In operating your small business, you probably use dozens of different processes each and every day. For example, you may use the same steps for all of the times you generate a report, resolve a complaint, contact a new client, or manufacture a new product. However, along the way, you’ve probably discovered a few inefficient processes. Inefficient processes should not be ignored! They can lead to a stressed-out workforce and very unhappy customers. That’s why it’s important to take time to streamline tasks and improve processes that aren’t working well. One of the first things to consider is if it’s a formal or informal process.
Informal vs. Formal
Often you’ll have a process where many people tend to do a task the same way, up to a point. They add their unique touch to it, but they always achieve the goal. There is no set, defined way or rules for the process, only the need for the task to be completed. This would be an informal process. Informal processes are not written down, but there are guidelines team members need to follow.
Formal processes would be tasks that are documented and have some well-established steps. For instance, you might have plans in place for sending and receiving invoices. Formal processes are important to have, especially when it comes to safety, laws, or financial aspects of the business. In these cases, not following the process could have serious legal ramifications and as a result, cost you a lot of money, or you could lose your business entirely.
If you have formal processes in place, it sets a certain expectation for your team. It may impact their performance evaluation or bonus if they are not following proper procedures. You want to make sure everyone receives the training they need and fully understand each step. With informal processes, make sure the team understands the guidelines and what flexibility they have when completing tasks. When they know how things work, your team will feel more comfortable performing their duties and productivity will increase significantly.
The Impact of Efficient Processes
Both kinds of business processes, both formal and informal, have one thing in common. They’re designed to streamline how you work and how your team works as well. When business processes are ineffective, it can lead to a lot of problems, such as:
- Customers complaining about bad products or poor service
- The team can get frustrated, so things don’t work as well
- Work stops getting done, or even be duplicated as there is no oversight on the process flow which can mean that things like resources and money can be wasted
- You can miss deadlines when there is a backlog of work
Don’t Just Ignore The Problem
If you are having some of these problems, you can’t just ignore them. You want to take the time to review the process and the steps you have in place. Start by mapping it out, as it is right now. Once you do, take a look to see where there may be a disconnect. Don’t forget to include steps that are not done in-house, such as the suppliers who deliver parts you need to create your product. You may find they are not meeting their contract by making deliveries on the wrong day, which has been impacting your process.
Don’t try to do this alone. Get input from those who are actually hands-on doing the work. Solicit input from supervisors and team leads. Identify what needs to be changed or improved, determine the cost to make the changes, if any, and begin implementing the new process as soon as possible. To help, you keep track of your business process, a program such as Acumatica work order can be created just for your business.
Oh, and don’t forget to train your team on the new process. They should not find out when they are trying to do the work and are unable to complete the tasks. Take time to train them and allow for a trial period to make sure the new process is indeed an improvement.
When you streamline tasks, you can improve business efficiency. Everyone will follow the proper procedures, and you will have fewer errors and delays. The whole team, as well as customers, will have a much better experience. Here’s to YOUR success!
Carolyn R. Owens has over 25 years of proven experience and serves as a Career Strategist, Leadership and Life Coach. She is the Chairwoman and CEO of Infinity Coaching, Inc. where they help you up-level your skills so you can up-level your income. Infinity Coaching, Inc. provides one-on-one and group coaching, organizational training, and personality assessments. Carolyn is certified to give both The Energy Leadership Index Assessment and Myers Briggs Type Indicator (MBTI) Assessment. You can find out more about both assessments and other products and services at https://infinitycoaching.net.
