Mapping processes is not just about the WHO and WHAT of your business, but also the WHY. Here's why…

Tuesday: Return Driven Strategy FROM THE DESK OF MILES EVERSON: Hello, everyone! Welcome to today’s edition of “Return Driven Strategy!” As someone in the business and consulting industry for 30+ years now, one of the things I find effective in managing my team is the Return Driven Strategy (RDS) framework. That’s why every Tuesday, we publish articles about this to help you effectively navigate an ever-changing work landscape as a business leader, manager, or worker. Today, let’s continue our topic about the 8th tenet of RDS: Map and Redesign Processes. Continue reading to know the importance of knowing the state of a business and not waiting for a problem to arise before mapping and redesigning processes. CEO, MBO Partners Chairman of the Advisory Board, The I Institute

Mapping processes is not just about the WHO and WHAT of your business, but also the WHY. Here's why… In a past “Return Driven Strategy” article, we talked about the importance of maps for sailors and how this concept applies to the business sector as well. We emphasized that when business leaders and managers know how to properly map their processes, they’ll also be able to properly navigate their entire firm and achieve success. Today, we’ll continue this topic with a focus on the specifics of business mapping. Professor Joel Litman and Dr. Mark L. Frigo discuss this in detail in the book, “Driven.” When to Start Mapping and Redesigning Business Processes Mapping and redesigning processes is the 8th tenet of the Return Driven Strategy (RDS) framework. This involves visualizing and documenting the steps involved in a particular process, such as a sales cycle or a customer service interaction. What else? This tenet also helps identify inefficiencies and bottlenecks in a firm, and provides insights into how the process can be improved. As Professor Litman and Dr. Frigo wrote, “Great mapping is the beginning of great navigation, and a precursor to great strategy.” Here’s the thing: Sometimes, leaders and managers only start to map out business processes once a problem has occurred. When this happens, the key people and teams involved tend to focus on the wrong things and miss out on the real essence of mapping. That’s why Professor Litman and Dr. Frigo said being aware of the current state of a business is important. Management shouldn’t wait for a problem to arise before adequately mapping it. Besides, there are tremendous benefits from a conscious examination of dependencies and motivations of the important constituents of a business. The map changes the entire platform for better planning and improving the firm. What to map? When starting to map out and redesign business processes, it’s important that management knows who the firm’s key constituents are and the key exchanges that happen between them. Below are some ideas and guidelines to take note of and identify: The important groups of a focused area of a business (investors, customers, employee groups, suppliers, partners, etc.) The exchanges of cash flows. Here, management must identify what exactly is the cash being exchanged for—product, service, psychological value, etc. The needs that are being fulfilled in each exchange The key influences in each exchange How prices and payments are determined in each exchange The networks that are in place around exchanges and transactions … and after identifying the WHOs and the WHATs, the next step is to identify the WHYs. The True Reasons for Each Business Process Professor Litman and Dr. Frigo wrote that one of the effective exercises to identify the true reasons for each exchange is the “why-axis analysis.” This is a pun based on the “Y” axis of a Cartesian plane, where the “Y” is the vertical axis. So, how does the “why-axis analysis” work? According to Professor Litman and Dr. Frigo, management should simply ask “why” something occurs in a transaction, and whatever the answer, ask “why” again and again. Through this, a better understanding of the true reasons for exchange may be reached at some point. Most times, these reasons center on some basic human need, such as those in Abraham Maslow’s “Hierarchy of Needs” framework. — Professor Litman and Dr. Frigo said each of the characteristics for mapping should sound familiar. In fact, they must describe the top tenets of RDS and should not just stop with the processes specific to the business but also move beyond immediate doors. Why is this necessary? It’s because a lack of understanding can lead to blind planning and false senses of direction. Just as businesses and business cycles can model human behavior, it’s no surprise that a more total awareness of the business’ place in the community is necessary for success. Take note of these tips and insights to propel your organization forward! If you’re looking to gain a better understanding of Return Driven Strategy and Career Driven Strategy, we highly recommend checking out “Driven” by Professor Litman and Dr. Frigo. Click here to get your copy and learn how this framework can help you in your business strategies and ultimately, in ethically maximizing wealth for your firm. Hope you’ve found this week’s insights interesting and helpful.     For the past year, there’s been lots of uncertainty surrounding the U.S. economy due to fears of a looming recession. Learn more about the power of agile finance in next week’s article!