better outcomes.
Friction has always been the enemy of efficiency. In mechanical systems, friction generates wear, slows performance and reduces output. Modern digital processes are no different—inefficiencies, errors and bottlenecks act as friction points that hinder productivity and impact profitability. When business processes are bogged down by repetitive tasks, unclear workflows or outdated practices, organisations experience lower productivity and diminished returns. As such, addressing these challenges requires a structured approach to identifying and eliminating these issues.
Process optimisation (also called 'business process optimisation' or BPO) focuses on refining workflows to improve efficiency and quality, all while bringing essential processes more in line with organisational objectives.
Process optimisation (also called 'business process optimisation' or BPO) focuses on refining workflows to improve efficiency and quality, all while bringing essential processes more in line with organisational objectives.
Process optimisation delivers measurable value by improving how businesses operate. By refining workflows and eliminating inefficiencies, organisations can enhance productivity, reduce costs and achieve better outcomes. Below are the key benefits of process optimisation, explained in detail.
Enhanced efficiency
The primary benefit of BPO is efficiency. Optimised processes eliminate friction and allow organisations to perform tasks faster and more effectively. By eliminating bottlenecks in workflows and employing automation to help support speed and accuracy, businesses then can allocate more time and resources to other essential activities. This does more than just improve output; it allows teams to work smarter and produce better results.
Improved collaboration
By clarifying roles and responsibilities, process optimisation fosters better communication and coordination across teams. When workflows are well-defined and streamlined, collaboration becomes easier, ensuring that core, strategic and management processes are fully connected. This alignment drives better outcomes, creating a culture where employees are better equipped to work toward shared goals.
Higher quality
Optimised processes improve the quality of outputs by minimising errors and reducing defects. Better workflows and system automation mean better quality control measures (such as inspections, testing and feedback loops). Similarly, this emphasis on quality enhances customer satisfaction and loyalty, as products and services are more likely to meet customer expectations and can be delivered with greater reliability.
Lower risk
Inefficient processes are not only inefficient; they are dangerous. Process optimisation helps organisations manage risk by reducing the likelihood of errors, delays and time-consuming rework—all of which can lead to exploitable vulnerabilities and significant operational disruption. Process optimisation addresses these vulnerabilities by creating more reliable workflows, reducing the potential impact of human error and enhancing quality and compliance.
Increased consistency
Consistency is critical for ensuring that processes deliver predictable and reliable outcomes every time. Through process optimisation, businesses can standardise their workflows, establishing clear procedures for employees to follow across all teams and locations. This consistency minimises variability, reduces the chance of errors and ensures high-quality outputs—every time. Standardised processes are particularly valuable for scaling operations, as they make it easier to replicate success even while onboarding new team members.
More effective compliance
When it comes to data security, neglecting regulatory compliance is not an option. Adhering to legal, industry and internal standards protects organisations from penalties and reputational damage and is a vital aspect of maintaining customer trust. Process optimisation promotes better compliance management through standardisation, documentation and the integration of regular checkpoints for audits and reviews. Automating compliance-related tasks also ensures that processes consistently meet required standards. Together, these elements empower businesses to quickly identify and address potential compliance gaps.
Reduced costs
Streamlining workflows and eliminating redundancies translate directly into cost savings. Simply put, optimised processes require fewer resources. They also help reduce labour-intensive tasks and eliminate material waste, minimising operational overhead at its source. Organisations can then reinvest these savings back into the company for increased long-term value.
The primary benefit of BPO is efficiency. Optimised processes eliminate friction and allow organisations to perform tasks faster and more effectively. By eliminating bottlenecks in workflows and employing automation to help support speed and accuracy, businesses then can allocate more time and resources to other essential activities. This does more than just improve output; it allows teams to work smarter and produce better results.
By clarifying roles and responsibilities, process optimisation fosters better communication and coordination across teams. When workflows are well-defined and streamlined, collaboration becomes easier, ensuring that core, strategic and management processes are fully connected. This alignment drives better outcomes, creating a culture where employees are better equipped to work toward shared goals.
Optimised processes improve the quality of outputs by minimising errors and reducing defects. Better workflows and system automation mean better quality control measures (such as inspections, testing and feedback loops). Similarly, this emphasis on quality enhances customer satisfaction and loyalty, as products and services are more likely to meet customer expectations and can be delivered with greater reliability.
