There are three key business processes involved in operating an entrepreneurial enterprise-management, strategy and operations. Ideally, all three business processes are tightly integrated. The management process provides a framework for hiring, training, and managing employees. The process not only helps employees become more effective in their positions, but it also helps to improve employee retention levels. The strategy process establishes both short-term and long-term goals. It clearly defines where you want to take your business in terms of earnings, sales, and revenues, and it also clearly defines how you plan to get there. The strategy process becomes your road map. And finally, the operation process provides the tools and the resources for achieving your goals.
A business enterprise should be thought of as an entity--one that is operating as a whole. Although individual projects and processes appear to be working independently, they are interrelated and are focusing on the company's short and long-term goals. Effective project and process management is about the systematic breakdown of the business operations into smaller, well-defined parts --components that are more manageable on both a macro and a micro level. The macro level's focus is on achieving high-level organizational goals/objectives and on creating processes that enable the business to better achieve those goals/objectives. The micro level's focus is on breaking down the various jobs, as well as their individual tasks, into smaller steps/components.
Breaking down complex projects and/or processes into more manageable parts is a valuable key business practice since attempting to deal with multiple, complex problems simultaneously results in inefficiencies, delays, confusion, and stress. Achieving short and long-term goals, meeting targets, and handling day-to-day issues become much easier when tasks are divided into mini-steps. When each mini-step is completed, employees experience a sense of accomplishment rather than feelings of frustration that often arise when dealing with the whole versus its individual parts.
Standardization better positions your business to succeed.
Many early-stage entrepreneurial enterprises, as well as established companies, under-perform! They are typically characterized by having an informal management system, ad hoc procedures, and, at times, an absence of standardized systems and processes. In order for enterprises to flourish into profitable businesses, standardization of processes and procedures is essential. Very few businesses can manage effectively without standardized processes. Without standardization, most likely, things will not get done on a timely basis.
Effective and efficient business processes depend on standardization. Standardization means that all your employees will perform a task in the same way, every time the task is performed. Setting standards for how things should be done, and then, documenting the steps of the process to meet those standards, are critical initiatives that your company must take if it is to grow and reach its potential. Once basic systems are in order, jobs and tasks are done more efficiently and effectively, and decisions are made with greater ease and with greater reliability.
The absence of standardized systems is a major yet very common cause of under-performance by businesses. "Flying-by-the-seat-of-your-pants" management creates inconsistencies and ultimately leads to chaos. When basic systems and processes are developed for performing easily replicated, day-to-day tasks, your business is better positioned to produce more consistent results.
Standardization of business processes applies to procedures, standards, work instructions, and guidelines for various business functions. Standardization is about creating a clearly defined system that enables everyone to do their best work. Proper standardization of the business processes also includes the creation of an Operation Manual.
The Operation Manual is a written document which clearly explains to all employees the standards of operation, and identifies the operational tasks required to establish and operate the business. The Operations Manual supports and promotes the use of consistent and uniform, day-to-day procedures within the business unit for the purpose of maintaining the quality of its services and products. The Manual further defines the company's system of standard processes, procedures, and guidelines. It outlines the procedures for hiring as well as the procedures for employee training and development.
Simplifying your business operations is critical.
In today's competitive market, how you deliver your products/services is most often what differentiates your company from your competitors. Is your company efficient and productive? Or have your company's processes become cumbersome, unwieldy, and out of control?
Business growth does not necessarily equate itself with business growth complexity. Success sometimes hinges on elegant simplicity. Many times, when companies expand as a result of rapid, unplanned growth, they do so without a carefully orchestrated plan. The absence of an adjusted plan--that meets increased business demands-- creates complex, inefficient operational results.
Many businesses find themselves with staff, resource, and equipment redundancies; lack of formal systems; duplicated efforts; and no clear line of sight to the strategy driving the business. The solution to this problem is to assess the business from a big-picture perspective and streamline its operations. In order to effectively simplify your business operations, consider these tips:
• Analyze existing business processes. • Identify gaps in efficiency and productivity. • Develop a solid plan that redesigns and formalizes processes. • Prepare and obtain support from partners, investors, managers, and employees for necessary changes. • Prepare your company for change. • Establish performance benchmarks. • Roll out the plan using a phased approach. • Monitor and evaluate progress. • Consider outsourcing processes that you cannot handle in-house.
Efficiency and profitability go hand-in-hand. The more efficient the operations become, the more profitable businesses become! When a business demonstrates efficiency, it is far more productive since waste and effort of its valuable resources (time, money, and people) are at a minimum. That is why businesses with fine-tuned business processes are some of the most profitable companies in their respective industries.