Developing purposeful processes

In business, how you operate the business is just as important as winning new customers and increasing revenue. If you increase revenue but operate the business inefficiently, the operating costs for the business will also increase, eroding your profit margin.

What is a process?

A process is a repeatable way of doing something. It is documented. It can be followed by others without confusion or explanation. Its power is that is breaks down multi-step actions that you need to accomplish to run your business, and it allows others (not just the original knowledge holder) to follow a similar way of doing something.

Processes save time. It is easier to complete a task when you have instructions to follow. A good process eliminates unnecessary steps or actions

You may find that with clear instructions, you need fewer people to complete the task.

Processes create flow. Flow is a way to describe a business state where the work is getting done effectively and efficiently.

What processes does your business need?

Consider the impact on the business if you were no longer able to complete those actions. Who could step in and assume those responsibilities? Those are the areas to focus on first.

How do you develop processes that really work?

A process that works is one that can be followed relatively easily and accomplish the desired action.

A good process eliminates unnecessary steps or actions.

Focus on the areas that support your key priorities.

For highly repeated actions that support your key business priorities and those that are necessary for your business to function (i.e., paying outstanding invoices, bookkeeping, and compliance), put processes in place.

Start with your top 3.

Write down every step necessary to complete the given activity.

Use this rudimentary list the next time you complete the action.

Revise it as needed to reflect what you actually do in practice.

Identify any steps that you have determined are not necessary to complete the task.

Be sure to identify any technology or other tools necessary to complete the process steps.

Revisit at least once a year to determine whether the process still tracks with the work actually taking place.

If it doesn’t, it is time to update the process or retrain people to ensure they have the skills and understanding needed to follow the existing process.

Here’s to more business birthday!

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