Inefficient processes are not only inefficient; they are dangerous. Process optimisation helps organisations manage risk by reducing the likelihood of errors, delays and time-consuming rework—all of which can lead to exploitable vulnerabilities and significant operational disruption. Process optimisation addresses these vulnerabilities by creating more reliable workflows, reducing the potential impact of human error and enhancing quality and compliance.
Consistency is critical for ensuring that processes deliver predictable and reliable outcomes every time. Through process optimisation, businesses can standardise their workflows, establishing clear procedures for employees to follow across all teams and locations. This consistency minimises variability, reduces the chance of errors and ensures high-quality outputs—every time. Standardised processes are particularly valuable for scaling operations, as they make it easier to replicate success even while onboarding new team members.
When it comes to data security, neglecting regulatory compliance is not an option. Adhering to legal, industry and internal standards protects organisations from penalties and reputational damage and is a vital aspect of maintaining customer trust. Process optimisation promotes better compliance management through standardisation, documentation and the integration of regular checkpoints for audits and reviews. Automating compliance-related tasks also ensures that processes consistently meet required standards. Together, these elements empower businesses to quickly identify and address potential compliance gaps.
Streamlining workflows and eliminating redundancies translate directly into cost savings. Simply put, optimised processes require fewer resources. They also help reduce labour-intensive tasks and eliminate material waste, minimising operational overhead at its source. Organisations can then reinvest these savings back into the company for increased long-term value.
Read this eBook to learn more about including Robotic Process Automation in your toolbox, including:
- Why automation is more than just a niche business tool
- How to keep people at the centre of hyperautomation
- The benefits of upgrading the production line with RPA
BPO employs a range of methodologies and tools. While the best approach will likely depend on the goals of the organisation or the industry in which it operates, several established techniques have become standard across business types. Below is a breakdown of the key methodologies in process optimisation:
1. Lean process
Lean process optimisation focuses on maximising value for customers while cutting out waste (for a leaner set of workflows). Originating from the Toyota Production System, Lean methodologies target inefficiencies such as overproduction, waiting times, excess inventory and unnecessary motion. Various tools are used to streamline workflows, optimise flow and create a culture of continuous improvement.
2. Six Sigma
Six Sigma is a data-driven methodology designed to reduce variability and defects in business processes. By following structured frameworks like DMAIC (define, measure, analyse, improve, control) for improving existing processes or DMADV (define, measure, analyse, design, verify) for creating new ones, Six Sigma helps organisations address inefficiencies systematically. Statistical tools are used to drive decision-making. The result is improved predictability, higher quality and more consistent outcomes, making Six Sigma particularly valuable for organisations focused on precision and reliability.
3. Process mapping
Process mapping creates detailed flowcharts or diagrams to visualise and analyse the steps in a business process from start to finish. By breaking down processes into manageable components and identifying decision points, bottlenecks or redundancies, organisations gain a clearer picture of how work progresses. This approach is ideal for uncovering opportunities for improvement, enhancing communication among team members and ensuring alignment between processes and business objectives. Process mapping simplifies the path to streamlining workflows and achieving greater efficiency.
4. Kaizen
Kaizen, meaning 'continuous improvement' in Japanese, emphasises incremental changes over time to foster long-term growth. This approach encourages employees at all levels to participate in identifying and implementing daily improvements. Kaizen events, also known as rapid improvement projects, bring cross-functional teams together to address specific challenges quickly. Promoting a culture of continuous refinement, Kaizen helps reduce costs and enhance quality without disrupting daily operations. It is a particularly effective method for cultivating an improvement-focused workplace culture.
5. Process mining
Process mining leverages enterprise data, such as event logs from enterprise resource planning (ERP) or customer relationship management (CRM)/customer service management (CSM) systems, to discover and analyse how processes are actually performed. Using algorithms to reconstruct workflows, process mining uncovers deviations from intended processes and reveals areas for optimisation. This technique is particularly useful for organisations seeking to back their process improvements with data-driven insights. Process mining also supports ongoing monitoring, helping businesses adapt to changes in real time.
6. SIPOC analysis
SIPOC (suppliers, inputs, processes, outputs, customers) analysis is a high-level visualisation technique that provides a comprehensive view of a business process. It outlines the key elements required to execute a process and highlights how resources flow from suppliers to end customers. By offering decision-makers a broader perspective, SIPOC helps identify inefficiencies, misaligned goals or redundant steps. This is most useful during the early stages of optimisation, ensuring that all components of a process are accounted for before any changes are made.
