Business Process 101: Your Guide to Efficiency, Growth & Success

Quixy Editorial Team

June 8, 2024

Tim owns a company that develops websites. After winning a major upcoming contract, he must determine if adding a team member would benefit him. Most of his time is spent double-checking mistakes and missing details in his project management system. If he assigned these tasks to a new team member, he and his designers would be able to take on more significant contracts.

There is a simple website design project under contract at the moment. Tim could save time, decrease frustration, and cross-train his employees if he could organize his business processes so everyone had an organized set of instructions.

Tim is losing time and money because he does not have formal documentation for his business processes. How much does it cost you? 

What is a Business Process?

A Business Process is a set of related, structured activities and steps performed by individuals or equipment within an organization to achieve the organization’s basic objectives like profit maximization and customer satisfaction.

Business processes can be repeated at all organizational levels and may or may not be visible to customers.

Several related ideas about Business Process Management (BPM), Process Optimization, Process Mapping, Process Simulation, and Process Automation are often viewed as flow charts or workflows of logical steps.  

A business process is similar to a race, intending to get from the starting line (the beginning) to the end. Depending on what’s vital for success in a particular business, different parts of the process may need more attention than others.

Let us take an example from the employee offboarding process to get a better understanding:

• Recognizing resignations/terminations
• Negotiating the retention of the employee
• Procedures for notice and final settlement
• Project planning and task assignment
• Handover and knowledge transfer of project details and company information
• Legal and Compliance Requirements
• Notification to Team and Clients
• Security and Data Protection
• Interviews at exit

An employee offboarding process typically involves these activities. By acknowledging and negotiating with the employee, the business attempts to retain him or her. Following the resignation, the employee and company can clarify the terms of their contract through the notice period and final settlement procedures. As a result of the project planning and handover activities, the business can prevent employee resignation from affecting daily processes. Additionally, the exit interview gives the company a chance to improve its policies and operations through detailed feedback.

Your operations depend on business processes, so improving them is strategically important. 

Why are business processes important?

Business processes are vital for several reasons. They streamline operations, maintain consistency, enable scalability, ensure compliance, simplify training, enhance problem-solving, and boost customer satisfaction. Additionally, they foster innovation, support data-driven decision-making, and enhance competitiveness in a dynamic business environment.

Reasons to Have Well-defined Business Processes

Well-defined business processes are the backbone of any successful organization, offering a multitude of advantages. Firstly, they boost efficiency by eliminating confusion and inefficiencies, completing tasks faster and with fewer errors. Secondly, these processes ensure unwavering consistency, guaranteeing that every task is executed uniformly, thereby upholding the quality of products or services. Thirdly, they foster scalability, facilitating business growth without compromising on quality. Fourthly, clear processes ensure compliance with regulatory and industry standards, preventing costly violations.

Also, they expedite training, minimize the learning curve for new employees, and make problem identification more straightforward.

Moreover, they enhance customer satisfaction, as efficient processes lead to quicker responses and improved service quality. Furthermore, established processes create a solid foundation for experimenting with business process improvements and innovations. They also generate valuable data for analysis, enabling data-driven decision-making.

Streamlined processes provide a competitive advantage by enabling cost-effective and timely product or service delivery, positioning businesses ahead of the competition in today’s dynamic business environment.

Types of Business Processes: Navigating Terrain

In the bustling business landscape, processes are the roads leading to success. These processes, like diverse paths through a forest, take on various forms depending on the destination. Let’s explore the different types of business processes that weave the tapestry of operations:

1. Operational Processes

From inventory management to order processing & customer support, they ensure the core functions are executed efficiently.

2. Management Processes

It involves planning, organizing, and controlling resources to achieve strategic goals.

3. Supporting Processes

Supporting processes provide the infrastructure and resources required for the organization to function smoothly.

4. Development Processes

Innovation is the heartbeat of progress. Development processes focus on creating and improving products, services, and systems.

5. Sales and Marketing Processes

Sales processes involve lead generation, negotiation, and closing deals, while marketing processes encompass brand positioning, advertising & customer engagement.

6. Customer Relationship Management (CRM) Processes

Customers are the lifeblood of any business. CRM processes are designed to nurture and maintain relationships with customers.

7. Supply Chain Processes

Supply chain processes include procurement, manufacturing, logistics & distribution, ensuring products reach the right place at the right time.

8. Financial Processes

Budgeting, accounting, financial analysis & reporting processes guide organizations in managing resources, predicting trends & making informed choices.

9. Compliance and Regulatory Processes

Compliance processes ensure adherence to legal, industry, and internal standards, minimizing risks and maintaining ethical conduct.

10. Quality Assurance Processes

Quality assurance processes ensure products and services meet or exceed predefined standards, guaranteeing customer satisfaction and loyalty.

Each type of business process plays a distinct role, contributing to the harmonious functioning of an organization. Just as a diverse ecosystem sustains a thriving forest, a mix of these processes forms the foundation for a prosperous business. The above list isn’t complete, because businesses processes are anything process that takes place in a business.

