Workflow Optimization: Benefits, Challenges and Optimization Steps

Development with which conditions, markets, and competitors change in everyday work is increasingly dynamic. It is becoming increasingly important for companies to optimize their work processes – especially adopting workflow optimization to increase productivity.

Definition: What does workflow optimization mean?

Workflow optimization describes analyzing and improving work processes within an organization. The overarching goal is to increase the workflow’s efficiency, quality, and sustainability.

Recurring steps should be automated or eliminated, employee communication improved, and resources (time, capital) used more effectively. Workflow optimization is located in workflow management. Automation tools that enable more efficient workflows based on digitization and artificial intelligence are a means to an end.

What is the difference between workflow and business process?

The terms business process and workflow are mostly used synonymously in this context, but there is a difference.

A workflow refers to the specific sequence of individual, operative work steps that can occur as part of a business process. Business processes, in turn, are an overarching concept that can include multiple workflows. They describe the holistic sequence of multiple activities required to achieve a business goal.

Whenever workflow optimization is mentioned, the optimization of operative work steps is always mentioned – at least theoretically. However, practice shows that a clear separation between workflow and business process in automation is impossible.

Benefits of workflow optimization

When a company commits to strategic workflow optimization, it reaps several benefits from automation :

1. Increased efficiency: By optimizing recurring processes and improving communication, work processes are accelerated, increasing efficiency.
2. Cost reduction: One consequence of the increase in efficiency is cost reduction – by reducing or simplifying complex processes and improving the use of resources, costs are reduced in the long term.
3. Quality improvement: The number of errors decreases, especially when previously manual and error-prone workflows are improved and optimized. Digital support reduces the potential for errors, and in some cases, critical workflows are eliminated to take the “human source of error” out of the process.
4. Employee and customer satisfaction: Customers benefit from improved and optimized workflows – especially in the areas where they are directly involved. This applies to customer service, for example. In addition, employees are happier when sometimes complex processes are simplified through workflow optimization.
5. Competitive advantage: Those who devote themselves to workflow optimization gain an improved market position. In the long run, this can lead to acquiring new customers from the competition.

 Another advantage of optimizing work processes in workflow management is that processes become more transparent. It is especially true if there was no clear structure beforehand and “one hand didn’t know what the other was doing.”

Challenges in workflow management

Despite the obvious benefits and research supporting workflow automation and optimization, there are challenges in workflow management. These often prevent organizations from implementing:

• Change Management: Employees can perceive changes as a threat – for example, because they fear losing their job. This often creates resistance to change, which does not make change management easy(er).
• Integration of technologies: Introducing new tools and workflow systems can lead to problems and requires know-how, training, and adjustments – many entrepreneurs and decision-makers shy away from this.
• Fast pace: Technologies are evolving rapidly, especially in recent years. Many shy away from introducing a specific workflow optimization tool because it could already be outdated when they go live.

5 steps to optimized workflows

The challenges are there and cannot be ignored. Nevertheless, you should deal with workflow management in your company. A clear strategic plan, which usually consists of five steps, helps here:

1. Analysis of the status quo: As a first step, examine your current workflows. Identify inefficient processes, weaknesses, and potential for improvement. Practical tip: Note whether previously manual processes should remain manual, could be digitized, or must be digitized.
2. Planning and tool selection: Develop a plan to optimize, digitize, automate, or eliminate the identified processes – depending on the approach and purpose. During this, also set priorities and select the appropriate tools. The last step is useful if you optimize individual workflow areas, such as the customer service department.
3. Implementation: Execute your plan, ensuring changes are consistent with your organization’s goals and needs. This also means change management – take your employees by the hand and communicate changes early and transparently. This is the only way everyone can pull together.
4. Monitoring and controlling: Monitor the performance of your optimized workflows and ensure that everyone involved is constantly informed about the current status. This also includes employees.
5. Continuous Improvement: Gather feedback from your employees to identify further optimization opportunities. What is already going well? Where is there further potential? Then adjust your workflows as needed.