Streamlining Business Processes for Effective Growth
In a previous edition of the Morning Brew, we discussed how to manage small business growth. In that piece we wrote about the challenges and opportunities when it comes to growing a small business. However, one element that warrants a closer look is the importance of streamlining business processes. Streamlining business processes is essential not only for growing a small business, but for any business looking to be more efficient and produce more value.
In simple terms, a process can be considered “streamlined” if it has been simplified. This can include deleting unnecessary steps in a process (steps that are redundant, don’t add value, or are not essential to achieve the overall goal), or using technology to speed up processes through automation or other technological means.
Business processes on the other hand are anything but simple. These processes can include how a company onboards its employees, how a company conducts their finances, operations, their management structure, how they interact with clients and customers, or any other number of processes that keep the business running. Key characteristics of business processes is that they often involve several steps, and they often involve several people to complete. Ensuring that all of these processes are as efficient as possible enables businesses to put their time and energy into the actual work being done.
So, what are the best ways to streamline business processes and why is this important? There are several reasons why having streamlined business processes will ensure long-term success. Increased cost efficiency, improved productivity, improved time management, and minimized risk are all benefits of having streamlined processes. With better process management, businesses are better able to manage their time, money, resources, and focus on reaching their overall business goals. Less time spent on performing clunky processes means more time back in the pockets of employees and leaders alike.
While a main benefit of having streamlined processes is that they save time, resources, and money, getting from point A to point B can seem counterproductive because of the time, resources, and oftentimes money required to redesign and implement new or updated processes. However, investing time and resources at the start will save considerably more time and resources down the road. Next, we will look at some of the best ways to go about redesigning business processes in the most effective way.
1. Assess your value chain
Value chain analysis is nothing new. Typically, value chain analysis includes assessing every stage of a process’s lifecycle, breaking down each step’s value in terms of cost and profitability. This is an important exercise for many businesses. However, the success of this approach depends on the type of business or process at hand. For some businesses, defining value in terms of tangible profit is beneficial. For others, defining value in terms of which activities and/or processes help achieve overall business goals makes more sense. By defining overall business goals and asking where you want the business to be in a few months, years, etc., businesses can then look at their current processes and identify where value is created and where it isn’t. With this mindset, looking at business processes becomes a matter of assessing which aspects of a process or which processes in their entirety help propel the business from point A to point B. From there it becomes easier to cut out steps or processes that do not create value.
2. Identify What Works and What Doesn’t
Figuring out which processes are working and which aren’t may be the first step for some businesses when it comes to streamlining current business processes. In some instances, this may look like taking an inventory of all current processes to find areas for improvement across the board. Or maybe there are already specific processes identified that can be improved upon. Either way, figuring out what parts of a processes or what processes in their entirety are working well and which aren’t is a key step in creating streamlined processes. One important aspect of identifying what works and what doesn’t is understanding your bottlenecks (sticking points in a process where momentum is blocked or slowed down). Bottlenecks can arise from several sources such as a lack of information, authority, technical ability, or budget to name a few. Spotting the bottlenecks lets you know which areas need the most attention. Get feedback from key stakeholders who are actually using the process routinely. They are best positioned to provide meaningful insight into what works and what doesn’t and can best identify where the bottlenecks are. From this feedback, executives know where to look and how to move forward.
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3. Look for Areas to Automate
With the array of technological tools available now, it is easier than ever to automate business processes and cut steps in half. Automating wherever you can will exponentially increase efficiency in your business and will ensure that processes get completed in a timely, capable manner. By automating parts of processes or processes as a whole, both executives and employees have more time to do other work. Automation is especially useful for administrative processes that can be a time suck if done manually. Oftentimes there are more opportunities for automation in a business than people think. Digging into which automation tools are compatible with your business and which will benefit you the most is an important stop on the road to streamlined and efficient business processes.
4. Regularly Assess Goals and Milestones
Once new processes have been implemented or old ones have been updated, it is important to consistently get feedback on how the new processes are working. There is a reason it is called continuous process improvement; no process is perfect and there is always room for improvement. Continuous improvement is only part of the equation though. The other part of the equation is making sure that the processes you have implemented continue to align with your business goals and help you in achieving those overarching goals. As mentioned in the segment on value chains, the value of a business process can be in how well it propels the business from point A to point B. If goals and priorities within the business change, make sure that the processes in place continue to reflect those goals and priorities and are adjusted as needed to produce the most value.
Business process optimization is essential for any business looking to grow, become more efficient, or increase their value output. Depending on the complexity of the processes at hand, streamlining processes can be a simple exercise, or can be time consuming, cost money, and require resources. However, in the long run any business will benefit from having streamlined processes. This will provide more value in the long run in terms of time, money, resources, and more importantly streamlined processes help propel businesses forward towards achieving their goals and fulfilling their missions.
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