Business Processes Can Improve Employee Retention? Check Out Its Purpose, Benefits, and Forms
Business processes are one of the main values of a trusted and well-structured company. A trusted company means having a promising business. To achieve this, business processes must be formed and implemented correctly.
So, in this article we will discuss how to form the right business process so that the company or business continues to grow and increase its profits.
What is a Business Process?
According to Blueprism, a business process is all forms of rules and internal working methods of a company to ensure that the business runs as it should and achieves its targets.
Simply put, a business process is every task, activity, cooperation, and collaboration that is carried out repeatedly by a business.
In relation to the explanation above, it is not surprising that the business process is referred to as the main value of a trusted business or company.
The main goal in building a business process is to achieve consistency and standardization of work that must be carried out by each individual in the organization.
A proper business process must have the following characteristics:
- Consistency and standardization; for example, the invoice request process from the client must be one-way and the process is clear from start to finish.
- Measurable; for example, the duration of the invoice disbursement process is appropriate and not too long-winded.
- Dynamic and flexible; business processes must be efficient and in accordance with market conditions. Technology that continues to develop must also be implemented in business processes. The goal is of course to increase efficiency.
Benefits of Business Processes
Here are some internal benefits that can be obtained through the right business process:
- Companies can easily integrate technology and realize automation in operations.
- Companies can build business strategies that are in accordance with products, targets, consumers, and market conditions.
- Companies can optimize operations and employee performance as a whole.
- Each employee has the same values, ways of working, and mindset to achieve business targets.
- With a consistent business process, companies can make estimates of the number of workers needed to achieve business targets and goals.
- There are no overlapping processes and prevent miscommunication within the team.
- Problems will be resolved more quickly because solutions will come from existing business processes.
- Increase work effectiveness and cooperation between teams.
- Create a positive and supportive work environment that will increase employee retention.
Components in Business Processes
The following components ensure that business processes run according to plan and standards.
- Input components ensure that resources (employees, costs, time, materials, and equipment) have clear directions, rules, and standards in running business processes.
- Activity components, namely every rule, direction, and standard used is carried out properly. Simply put, this component is the SOP (Standard Operating Procedure) in the company.
- Output components, namely monitoring and evaluating the results of business processes and their efficiency or effectiveness.
Categories and Forms of Business Processes
Summarizing Tech Target, here are various categories and forms of business processes:
Operational processes
As the name implies, this process refers to how business runs in the main aspects of the company. This process is also referred to as the main or core business process, because the people in it are intermediaries between consumers and the company.
This category also includes business activities that have a target to generate income and profit.
Examples of activities in this category are:
- The process of receiving consumer orders.
- The process of paying for orders.
- The process of making and packaging products.
- The process of sending products to consumers.
Supporting process
This business process category is tasked with supporting the operational process and ensuring it runs smoothly. Although it does not directly generate profits, the supporting process is still a party needed in collaboration to produce the best product.
People in the support process are also usually charged with ensuring that collaboration between teams runs efficiently and effectively.
Examples of activities in this category:
- Employee management by HRD.
- Financial management by the finance team.
- Operational safety management.
- Administration and documentation of customer orders and revenue records.
Management processes
Management processes include planning, monitoring, organizing, and evaluating collaboration between operational processes and support processes. This category focuses on how to achieve business targets and ensure that all activities run efficiently.
Examples of activities in the management process are:
- Effective and easy internal communication.
- Monitoring internal and external business functions
- Problem identification and solution processes.
- Assessing the efficiency and effectiveness of collaboration between teams.
- Budgeting and strategic planning.
- Supervision and maintenance of business equipment and infrastructure.
Other processes
Processes in this category include marketing efforts, sales processes, customer service, and supply chain.
How to Optimize Business Processes
Quoting Indeed, here are some ways to optimize business processes:
- Determine business targets and metrics used to measure achievement.
- Map the existing process and identify the problems.
- Offer solutions and trials in problematic processes.
- Evaluate the results of trials in problematic processes.
- Implement new processes based on evaluation.
- Evaluate the newly implemented processes again.
It can be concluded that business processes are all internal activities of a company that are consistent, standardized, efficient, and effective in achieving targets and profits. Every business must have this process so that every individual has the same standards in their work.
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