Perfect execution via process excellence is what any company strives for, but Celonis believe that in reality, the majority of organisations are not executing their processes to the best of their abilities.
What causes this gap in process excellence?
Celonis’ State of Process Excellence Report finds a lot of organisations are held back by existing IT infrastructure with teams trying to fit modern processes around antiquated technology.
To enhance processes excellence, organisations are moving to where processes excellence leaders report directly into the C-suite (currently 77%). 63% of process leaders view process discovery as a critical priority, the greater the focus on understanding your end-to-end processes the better, although it’s great to automate as much as possible, it is often more important to understand a process.
A core issue that has emerged as a result of older or unfit IT solutions is 50% of process leaders optimizing processes to suit these pre-defined systems with only 35% of process leaders saying their priority was optimizing the processes themselves to improve the outcome of the process.
To perform at their best, process leaders cannot work in isolation, key partnerships in the business can make the improvement process much easier, teams working closely across the business are better suited to identify inefficiencies. The Celonis survey found the three most common internal partnerships were with IT, Finance and Operations.
A recent trend seen in a lot of organisations are ‘centres of excellence’. 87% of individuals tasked with process excellence fall under the remit of the CoE. The growth of CoEs is indicative of an increased desire to transform process improvement into a strategic function.
Technology and tools can greatly help the advancement of process excellence within an organisation. There are a number of tools that Celonis identified process professionals are utilising. The most common tools used to discover and document processes were process mining technology, diagramming tools and stakeholder interviews.
‘With process mining, we’ve empowered our teams with a new analytical capability.
The business engages very quickly when they see the opportunities that process mining uncovers, and that’s why we hope it will be a game- changer for the company.’
Global Tech Director, Finance, AB InBev
COVID has caused 96% of the organisations Celonis surveyed to positively change their attitude to improving processes. Although, COVID has caused 50% of surveyed companies to have a reduced budget impacting process excellence plans.
For procurement process excellence to be achieved its clear that leaders will need to continue to focus on process discovery, new IT solutions, cross functional working, centres of excellence and process mining.