Business Analysis
Business Analysis and Process Management
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How do Business Analysis and Business Process Management  Work Together SiteMap

Business Analysis is part of all types of organizations. All too often business analysis focuses on expenses and the comparison of actual expenses versus budget. A poll showed that 27% of companies felt their budget was obsolete even before the new year started and 67% felt the budget was obsolete within 6 months of the year starting.

Budget to actual variance analysis is not a good use of time and can lead to poor decisions.

  • If sales volume is higher than budget than it may be reasonable that shipping, production, and call center expenses may also be higher than budget.
  • On the other hand if sales volume is less than budget, but shipping, production, and call center expenses equal budget, then this may indicate a real problem even though these departments are at budget.

Successful Business Analysis must de-emphasize comparisons of actual versus budgeted expenses. They may even want to consider giving up the budgeting process and replacing the annual budget with quarterly forecasts.

Success Business Analysis needs to include Business Process Management. Business Process Management looks at

  • cost
  • cycle time
  • quality
  • customer satisfaction

over an entire enterprise as well as over complete processes.

For example, if purchasing in a hospital buys lower quality cement used for hip replacements because lower quality cement is cheaper, it may actually be more expensive. If a surgeon performing the hip replacement has problems getting the cement to set up or if the cement does not hold as well and the hip surgery has to be redone, then that cheaper cement was actually more expensive.

Think about your own organization and how one cost center or one department can increase the expenses of another department or increase the expenses of the entire organizations.

So successful organizations need to incorporate process management when doing business analysis.

 Call John Antos, Jim Brimson or Pat Dowdle at 972-980-7407

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Find Out How Process Management Improves Business Analysis

Have a Process Management Consultant contact me


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Dallas, TX 75248

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