How Processes Can Save You Money

You like things to be handled a particular way in your business. As you grow, you can easily teach your business processes to a few new hires. But what happens when you keep growing? All too often policies, procedures and processes become diluted, misinterpreted and confused as they’re relayed to new employees. This creates longer turnaround times, mistakes, inconsistent customer experience and diluted brand value.

If your processes are not properly documented and distributed through your company, you’re losing productivity left and right. Here’s how documenting your business processes will save you money.

1. Delegation

When your processes are properly written out, you can delegate simple tasks to any capable employee in your organization. Maybe this means you can have an intern or entry-level employee do some tasks that would normally bog down one of your higher paid employees. Delegation allows newer employees to learn at a higher level, and frees up your more senior employees to do more of what makes them so valuable.

2. Process Improvement

By taking the time to document your business processes, you’re more likely to find flaws and inconsistencies in them. This isn’t really possible when everything is relayed through word of mouth and quick explanations.

When a process or policy is placed in a formal document, it’s expected to be accurate both by the writer and the reader. The writer will make sure that everything is right to their knowledge. The reader will ask questions if there’s anything that doesn’t quite make sense. By improving processes through the publishing process you can avoid expensive mistakes and misunderstandings.

3. Employee Efficiency

When employees have a written template of their job expectations and the processes involved, they can operate more quickly. Instead of tracking down and asking the person who taught them, they can quickly reference their documentation and do it.

Distributing uniform policies across the organization helps employees to be more confident that they’re doing things correctly. Confidence then breeds more efficiency because you take out the second-guessing and asking around. Efficiency is great for your bottom line!

4. Improved Communication

Published processes keep employees on the same page about the way things are supposed to be done. There is less chance for argument because employees know what the company’s expectation is and how to go about tasks. Improved communication spares relationships and reduces costly turnover in your organization.

5. New-Hire Productivity

Having set business processes and procedures in place makes you appear more professional. This is especially apparent in the recruiting process. When a prospective employee is working with you, they want to know what makes your company successful. If you haven’t defined processes this may be a difficult answer to give.

Existing processes and procedures will make an enormous difference in how quickly your new hires become productive and useful in their roles. This saves you money and produces more efficient employees.

6. Avoid Legal Issues

Legal trouble is expensive. When you keep business processes properly documented, you can identify and avoid actions that could create legal issues before they happen.

Conclusion

Processes that are more than word of mouth are crucial to keeping operations going smoothly and scaling your organization to be bigger and better than it is. Take the time to write out the important processes that keep your business running. Edit them thoroughly, distribute them to your employees, and keep editing them as needed. This will get you ready to break out of your shell and grow!