7. Value stream mapping (VSM)
Value stream mapping is a Lean-methodology-friendly visualisation technique used to document and analyse the flow of materials, information and value in a process. Each step is evaluated based on the time, cost and value it contributes to the end user. VSM highlights non-value-added activities to be eliminated or improved.
8. 5S methodology
The 5S methodology, also rooted in Lean principles, focuses on creating organised and efficient workspaces. Each 'S' represents a step in BPO: sort, set in order, shine, standardise and sustain. This method reduces clutter, simplifies task execution and establishes clear standards for maintaining order. While originally developed for physical workspaces, 5S can also be applied to virtual environments, making it a versatile approach for improving efficiency and reducing operational waste.
9. Plan-do-study-act (PDSA)
Plan-do-study-act is a cyclical framework for testing and implementing process improvements. Organisations begin by identifying a problem, planning a solution and defining metrics for success. They then test the solution on a small scale, analyse the results and either implement the change fully or iterate further. PDSA is especially valuable for validating potential optimisations and ensuring that changes have the desired impact before they can be rolled out organisation wide.
10. Total quality management (TQM)
Total quality management takes a comprehensive approach to process optimisation, focusing on improving performance, deliverables and customer experience. TQM emphasises organisation-wide accountability, continuous improvement and employee empowerment. This methodology fosters a long-term commitment to quality across all levels of the organisation.
1. Lean process
Lean process optimisation focuses on maximising value for customers while cutting out waste (for a leaner set of workflows). Originating from the Toyota Production System, Lean methodologies target inefficiencies such as overproduction, waiting times, excess inventory and unnecessary motion. Various tools are used to streamline workflows, optimise flow and create a culture of continuous improvement.
2. Six Sigma
Six Sigma is a data-driven methodology designed to reduce variability and defects in business processes. By following structured frameworks like DMAIC (define, measure, analyse, improve, control) for improving existing processes or DMADV (define, measure, analyse, design, verify) for creating new ones, Six Sigma helps organisations address inefficiencies systematically. Statistical tools are used to drive decision-making. The result is improved predictability, higher quality and more consistent outcomes, making Six Sigma particularly valuable for organisations focused on precision and reliability.
3. Process mapping
Process mapping creates detailed flowcharts or diagrams to visualise and analyse the steps in a business process from start to finish. By breaking down processes into manageable components and identifying decision points, bottlenecks or redundancies, organisations gain a clearer picture of how work progresses. This approach is ideal for uncovering opportunities for improvement, enhancing communication among team members and ensuring alignment between processes and business objectives. Process mapping simplifies the path to streamlining workflows and achieving greater efficiency.
4. Kaizen
Kaizen, meaning 'continuous improvement' in Japanese, emphasises incremental changes over time to foster long-term growth. This approach encourages employees at all levels to participate in identifying and implementing daily improvements. Kaizen events, also known as rapid improvement projects, bring cross-functional teams together to address specific challenges quickly. Promoting a culture of continuous refinement, Kaizen helps reduce costs and enhance quality without disrupting daily operations. It is a particularly effective method for cultivating an improvement-focused workplace culture.
5. Process mining
Process mining leverages enterprise data, such as event logs from enterprise resource planning (ERP) or customer relationship management (CRM)/customer service management (CSM) systems, to discover and analyse how processes are actually performed. Using algorithms to reconstruct workflows, process mining uncovers deviations from intended processes and reveals areas for optimisation. This technique is particularly useful for organisations seeking to back their process improvements with data-driven insights. Process mining also supports ongoing monitoring, helping businesses adapt to changes in real time.
6. SIPOC analysis
SIPOC (suppliers, inputs, processes, outputs, customers) analysis is a high-level visualisation technique that provides a comprehensive view of a business process. It outlines the key elements required to execute a process and highlights how resources flow from suppliers to end customers. By offering decision-makers a broader perspective, SIPOC helps identify inefficiencies, misaligned goals or redundant steps. This is most useful during the early stages of optimisation, ensuring that all components of a process are accounted for before any changes are made.
7. Value stream mapping (VSM)
Value stream mapping is a Lean-methodology-friendly visualisation technique used to document and analyse the flow of materials, information and value in a process. Each step is evaluated based on the time, cost and value it contributes to the end user. VSM highlights non-value-added activities to be eliminated or improved.
