Every day teams can manage their processes to deliver winning results. By both improving and controlling critical processes, these teams can both make a big impact and get home at night.
Most of us have improved processes. We have tweaked the steps of work, fixed breaks, and automated. The next step—process management—is a powerful approach that can be the difference between failure and success.
Now you can measure your team’s process management muscles through an eight-question survey. This survey helps you see beyond tweaking, to fix pain points and transform outcomes. Through the survey’s results, you can discover your team’s process management strengths and opportunities.
Select the survey answer that best reflects how your team handles your critical processes. Eight-Question Survey Link
Do you want to learn more about how these important concepts can create results for your team? Then complete the survey, add your email address, and submit your answers, thereby emailing yourself your answers.
Our process coach and trainer Lee Kuntz will also receive a copy. Your contact information will not be used for any other purpose. Lee will then connect with you to hear and answer any questions about how each of these key process capabilities can help your team achieve the results you need.
When a foundation or nonprofit updates its software system, the purchase typically requires years of research and a financial investment that can run well into six figures. So, it’s important to make the most of that purchase. The most effective way to do that is to use system upgrades as an opportunity to reexamine internal processes
That kind of self-reflection allows the organization to get the best return on their investment, while following best practices for a software purchase. In fact, in a recent Innovation Process Design survey, 100% of participants said process design is essential when adding new software. By maximizing internal processes, organizations can get employees out of the back office and back to serving their communities.
“It’s important to have a high-level outlook of what outcomes drive the process and not be married to current processes in order to achieve the same result in a more efficient manner,” wrote one respondent.
“I can’t imagine how you can put in new software without reimaging the process,” wrote another.
In all, 24 philanthropic and nonprofit organizations completed the survey. Approximately half of respondents were financial leaders. The other half were grantmakers and technology leaders. Most respondents — 80% — had recent experience implementing sizable new software projects.
Exactly what reimaging should look like depends on the type of project in question. If your software installation is small or low risk, following vendor best practices or holding internal discussions may be enough. Larger or more involved projects may require an outside coach to lead the process or provide redesign training.
Wondering where to start? Here are a few key questions to answer before you complete your next software purchase:
1. How should you redesign? About half of survey respondents said they typically manage process redesign internally. Another 41% said engaging an outside coach is an important part of the process. A coach’s process improvement expertise can be a powerful tool when employees are hesitant to make changes, too busy to fully focus on the task, or inexperienced in process design.
2. When should you redesign? Reimaging before selecting a new software system gives nonprofits a clear picture of how they can work more efficiently and may even help them realize they don’t yet need new software. Redesigning after a system has been selected but before it’s installed, on the other hand, allows foundations to build new processes with the new system’s capabilities in mind. Building processes after the system is in place is another viable option, but respondents said it often feels like “trying to build a plane while it’s in the air.” Half of respondents to the Innovation Process Design survey said the best time to redesign is after selecting the new system and before installation. Meanwhile, another 37% say redesigning before selecting a new system is the way to go, and the final 12% say redesign should be done after the new system is in place.
3. Should you go big? The answer to this question may depend on the size of your software purchase or the needs of your processes, but 60% of survey respondents said they received more benefit from major process redesign than from minimal or no redesign. For some, going big led to better outcomes, faster implementation, and more significant return on a major systems investment, while giving team members the confidence to ask and resolve questions. In addition, 58% of participants combined process improvement training with redesign. These organizations said they received significant value from process training and this approach.
Understanding the goals of work is the first level of process redesign. It creates a framework that organizations can use as they proceed to the second level, which includes process work — identifying the structure of who does what, and when they do it. The third level is process detail — identifying the screens, fields, reports, and steps used to complete the work. However, all organizations should incorporate level three – process detail – when implementing a new software system.
Once an organization has a clear picture of its needs and the scope of the software project at hand, the team can identify the steps needed for reaching its goal — whether that involves a major design or a few simple process tweaks. This thinking is summarized in a matrix you can use to identify the specific process redesign steps to help your team be successful. See the matrix and survey summary report here: Summary of Reimage Processes for New Software Survey
Changing the way things have always been done is intimidating, and there are inherent risks. But applying time-tested resources in a way that best meets your nonprofit’s needs will make it easier to successfully manage the twists and turns of process transformation.
