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Managing by processes: learn how to apply it to your company

Managing by processes: learn how to apply it to your company

The search for efficiency and quality is usually guided by company targets. However, in some cases, it isn’t clear which path to take to achieve them. Managing through processes is usually the most appropriate choice.

Many entrepreneurs and managers believe that digitalized business models that have recently appeared can singlehandedly improve your processes and that, for analog businesses, modernization through new equipment will do the trick. This is a serious misperception.

This article will help you understand what steps your company should take to successfully manage by processes. Let’s get started?

Defining the steps

Before anything else, it’s important to clarify what managing by processes means. This goal of this concept is to improve every process involved in the production or the execution of a product or service, in order to generate efficiency or savings for your company.

Mapping the processes

Knowing the processes is fundamental. That’s why, before changing something in your company, map all of the processes. This way, knowing them, it will be possible to measure the efficiency of each one.

You shouldn’t ignore any process, however small it may appear to be. When summing the costs of the company’s operations, or calculating its annual operations, for example, it becomes obvious that the resources allocated are not insignificant.

Measuring performance indicators

In defining performance indicators for processes, the administrator can evaluate them in a clear manner. However, it’s prudent to select numbers that can be achieved.

The perfecting of management by processes is only possible by attaining the performance indicators proposed by the team responsible.

These indicators may be related to the saving of resources, increasing productivity, reducing rework, a reduction in work accidents, etc. It’s up to the administrators to define the indicators according to your business’s reality.

Training employees

Processes can be closely linked to company culture, which is why altering them may mean changing the behavior of employees in terms of their activities.

For example: altering post-sales customer service, through a new customer service system, will require training using this program, but this will be of little use if they same old verbal habits remain.

That’s why, you should set aside a period for your employees to adapt to the new processes.

Perfecting and eliminating processes

During the application of managing by processes, the team responsible may conclude that some processes cannot be improved, whether they’ve become obsolete or their adaptation will be very expensive, and it will be better to substitute them with others.

That’s not a problem. One of the main advantages of this is the self-analysis that the company is obliged to perform. The elimination of processes means the modernization of operations – something that’s healthy and necessary.

Remember that managing by processes is recommended for every company, no matter what segment or size.

Now that you understand a little bit more about managing by processes, being to plan how to implement it in your business.