Businesses Need Processes

Author: Naked Lime Marketing

Date: May 16, 2013

Topics: Careers

Do businesses need processes? Of course they do, but why? A process is defined as a series of steps or actions taken to achieve an end. If your organization wants to continue to succeed and grow, then processes are necessary. Large organizations owe their existence to processes, so why shouldn’t small organizations convert its work into processes?

Businesses mainly benefit from processes by removing two major HR issues: The Key Employee Problem and The Specialized Knowledge Problem. 

To describe The Key Employee Problem, consider a small organization that suddenly lost an employee who was the only one in the organization that knew how to do his/her job. The implementation of processes, in this scenario, would allow the rest of the organization to understand how the previous employee did his/her job.

Due to the different markets, company culture, and other variables, two jobs with the same job descriptions in two different companies may be extremely diverse. The Specialized Knowledge Problem refers to your employees obtaining that specialized knowledge that is needed in order to make your business work.

“Reinventing the wheel” is used to describe how businesses lose productivity from new hires because they have to rediscover the specialized knowledge the previous employee left behind. It can take years for these new hires to gain this knowledge. 

Processes are beneficial in these situations since every documented business process is another piece of knowledge that doesn’t have to be reinvented each time turnover occurs in your organization.

Processes standardize routines and tasks which makes measurable quality possible within an organization. When employees are required to conform to the same business processes, the outcomes of those routines grow predictably similar. As a result, rational starting point is established by which organizations can rationally begin to measure the quality of results. 

Business processes help identify inefficiencies in operations. Inefficiencies can be discovered by inspecting each key operation in your business and formalizing those operations into processes. Correcting these inefficiencies will aid in improving the level of output and quality of those procedures.