Have you improved your work process, tweaking how work is done or fixing broken steps? Most agree process improvement is good. Yet many staff members are too busy fighting fires to think about how to do their work. They get stuck in the rut of doing things as they’ve always been done. The answer to this miserable dilemma? Moving from the small tweaks associated with traditional process improvement to radical process transformation.
A starting point in thinking about process improvement is understanding what the term even means. In a recent online search, I found ten different definitions for ‘process improvement.’ Many people see process improvement as adding, deleting, or modifying work steps to change how work is done.
The problem with this commonly held definition is that the focus is on tweaks to change to work steps rather than improving outcomes. For example, suppose I want to move from balancing between sources with an adding machine to using an Excel spreadsheet. This improvement seems like a positive change. When I pitch this to my boss, I focus on how the process will change. My boss asks how much time the change will take to implement. That use of resources gives her pause, as she knows our big workload. Most likely, she will say we don’t have time to make changes right now. We need to stay the course and take on the next emergency. We can do the improvement later, when things get better.
Since I did not identify the positive impact of my proposed enhancement, my boss didn’t see its value compared to the other big priorities crashing through her door. Too often, defining process improvement as tweaking how work is done causes this important tool to be ignored.
Process improvement can truly produce more favorable outcomes than had been realized before. Without it, employees can become locked in a vicious cycle in which underlying process flaws are not corrected. As in the example below of an improperly prepared check, both customers and staff can become frustrated by processes that don’t work as they should.
If the cycle consists of complaint-pull-fix without also investing time in fixing the issue for all customers, similar problems are likely to occur in the future. That means staff will work longer and longer hours responding to emergencies, getting further and further away from the good work they want to do. Eventually staff may burn out and leave, placing a greater burden on remaining employees to do the work.
I have experienced this vicious cycle in my own life. Early in my career, I accepted a job in an area that claimed to promote great work-life balance. My superiors promised there would be overtime only at year-end. Once I was there, I found that by overtime, they meant seven days a week for six weeks! I barely saw my young children for a month and a half. When I commented about the excessive overtime, the staff said it was always that way, and to just “suck it up” because it would not change. I questioned the culture and the paradigm, and I wondered if things would ever get better. That unpleasant situation has inspired me for the rest of my career.
To correct agonizing situations such as the one I survived, I rename, rephrase, and reposition process improvement in my training by sharing the story of process transformation.
Process transformation is the use of proven process improvement tools to maximize what the organization has now to achieve an improved outcome.
Process transformation solves pain points organizations experience so they can work toward efficient, effective, and high-quality outcomes for their customers. Organizations have achieved the following outcomes from this approach.
There are three important points in this definition of process transformation.
1. Proven tools. A recent survey by change management specialist Prosci indicated that the majority of process improvement projects fail, primarily due to lack of proven tools, experience, and support. The good news is that there are tools and training that offset this risk. The key is to leverage the tools and training that work with your industry and situation. For example, quality management tools require rigorous training on statistical analysis and are great for manufacturing organizations. However, statistical analysis principles have little use in a service organization. A better tool for a philanthropic or charitable organization would be one that helps employees identify wasted steps.
2. Maximize what the organization has now. Employers manage more than work steps or process to achieve the outcomes they need. They leverage business policies, roles and responsibilities, technology, work steps, and other elements to create desired outcomes. Some of these components are helpful and efficient, while others end up undercutting objectives. For example, the policy of a foundation I am coaching might require that grants be paid within two weeks after being approved. If the competition can pay a grant within three days, I ask my client to identify and maximize everything they have now to achieve faster turnaround.
3. Improved outcomes. To ensure that the desired results are achieved, process transformation identifies the needed outcomes before the improvement work begins. To illustrate, a team may decide they need to recapture and reinvest half the time they are now spending to issue grants. This may amount to one hour per grant, for a total of 500 to 1,500 work hours. Once leaders understand the payback from their investment in process transformation, they support the investment. Learn more about this concept in my companion blog post: Achieve Process Improvement Results: Start at the End.
