Business development is a never-ending process. But developing a business is not always dependent on external factors. Improving the process also plays a significant role. Here is a guide on how to improve business process.
Table of Contents
What is Business Process?
According to economics, the factors of production are the input resources that are needed to go through a process and the end result is output. The output is a product that earns revenue and generates profit for the business.
So there are 3 parts in a business: input, process, and output.
You can improve the process to get most out of your input. A machine is a part of process in manufacturing. An engineer is part of a process for software development.
What is SOP?
SOP stands for Standard Operating Process or procedure.
SOP is a standard set by the organization so that the employees understand what to do in which situation of the process.
When you start a new business, you need to define SOP.
Improving Business Process
There are several methods for process improvement. Here is a simple checklist to start with.
The main objective of process improvement is reducing input, increasing output per input etc. Whatever your objective is, ask these questions and write down the answers.
You can ask these questions to the people directly involved in the process, as well as to the owner of the process.
- Can we reduce the number of steps in business operation?
- Can any step be deleted?
- Can any step be automated?
- Can several steps be combined into one?
- Can several actions be taken by one role instead of 2 or more?
- Can customers get all the answers to their FAQ from the website or from webchat?
- Can customers make the purchase without help of anyone else?
- Is the customer informed on the whole process of purchasing and consuming the service?
- Can multiple tasks be conducted simultaneously?
- Can you create competitive value in each customer interaction?
- Are you analyzing the perceived value of customer experience in purchasing and availing of your service?
- Can you identify the customer journey?
All surveys contain some extreme feedback. Once you have answers to these questions, remove the extreme values. This requires another round of critical thinking.
Summarize your findings and prepare a plan for improving the process.
Business process improvement needs through study of the process. This checklist will help in starting the process.