Our previous post on Transaction Cost Economics made us pause and think for a moment.
Why are we so fixated by process, yet so bad at the design aspect of the process?
By this question we mean the following:
Process design is focussed on capturing the greatest number of transactions or interactions and to efficiently and effectively ‘process’ them.
Yet all processes have EXCEPTIONS. If so, why are we so bad at designing Process Exception mechanisms?
Pareto efficiency is fine and there always has to be a cost benefit analysis of the value added in every process, but we miss or frustrate too many users by not moving beyond the confines of the cost-benefit, by just leaving the ‘Exceptioners‘ dangling, frustrated and bemused. If the old adage holds true that one negative word of mouth feedback is the equivalent of 10 positive comments, then that 10% exception item begins to be of major concern. Even at a lower tolerance threshold of say 5% exceptions and negative experiences, the risk and cost associated with negative customer / client feedback seems worth the effort to pay a bit more attention to managing the DESIGN and process loops to effectively deal with the exceptions. We’ll leave efficiency at the front door for the moment…
- Transaction Cost Economics is ruining everything!!! (themarketsoul.com)
- Cost-Benefit Analysis (survivalofthefittestfinancial.wordpress.com)
- Business Processes and Organisational Design (manindersinghblog.wordpress.com)
- Six Sins of Process Design (anthonyroach.wordpress.com)