Many smaller and even medium size organization lack documentation of their critical business processes. The employees know what to do and do it well every day. However, what happens when that employee is not there or that person leaves? Does that important institutional knowledge get passed on to the next employee?
Examples here include the critical business processes such as data backups, agency evacuation plans, employee safety plans, contingency operation plans, even something as simple who is the insurance agent to call when an accident occurs. These represent the typical back office processes. Just as critical is that many companies have unique manufacturing processes or techniques that rely on experienced people – often with little more than bills of material or routers to document them.
A robust business process or adoption of ISO standards could help ensure that the company documents these processes. Mere documentation does not mean success- one can document a not so great process. But often the process of documentation points out the potential to improve processes and do things better – stream line operations, eliminate steps that add little or no value, eliminate increase throughput, reduce costs. Which often increases turnover of sales, inventories, reduces waste and increases margins. Thus, the process to institute better controls over a business can often uncover issues that improve it. Who does not want that?
Many smaller businesses strive to document processes beyond the regulatory / legal requirements areas such as Human Resources. Some example includes:
• Production processes
• Inventory processes
• Sales and marketing processes / strategies
• Banking controls
• IT security policies
• Operating Plan / Forecast – Excel or third party software projection?
So, for your company’s critical business processes – who does them and where are they documented? If you don’t know…find out TODAY!