17 March 2020

Business Processes- Start-ups and SMEs



Without a doubt, successful businesses the world over have managed to remove/limit complexity in their organisations. One way of doing so is by designing processes that take away guesswork in the way a task is performed. So, that means that regardless of who handles a task, the way it’s done, the quality and speed of execution will always be the same. Take for example your favourite bakery; every time you visit it to get your favourite cake slice, the cake tastes the same, and that is precisely why you keep frequenting the bakery. None of us ever asks which pastry chef is on duty; we just rest in the comfort of knowing that the next day we come for that cake slice, it will taste just as good as it did today. The reason the quality is the same is that such bakeries have laid down processes that everyone follows to the letter, ensuring a consistent product.

Because businesses are complex machines, there are many parts to them, aka departments, it follows, therefore, that each department should have its own processes, so in the end a company has a plethora of processes, i.e. accounting processes, operations processes, sales processes, etc. Remember, the reason for coming up with processes is to limit complexity and make companies agile, but if a company is going to end up with a plethora of processes, is that not introducing complexity and drag in the organisation?

A global company I once worked for was big on processes, which helped streamline our work. Unfortunately for us, these departmental processes were developed in isolation of other departments. So instead of simplifying our work, they ended up adding layers of complexity to the way we did business. You would find a process in sales would clash with a process in operations, which in turn clashed with processes in accounting. We were constantly frustrated at the ‘other’ department(s) whose ‘inflexibility’ made it difficult for us to achieve our goals, and at the same time, we were failing to meet our customer expectations as an organisation. It was only after we sat down as a company and aligned our departmental processes that we started to pull in the same direction, and offer the great service we had promised our clients, which translated into increased revenues.

As a business, do you have well laid out processes or do you rely on the presence of some individual who seems to have a knack for doing a certain task? In your organisation, how do you design your departmental processes? Is it a collaborative effort between departments or each department develops its processes in isolation of other departments? Let’s chat!

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