10 Steps to Increased Profits through Process Improvement and Re-Engineering

Business process efficiency has never been more crucial than it is today. Rapid shifts in market dynamics, customer expectations, and technological innovation are challenging companies to adapt faster. To stay competitive, many organizations are re-evaluating their operating models and re-engineering internal processes to strengthen their profit and loss (P&L) performance.

WHY RE-ENGINEERING MATTERS

Change in business is constant and accelerating. The main goal of business process re-engineering is to help organizations adapt their infrastructure, outperform competitors, and thrive in a fast-evolving market.

When companies consider adopting platforms and SaaS implementations such as Salesforce, they usually aim to address three main challenges:

• Building efficient, scalable processes that outperform the competition.
• Selecting and implementing the right IT platform or custom solution that meets automation and digitalization needs.
• Integrating new platforms safely and quickly with existing enterprise systems.

The first challenge, building efficient processes, is the foundation for all others. It requires a holistic view that considers the organization’s marketing strategy, innovation plans, growth potential, and shareholder ambitions.

KEY STEPS TO BUSINESS PROCESSES IMPROVEMENT

1. Investigate

Start by examining your company’s current P&L statement to understand major cost groups, customer segments, and the channels that drive most sales. This visibility helps identify pain points and areas for improvement. For example, if production or advertising costs are rising faster than sales, it’s time to investigate why.

2. Analyze

Identify which processes are lagging and causing inefficiencies. Focus first on processes directly tied to revenue, those that can’t be outsourced, such as sales, marketing, procurement, production, or service delivery.

3. Assume

Use your P&L to build assumptions. For example, estimate how much your bottom line could grow if one process improved by a certain percentage. Financial modeling and business case preparation can help prioritize where to act first.

4. Prioritize

Prioritize improvement projects that promise the biggest potential impact on your P&L. Consider both feasibility and resource needs. In many organizations, sales and marketing rank first, followed by procurement, then HR processes like hiring and performance management, especially where payroll makes up a large share of expenses.

That’s why most modern automation platforms start with CRM systems. They help streamline the sales funnel and drive measurable results.

5. Postpone

Not every process deserves equal attention. Identify those that won’t have a visible effect on P&L, such as R&D, document management, or administrative tasks. These are often important for long-term strategy but may not immediately drive profit growth. Deprioritize them for now to keep focus on high-impact areas.

6. Describe the as-is state

Once the top three to five priority processes are identified, describe and visualize them in their current (as-is) form. The most efficient way is through Business Process Management (BPM) tools using BPMN notations, many of which are free at a basic level.

This step typically involves a senior leader and a business analyst or process owner. If your team is unfamiliar with BPMN, consider simpler tools like the RACI matrix or the Suppliers, Inputs, Process, Outputs and Customers (SIPOC) approach to map out processes clearly.

7. Estimate costs and effectiveness

After documenting your priority processes, estimate how much each step costs. This helps you see where restructuring could deliver the greatest value. Rough cost and efficiency estimates can reveal clear opportunities for re-engineering or cost reduction.

8. Apply the right frameworks

Use established frameworks to guide improvements:

• Lean for systematic optimization and waste reduction.
• Design thinking or service design for enhancing client-focused processes.
• Or simply apply common sense — question each step with “Why?” to determine its real value and whether it can be done more efficiently.

9. Launch the to-be version

Once your improved (to-be) process is defined, formalize it and monitor adoption. Ensure that the new procedure is followed consistently and analyze the impact, whether through higher income, reduced expenses, or greater speed and quality.

10. Move to automation

With core processes optimized, turn attention to lower-priority areas and assess their automation potential. However, avoid automating before understanding the current process state. As process experts often say, “You can automate chaos, but it will remain automated chaos.”

CONCLUSION

Improving business processes can seem complex or overwhelming, but starting small and focusing on the most impactful areas can bring meaningful results fast. The framework above helps you approach digital transformation with clarity and confidence.

SoftServe has helped hundreds of clients identify and prioritize the most valuable changes to their operations through experienced, methodology-driven consultants. Our teams excel at facilitating complex discussions, aligning stakeholders, and translating ideas into measurable outcomes.

Let’s talk about how SoftServe can bring clarity to your vision, strengthen your planning, and accelerate your journey toward efficient, automated, and optimized processes.