Service-based businesses are becoming popular because they allow flexibility in the type of work done. One way to keep up with all these changes is by setting up processes for all your workflows.
Business processes are actions or steps to achieve a particular goal. To succeed, a company must have efficient and effective processes. Standard operating procedures (SOPs) allow employees to be on the same page and understand what’s expected of them and why.
In this post I will be exploring some of the ways business processes can be improved. You can start by conducting a process audit to identify inefficiencies and areas for improvement. Another critical point I will discuss later in this post is process improvement tools and techniques.
Benefits of Having Business Processes
You can improve your company’s processes by doing the following:
1. Optimise employees’ performance and boost efficiency
2. Standardise customer service
3. Improve quality
4. Reduce costs and waste, and
5. Improve customer satisfaction
How To Improve Your Business Processes
There are many ways to improve business processes, and the best approach will vary depending on the specific needs of your business. Business owners can generally follow common steps to improve their business processes and achieve significant lasting success .
Define Your Business Processes
Every business has different processes that are distinct depending on the industry, size, and other factors. But then, you can start understanding your business processes by looking at the following.
● What are the steps in each process?
● How long do they take?
● How many people are involved?
● How much do they cost?
● And how do they influence other processes?
Getting specific about each process can help you understand what causes them to fail and how to fix them.
Determine Which Processes Are Out of Balance
An out-of-balance process could signal inefficiency and negatively impact your business. The most common imbalances occur when you have too much emphasis on one step (or person) in the process.
Identify Redundancies and Inefficiencies in Processes
Redundancies and inefficiencies are common problems that can be hard to detect. Consequently, they can become so quickly normalised in the day-to-day running of your business that they get overlooked.
To make redundant processes identifiable, here is a list of common indicators of inefficient systems and processes:
● Frequent miscommunication
● Unjustified operational cost
● Lengthy hiring process
● Low customer satisfaction
Create a Roadmap to Fix the Problems
Identifying which processes have problems is one thing but how do you fix them? For each process, you’ll create a roadmap for improvement. Here are simple steps to take.
1. Document Your Processes
Standard operating procedures (SOPs) are more than just documentation; it’s about business growth. Many businesses are using SOPs as a component of their business strategy. They develop simple policies that make it easier for staff members to understand company expectations. These procedures also reduce human error and encourage positive working attitude.
2. Hire an OBM (Online Business Manager)
An OBM virtually manages the daily operations of your business. They design systems and strategies tailored to the goals of your business as well as oversee the implementation process.
If you need OBM services you can learn more about the various ways we can support your business by downloading our service brochure.
3. Invest In Employee Training
Most of the time, inefficiencies are due to either a lack of human resources or an inadequately trained workforce. Reviewing the roles within your business is worthwhile and so is assessing whether individuals in those roles are qualified. Where this isn’t the case, this is undoubtedly an area of improvement that a company should prioritise.
Process Improvement Tools
Below are examples of process improvement tools that can immediately get the ball moving in your business.
- Fishbone Diagram
- 5 Whys Analysis
- Force Field Analysis
- Pareto Chart
- Workflow Analysis Software
Conclusion
Business processes dictate how your company operates. So then, if your methods are out of balance, redundant or inefficient or too complex – it could be a sign that your business is at risk of failure. Why not start assessing where changes can be made?
Are you a solo business owner? Staying productive can often be a struggle. You may find our productivity checklist helpful.
