Process Decay
Business Process Management Requires Monitoring of Process Decay
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What is Process Decay? SiteMap

James Brimson in his book "The Handbook of Process-based Accounting, Leveraging Processes to Predict Results published by American Institute of Certified Public Accountants, says:

  • "process decay is the deterioration of the value creation potential of process that occurs over time. The deterioration is caused by changes in the factors that influence value, such as
    • the economy
    • competitors
    • technology advances
    • changing product mix
    • process capability
    • process capacity

    All processes decay at different rates depending on the rate of change of external factors.

    Value Creation potential depends on degree of process decay and how effectively an organization overcomes process decay by way of process improvements."

The above checklist is a good starting point when reviewing your processes. Although it is not all encompassing, it does get you thinking on what organizations need to consider when performing a process review.

Just remember, life and processes are like going walking up an escalator that is going down. As soon as you stop walking up the escalator that is going down will take you to the bottom. Likewise with processes, as soon as you stop improving your processes either your own organization, technology or competition will cause you to be less effective.

Call John Antos, Jim Brimson or Pat Dowdle at 972-980-7407 to find out more about Process Management.

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