Types of Systems For Business Process

Processes in business come in different sizes and shapes based on their intended purposes. Considering processes within their categories can be helpful when approaching, designing, and optimizing them.

Also Read: Top 10 Business Process Management Tools for your Business

The operational process

An operational (core business) process provides direct value to a company’s customers and employees. These processes directly generate revenue. Among the examples are product manufacturing, the order-to-cash process, and the delivery of products to customers.

Process support

Your company’s processes make money and are essential to delivering its end product. These processes include production, marketing, and sales.

HR departments don’t directly affect your clients, but without them, you can’t assemble a successful team. It is impossible to do well in production, marketing, and sales without a skilled team.

Processes at the core

These are the processes that make your business money and deliver your end product to your customers. Production, marketing, and sales are examples of such processes.

Also Read: Business Process Mapping: Definition, Steps and Tips

7 Example of Business Processes

Businesses practice different processes according to their type, industry, location, etc., but a few are practiced across all segments of businesses worldwide. Using examples, we will make this easier to understand.

1. Onboarding process for clients

Professionalism, courtesy, and expertise are essential when onboarding new clients. When you acquire a big client, the last thing you want is your team sitting there wondering, “Okay, so what next? 

Onboarding will be a thing of the past if you have a clear, defined process. As an example, let’s take a marketing agency.

• Set up an initial meeting. Become familiar with the client’s business, the industry, the competition, etc.
• Assess the goals and assets of the company. Make sure you know what your clients want from you, and how you can utilize their strengths to accomplish those goals
• Establish KPIs. To ensure that you’re bringing in results, the client will want to measure your progress
• Make an action plan. Your team’s plan for the week, month, year, etc.

Client pitch. Assess whether the proposed strategy is acceptable to them. Start over if necessary. All the tasks should be assigned to the appropriate team members.

2. The Sales process

The process of making a sale is fundamental across all industries, offerings, and segments. In most businesses, the following steps are followed:

• Proposal sharing
• Quotation sending
• The negotiation process
• Ordering products/services
• Maintaining sales records
• Product or service delivery
• Post-Sale Follow-up
• The billing process
• The payment process
• Renewals and Retention

There are repetitive steps in this process, and the workflow and structure can be modified to meet the business’s needs. Does your sales team not perform to its full potential?

Also Read: Top Business Process Management Stats to help you add efficiency

3. Process of procurement

To purchase the materials you need for your business, you follow these steps:

• Identifying a product’s need.
• Contact the purchasing department with a purchase requisition.
• The purchasing department reviews procurement requests.
• A budget approval request with all financial details is sent to the financial department.
• When a quotation request is approved, the purchasing department sends it out to suppliers, and they submit their bids.
• The vendor is then selected and a contract is signed.
• Upon receiving the goods, the purchasers inspect the quality of delivery.
• Orders and invoice slips must match for invoice payment to be approved.

4. Providing customer service

In global business operations, customer service is also an important process. The process involves the following steps:

• Using CRM, receive customer complaints and issues.
• Recognize the customer’s concern.
• CRM login information for the issue.
• Solve the problem.
• Inform the customer of the status.
• Process of recruitment.
• Process of invoicing.
• Processing of orders.
• The onboarding process for new customers.
• Keep track of your accounts.
• Process of conducting market research.
• Development of a product.

Read eBook: 11 Steps to Fix a Broken Process

5. Process of content marketing

Unless you organize your content marketing into clear business processes, it can be a very hectic mess. If you don’t work on this, you’ll end up with 20 articles still in the works, confused designers, and confused followers, waiting desperately for their weekly articles.

You can establish content marketing workflows in a variety of ways depending on your strategy.

Let’s take a look at a very basic publishing process as an example…

• A content writer begins drafting an article and finishes it. Please include a description of any custom images you intend to use.
• The marketer gathers influencer contact information for advertising and marketing as soon as the article is completed.
• A proofreader points out errors in grammar, style, spelling, etc.
• The designer creates custom images and sends them to the content writer.
• Comments are considered, mistakes are corrected, and images are added.
• In addition to ensuring that the article meets best practices for SEO, the SEO expert also publishes it.
• To ensure the article is read, the marketer uses a combination of advertising and email outreach.

6. The Management process

Business decisions are made using management processes. Among them are setting goals, budgeting, and forecasting future sales.

The following are examples of managing business processes:

• Plan your strategy.
• Allocating resources.
• A marketing campaign.

7. Delivery management systems

To manage the delivery system, businesses need a business process. To ensure timely delivery of products, the delivery management system needs to be streamlined. Route optimization, automated dispatch, vehicle tracking, proof of delivery, and safe delivery of products are all part of the delivery management process. With delivery management software, companies can get insightful business analytics, improve customer communication, and enhance customer satisfaction.

