As 2024 unfolds, businesses will embrace opportunities and challenges. The relationship between process optimization and technology leadership will determine how businesses will operate. Optimizing your business processes becomes more important in the ever-evolving business world.
But what are business processes, their types, and how do they measure their success? This comprehensive handbook on business processes will answer these questions along with some examples. That way, your business can venture into 2024 with efficiency and excellence.
What Are Business Processes?
Business processes constitute a set of activities or series of tasks that are performed by systems or people in a well-structured manner to produce positive results that serve the business goals of an organization. The processes include activities to achieve specific business goals, cut costs, and improve customer satisfaction.
Streamlined and efficient execution of a business process brings success to business operations while encouraging growth. Every step in the process represents a task assigned to a participant. No wonder, business processes serve as the initial point for ideas such as process automation, business process management, etc.
These days, businesses need to implement automation in their business processes. It is increasingly becoming popular because of the benefits that they provide. Business processes on automation improve efficiency. It minimizes errors while improving team productivity as well.
By leveraging new technologies such as robotic process automation (RPA), artificial intelligence (AI), and machine learning (ML), businesses now can streamline operations to achieve better results.
What Is the Importance of Business Processes?
When it comes to driving specialized goals and objectives for your organization, a business process plays a key role. By implementing the best practices, your organization will achieve a competitive edge and provide excellent customer satisfaction. These processes are compliant with the industry standards.
Besides, they facilitate resource allocation effectively. The need for a business process is apparent in bigger organizations, too. A business process is considered a lifeline for any kind of business. The processes help streamline activities while making sure that the resources are used optimally.
Examples of a Business Process
Business processes vary depending on the organization’s location, industry, type, etc. However, there are several processes that are equally followed across various segments of businesses worldwide. To make this easy for you to understand, here are some examples worth looking at.
Although there are several types of business processes to choose from, let’s understand the one that has financial implications. Businesses will receive invoices from service providers, suppliers, vendors, etc. For example a Fort Worth certified accountant will take care of invoice processing the right way.
It is good for everyone to pay invoices on time. It helps maintain financial records and nurture relationships. Here is how invoice processing looks like.
- Invoice verification for accuracy
- Coding the invoice manually or automatically into the ledger
- Approval needed for payment release
Let’s consider another example that’s involved in the hiring process of a professional for SEO audit and other relative tasks. From posting job openings to onboarding newly appointed employees, there are several steps involved. Here is how the workflow looks like.
- The HR executive will post the job advertisement
- Eligible candidates will apply for the positions
- The HR executive filters the best ones after proper screening
- The chosen candidates will appear for the next rounds
- The right candidate gets chosen during the final stage of the recruitment process
- Salary negotiations take place and the candidate receives the offer letter
- The newly appointed employee goes through a long onboarding process
Types of Business Processes
Understanding the need for a business process in different industries is important to align functional activities with business goals. Recognizing the processes help to identify industry standards better and make necessary adjustments. Effective management of business processes brings operational efficiency and helps achieve organizational goals. Here are the different types of business processes.
1. Operational or Primary Processes
The operational activities are maximized through constant improvement. This ensures sustainable business success with profound customer satisfaction. Primary processes are associated with creating, supporting, and delivering the services or products of an organization.
Leveraging automation systems in business processes helps optimize operational processes. Additionally, it supports decision-making through relevant data and fosters transformation across departments and industries. Recognizing the important processes within functional activities falls in line with the primary objective of achieving workflow efficiency and seamless integration.
2. Supporting Processes
Supporting processes such as document management and human resources are crucial for organizational growth. Automation helps optimize the processes, reduces manual tasks, and ensures consistent operations by implementing proper procedures.
Onboarding and resource allocation processes are important as well. Implementing new technologies and tools improves the efficiency of the supporting processes. It aligns with different industries and departments with the only goal of achieving operational success.
3. Management Processes
Management processes include process standardization and strategic activities. Optimization will require new business process implementation and business process analysis. It contributes to specific industry standards and business goals. To achieve long-term success and drive growth, transformation processes are necessary.
However, it requires extensive functionality and strategic allocation of resources. These processes are important to streamline operations across industries. Management processes align with the primary objective of achieving sustainable growth and operational excellence.
How to Measure the Success of Business Processes?
To measure the success of business processes, you can follow these steps.
1. Understand the Key Performance Indicators or Kpis
You have to find out the metrics that are relevant to your business process. The KPIs will depend on several factors. It could be on the duration of the business process, cost incurred during the process, error rates, or completion of the process per hour.
2. Gather Crucial Data
Make use of software and tools that help you collect data relating to your KPIs. You can use simple or advanced BPM (business process management) software.
3. Analyze the Information
Use proper use of data analytics to evaluate the collected data. You may look for outliers, patterns, and trends. This step will help identify what is working and what isn’t.
4. Work Out on Making Significant Improvements
Depending on the analysis, find out the areas where the processes could be improved. It could include the implementation of new tools, providing additional training to staff, or hiring a virtual CFO.
5. Monitor Consistently
Monitor the processes continuously by collecting and analyzing data. This allows you to make significant adjustments to ongoing processes. Using data analytics will reduce errors to make business processes more effective and save time.