Using Process Improvement to Become More Efficient, Profitable, and Impactful
Using Process Improvement to Become More Efficient, Profitable, and Impactful
As a fractional COO, I work with companies on systemization—organizing business operations into systems that are efficient, pragmatic, and productive. But systemization isn’t a one-and-done activity. For you to truly scale your business, you need to regularly engage in process improvement.
What is process improvement?
Process improvement is the practice of documenting, analyzing, and improving every step within each process your organization uses.
When you intentionally map your processes, you can actually see all the places where inefficiencies developed out of habit (“that’s the way we’ve always done it”), or where multiple people with the same job do things in different ways because they’ve never taken the time to get on the same page about what works best.
Documenting processes allows you to improve processes.
The point of process documentation is not to have a nice, neat binder full of processes at the end. The value lies in the actual exercise of extracting processes from people’s heads and getting them on “paper,” which enables you and your team to identify areas of improvement and optimize the way you operate.
How to know if you need process improvement
If your gut reaction to process improvement is to assume (or hope?) that everyone in your business is already on the same page, ask someone about how they make a peanut butter and jelly sandwich. Or whether they put water or toothpaste on their toothbrush first. Or if they wash their hair or body first in the shower. You might be surprised by the different ways people approach even the simplest of tasks.
Since your business is probably a tad more complicated than peanut butter and jelly sandwiches, it’s safe to say that process evaluation and optimization are likely in order.
Here are some clues that the need for process improvement may be more urgent than you realize:
You need help onboarding staff or clients
You don’t have clear processes for training people or delegating tasks
You want to learn how to delegate and get things off your plate
You’re struggling to keep track of all the ways things are done in your organization
You want to scale but you don’t know how or where to start
You feel stuck and overwhelmed
You want to make sure everyone is doing their jobs correctly and efficiently
You read this blog and thought, “But this is the way we’ve always done it.”
In all of these cases, process improvement is the cure for what ails you.
Processes provide constructs, not constraints.
For many leaders, the words “system” and “process” feel constraining and restrictive—the opposite of “freedom.” They worry that processes will overshadow creativity and leave their teams just checking off boxes on a checklist versus truly leveraging the skills that got them hired in the first place.
This characterization of systemization and process improvement could not be further from the truth.
Processes are not constraints. They’re constructs—frameworks that empower people with autonomy to do their jobs. They provide freedom by removing decision fatigue and improving efficiency. You can hire the right people and empower them to run—and continually improve—the process.
How processes can improve creativity and problem-solving
Consider, for example, that you have a team responsible for fulfilling orders. Without process improvement, it’s likely that one of two things is true:
They’re simply doing things the way they’ve always been done, which may have been a cobbled-together “process” from the early days of the business that is rife with inefficiencies and lost opportunities for improving the customer experience.
OREach team member is fulfilling orders in the way that makes sense to them, but everyone is doing it just a little bit (or a lot) differently—which means every customer’s experience is just a little bit (or a lot) different depending on who fulfilled their order.
Now, let’s bring process improvement to this scenario. The whole team works together to document and analyze what they’ve been doing, noticing and correcting inefficiencies and codifying best practices as they go. Suddenly they can see an abundance of opportunities to improve the customer experience and be more creative about how order fulfillment can create customer loyalty. The entire team is now engaged in increasing the profitability of your business.
Processes have set them free.
It is important to note, though, that process improvement requires inclusive leadership. When you create top-down processes, pass down orders, and then expect others to just do it, that would be restrictive. But when you engage your stakeholders in process improvement and make it truly collaborative, you create freedom and engagement.
Start your process improvement with the customer journey.
If you’re ready to dive in, the best place to start is with mapping out your customer’s journey. Every point on the customer journey will have an associated system or process that can be improved. You can stay focused on the customer experience while also ensuring efficiency and productivity of your operations.
Once you have identified areas of improvement, you can prioritize and get to work implementing meaningful change. Be sure to establish a system to sustain the improvement process and hold people accountable to that process.
Remember, too, to engage all stakeholders. You’ll get better buy-in when people feel they have a voice, even if they do not agree with the direction, and you get better systems and processes when you leverage collective wisdom and experience.
Client onboarding is the first process to analyze and improve.
Once you’ve mapped the customer journey, it’s time to pick a process and get to work. I like to start with client onboarding. The need to keep content and communication consistent throughout the beginning experience—as you facilitate the handoff between “we sold it” and “now we have to do it”—is vital to building customer confidence and loyalty.
In this diagram of a typical customer journey, I like to start process improvement with “the purchase” and then move straight into “the work.” Notice how we’re not starting at the top. That’s because none of those really matter until we do the “work.” It’s only once those processes are documented, analyzed, and improved that we’ll circle back to the funnel.
The benefits of systemization and process improvement
While systemization and process improvement are distinct in practice, they are two powerful, impactful, and inextricably linked pathways to scaling your business and maximizing your profit. The benefits are the same:
If you’re ready to begin your process improvement journey, but you need a skilled facilitator to help, you’re looking for an experienced Fractional COO. Let’s have a conversation—quick, easy, no strings attached.