8. 5S methodology
The 5S methodology, also rooted in Lean principles, focuses on creating organised and efficient workspaces. Each 'S' represents a step in BPO: sort, set in order, shine, standardise and sustain. This method reduces clutter, simplifies task execution and establishes clear standards for maintaining order. While originally developed for physical workspaces, 5S can also be applied to virtual environments, making it a versatile approach for improving efficiency and reducing operational waste.
9. Plan-do-study-act (PDSA)
Plan-do-study-act is a cyclical framework for testing and implementing process improvements. Organisations begin by identifying a problem, planning a solution and defining metrics for success. They then test the solution on a small scale, analyse the results and either implement the change fully or iterate further. PDSA is especially valuable for validating potential optimisations and ensuring that changes have the desired impact before they can be rolled out organisation wide.
10. Total quality management (TQM)
Total quality management takes a comprehensive approach to process optimisation, focusing on improving performance, deliverables and customer experience. TQM emphasises organisation-wide accountability, continuous improvement and employee empowerment. This methodology fosters a long-term commitment to quality across all levels of the organisation.
Process optimisation is most effective when an organisation identifies persistent inefficiencies or rising costs in its workflows. Companies may experience the best results when they employ BPO during periods of growth or change, such as when scaling operations, launching new products or transitioning to new forms of information technology (IT).
It's also valuable when there are measurable gaps in performance — such as frequent errors, missed deadlines or customer dissatisfaction. Additionally, regulatory changes or compliance concerns may necessitate an overhaul of processes to ensure that adherence to new standards and BPO can aid in that transition.
That said, organisations shouldn't necessarily wait for these circumstances before implementing process optimisation. BPO has the potential to optimise processes, which is an advantage that any company can benefit from.
It's also valuable when there are measurable gaps in performance — such as frequent errors, missed deadlines or customer dissatisfaction. Additionally, regulatory changes or compliance concerns may necessitate an overhaul of processes to ensure that adherence to new standards and BPO can aid in that transition.
That said, organisations shouldn't necessarily wait for these circumstances before implementing process optimisation. BPO has the potential to optimise processes, which is an advantage that any company can benefit from.
While organisations may approach process optimisation differently depending on their goals, industries or resources, the process typically follows the same, basic steps. Below is an overview of the primary stages of BPO:
The first step is to identify a process that is underperforming or misaligned with organisational goals. Focus on processes that show clear signs of inefficiencies—long cycle times, high error rates, frequent customer complaints etc. Gather data through relevant metrics to determine which processes are creating bottlenecks or dragging down productivity.
Once a process has been identified, create a detailed map of the current workflow. Include all steps, inputs, outputs and stakeholders involved (tools like process mapping or SIPOC diagrams can help visualise the current process). After mapping, define specific goals for the optimisation effort. Avoid vague objectives like making a workflow 'better' or 'faster', instead focus on measurable, quantifiable targets, such as reducing errors by 15% or cutting processing time in half.
Analyse the mapped process to identify areas that can be improved. Once potential improvements are identified, prioritise them based on their feasibility, cost and expected results. Focus first on changes that are low-cost and high-impact, addressing the most critical inefficiencies without causing significant disruption. This approach allows organisations to achieve quick wins that build momentum for further optimisation efforts.
With priorities in place, redesign the process to incorporate improvements. This might involve reordering steps, automating tasks, eliminating redundancies or making other changes. Collaborate with stakeholders and employees to ensure that the redesigned process is practical and relevant to the company's overall objectives. The redesign phase should also include clear documentation to ensure that everyone understands the updated workflow.
Before fully implementing the redesigned process, test it in a controlled environment (such as within a single team or department). This provides an opportunity to identify any unforeseen issues and gather feedback from users. Pilot testing helps make sure that adjustments can be made without interfering in broader operations.
Once the new process has been successfully tested, roll it out across the organisation. Provide training to employees to ensure that they understand the changes and can adopt the new workflow effectively. Establish monitoring systems to track performance metrics.
Measuring progress is central to understanding whether the optimisation effort is successful. Use analytics to compare key performance indicators (KPIs) from before and after implementation. Quantifying results provides evidence of success—or highlights areas where further adjustments may be needed.
Optimisation is not a one-and-done task. Even after a process has been improved, continuous monitoring and feedback collection are necessary to ensure sustained efficiency. Regularly review the process for new bottlenecks or other inefficiencies, and update workflows as business needs evolve.
