The Importance of Developing Well Defined Business Processes
Though processes can seem mundane, their importance to your successful business cannot be overstated. A complete business process will cut across the entire organisation and not just focus on individual departments. Therefore, in order to be truly effective in business all businesses should engage in business process modeling and take a closer look at their processes and tweak or revolutionise as necessary.
In business, a sales process may start with looking at production and marketing, and ensuring the targets are set correctly. Those responsible for setting the price will be intricately involved as it is important to get the price right. A strong sales function will also be part of the process to close the deal. Then it will also be important for all the relevant and correct information to get back to accounting to ensure that invoices are correct and can be paid on time. All staff should understand the process as everyone has a role to play in selling the goods or services and keeping customers happy.
There are many advantages of having well-defined processes in your organisation.
1) Processes make a business competitive
Companies with defined processes are better able to evaluate their strengths and weaknesses and identify opportunities for improvement. They can improve the quality of their products and services and deliver more consistently to their customers, increasing customer satisfaction and loyalty. They are better able to cope with the unknown and react swiftly to changes in the competitive landscape. In short, process companies know when they are doing things right, and can more quickly course-correct when they are not.
2) Processes enable growth
By leveraging defined processes, it becomes easier to deliver new products and services quickly and efficiently, without ‘re-inventing the wheel’ every time. Processes provide a blueprint for new employees and enable cross-training to minimize business interruption in cases of illness or employee turnover. They enable your company to understand what roles to hire for and identify those skill gaps that are hindering success.
3) Processes drive profitability
A company with defined processes can find opportunities to improve efficiency without sacrificing quality and consistency. They can identify duplication of effort and spot areas that are being overlooked. They maximize the value of everything they do by ensuring it can be leveraged elsewhere, ultimately saving time – and money.
When processes are clear in your business, customer service improves. The incidence of staff responding “I don’t know” or “that’s not my job” should be reduced. Staff morale should also increase as management and employees know and understand their role in the business process.
Looking forward, it may very well be worthwhile to take a closer look at all processes in your business.