Process transformation requires an investment of both time and resources to be successful. When leaders and staff members learn about tools that will help them work smarter rather than harder, they find that their investment pays off. The graph below shows immediate results achieved when process transformation tools were used in four recent projects:
We have been coaching and training teams in process improvement and transformation for more than two decades. A recent study of our clients indicated that their returns overwhelmingly offset their investment. Typically, we have found that the first year’s results more than cover the costs of the training and staff time investment, with future years’ savings being “gravy.” Imagine sharing with your organization’s leadership or board that your team can take on more without additional staff because the team has recaptured and repositioned 1,000 to 2,000 work hours.
Now back to my story. After being told to “suck it up,” I was determined I would never again work that much overtime. Therefore, I sought and gained leadership approval to conduct a process transformation project. I committed to leadership that I would shorten the year-end work time for everyone. To do so, I partnered with my team using proven improvement/transformation tools to maximize everything we already had. As a result, we cut the steps to complete our year-end reporting in half. In the next year-end cycle, the team worked only one weekend rather than the six weekends we had with the old process.
If your team works overwhelming hours, reacts to constant emergencies, or is not maximizing expensive software, process transformation may be the answer to your problems. With an initial investment, your team can solve its pain points, recapture time, and deliver better and faster outcomes to your customers.
Learn more by leveraging our free website assessment tools to diagnose your pain point, or contact Lee Kuntz to talk about your needs. Organizations have found hundreds—even thousands—of work hours to reinvest in serving their customers. You can, too
Adding new software is a major investment for philanthropic organizations. While improved tools can help automate business processes and create more efficient workflows, adding a new software solution can take years of research and hundreds of thousands of dollars for implementation and system integration.
It’s a big job, and new software alone is no guarantee that an organization will improve outcomes enough to cover the cost of installation. Read more and take part in a 10 question survey on best practices here.
An investment in a nonprofit back office can reap benefits in the community.
Nonprofits work long hours to strengthen their community by decreasing homelessness, reducing racism, and improving the environment, to name just a few ways. Philanthropic organizations invest in these charities to help achieve those community-changing results. Yet how do these charitable organizations—the healers—cure their own pain and build their own capacity to do more?
In September, more than 80 social-sector financial staff gathered to learn how to transform their back offices to recapture and reinvest time back into community-building services. Attendees reported gaining many new ideas on ways to streamline what they were already doing.
Learn more at: Healers heal themselves – nonprofits build internal capacity
See the presentation document at: NFG Sept 2019 Presentation Transform AP Presentation!
Has your organization brought in new software with great promise and not achieved the desired results? Has the new software failed to improve the workflow? Has implementation of new software damaged credibility?
Now you can both learn and share your experience through our “Maximize Business Process and Outcomes During New Software Install Survey”. The goal of this ten-question survey is to gather philanthropic organization leaders’ views and experiences in redesigning processes when installing new software. The survey responses will be aggregated to identify best practices.
Survey link: Maximize Outcomes During New System Install Survey
Thank you for investing in this survey, yourself and others in the philanthropic industry!
Is your organization planning and budgeting for next year? Are you tired of fighting the same pain points year after year, such as overwhelming workloads, demands for better or faster results, or challenges to maximize costly technology? During this year’s budgeting and planning season, invest in process transformation to recapture capacity and solve pain points.
This is planning and budgeting season for about 70% of the organizations I know. Many are creating concrete plans and budgets to solve their pain points in 2020. If they do not, organizations will experience the same old pain and frustration in 2020.
Organizations that help and serve others are recapturing hundreds—even thousands—of hours of capacity. They are serving their customers, community, board, funders, and donors in half the time. These leaders are retaining employees. Their secret? Investing to transform processes and results.
Most of us have done process improvement. We have tweaked processes and resolved breaks. Some organizations are taking their improvement work to a transformational level. They are cutting their work steps in half and delivering to their key partners in fraction the time. They are freeing up thousands of staff hours that can be used for other purposes
These organizations budget for an investment in process transformation training and coaching during in their annual plan. Here are the results they are achieving.
