How business process improvement delivered £350K savings per year
Quantified process improvement savings can be hard to come by. Tangible information about real-life savings are often difficult to calculate and many businesses also refrain from sharing their process management and improvement results. This all leads to a lack of transparency about what really can be saved through effective process improvement.
Fortunately, Triaster's customer the New Charter Group – a housing association - have both accurately calculated the savings delivered by their process improvement projects and are happy to share them.
And no wonder… the results are very impressive.
The Start Point: The Drivers for Change
New Charter’s business process improvement journey was kicked off in early 2016, when they were confronted with three major challenges:
- The organisation faced a 15% reduction in revenue by 2019/2020
- Changes to respond to the revenue shortfall resulted in a lack of resources and the inability to deliver on their paper-based processes
- The Service Improvement team wanted to improve tenant/customer satisfaction
Armed with a Triaster BPM System, the Service Improvement team decided to map out the end-to-end processes of the entire tenancy lifecycle - despite the fact that the Service Improvement team had so far only used process mapping on an ad-hoc basis and was lacking significant process mapping experience.
If you want to learn from key member of the New Charter Service Improvement team, Natalie Hall, 'How digital technology can enable process improvement to save £350K per annum', sign up for the PEX network event OPEX Live 2018 now.
The 'How-To': Process Improvement at its Best
- The Service Improvement team started with a process capture workshop, inviting all the key stakeholders for the Keys-to-Key process.
- The team went on job-shadowing excursions to ensure that the processes as mapped were what actually happened in reality.
- As well as capturing the processes, the data was captured too. Using a bespoke properties file developed by Triaster, the team was able to automatically calculate the cost of every activity.
- Having mapped the AS-IS of the entire keys-to-keys process (about 280 process maps), many process improvement opportunities became visible.
- Starting to model the TO-BE New Charter's Service Improvement team investigated ways of replacing paper-based processes with mobile applications.
- These mobile solutions were then specifically designed to address the New Charter Group's key challenges and deliver reduced cost, reduced time taken and improved service.
- Because the cost of each activity had been calculated, the cost savings were clear.
The Results: Extraordinary Return on Investment
With just three team members, and supported by Triaster, the New Charter Service Improvement Team has delivered an astonishing return on investment:
- The Voids Process: Savings of £120k + £36K of savings per annum (first and second project)
- The Routine Tenancy Visit Process: Savings of £104K per annum (66%)
- The Surveyor's Inspection Process: Savings of £90.5K per annum (56%)
Total Savings: £350K per annum
Digital Team of the Year
Quite rightly the team were awarded with the Digital Technology Leaders Award 2017 for Digital Team of the Year.