Optimization of company management: what is it and why is it needed

Optimization of company management is a process of constant and systemic influence on the functioning of their internal structures, and on interaction with external objects in the market – on competition, supply and consumption, and general cooperation.

Why are the old management methods no longer effective?

For a long time, such management was personalized, and was based on the influence of the personalities of managers on these processes.

They built a rigid management hierarchy, strict rules and formal procedures. Regulations reduced the risks of human errors and made them predictable. Productivity was measured according to previously established criteria.

Modern management

It should focus on flexibility, creativity, and employee engagement:

1. Flexible management levels – in a minimum number, maximum employee autonomy, for quick response to changes.
2. Adaptability with changes in situations and current business needs.
3. Employee performance assessments based on contributions and achievements.
4. Motivation for development, involvement in training for self-realization and professional growth.

Conclusion: it is convenient to work with traditional management in a stable business environment. But the dynamics of development require the use of modern approaches.

Moving away from routine and the human factor, moving towards automation

The rigid hierarchy and routine in office work were caused by the existing level of technology.

For example, Excel spreadsheets are bulky and difficult to master. They greatly accelerated the manual processing of information, but in order to work with them, it was necessary to take entire courses. Now the data is processed by a single command.

When automating management, complex algorithms implement interaction with the market. Now it is no longer a whim, but a necessity.

Automation is not a trend, but survival

The modern market means huge amounts of information and the speed of their exchange. Effective automation of enterprises and industries is required for process management.

Automation as a competitive factor

Automation optimizes processes, eliminating human errors and reducing costs. Factors that enhance the ability to compete are achieved:

1. The speed of reactions to market requests increases.
2. Costs are reduced due to the robotization of production, automation of operations in management.
3. Services are improving in quality, excluding the human factor.
4. Instant adaptations to inventory and demand.
5. The demands on the qualifications of ordinary personnel are reduced.

Gartner predicts that by 2027, two thirds of companies will become competitive due to automation.

What tasks can be automated right now?

Functions that are already being successfully automated:

1. Accounting with salary management.
2. Personnel issues, their reception and relocation.
3. Content marketing for the creation and dissemination of information.
4. Manage tasks and track their completion.
5. To process databases.
6. Preparing, receiving, and sending applications, reports, notifications, and newsletters.

The degree of implementation depends on the level of requests.

Examples of tools

Popular current tools can be:

1. Make.com – to visually display processes, integrating with popular services and networks.
2. Zapier is a Russian designer of process control and web applications, repetitive tasks. When receiving emails, messages, performs the prescribed tasks.
3. Trello – visualizes tasks using whiteboards, lists, and flashcards. It plans by syncing with the calendar.

The tools are available in browsers and mobile devices. They do not require programming knowledge, and they are handled at the user level.

What should be automated first?

Areas with urgent problems and manual labor, repetitive tasks, are the first to be automated. Among them:

1. Finance with accounting.
2. Sales processes through CRM with newsletters.
3. Document management with electronic signatures of EDI – papers disappear.
4. Manage the current tasks of project workers.

An example of enterprise management at all levels is the universal Russian CRM complex Bitrix 24. Efficiency, simplicity, and coverage of functions are achieved.

Control and analytics as a measurement of automation success

Efficiency is measured by methods:

1. Performance analysis based on time, errors, and resources.
2. Quality assessment by standards.
3. Cost analysis.  This includes system analytics in BI accounting.
4. Comparison of planned and actual indicators.

Diagnostic and predictive analytics are used, as well as prescriptive ones, to delegate decisions to the system.

Comprehensive KPIs performance indicators are KPIs for five groups: KPIs based on results, expenses, functioning, productivity, and efficiency. Based on KPIs estimates by departments and employees, the system develops solutions for business process planning, responsibility allocation, and staff motivation.

The results and recommendations are conveniently visualized by the services integrated with the system. This is a convenient method of interpreting analysis results (for example, sales) compared to manual methods.

Automation as a part of corporate culture

Most people are wary of innovations. It is necessary to form a positive perception of automation, showing its usefulness, including for employees:

1. Transparency and clarity of processes, thus reducing stress.
2. With the exception of routine tasks, switch employees to important and creative tasks.
3. Involve colleagues and departments at different levels in cooperation, and encourage suggestions for improvement.
4. Automation eliminates mistakes and misunderstandings, increasing trust.
5. Recognize achievements that are easily recorded by the system.

The effectiveness of engagement and recognition of automation by the corporate culture will increase with comprehensive employee training. This will bring an understanding of the importance and necessity of automation for the success of the enterprise.

Business process optimization: purpose, objectives and content

The goal of optimizing business processes is to make them productive, and the company successful and competitive, with growing profits and prosperity. We need to fulfill the following tasks: improve the quality of products and services, build satisfaction with the target audience, increase performance, and scale the business on this basis.

To do this, bottlenecks are identified, new processes are being developed and implemented. Tools are used for this.:

1. Lean – improves processes in development and projects, reduces cycle times, eliminates redundant operations in logistics, and promotes thrift. The technique was first introduced by Toyota in the 1950s.
2. The Six Sigma tool is to identify, measure and analyze, improve and control. It is used to reduce defects and parameters that cause consumer dissatisfaction. It is being implemented by Motorola, Microsoft, and Nokia.
3. BPM – comprehensively manage the company’s business processes, rather than divisions, to increase customer loyalty and product profitability.
4. Agile is a method of project work in processes with high uncertainty. It allows you to flexibly build interaction in the development team.

These are examples of interrelated concepts and methodologies (except the last one) aimed at complex optimization of enterprises. Each tool has its own niche application.

Key issues

Even the most advanced systems have disadvantages. Today’s Automation Challenges:

1. Staff control is lost due to a misunderstanding of how things go wrong.
2. Lack of flexibility for changeable processes.
3. High cost of implementation.
4. Threats of unauthorized access via the Internet.
5. Staff resistance leads to a slowdown in implementation.
6. Operator input errors.
7. It is difficult to integrate with other systems.
8. Dependence on the supply of licensed hardware and software.
9. The need for technical support and regular updates.
10. Lack of qualified personnel.

An important disadvantage is that the level of analysis is determined by algorithms that are prepared by humans. In this regard, an important prospect is the introduction of DeepTech technologies (USA) to solve business problems. With the coverage of national scientific structures, the use of supercomputers and AI. They work in particularly competitive sectors.  Their solutions require long–term scientific research and large investments to solve fundamental problems.

In Russia, fintech is being developed by Yandex, , and . These are new approaches to optimizing management.

A set of tools and technologies

Different levels of tools are used to automate work and business, optimize management, improve customer interaction, and speed up processes:

1. Make.com – a platform with powerful integration of various services, which has a visual interface like a constructor with fast feedback.
2. The Zapier platform integrates with five thousand services, with its own templates and instructions. It is convenient for beginners. Make and Zapier automate email marketing, publications, and advertising.
3. CRM is a comprehensive management of business processes in trade. 1C CRM, Megaplan, Bitrix 24.
4. ERP programs for general business process management of a manufacturing company in financial accounting, procurement, human resources, warehouse, and marketing. The best systems are 1C, Oracle ERP Products in the West.
5. The BI – software package helps to collect, systematize and visually display the analyzed data.

These programs and complexes help to optimize the business in various directions. They are designed for different levels of automation structures. Together, they help optimize management, improve customer interaction, and speed up processes.

Conclusion

Modern management optimization systems and tools make it possible to effectively manage business processes at individual sites and in companies. They still lack flexibility due to a large part of the human-dependent processes. This problem will go away with their integration with artificial intelligence and interaction with the market at a higher level.