Everyone talks about business processes, but there remains a lot of confusion regarding them. To provide some clarity, here is all the information you’ll need regarding what they are, and why your business needs to understand them.
What is a Business Process?
A business process is defined as a series of tasks or a set of activities performed by a group of stakeholders to achieve an organizational goal. The processes are performed by people or systems in a structured manner to attain a pre-defined objective. Efficient and streamlined execution of business processes directly contributes to the success of business operations and growth.
A business process has also been defined in simple terms as a set of activities and tasks that, once completed, will accomplish an organizational goal.
Each step in a business process denotes a task that is assigned to a participant. It is the fundamental building block for several related ideas such as business process management, process automation, etc.
While there’s a deluge of things written and said about business process management, it’s essential to understand why they are so important to your business.
Types of Business Processes
1. Core Processes
These processes are the critical functions of a business that directly add value to the end customers. These processes are critically aligned with the fundamental values, objectives, and vision of the business. Businesses must continuously monitor and improve these processes as they primarily contribute to the growth and revenue flow of the organization.
2. Support Processes
These processes enable and support the core processes to be performed seamlessly. Although they do not contribute to revenue generation, they assist internal departments in creating a collaborative environment where the core processes can be aligned to work better. Human resources, finance management, administration, and operations fall under supporting processes as they help expand a business.
3. Management Processes
These processes are responsible for planning, monitoring, managing, and controlling the core and supporting processes from start to end. These processes are goal-oriented and ensure that business operations are carried out efficiently and seamlessly. Their focus is to monitor business functionalities internally and externally, analyze opportunities and challenges, and ensure continuous improvement of all processes.
Business Process Technology
Business process technology refers to the use of technology, such as software and systems, to automate, streamline, and optimize business processes. It helps organizations improve efficiency, reduce errors, and save time and resources on manual task completion. It can be customized as per needs and can be used in a variety of industries. Workflow management software, Customer Relationship Management (CRM) systems, and Enterprise Resource Planning (ERP) systems are a few examples of business process technology.
The Importance of Business Processes
The need for and advantages of a business process are quite apparent in large organizations. A process forms the lifeline for any business and helps it streamline individual activities, making sure that resources are put to optimal use.
Key reasons to have well-defined Business Processes
- Identify what tasks are important to your larger business goals
- Improve process efficiency
- Streamline communication between people/functions/departments
- Set approvals to ensure accountability and optimum use of resources
- Prevent chaos from creeping into your day-to-day operations
- Standardize a set of procedures to complete tasks that really matter to your business
An Example of a Business Process
As an example, let’s consider the hiring process of an HR department. Right from posting the job opening to onboarding the employee, there are multiple steps involved in the process. Although this can vary from organization to organization, a simple workflow might look like this:
- The HR executive posts the job update
- Multiple candidates apply in a portal
- The HR executive screens the candidates and filters the best-fits
- The selected candidates are called for the next stages of the recruitment
- The right candidate is chosen at the last stage of the recruitment
- Salary and policy negotiations take place
- The offer letter is sent and the candidate accepts
This is then followed by a long employee onboarding process.
☛ Here are 6 real-world business process examples.
The 7 Steps of the Business Process Lifecycle
Here are the seven steps in the business process lifecycle.
Step 1: Define Your Goals
What is the purpose of the process? Why was it created? How will you know if it is successful?
Step 2: Plan and Map Your Process
What are the strategies needed to achieve the goals? This is the broad roadmap for the process.
Step 3: Set Actions and Assign Stakeholders
Identify the individual tasks your teams and machines need to do in order to execute the plan.
Step 4: Test the Process
Run the process on a small scale to see how it performs. Observe any gaps and make adjustments.
Step 5: Implement the Process
Start running the process in a live environment. Properly communicate and train all stakeholders.
Step 6: Monitor the Results
Review the process and analyze its patterns. Document the process history.
Step 7: Repeat
If the process is able to achieve the goals set for it, replicate it for future processes.
