How to Evaluate Business Processes in a Company?

In small and medium businesses, it's often known that "something isn't working," but there's a lack of a quick way to find out which processes are most hindering the company's operations. Simple grading on a scale of 1–5 (like in school) can help get an overview in a few hours, set priorities, and decide where to start with improvements or automation. The question often arises: How to handle processes? They either don't exist at all or are only in people's heads, and when the company grows, it starts to hurt. That's why we prepared a simple "school scale" to help you clarify where you currently stand.

Evaluating processes doesn't have to be a complicated audit. A simple 1–5 scale gives you a quick map of weak spots, clear priorities, and first steps towards improvement. Start with a small list of processes, involve people from practice, and improve gradually – only then does automation make sense.

Why evaluate business processes

• Identify weak spots – where errors, delays, or waste occur.
• Better decision-making – clear priorities on which processes need attention.
• Engage employees – gather quick feedback from people who actually use the process.
• Prepare for automation – only stable, clear processes are worth automating.

The 1–5 rating scale

• 1 – Excellent and continually improved: The process operates seamlessly, with ongoing assessment and enhancement. Employees understand and adhere to it without errors. The system is not only effective but also regularly reviewed and upgraded, reflecting the practices of leading businesses.
• 2 – Managed: The process is well-documented, and all team members understand and follow it. It has a designated owner and operates dependably.  
• 3 – Described and functioning: The process yields inconsistent results and may occasionally cause issues, but there is a clear, documented procedure in place that is generally followed. While not flawless, it provides structure and reliability. 
• 4 – Weak: Errors are frequent, with no documentation, and knowledge is mostly retained in employees' memories. The process is reliant on specific individuals, leading to variability in execution. Procedures are unclear, often ignored, or bypassed, resulting in inconsistent outcomes.
• 5 - Process completely missing: There is no established process, and one needs to be developed.

How to apply the scale

1. List key processes: 10–20 frequent or painful workflows (onboarding, invoicing, equipment handover, complaints, etc.).
2. Management self-assessment: rate each process 1–5 with a short note.
3. Quick employee survey: ask staff to rate the processes they actually use.
4. Combine results: create a “heat map” – low-rated processes are priorities.
5. Corrective actions: simplify steps, clarify responsibilities, document in SOP, then consider automation.

Mini template / sample table

What to do after the evaluation

• Focus on the worst 2–3 processes and fix them within the next month.
• Write an SOP (purpose, trigger, steps, responsibilities, timelines, references).
• Publish in one place (intranet/system) so employees can find it easily.
• Re-evaluate in 3–6 months – track improvements and set new priorities.

Some Quick Practical Tips

How do you evaluate a business process?
You can evaluate a process by rating its clarity, consistency, and efficiency. A simple 1–5 scale shows which workflows run well and which cause errors or delays.

When should processes be rated?
When errors repeat, onboarding takes too long, delays occur, or responsibilities are unclear. That’s when process evaluation makes the biggest impact.

What steps follow after evaluation?
Simplify and clarify steps, define responsibilities, document them in an SOP, and only then consider automation.

What should an SOP include?
Purpose, trigger, steps, responsible roles, timelines (SLA), and links to forms or related policies.