Why you need to have defined business processes

26 Mar

Why Define Business Processes?

Most SME’s don’t have clear business processes.  Mostly the owners/founders keep it in their heads.  There are lots of books about this subject here are some of the most important ones.

Business Continuity

This is an often overlooked aspect of small and medium Philippine business.  So many businesses become successful under a patriarch but because of lack of documentation of its Standard Operating Procedures (SOP’s) the business often dies down when the patriarch is gone.

Training of New Staff

Having documented procedures makes training of new staff easy, SOP’s provide a checklist of how to do tasks, new employees simply need to follow them and improve their skills over time.

Measurement and Improvement of Services

Documented business processes or SOP’s allow an enterprise to determine what causes issues, where the bottlenecks are and which steps in the processes may be improved.  Doing this analysis with SOP’s helps ensure that it is an OBJECTIVE analysis, the opposite of which becomes SUBJECTIVE when there are no SOP’s to follow.

Consistency

Having SOP’s helps an enterprise deliver consistent levels of service or quality.  Having none make service delivery heavily dependent on the quality of personnel and this often leads to frustration on the management’s part.

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