Improving Business Excellence in the Business Process; A single case study focusing on processes and people

Abstract

Background: Business Excellence (BE) frameworks have become increasingly popular in the endeavour for superior business performance and strengthened competitiveness. For BE efforts to prove useful it is important to consider both company processes and the people working in an organisation. SKF Actuation System is a business unit that has implemented BE, but is currently struggling to realise the benefits of the BE efforts. Research Question: How can SKF Actuation System improve Business Excellence in its business process, viewed from the perspective of the “Finance” function, with regards to aspects of processes and people? Methodology: The research was qualitative, and carried out as a single case study. The research approach was mainly inductive with some iterative influences. The data was gathered from semi-structured interviews, observations and documents, and the findings were analysed using a flowchart and thematic analysis. Findings: There is insufficient understanding of the business process among the employees, although many people stress that it is important to have a holistic understanding of the business process. Documented work descriptions are often missing and areas of responsibility are sometimes not clearly defined. Information sharing has improved after a re-organisation, but can still be improved. Many employees focus on short-term problem solving instead of attempting to find the root cause of problems. Conclusion: In order to improve BE, enhanced understanding of the business process is needed. This will allow employees to better understand how activities are connected. It is also important that the business process is measured and followed up in more detail. Furthermore, tasks and roles need to be standardised, clarifying what tasks should be carried out by whom. This will provide a basis for improvements. Employee empowerment and involvement should be addressed in order to increase employees’ motivation and commitment to tasks and problem solving. Finally, the organisation must improve the collaboration within and between its business lines in order to achieve BE.