Also read: 10 Key Business Processes you can Accelerate with Document Generation Software

Basic Steps of Business Process Implementation

The 7 steps of a business process can vary depending on the methodology or framework used, but here is a commonly referenced approach:

1. Setting goals

Identify and explain the process’ purpose. Describe how success can be measured. What are the benefits of this process for our overall business goals?

2. Identifying inputs and Outputs

It involves understanding the resources that are required as inputs to execute the process, as well as defining the desired outcomes that are produced as a result.

3. Process mapping

Outline the process. Flowcharts can be created by hand or with software. Each task along the way is outlined in this blueprint.

4. Assign process tasks

Is anyone involved in this assignment? You can minimize manual effort by allocating your team members based on their abilities and/or designing the system in an automated way.

5. Test

Test the process before rolling it out across the company or department to ensure you get the results you want.

6. Process implementation

After testing the process, it is time to run it globally if you are satisfied with the results. You will need to communicate properly with all those who will handle the tasks and train them to achieve better results.

7. Analyze the results

Consider ways to mitigate the risk by reviewing the process and looking for threats it may pose later.

Common Pitfalls in Business Process Implementation

• Unclear Goals & Objectives: Automating the wrong tasks or creating irrelevant workflows.
• Siloed Workflows & Departments: Delays, communication breakdowns, and duplicated effort.
• Overly Complex Processes: Difficult to understand, inflexible, and hinder adaptation.
• Overreliance on Manual Work: Time-consuming, error-prone, and limits scalability.
• Lack of Training & Support: Employee resistance and disconnect between intended workflows and practices.
• Neglecting Measurement & Monitoring: Inability to determine if processes are actually working.
• Failing to Address Resistance to Change: Employee fear, insecurity, or lack of understanding hinders adoption.
• Ignoring Security Risks: Data breaches or unauthorized access due to overlooked security considerations.

No-code low-code technology and AI can be powerful allies in overcoming these common pitfalls. AI tools can analyze existing workflows to identify inefficiencies, helping define clear goals for process improvement. No-code platforms facilitate collaboration across departments by providing a central platform for designing and automating workflows. They also enable businesses to break down complex processes into manageable chunks, fostering agility and easier adaptation. AI can automate repetitive tasks, freeing up human potential for strategic work.

No-code low-code platforms with user-friendly interfaces and ongoing support can ensure employee adoption of AI-powered processes. AI’s continuous performance analysis allows for data-driven adjustments, keeping workflows optimized and eliminating the guesswork from process improvement.

The Future of Business Processes: Powered by AI and No-Code Low-Code Tech

The way we manage and optimize workflows is undergoing a significant transformation. Here’s a glimpse into the exciting future of business processes fueled by the dynamic duo of Artificial Intelligence (AI) and no-code low-code technology:

• AI-powered Decision Making: Imagine intelligent workflows that can analyze data and suggest the most efficient path forward. AI algorithms can evaluate historical data, predict potential bottlenecks, and recommend process improvements in real-time. This empowers businesses to make data-driven decisions and optimize workflows based on actual performance.
• Smarter Automation with AI: AI goes beyond basic automation by automating tasks that involve decision-making or pattern recognition. Processes can learn and adapt as they encounter new situations, eliminating the need for constant manual adjustments.
• Citizen Developers Take Center Stage: No-code low-code platforms empower business users with minimal coding experience to create and automate workflows. This democratizes process improvement, allowing teams to address their specific needs without relying heavily on IT resources.
• AI-powered Collaboration: No-code/low-code tools can integrate seamlessly with AI-powered chatbots or virtual assistants. These tools can guide users through workflows, answer questions, and collect data, fostering collaboration between humans and AI for a more efficient and intelligent process.
• Hyper-personalization at Scale: AI can personalize workflows based on user roles, preferences, or real-time data. This allows for a more customized, efficient experience for employees at all levels.
• Continuous Improvement on Autopilot: AI can continuously analyze process performance and identify areas for improvement. It can then suggest adjustments or automatically implement minor changes, leading to a culture of constant optimization.
• Reduced Process Complexity: No-code low-code platforms can break down complex workflows into manageable chunks. With AI’s ability to handle complex decision-making, even intricate processes become easier to understand, manage, and automate.
• Enhanced Business Agility: No-code low-code platforms and AI enable rapid process changes. Businesses can adapt to market shifts, customer demands, or internal restructuring swiftly by modifying workflows on the fly.

This fusion of AI and no-code low-code technology holds immense promise for the future of business processes. They pave the way for a more intelligent, efficient, and adaptable workflow management landscape, empowering businesses to thrive in the dynamic world of tomorrow.

Conclusion

Don’t let disorganized workflows hold your business back. Embrace the power of well-defined processes – the invisible engine driving efficiency, consistency, and growth. AI and no-code low-code technology are your secret weapons. AI analyzes data for intelligent decisions, while no-code platforms make process creation and automation a breeze. Together, they pave the way for a future of intelligent, adaptable workflows that empower your business to conquer complexity and soar to new heights.

Frequently Asked Questions (FAQs)