Basic Business Processes and Business Process Management

Can you imagine a business without processes? You can’t. Because they don’t exist!

Processes exist in all organizations. Sometimes they are formal but many times they are informal and developed over time as the business evolves.

So, what is a business process and how can we make them more efficient? Business processes are steps performed by an organization to reach a specific goal. Each step in a business process requires the participation and cooperation of each team member.

We all desire for a business that is efficient in driving down costs and effective in executing the laid out marketing strategy. In this article, we will discuss how to manage and regulate your company’s business processes.

What is Business Process Management?

Business Processes are continuous and repetitive. Once you reach the final step of the process, the next you know is you going back to the beginning and starting over again. The more efficiently you can operate, the more potential growth there is for your organization. Through the use of a business process management (BMP), companies document processes which help ensure adoption and consistency. According to Ben Mulholland of Process St., around 46% of companies primarily reduce cost through streamlining business processes. Documenting, tracking, and managing your processes allows you to:

• Limit or entirely eliminate human error
• Ensure that no shortcuts are taken
• Have everyone performing their tasks correctly and reliably
• Reduce the friction of tasks by ensuring everyone always knows what to do and how to do it
• Reduce costs by improving on outdated or downright bad processes
• Easily track the performance of your employees across their various tasks
• Increase the accountability of your employees (both to motivate them and to see who is responsible for what)
• Show managers, stakeholders, potential investors, or just your employees as a whole how your business is run, what goes into completing every task, and the due care taken to achieve the results you do.

There are three categories of business processes: 

1. A primary process involves operations like production, marketing, and sales. These processes give direct value to the client through the delivery of products and services
2. The secondary process does not give direct value to the customer. It is vital because it supports the primary process. It facilitates a smooth workflow in the business. Accounting, human resources, and technical support are some examples of a secondary process.
3. Lastly, a management process monitors and controls the activities of the business. Examples of these processes are internal communication, budgeting, and infrastructure.’