Whether you’d like to carry out a process audit yourself, or whether you’d like to hire a service provider to do it for you (consulting firm, freelancer…), this article will be useful. In the first case, we’ll give you a method and concrete examples of a process audit. In the second case, it’s important to know the basics before subcontracting to a service provider.
In this article, we won’t use fancy words like performance, productivity, efficiency or optimization. This content is all about the real thing!
If you had only one thing to remember from this article :
Process auditing is a methodical approach to understanding and analyzing processes. A good audit requires :
- Completeness
- Meeting the right people
- Don’t take sides
- Don’t look for solutions too soon
- Employee communication and change management
- Production of a process sheet
What is a process audit?
Before talking about process auditing, what is an audit?
The word audit is synonymous with diagnosis, inventory of fixtures, analysis of existing conditions.
On the other hand, auditing is often wrongly associated with the world of accounting , with financial audits. However, a company can audit anything. There are organizational audits, IS audits, quality audits, compliance audits, SEO audits and process audits.
An audit is quite simply a methodical approach to collecting, consolidating and analyzing information on a given subject. This information can be gathered quantitatively or qualitatively.
It is spread over a relatively short period of time (less than 2 months). Be careful not to exceed it, as certain data could change and impact your analysis.
The audit can be conducted in a variety of ways:
- Individual or group interviews.
- Thematic workshops.
- Online questionnaires.
- On-site visits and real-time monitoring of end-to-end processes.
Before talking about process auditing, what is a process?
All companies, whether they are aware of it or not, have processes.
By carrying out a series of consecutive and sometimes simultaneous steps , a process covers one or more of the company’s business activities.
A process begins with an input event (e.g. customer validation of a quote) and ends with an output event (e.g. last-mile delivery).
Thanks to a process, a manager must be able to measure various operating indicators such as resources, stock levels, lead times, customer satisfaction, error feedback, etc.
A process may or may not be computerized. To better understand how it works, or to gather information, a manager can use software. In addition to their core functionalities, these programs track the progress of the process from stage to stage, automate certain steps, streamline interactions, interconnect existing software…
Example of a sales process
Definition of a process audit
A process audit is therefore the analysis of one or more processes within a clear scope. This analysis is carried out through different phases:
- Information gathering at all levels
- Mapping existing operations
- Consolidation and analysis
- Formalization of findings, problems and recommendations in an audit report
- Production of a lively, operational process sheet.
The process audit can be followed by the definition of a target, i.e. the ideal and future functioning of the process, including solution axes and an implementation roadmap.
A company can carry out the audit itself or call in a service provider.
Why carry out a process audit?
The following are just some of the benefits of process auditing.
Understanding how things work today
- Identify and examine operational problems, such as bottlenecks, repetitive tasks, inefficiencies, complex sequences and non-value-added tasks.
- Quantify work time and deadlines
- Detect sensitive points and potential risks.
- Ensure alignment of existing processes with organizational and strategic objectives
Collectively building an improved version
- Unambiguous, uniform understanding of future operations for all parties concerned.
- Clear identification of the needs to be met in the search for solutions and software.
- Informed decision-making
- A change management tool to persuade and convince.
- Collect key indicators to monitor and evaluate target performance.
Process sustainability
- Compliance and quality control at every stage
- Monitoring customer satisfaction.
- Easy duplication of a process for a new site or a merger.
- Improved communication and collaboration between teams, making it easier for them to understand each other’s tasks, responsibilities and interactions.
- Easy training for new employees.
- Opportunities for innovation and continuous improvement.
Process audit method and stages
Step 0 – 5 points to bear in mind before a process audit
Be exhaustive.
Holes can lead to nasty surprises later on in your project.
Meet the right people. Sometimes it’s more useful to meet with a line manager than with your manager to find out exactly how a department works.
Don’t direct your questions.
Open-ended, closed or semi-closed questions are designed to understand, not to validate beliefs.
At this stage, it’s not advisable to look for solutions or software. It’s too early, as needs are still general. To choose now would be to close doors and miss out on the best solution.
And this is perhaps the most important point. The audit is also the first change management tool. Being sympathetic, listening and teaching will only be beneficial for the rest of the project (especially if it involves major organizational changes).
Step 1 – Preparing the process audit
This preparation mainly concerns the development of an analysis grid adapted to what you’re looking for. There’s no need to reinvent the wheel, as many grids are available online and can be adapted to your needs.
Based on this analysis grid, you can easily produce interview guides, online questionnaire questions, and the framework for your analysis and audit report. It will be the foundation of your approach
In this example of an analysis grid, the themes of “Added value”, “Organization and governance”, etc. should guide and structure all process audit considerations.
Step 2 – Collect data and information from employees
You’ll have to get out your best investigator’s suit to meet as many of our employees as possible.
The objectives
- collect qualitative and quantitative information
- identify problems and frustrations
- collect documents
- initiate change management with stakeholders
Expect to discover workings you couldn’t even imagine.
All the elements collected will enable you to know exactly how things work in your area, to collect problems, frustrations, information (tasks, data, stocks, software…) or even to list needs.
Step 3 – Mapping the existing process
Mapping for an audit doesn’t necessarily have to follow specific standards. What’s important is that it’s easily understood by everyone.
There are many different mapping methods, such as BPMN, VSM, SIPOC, UML, simple mapping… The main thing to remember is that there are no precise rules: it all depends on the company’s requirements, the complexity of the project and the skills of the project manager. If you don’t know where to start, we suggest you opt for a simple flow chart in Powerpoint, which is both simple and suitable for most situations.
If you’d like to find out more about process modeling and mapping, we recommend you read this article: Process mapping, step-by-step guidance.
Step 4 – Analysis, findings and recommendations
The analysis will identify problems, weaknesses, risks and opportunities in a process. There can be many types of problems:
- Model, operating and customer/supplier relationship problems
- Organizational and managerial friction
- Topics related to tools and software
- HR and skills development issues
- Quality and regulatory compliance issues
Each finding is then linked to a recommended solution.
Find out more in our article on process automation
Step 5 – Implement recommendations
We can distinguish between two types of recommendations: those that are relatively simple to implement over a few days, and those that require a 3-month project or a series of projects.
Don’t hesitate to ask for help in these matters.
Particularly in identifying solutions, tools and drawing up specifications
Take a look at
our guide to writing
a specification
Simple recommendations or quick wins from a process audit
For the first family, the advantage is almost immediate implementation with the teams. This brings rapid results and returns on investment.
Two points are crucial to their treatment:
Communication and change management
It’s important to co-construct with your teams. A lack of communication will strongly impact your freedom and autonomy to improve a process (especially when the improvement has a strong organizational impact). To find out more, follow this link.
Document the new operation on a process sheet
The process sheet is a crucial tool for ensuring the sustainability of an activity and its continuous improvement over time. It brings together essential information such as process mapping and performance indicators.
Not only is it an ideal means of continuously improving your internal processes, it will also simplify the implementation of new projects, audits, controls and reviews.
However, there’s a fine line between “having a process sheet that’s useful for your company” and “having an unused, out-of-date process sheet in the depths of your storage space”. To find out more on this subject, we’ve also written an article that guides you through the rapid production of a process sheet.
Now you know all about process auditing. Now it’s your turn! See you soon for more content!
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