The Dangers of Process Hoarding in Business

In the ever-evolving landscape of business, the adage "if it ain't broke, don't fix it" often leads companies into the trap of process hoarding. This phenomenon involves maintaining outdated or redundant processes under the guise of "just in case." While seemingly harmless, process hoarding can clutter operations, distract employees, and stymie innovation. To navigate the modern business environment effectively, companies must critically evaluate their processes, retaining only those that genuinely add value.

The Impact of Process Hoarding

• Reduced Efficiency: Outdated processes often require more time and resources, slowing down operations and reducing overall efficiency.
• Employee Frustration: Employees may feel overwhelmed and frustrated by unnecessary tasks, leading to decreased morale and productivity.
• Increased Complexity: A proliferation of redundant processes can create unnecessary complexity, making it harder for employees to navigate and execute their tasks effectively.
• Stifled Innovation: Holding onto old ways of doing things can hinder innovation, as employees may be less likely to suggest or embrace new, more efficient methods.
• Reduced Efficiency: Outdated processes often require more time and resources, slowing down operations and reducing overall efficiency.
• Employee Frustration: Employees may feel overwhelmed and frustrated by unnecessary tasks, leading to decreased morale and productivity.
• Increased Complexity: A proliferation of redundant processes can create unnecessary complexity, making it harder for employees to navigate and execute their tasks effectively.
• Stifled Innovation: Holding onto old ways of doing things can hinder innovation, as employees may be less likely to suggest or embrace new, more efficient methods.

Identifying Processes to Retain or Discard

To combat process hoarding, businesses need a systematic approach to identify which processes should be discarded, evolved, combined, or retained. A modified version of the Japanese KonMari method, typically used for decluttering homes, can be a valuable framework. This approach involves asking critical questions to determine the value of each process.

1. Does This Process Help Us Meet Our Business Goals?

Every process should be aligned with the company's strategic objectives. If a process no longer contributes to the achievement of these goals, it's a candidate for elimination.

Example: A company may have a detailed approval process for small expenses established when budgets were tighter. If financial conditions have improved and the process no longer contributes to cost control, it may be time to streamline or eliminate it.

2. Does This Process Bring “Joy” or Value to Our Company, Owners, Stakeholders, and Customers?

Processes that bring "joy" may seem like a peculiar concept, but in a business context, this translates to processes that add clear value, enhance customer satisfaction, or improve stakeholder relationships.

Example: A customer feedback loop that consistently yields insights leading to product improvements and increased customer satisfaction is a process that brings joy and should be retained and possibly enhanced.

Steps to Manage Process Hoarding

1. Conduct a Process Audit: Regularly review all business processes. Create a comprehensive list and assess each one against the modified KonMari criteria.
2. Engage Employees: Involve employees in the evaluation process. They often have first-hand insights into which processes are cumbersome or outdated.
3. Categorize Processes: Dump: Remove processes that no longer serve any purpose. Evolve: Update or modify processes that have potential but need refinement. Combine: Merge similar processes to eliminate redundancy. Retain: Keep processes that are efficient, effective, and aligned with business goals.

Implementing Changes

Once the audit is complete, it’s crucial to implement changes methodically and transparently.

1. Retire Old Processes: Clearly communicate which processes are being retired and why. Provide training and support to ensure employees can transition smoothly to new or updated processes.
2. Update Documentation: Ensure all process documentation is up-to-date. This includes manuals, guidelines, and training materials.
3. Monitor and Adjust: After implementation, continuously monitor the impact of changes. Be prepared to make further adjustments based on feedback and performance metrics.

Communicating with Employees

Effective communication is vital to the success of this endeavor. Here’s how to ensure your team is on board:

1. Transparent Communication: Clearly explain the reasons behind retiring old processes. Highlight the benefits, such as improved efficiency and reduced frustration.
2. Training and Support: Offer comprehensive training on new or updated processes. Ensure employees know where to find resources and whom to ask for help.
3. Feedback Mechanisms: Establish channels for employees to provide feedback on the changes. Use this feedback to make further refinements and show employees their input is valued.

Conclusion

In a business world that’s constantly changing, clinging to outdated processes can weigh a company down, leading to inefficiency, employee frustration, and stifled innovation. By adopting a modified KonMari approach to process evaluation, businesses can streamline operations, enhance employee satisfaction, and stay agile in the face of new challenges. Remember, the goal is not just to discard the old but to refine and retain what truly adds value. Engage your employees in this transformation, communicate clearly, and provide the necessary support to ensure a smooth transition. In doing so, your company can shed the burden of process hoarding and thrive in a dynamic business environment.

Andy Ziegler

President, Tempest Risk Management

www.tempestrisk.com