• Recapturing over 4,000 work hours.
• Sharing services across functions.
• Maximizing use of existing technology.
• Remaining error-free for 3 years.
• Delivering to customers in half the time.
• Transforming their organizations through ongoing improvement.
Recently we surveyed our clients’ process transformation results. Our customers achieved a return of 1.5 to 3 times their investment during the first year after implementation. This return came in the form of recaptured time and error-free results. Then these organizations continued to receive time back and positive feedback from customers over time.
Figure 1: Return on Transformational Process Improvement
In addition, achieving this enviable return on their investment, these leaders are committed to building a culture of ongoing improvement. They can easily fix and improve any process and result because they have learned the tools to see and solve transformation opportunities. Their employees are fully invested in the process transformation game because they have been involved as stakeholders since the inception of the training.
Leaders are bringing the story of process transformation to their organizations’ annual planning discussions. Yet a common question is: What does the initial investment consist of?
The initial investment in transformational process improvement includes two components: dedicated staff time for learning and implementing new approaches and out-of-pocket costs for training and coaching. A typical employee will spend between 5 and 40 hours annually doing successful process transformation. The cost of the training and coaching depends upon the amount, level, and number of days needed. My firm offers a half day and a full day think differently process transformation workshop. Contact me to learn more about training options.
Organizations that train their employees in process transformation find that work gets done faster and with fewer errors. The time saved leads to better service to the organizations’ customers and community, and greater job satisfaction among employees. You can, too! Contact me, Lee Kuntz, to learn more about how your organization can plan to solve pain points and thrive.
The work week should be over, but the office is buzzing, and the chief financial officer is making the rounds one more time. Foundation policy says grantee checks must be in the mail by end of day Friday, and there are still dozens of outstanding items. Everyone is staying late, because if those checks don’t get out, grantees can’t act on their programs. People can’t get help. And the foundation board is sure to hear about it.
If that scene sounds uncomfortably familiar, you’re not alone. Learn more: Invest for Impact: Continuous Process Improvement
Donor-advised funds are a big growth area for foundations. More donors are contributing to these accounts at their favorite foundation than ever before. Yet these funds provide little margin to pay for the services they require. Foundations are squeezed between low margins and high service requirements as the number of funds climbs.
Some foundations address this challenge through maximizing each donation opportunity. Some are looking internally. These foundations are decreasing the labor and cost to serve donor-advised funds while delivering better and faster results to their contributors.
When a donor contributes to a donor-advised fund at a public charity, that person is generally eligible to take an immediate tax deduction. Then those funds are invested for tax-free growth, and the giver can recommend grants to virtually any IRS-qualified public charity. Donor-advised funds are the fastest-growing charitable giving vehicle in the United States, because they are one of the easiest and most tax-advantageous ways to give.
Public charities, mainly foundations, receive minimal fees for the work they do to manage donor-advised funds. Yet these funds require substantial services, including investment management, grant payment, and grantee due diligence. For many foundations, the labor and cost of performing these tasks approaches or is greater than the fees they receive for these accounts. As these funds continue to proliferate, some foundations find that managing them siphons significant time away from fulfilling their essential purpose.
Some of these foundations are turning to advanced process improvement to decrease their labor and costs as they support their donor-advised funds. Once they get trained on the tools that are working for community foundations, these proactive leaders are redesigning process to recapture work time while delivering consistently good service to donors.
For example, one community foundation used process implement training and coaching to go from 75 to 39 steps in completing donor-advised grants. Once the new steps were implemented, their average processing time dropped from 50 minutes to only 25 minutes. With the savings of time, the foundation is able to deliver grants more predictably and efficiently—to the delight of donors and the nonprofits that receive those grants. In addition, the recaptured work time is now being used to address other community needs.
Foundation leaders are savvy. They constantly tinker to improve how back-office work is done. But the donor-advised grant squeeze may require more than a few tweaks in process. It may require making an investment in advanced process improvement.
