Most business leaders and owners today have a lot of issues to deal with. Unfortunately, ‘fight fires’ and dealing with day to day issues doesn’t allow enough time to spend on a key part of any business: Business Process Management.
As it is in life, setting up and improving on processes can make life less stressful and allow us to focus on other important areas. For instance, you most likely have a morning routine, before bed routine, cleaning routine and so forth. These routines are actually based in processes and in business, process management is just as important to allow you to make your business the best it can be.
Toyota has proven this in the automotive industry, Google has as well as a search engine dominator and McDonald’s is incomparable in its fast food restaurant processes. Process creation and management is crucial for any business and business model.
Here are 3 reasons why as a business owner you need to create superior processes:
#1: Industries and Business Models are changing and getting more complicated
Industries are rapidly changing, from rapid growth to rapid decline. These forces in conjunction with the disruptive technologies such as cloud computing, process automation, big data and mobile computing has only driven up the importance of companies needing to focus on business process management.
The energy industry, for instance, is making a shift from a hierarchical “cathedral” fossil-based model to a decentralised, locally produced, locally consumed and sustainable model. Facing stringent competition and miniscule margins, agriculture needs to evolve from being a single link in the industrial food product and distribution chain to becoming an organic resource focused on the local market.
With industry development comes change to a company’s business model and IT.
According to an Industrial Defender survey of 134 professionals in critical infrastructure companies (manufacturing, chemical, utilities etc.) the “relationship between I.T. and operations is getting more complicated. 73% of those surveyed expect to see either significant or moderate increases in connectivity between industrial endpoints and corporate IT infrastructure over the next three to five years.” In other words, the internet of things is growing fast.
What this means is that companies need to constantly refine their processes and technology so that they can not only compete in their industry but do it more efficient and cost effective manner as the internet of things grows.
#2: The rapid rise of cloud and mobile computing
It’s not just the proliferation of mobile devices that’s ignited the move to cloud computing and mobile computing. Leading companies and organizations are rapidly realizing the business and economic benefits of increased sales, customer retention, brand awareness and productivity using these two technologies. An Eccentex survey reveals that “58.6% of respondents said the use of mobile tools ‘increases productivity’ and 27% of respondents said working remotely makes work ‘easier.’”
The cost of moving to the cloud or developing a mobile application – which Forrester Research places between $20k and $150k – may be a deterrent for some companies. But for industries like construction, it’s hard not to quickly comprehend the benefits of mobile computing and business process management. The tablet trumps the laptop when it comes to weight and battery life, making it ideal for construction engineers overseeing a multitude of projects and needing accessibility on the field.
#3: The Rise of the Impatient Customer
With the power of instant information (i.e. Google) and extensive purchasing power on their fingertips, the customer has more power to switch their buying patterns immediately to competitors around the globe like never before. This makes it critical to ensure all your business processes are built with the end goals of customer retention and customer loyalty in mind.
Live chat software is one avenue companies are exploring to make the shift from static to dynamic website functionality. According to Forrestor research, 44 percent of online consumers rank live chat as the most important website feature. A live chat customer service rep can handle up to three people at once while the phone is restricted to one.
Another avenue is providing customers visibility to their order and giving them information to choose your company as the best for their needs. Some companies (such as UPS and Dell) realized that providing real-time tracking to customers for their purchase, they could build trust with their customers and be a recommended service.
Many business leaders and owners think that their processes are ‘good enough’ or that it costs too much to improve and optimize their processes. Usually, they aren’t and is “good enough” the best standard to aim for in your business? Superior processes will make for a Superior Business Brand.
There are numerous technologies to help automate existing processes to free up time and allow you, the business owner, to focus on managing processes as opposed to just try to simply keep them working.
Schedule a free Strategy Session with Gerry Anderson, President of Logicon Solutions to review the options available to improve your accounting processes and Increase your Profitability!
You provide a quick review of your challenges and we provide you with information on how you can overcome these challenges based on proven systems that work. We will look at how you can implement the fixes and your next steps to immediately improve your cash flow and reduce your accounting costs.
Gerry Anderson, M.Sc., CPA, CMA
Toronto, Ontario: 647-933-0955 ext 301