In a previous article, we looked at the importance of as-is process mapping and referenced the capture of all instances of ‘process variation’. So, what is process variation and how can it harm your business?
Process Variation vs Process Deviation
Before we dive into any detail, let’s get one key point out of the way and that is the difference between process variation and what we refer to as ‘process deviation‘.
Process Deviation
Process deviation occurs when there is a decision point in a business process. The outcome of that decision determines what steps will follow. For example, if there was a decision point ‘Check product for defects’ then there would likely be at least two different paths to be followed. One for what to do when defects were found, and another for when there were no issues. This is perfectly normal within a process – decision points occur all of the time and will result in some form of process deviation. The important point to understand is that process deviation is recognised as part of the agreed way of working.
Process Variation
This is where the ‘same‘ task is performed differently depending on factors such as who is performing it or who it is being performed for. It can often go under the radar, with the only person knowing about it being the person doing it.
How About An Example?
Every month, standard reports are produced and sent to clients. One client asks for some additional information to be added to their report. They have a good relationship with Bob, the person responsible for producing their report, so he just adds it in every month to maintain the relationship. Whereas there was previously just one process to produce the standard report, there are now two.
This is typical of how process variations come about. In most cases, it is down to someone or a very small group of people trying to improve the way they work or attempting to deliver an amazing service to customers. At face value, so what? The problem is that unless that variation is tracked, it can present problems down the line.
How Can It Affect Your Business?
Let’s take that same example. Bob’s updating the report before it goes out every week. The client’s happy. Bob thinks he has done a good thing. But, what happens when Bob goes on holiday? If the variation isn’t known, then the client is going to get the old version of the report when someone else provides it. The client gets annoyed that the report is ‘wrong’, the person providing it feels frustrated that they are getting moaned at about something they knew nothing about.
This is a fairly low impact example, but what other issues can untracked variation be causing you?
- Increased risk through controls being bypassed
- Delivery of services which aren’t being paid for
- Breaching regulations
- Increased errors
- Client dissatisfaction due to inconsistent service
- Increased delays due to inefficiencies unwittingly being introduce
How Can It Be Controlled?
Variation in itself isn’t necessarily a problem, but untracked variation certainly is. If no one (other than the very limited few) knows about it. then it becomes impossible to control and make a decision as to whether it is acceptable or not – and that is a key point.
Not all variation is a bad thing. It could be that some variation is acceptable and help to drive process improvement. For example, Bob’s intervention might be ok for ‘gold tier’ clients – it’s something that differentiates the service to a valued client. However, this variation needs to be documented so that it can be assessed and, if appropriate, formally implemented. At this point, it could be the case that the variation effectively becomes a deviation. The important thing is that it is documented so that the impact is fully understood. Documentation also means that the variation or deviation can be shared amongst the relevant people to ensure understanding and consistency.
TL;DR What Is Process Variation?
Process variation refers to the way the same task is performed differently depending on factors such as the person doing it. It can go unnoticed but poses risks to businesses. Unlike process deviation, which is recognised and part of the agreed way of working, variation is often untracked and can lead to problems such as increased risk, regulatory breaches, errors, client dissatisfaction, and inefficiencies. To control variation, it should be documented, assessed, and, if appropriate, formally implemented to ensure understanding and consistency in the organization’s processes.