The importance of Business Assurance to delivering continuous improvement

To manage this risk, for many organizations a Business Assurance practice has become a necessity in today’s dynamic digital age. So, in our latest World Quality Report - our annual global survey in which we reach out to 1,750 organisations in more than 30 countries to assess trends and attitudes in and around Quality Engineering and Testing - we wanted to understand the evolving role of today’s Business Assurance practice, and its heightened importance...

Delivering positive business outcomes

Business Assurance encompasses a systematic approach to determining business risks and focusing on what really matters. It consists of a comprehensive plan, methodologies, and approaches to ensure that business operation processes and outcomes are aligned with business standards and objectives. As such, Business Assurance has become an integral part of strategic business functions for many, and is considered imperative for long-term organizational success.

Organizations are finally recognizing Business Assurance as a necessity, and we think that is driving a fundamental shift in business culture today. We see more and more businesses adopting comprehensive Business Assurance practices to mitigate risks, ensure quality, promise reliability, maintain compliance, and safeguard the organization’s reputation and financial stability. Businesses are even diverging from traditional, set ways of functioning to adapt to Business Assurance principles, which is reassuring.

A paradigm shift: value over volume

One of the key trends of this year’s survey is the rapid adoption of a business outcome-driven approach across enterprises. Many businesses are now shifting from mere output to a results-driven mindset with value stream mapping (VSM). Value stream mapping is one of the key business drivers focusing on customer-centricity, adding value to the customer, and enhancing customer experience.

In this year’s survey, we find a sharp increase in the adoption of VSM and related techniques in optimizing the IT lifecycle - 71%, up by 11 % from last year. What we are witnessing here is that organizations are prioritizing value over volume, indicating that they are harnessing non-linear growth. VSM helps deliver business outcomes through a systematic approach. It defines, visualizes, and analyzes processes, and optimizes them by eliminating inefficiencies. It aligns all operational activities with customer needs and strategic goals.

The relentless road to continuous improvement

Another positive step in this direction is that there’s an increased acknowledgment that Business Assurance is not a one-step effort, but a continuous journey to ensure long-term organizational success. The fact that 58% of organizations are experiencing a shift in mindset and behaviors to get measurable business results, and 49% are building and sustaining customer trust by going beyond conventional testing KPIs, affirms this.

Organizations are embracing the culture of QE and continuous improvement to remain effective, relevant, and aligned with the changing needs of the business environment. But driving this improvement is not only about making incremental changes, it's also a strategic approach. This year’s study shows that 56% of organizations are aligning strategic business goals, products, and value streams, while 53% are leveraging fact-based measurable methods and monitoring.

Overall, 49% of respondents are measuring the numerous benefits, including increased efficiency, quality, innovation, and customer satisfaction. Meanwhile, 38% of organizations are prioritizing continuous improvement by changing their business mindset and driving incremental change to be better positioned to adapt, thrive, and achieve their long-term goals.

In summary...

This is just a snapshot of the report’s findings, so we’d encourage you to request a copy of the report to explore in more detail. What is clear is that Business Assurance has become an integral part of strategic business functions for many, and is considered imperative for long-term organizational success.

Our recommendations and summary:

• Leverage the testing function to deliver business outcomes. This will enable a fundamental shift in the organization’s culture and mindset to ensure that business operation processes are aligned with business standards and objectives.
• Use value stream mapping to strengthen business assurance. Align processes with customer objectives to mitigate risks, protect reputation, and further drive quality, reliability, customer satisfaction, and financial stability. Collectively, these factors create the conditions for improved business results and long-term success.
• Embrace change and foster a culture of continuous improvement. Prioritize continuous improvement to drive incremental change for sustainable success. Set goals, evaluate solutions, and iterate for ongoing growth. The scope of business assurance is massive and there is no one-size-fits-all solution when it comes to its application in enterprise processes. However, with mindful strategies that are hyper-focused on business outcomes, we can create thriving ecosystems that are ready to take on the future.

 

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