Understanding Business Processes
A business process is a series of tasks and activities or tasks performed to achieve organizational goals. Processes are performed by people. Business processes are structured workflows that define how tasks, activities, and roles interact to achieve organizational objectives. These processes are governed by company policies and Standard Operating Procedures (SOPs) that provide clear guidelines on how each activity should be executed. This ensures consistency, accountability, and efficiency across the organization.
- In other words processes define how your company operates, delivers value to customers, and achieves efficiency. Managing and improving these processes is key to mitigating risks and driving success.
Examples of the Most Important Business Processes for an SME
- Sales and Marketing Processes
- Procurement Processes
- Production or Service Delivery Processes
- Financial Management Processes
- HR Management Processes
- IT management processes
- Asset and Facility Management Processes
Why Managing Business Processes Is Important
- Efficiency: Managed processes reduces errors and saves time.
- Risk Mitigation: Identifying bottlenecks or inefficiencies helps avoid potential pitfalls. Processes are sources of risks.
- Managing work and tasks: Well-defined processes can grow with the business.