What Are Business Processes?
The definition of a process is “a systematic series of actions directed to some end.” A business process, then, is a series of actions that achieve an end or goal for the business. Business processes are used every day, and they range from something as simple as a McDonalds employee making a Big Mac sandwich to a manager setting a marketing budget. It’s something that the company uses to accomplish their mission.
Business owners choose to create processes and train their employees in them for many reasons. These would include increasing:
As well as decreasing or eliminating:
- Unnecessary time and motions
- Risk of injury
Exit Coach Radio Podcast
In this podcast Vincent talks about how owner dependency affects a business’s valuation and salability in a very negative way. Almost 89% of businesses are still reliant on the business owner to operate, according to the U.S. Census. This means that the vast majority of owners who would want to sell their businesses have real work to do if they want to see their companies sell for a price that will meet their needs moving forward into retirement or future economic endeavors.
Click here to listen.
Business Process Management (BPM)
While implementing individual processes within a business can have excellent results in specific areas, implementing a system of managing all of those processes can push a business from effectiveness into excellence.
What is BPM? It is “a systematic approach to making a company’s workflow more effective and reliable for better understanding.” If every process increases efficiency and effectiveness, and all of the processes are organized to work with each other, it’s easy to see the benefits for the company.
The BPM benefit that is simplest to calculate is cost efficiency, or a combination of decreased costs and increased revenue. For example, if the company is a metal fabricating plant, creating a process for every step, including designing, blanking, drilling, welding, electroplating, packing, and shipping will make each of those steps:
- Easier to understand
- Simpler to train
- Quicker to accomplish
- Safer to do
If all of these processes can be done in less time with fewer employees and accidents, and all of those employees understand how their process fits enables (or holds up) the other processes and is trained to avoid bottlenecks or delays, there will be obvious cost savings. If a problem does occur, it’s easier to solve it or to make changes within the system to avoid the problem occurring again.
However, in addition to cost efficiency, there are intangible benefits like improved safety, flexibility, and worker satisfaction. When everyone understands what they have to do, how that intersects with what their coworkers are doing, and how their job duties contribute to the company’s mission and goals, that’s significant improvement over a chaotic or even disorganized work environment. Accidents become less frequent, morale improves, and there is less confusion and conflict. The environment as a whole is changed for the better.
Our job at Prometis Partners is to work with our clients to make their companies more effective and efficient so that they are attractive to buyers and can survive and thrive after a sale. Creating and implementing processes and systems is a great way to do that. If you have questions about how you might revolutionize your company using business processes and systems, please call us. We want to help prepare your company and your family for future success.