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PE & Operations

What Is Process Optimization?

Analyzing and improving business processes to increase efficiency, reduce costs, and eliminate waste, often combined with AI automation.

Process Optimization Explained

Process optimization is the practice of making business workflows faster, cheaper, and more reliable. It starts by mapping how work actually flows today (not how you think it flows), identifying bottlenecks, and implementing improvements.

The most common approach is value stream mapping: documenting every step in a process, measuring time and cost at each step, and identifying steps that add no value. In most businesses, 30-60% of process steps are waste (waiting, rework, handoffs, approvals that add no value).

After identifying waste, the solutions range from simple (removing unnecessary approval steps) to complex (implementing AI automation to handle entire workflows). The best optimizations combine process redesign with technology.

Process optimization is not a one-time project. Businesses evolve, and processes drift over time. The most efficient companies run continuous improvement cycles, reviewing key processes quarterly and measuring efficiency metrics.

Why Process Optimization Matters

Most businesses run on processes designed years ago for a smaller operation. As the company grows, these processes break down. Process optimization is how PE firms extract 10-20% cost savings from portfolio companies in the first 100 days.

Common Mistakes

  1. 1

    Automating a broken process instead of fixing the process first

  2. 2

    Optimizing for speed without considering quality and error rates

  3. 3

    Skipping the mapping step and jumping straight to technology solutions

Frequently Asked Questions

How do you identify which processes to optimize first?

Prioritize by impact and frequency. Start with processes that run daily, involve multiple people, and directly affect revenue or customer experience. Common starting points: lead follow-up, customer onboarding, invoicing, and appointment scheduling.

What is the difference between process optimization and automation?

Process optimization improves how work flows (fewer steps, less waste, better handoffs). Automation uses technology to execute steps without human effort. Best results come from optimizing first, then automating. Automating a bad process just makes bad things happen faster.

Ready to Put This into Action?

Book a Discovery Call. We will show you how Attainment can help with process optimization and more.

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