Why are Processes Important? | People and Process Optimization Resources (2024)

Does HOW you do things matter? Think of anything significant you do- think of HOW it can best be done. Now, consider HOW you do it currently. This is a great line of thought for business leaders to instill in their managers but before you go down that road, you need to ensure they are focused on the right processes.
Not all processes are important but the ones that have the following characteristics are:

• are executed often
• directly determine our costs or our customer satisfaction or
• Underlie our business growth

Once a manager has the perspective of what matters, they can proceed to identify the specific processes on which to focus. In each of these processes, there are key leverage points that often make the difference between success and failure. Key to success in most organizations and, often not sufficiently focused upon, are the planning processes that enable organizations to focus their resources to maximize their chances of success. The keys to success in planning processes (strategic /marketing/business… planning) , for example, are an understanding of the situation (internally and externally), an understanding of the people involved in the planning and implementation of the plan and a system that enables you to first develop that understanding. A means for putting that understanding into practice to set strategies and tactics effectively completes the criteria for an effective planning processes. How are your planning processes structured?

Because we do many processes repeatedly, small improvements can add up to huge benefits. I was involved with a heating and air conditioning company where a division leader focused his entire energy for a year on eliminating costs one penny at a time. This singular focus led to numerous ideas and many innovations that led to a rather amazing result. During the following year, as a result of this effort, their market share nearly doubled. The focus on these improvements led not only to significant cost reductions but a number of innovative product and marketing innovations that made a huge difference in the marketplace. In small businesses, it may not be the pennies, but it is the dollars saved or gained by making small adjustments to your product or service delivery processes that make the difference.

Why are processes important? They are important because they describe how things are done and then provides the focus for making them better and how they are done determines how successful the outcomes will be. If you focus on the right processes, in the right way, you can design your way to success.