When your growth dips or your profit margins shrink, many people turn up the pressure on marketing to get more leads and sales to close more deals.
However, operations is where the orders get fulfilled and the place to look to not only protect your profit margins, but to improve them.
Business processes are the set of activities and tasks that are carried out in order to achieve a specific business objective. Streamlining these processes can improve efficiency, reduce costs, and increase competitiveness.
Here are five steps that mid market tech companies (fewer than 1000 FTEs) can take to streamline their business processes and improve efficiency, based on research, best practices in the field, and my own client work.
Step 1: Evaluate Current Processes
The first step in streamlining your business processes is to assess your current processes.
Before you can evaluate them, you’re going to feel uncomfortable. Let me assure you that many CEOs and their head of operations have sat where you are right now and realized that their processes are undocumented, poorly documented, or horribly out of date. Documenting your processes is Step Zero. Outline the top 2 or 3 processes in each department – with the intention of documenting each – and then proceed with Step 1.
Identify which processes are necessary and which are redundant, as well as identifying bottlenecks and inefficiencies. To do this, you can use tools such as process mapping, root cause analysis, and process flow analysis (Schonberger, 1982). Though not new, they are effective.
Why take the time to map your processes? According to a survey by the Project Management Institute (PMI), organizations that use process mapping are twice as likely to meet their project goals (PMI, 2020).
Step 2: Set benchmarks and targets
Once you have identified your current processes, the next step is to establish benchmarks and targets for improvement.
Many who are new to this will recommend establishing SMART goals for each process, or setting specific, measurable, achievable, relevant, and time-bound (SMART) goals for each process (Doran, 1981). That can get pedantic. What matters more is clear language and establishing targets for improvement.
By setting clear targets, you will be able to track progress and measure the impact of your streamlining efforts. According to a study by the Stanford Graduate School of Business, organizations that set clear goals are more likely to achieve superior performance (Locke et al., 1981).
Step 3: Involve front line employees
Your employees are the ones who are carrying out the processes on a daily basis, so it is essential to involve them in the streamlining process.
You can do this by soliciting their input and feedback on current processes, as well as by encouraging them to suggest improvements and efficiencies.
By involving employees in the process, you will be able to tap into their knowledge and expertise, which can be invaluable in identifying opportunities for improvement (Hackman and Oldham, 1976). A survey by the Society for Human Resource Management (SHRM) found that organizations that engage employees in decision making.
Step 4: Implement technology solutions
Technology can be a powerful tool for streamlining business processes.
There are many different technologies that can be used to automate tasks, eliminate bottlenecks, and increase efficiency.
Common examples in SMBs (small and mid-sized business) include:
- Communications systems such as Slack, Zoom, or Teams
- Document management systems, such as Google suite or M365
- Project management (PM) software, such as Asana, Basecamp, Monday
- Customer relationship management (CRM) systems, such as Salesforce, Hubspot, Zoho, and PipeDrive
- Learning Management systems (LMS), such as
- HR Management systems, such as BambooHR, SuccessFactors,PeopleGuru, and IntelliHR
According to a survey conducted by the Association for Information Systems, organizations that use CRM systems experience a 41% increase in customer satisfaction (AIS, 2020).
Additionally, a study by the Center for Advanced Studies in Management found that organizations that use ERP systems experience a 25% reduction in errors and a 21% increase in efficiency (CASM, 2017).
By implementing the right technology solutions, you can significantly improve your business processes.
Step 5: Continuously review and optimize processes
Streamlining business processes is an ongoing process, not a one-time box to be checked.
I like to say to senior leaders who I work with that it is a ritual, not an event.
Therefore, it is important to continuously review and optimize your processes in order to maintain and improve efficiency.
This will involve regularly collecting data on your processes, analyzing the data to identify areas for improvement, and implementing changes based on that analysis.
According to a survey by the Project Management Institute, organizations that regularly review and optimize their processes experience a 37% increase in project success rates (PMI, 2021).
What’s more, by continually reviewing and optimizing your processes, you will be able to stay ahead of the competition and adapt to changing market conditions.
Take Action
Streamlining your business processes can significantly improve efficiency, reduce costs, and increase competitiveness.
By following the five steps outlined in this article, ambitious business leaders can effectively streamline their processes and achieve measurable results.
According to a study by the Center for Advanced Studies in Management, organizations that effectively manage their business processes experience a 42% increase in productivity and a 27% reduction in process cycle time (CASM, 2019). By involving employees, implementing technology solutions, and continuously reviewing and optimizing processes, you can drive operational excellence in your business.