Finding and Eliminating Unprofitable Business Processes in a Distressed Business

p>If your business is distressed and you arewithout a sales force, but in these dire times, maybe
undergoing a turnaround process to save it, you willyou can. In any case, those products and services
need to identify and streamline nonproductivethat you identified as losers will lead you to the
processes. To accomplish this you will first analyzeinternal business processes that you need to
the products and services of the organization. Thesestreamline or remove altogether.
will lead you to the unproductive business processes.You can almost certainly cut the entire catalog
If you have ever spent time analyzing an invoicedepartment because the company can live without a
register to identify profitable revenue streams in acatalog for the next few months or until it can be
product-oriented business, a similar logic can berevisited.
applied to the service-oriented business. As youYou may also consider outsourcing the customer
identified products that are unprofitable, you will needservice function or having the technical support
to identify those services that are unprofitable.department pick up those additional calls by increasing
Business Processesthe wait time on the incoming customer service lines.
After you have reviewed the various products andThe information systems department will likely have
services and identified the losers and winners, you willto stay. But this will give you an idea of the process
need to look at the individual processes. For thisyou will need to undertake. First of all, make a list of
discussion, consider business processes to be theall of these processes.
different functions like Customer Service, InformationThen, with your turnaround team, go down the list
Systems, Purchasing, Accounting, Sales, Humanand identify those functions you can delete entirely
Resources, and so forth.and those that are core to the business. This process
You will need to look at each of these and determinemay sound harsh, but your entire business may be at
which of them can be deleted from the business. Atstake so in light of that, it has to be done.
first glance, you might think that you cannot live