Steps 4–5: Estimate Time and Cost and Verify the Process Map
Introducing Process and Cycle Time and Gaining Buy-In
Alistar Corporation's compensation department understood its business process for granting recognition bonus awards to employees, but Stuart Wang, the director of compensation, wanted to know what it cost to administer the business process. This step identifies what a single business process costs an organization. Throughout this chapter you will see how I answer Stuart’s question using simple formulas that you can use.
The process map you drew in step 3 provides you with the information required to handle this step. At the end of this step you will know how long the process takes and how much it costs.