Contact Lee Kuntz to learn how to address this squeeze through redesigning processes. Several community foundations have built their process knowledge and redesigned their donor-advised fund processes to recapture thousands of hours and deliver better and faster results. You can too!
Have you been part of a process improvement project that required an investment of hours upon hours over months or even years? Was a process improvement effort stopped because the team could not agree upon which improvement ideas to implement? Or an improvement initiative that made things worse instead of better?
With results like these, no wonder leaders hesitate to authorize process improvement initiatives. Yet some leaders are achieving impressive results from redesigning processes. They cut the work time to serve their customers in half, recapturing and repurposing thousands of hours. At the same time, they deliver better outcomes to their communities, boards, and partners.
These diametrically opposed outcomes beg the question: What creates the big difference in results?
The difference in results stems, in part, from the varying working definitions of process improvement. One website defines process improvement as “a systematic approach that can be used to make incremental and breakthrough improvements in processes.” While this approach sounds promising, it falls short of bringing transformational change.
A process redesign project that focuses only on improving how work is done will not significantly improve outcomes despite taking many hours of staff time. For example, one team shared that they worked on an improvement project for eighteen months. They met for two hours every month and talked about a host of cutting-edge ideas. Yet the team could not come together behind any idea they were willing to try. After they had invested more than 400 work hours generating ideas without implementing any of them, people started dropping out of the project. Then the CEO identified a new initiative and the team switched its focus to that priority.
I view process improvement more holistically. I see it as a tool to improve outcomes in a broader sense. It can be leveraged to enhance quality, customer experience, accuracy, compliance, or any other key process outcome. When leaders start by identifying the specific outcome(s) that must be improved, they make it possible to achieve impactful process improvement results.
Recently, a chief operations/administration officer (COO) became aware that her organization was incurring significant late-payment penalties. Phone calls about the late payments from both internal managers and external partners were eating up her team’s time, and the organization’s financial resources were being squandered on paying the penalties.
The COO talked with her team about what she saw and then initiated a process redesign project with the specific goal of getting payments out on time. She leveraged my team’s process improvement training and mentoring to help the team better understand what was actually happening. Once her team saw that they could solve the pain they were experiencing, they eagerly stepped forward to be on the redesign team. This team used their new process improvement knowledge to reduce the payment process from 110 steps to 60 steps. Now they are implementing these new ideas and have shortened the time to get payments out. They will no longer be plagued with collection phone calls and can reinvest their time in helping the organization fulfill its key objectives.
Achieving process improvement results starts with identifying the needed outcome(s) first. After all, would you start a road trip without picking a destination? With no destination, you may end up in Alaska, rather than California. Or on the side of the road, out of provisions for the journey. Only through setting a clear destination can your team succeed in achieving the improvement they need.
As a coach and a trainer, I have opportunities to influence leaders as they seek to achieve process improvement results. Therefore, I first ask which outcomes need to be improved.
When leaders focus on improving specific process outcomes, they foster employee engagement and leadership support. Starting with a particularly painful outcome is a great first step. For example, a director of donor relations received calls from three donors who said they received someone else’s gift acknowledgement letter. After awkward apologies were made and the letters were corrected, the director called me to learn how she could quickly address this situation so it would never happen again. I coached her and the team through a four-hour rapid process improvement event. I encouraged the group to kept one essential outcome in mind: Gift acknowledgements must be sent out to the correct donor every time.
Being clear about the goal helped galvanize the team to take action and be laser-focused in their redesign work. This focus shortened the time needed for the improvement work, as there were no side trips that consumed valuable team time and energy.
When your team needs to attain a given process outcome and is missing the mark, think process improvement. Whether your issue is an unhappy customer, overwhelmed employees, or a board demanding answers, start by identifying the specific outcomes needed. Communicating with employees about the missed mark and committing to resolve it can begin your journey to achieve impressive results.
Some organizations have built their process management skills and routinely fix inadequate outcomes successfully and quickly. You can, too. Contact me, Lee Kuntz, to talk through how your team can undertake rapid improvement that achieves process improvement results and promotes organizational success. Achieve Process Improvement Results: Start at the End