Whenever feasible, integrate automation into the process to further streamline operations. Automation can handle repetitive tasks, reduce human error and free up employees to focus on activities that are more strategically significant. Additionally, advanced technologies like artificial intelligence (AI) can offer predictive insights and recommendations for further process improvements, keeping company workflows agile and competitive.
Process optimisation can significantly improve operational efficiency and reduce errors in processes for businesses across a range of industries. Consider the following use cases:
Purchase orders
In some organisations, managing purchase orders can become cumbersome due to manual approval processes causing multiple purchase requests to pile up. To address this, companies can implement a workflow management system. This type of system allows employees to select items, automatically route requests for approval and track progress in real-time. By eliminating manual steps, the purchasing department can handle requests faster, keeping procurement moving at a steady pace.
Travel reimbursement
Manual, paper-based reimbursement processes often result in errors. By switching to a digital reimbursement system, employees can enter amounts into standardised form fields, reducing the risk of processing errors. Automation can further enhance this process by flagging inconsistencies and speeding up approvals.
Employee onboarding
Onboarding new employees typically involves many different steps (such as signing agreements, provisioning assets, distributing licences and access etc.). If these steps rely on manual follow-ups, delays may be inevitable. To improve this process, organisations can set up automated email triggers. For example, once a signed agreement is received, an automated email notifies the IT department to provide necessary tools. This delivers a smoother onboarding experience and reduces the burden on HR and IT teams.
Health patient streamlining
Healthcare organisations face challenges in managing patient intake and treatment processes. Administrative inefficiencies stemming from paper forms and manual data entry can create delays in patient care. By implementing a digital health record system, patient information can be collected electronically and shared instantly with relevant departments. This reduces waiting times, effectively eliminates errors in patient records and allows healthcare providers to focus more of their efforts on caring for the people who need them.
In some organisations, managing purchase orders can become cumbersome due to manual approval processes causing multiple purchase requests to pile up. To address this, companies can implement a workflow management system. This type of system allows employees to select items, automatically route requests for approval and track progress in real-time. By eliminating manual steps, the purchasing department can handle requests faster, keeping procurement moving at a steady pace.
Manual, paper-based reimbursement processes often result in errors. By switching to a digital reimbursement system, employees can enter amounts into standardised form fields, reducing the risk of processing errors. Automation can further enhance this process by flagging inconsistencies and speeding up approvals.
Onboarding new employees typically involves many different steps (such as signing agreements, provisioning assets, distributing licences and access etc.). If these steps rely on manual follow-ups, delays may be inevitable. To improve this process, organisations can set up automated email triggers. For example, once a signed agreement is received, an automated email notifies the IT department to provide necessary tools. This delivers a smoother onboarding experience and reduces the burden on HR and IT teams.
Healthcare organisations face challenges in managing patient intake and treatment processes. Administrative inefficiencies stemming from paper forms and manual data entry can create delays in patient care. By implementing a digital health record system, patient information can be collected electronically and shared instantly with relevant departments. This reduces waiting times, effectively eliminates errors in patient records and allows healthcare providers to focus more of their efforts on caring for the people who need them.
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Process optimisation is about cutting out waste and optimising every stage of every workflow. ServiceNow makes this possible, with the award-winning ServiceNow AI Platform. This centralised system for managing digital processes leverages advanced-AI capabilities, giving your business a springboard from which to accelerate productivity—connecting people, systems and functions, and enabling seamless collaboration and smarter operations.
ServiceNow Workflow Data Fabric extends these capabilities, unifying data, automation and API integrations on a single platform. Easily connect to all kinds of data (structured, unstructured and streaming) for real-time access and reduced integration complexity across workflows. Supported by enhanced ServiceNow solutions—such as Process Mining and RPA Hub — Workflow Data Fabric delivers visibility into inefficiencies, empowers your teams to automate repetitive work and gives you the information you need to extract actionable insights from raw data. ServiceNow makes it easy.
See for yourself how ServiceNow simplifies process optimisation; demo ServiceNow today!
ServiceNow Workflow Data Fabric extends these capabilities, unifying data, automation and API integrations on a single platform. Easily connect to all kinds of data (structured, unstructured and streaming) for real-time access and reduced integration complexity across workflows. Supported by enhanced ServiceNow solutions—such as Process Mining and RPA Hub — Workflow Data Fabric delivers visibility into inefficiencies, empowers your teams to automate repetitive work and gives you the information you need to extract actionable insights from raw data. ServiceNow makes it easy.
See for yourself how ServiceNow simplifies process optimisation; demo ServiceNow today!
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