"Better to be consistently good than occasionally great".
-Mark Sanborn

What is the difference between a business that achieves consistent goodness, versus just managing occasional greatness? Well-defined, consistently executed and evaluated, and continuously improved processes.

What is a process? Put simply, a process is a set of defined tasks needed to complete a given business activity, including who is responsible for completing each step, when, and how they do so. Though processes can seem mundane, their importance to your successful business cannot be overstated. As Michael Gerber explains:

We believe that your systems [process] strategy is your business strategy, and the business systems you put in place are your business. This goes back to the idea of the franchise prototype or turn-key business idea -- that if you do it right, your business will run itself, systematically and predictably.

Processes benefit a business in several ways:

• Processes make a business competitive: Companies with defined processes are better able to evaluate their strengths and weaknesses and identify opportunities for improvement. They can improve the quality of their products and services and deliver more consistently to their customers, increasing customer satisfaction and loyalty. They are better able to cope with the unknown and react swiftly to changes in the competitive landscape. In short, process companies know when they are doing things right, and can more quickly course-correct when they are not.




• Processes enable growth: By leveraging defined processes, it becomes easier to deliver new products and services quickly and efficiently, without 're-inventing the wheel' every time. Processes provide a blueprint for new employees, and enable cross-training to minimize business interruption in cases or illness or employee turnover. They enable your company to understand what roles to hire for and identify those skill gaps that are hindering success. (The importance of process to growth was discussed in more detail in my previous post Take Your Business to the Next Level.)
• Processes drive profitability: A company with defined processes can find opportunities to improve efficiency without sacrificing quality and consistency. They can identify duplication of effort and spot areas that are being overlooked. They maximize the value of everything they do by ensuring it can be leveraged elsewhere, ultimately saving time - and money. (For an example of how documenting processes can be used to save time, take a look at Need Another Hour in the Day?)

Having gained an understanding of the critical importance of business processes, the next step is to begin documenting them. In my next post, we'll look at Process Documentation Basics.