17 Jun What Is Business Process Development?
By Jeremy Lott
Take a good look at your business. If you were to leave tomorrow and put someone else in charge, could they figure things out on their own? That is the beauty of business process design. At its very core, it is all about crafting systems and processes that can streamline your operations and boost profitability.
Addressing Organizational Challenges
Many folks aren't fond of having employees, and in my view, the main reason is inadequate management and training. When done the right way, proper training, regular check-ins, and acknowledgment of a job well done can vastly improve employee effectiveness and strengthen your team. But here's the catch: achieving this level of cohesion requires solid systems and processes in place. Otherwise, teaching someone the ropes can potentially devolve into a chaotic scramble, leaving both you and your new hire feeling overwhelmed.
Steps in Business Process Development
Successful business process solutions require clear accounts payable and accounts receivable policies. By mapping out these processes, everyone involved can quickly grasp their roles and responsibilities. Clarity and continuity are attained by assigning specific job titles to each step in the process.
One key tool in our arsenal is the time study, which considers individuals at every level of the company and how they spend their time, from the CEO all the way down to entry-level employees. The ideal balance of time varies depending on the role. However, our aim is for top-tier personnel, such as CEOs and visionaries, to devote more time to designing—creating systems, envisioning new products or services, and driving company growth—than executing tasks. As we move down the hierarchy, the emphasis on execution naturally increases for employees.
Enhancing Organizational Efficiency
When your systems and processes are well-established, you can readily train someone new should you lose an employee or decide to sell your company. This makes it so anyone can pick up company manuals or watch videos and seamlessly step into their role without skipping a beat.
That, to me, is one of the most significant advantages of having solid systems and processes in place. It's not just about being organized; it's about ensuring the whole team knows their responsibilities, ultimately leading to a smoother-running company.
Successful Process Development Initiatives
I've had the chance to connect with many types of construction companies, and surprisingly few of them invest time in developing solid systems and processes. The outcomes they experience from day to day are all over the map.
Take, for instance, a concrete company I'm currently collaborating with. We've just kicked off a time study initiative with them, and the numbers are revealing. We're seeing firsthand just how little time they allocate to business process improvement compared to on-site operations.
To address this, we're implementing a calendar-based accountability system. By scheduling dedicated slots for creativity and business development and safeguarding these time blocks from less essential tasks, we're fostering a culture of focus in their company. The results speak for themselves because they have seen enhanced efficiency and a noticeable uptick in workplace morale. It's a win-win for everyone.
Technology in Process Development
The tech stack has become a crucial topic for businesses today. Take, for example, a recent client of mine, a $10 million home builder. They had been working with another bookkeeper who used five different software applications to handle their bookkeeping needs. But here's the thing: the more software applications you have, the greater the potential for human error. Bookkeeping errors can lead to a real mess when the numbers don't add up, making tracking profits on each job nigh to impossible.
To address this issue, we're streamlining their tech setup to just two software applications that can handle everything previously managed by the five they had before. Learning about the latest technology is key. By evaluating and updating your software choices, you can simplify your operations.
Recommended Tools and Software
QuickBooks is a go-to for many companies. Personally, I used to be a big advocate for QuickBooks Desktop. Its array of options, especially in reporting, is hard to beat. However, Intuit has stopped support for QuickBooks Desktop, and the days of installing an application on one computer for everyone to access are becoming less and less practical. That's why I've transitioned all my clients to QuickBooks Online, which offers a fantastic alternative.
With QuickBooks' long history since its inception in 1992, they've had ample time to refine their software based on user feedback and industry evolution. This extensive experience sets them apart from other systems in terms of software refinement and reliability.
Implementing Sustainable Changes
When considering changes within your company, it's not just about management brainstorming ideas; it's about including the folks who are actually doing the work. These employees often have valuable insights into the effectiveness of your proposed changes.
Ultimately, gaining the buy-in of all employees is crucial since they're the ones who will be directly affected by them. Their input and support will be invaluable and bring about a spirit of collaboration as you implement your business process optimization plan.
Conclusion
Business process solutions allow you to create streamlined systems and processes and a culture of efficiency, accountability, and adaptability within your organization. By investing in solid processes, clear roles, and efficient technology, you're setting your company up for success in the present and ensuring its resilience and scalability for the future.
Remember, sustainable changes require the involvement and buy-in of everyone involved, from upper management down to the frontline employees. With a proactive approach to business process development, you're not just building a business—you're laying the foundation for long-term growth and success.
Interested in business process management tools and strategies? Reach out to one of our team members today to get started!
Author Bio
Jeremy Lott's academic journey at Brigham Young University helped him found a landscaping company in 2006. Though the venture was initially successful, the 2008 market crash ultimately led to a heartbreaking bankruptcy.
This pivotal moment spurred Jeremy to take charge of his financial future. Through rigorous self-education and academic pursuit, including an MBA at the University of Utah, he honed his accounting skills and became proficient in tools like QuickBooks.
Now armed with expertise and experience, Jeremy helps business leaders in construction and other industries navigate financial uncertainties. His approach blends bookkeeping proficiency with strategic financial guidance, offering a lifeline to those seeking to transcend financial chaos and achieve lasting prosperity.
