Businesses are created through procedures that aim to provide profit, whether through service or goods. These procedures build the character of the business and are paramount to ensuring the success of the business in the long run. Therefore, it is good practice to standardize processes in a business.
Standardizing processes in a business means creating a framework that guides the operations of the business, this framework becomes a standard for the business, and every task is structured to following that particular practice which is purpose-built to achieve the success of the business. Following a standardized process will help a business operate efficiently in different ways.
Without continual growth and progress, such words as improvement, achievement, and success have no meaning.
What are standardized processes in Businesses?
The standardized process of a business refers to a set of work procedures that are used by a company to achieve goals and complete projects. These work procedures are formed by the managers of business and put together and followed for the realization of projects in the future. A standardized process of business is come about by a series of steps that eventually results in a functional workflow.
Standardized processes in businesses cut across different departments in businesses, from the finance department, record keeping, operations and so on and it is not a one standard fits all. Standardized procedures for business usually are designed custom fit to ensure efficiency at its best for a company; this means that for standardized processes to be formed, the business vision has to be the guiding factor.
It is important to note that standardized processes of a business may not be formed all at once and then set in stone, rather the procedure involves planning, testing, evaluating results and planning until the right standard is come about. Therefore, a standardized process may finally become about after months or years; the; the goal is for it to ensure productivity and efficiency of that particular business.
What is the importance of having a standard process in a business?
1. It builds integrity
Standardized business procedures help a business to maintain a standard of operations, therefore checking and maintaining a standard quality of processes is possible because without a standardized process one does not know what exactly to check and stick to and this leads to a fluctuating quality of work.
The integrity of a business is important not only for the customers receiving the final output but also for the business’s brand, because the integrity of a business is a major factor in determining the business reputation. Clients respond to the kind of reputation a business has and will more readily trust a business is consistent in its quality. Starbucks is an example of one such company that has built integrity overtime from creating standardized processes of operation, service, and product.
2. It eliminates chaos in the workplace
If a business has to strategize with every new job because there is no planned framework on how to operate, it creates chaos in the business environment among workers. A standardized procedure eliminates room for chaos in business since every member of the team knows what is expected of them and exactly how to execute it.
3. It builds a company culture
A set of standardized processes builds a company culture since it is custom built to suit the vision of the company. Therefore these standards are formed and revised so that it not only becomes a driving force for the achievement of goals but becomes a way of life for the team. When a company has a culture, it becomes easier to know the kind of workers and team members that the company needs when they want to recruit, and it is easier for the employees to evaluate themselves and decide what business environment best harnesses their strengths. At the end of the day, standardized processes become a huge part of the business culture.
4. Knowing who to hire
Google, for instance, has an interesting approach to hiring new employees on the team, this approach was brought about by research and brainstorming the best ways to make sure that the best members for the team are employed. At Google, an applicant has to pass through scrutiny with a board of hirers before finally being hired, while this system may not work in all businesses especially because it takes up time, Google was able to come to it by testing out different methods and reviewing their productivity. In other cases, a business will easily hire the right people if they have developed standardized processes because they know the exact job description they want and know exactly what to look for in applicants.
5. The absence of team members is not detrimental to workflow and production
When a business has been able to establish a clear formula on how operations are carried out, it is easier for someone to fill in for an employee in their absence, otherwise the absence of an employee will mean that work will have to be put on hold until that team member is present or can at least explain his/her position. Similarly, when a team member has to be replaced, his/her department does not necessarily run into a frenzy because whoever is filing in will easily know what is expected of him or her after a little orientation. In summary, since there are standards in place, everybody knows who does what and when a team member leaves, the business can easily move on.
6. Business tasks are more productive
One important effect that creating standard business processes has is that businesses become more productive. When employees have clarity on what to do and tend to avoid mistakes more than when there are no established structures. Because building a standardized business process involves research and testing methods, it is structured in a way that best harnesses strengths of the team, and best fulfills the unique business goals. Productivity is increased as procedures are established.
7. It creates a room for improvement
The process of drawing up a standardized process for a business includes brainstorming, testing and reviewing therefore in the process of achieving the best set of methods a business has room to grow and improve as weaknesses and grey areas are spotted and improved upon. A business with a standardized set of operations knows when plans stop working, and knows when things are out of the norm. This enables employees to recognize challenges earlier and gives teams time to contemplate ways to overcome roadblocks and improve their processes.
8. Review and documentation is possible
When a business has standardized their systems, a timely review of the efficiency of a team or business is possible. Rules can easily be reviewed because it is easy to map out their effect in the company’s performance. For example, a company can easily tell how productive their working hours and days are when there is a standardized process. But, in a situation where there are no set standards that fit the company’s visions, it becomes difficult to review productivity in this way.
9. It saves time
When a business has been able to lay down processes for carrying out their services, it doesn’t just make the service easier, it makes it faster. Imagine having to call a meeting and discuss every single project before beginning, and the time that will be wasted in coordinating and undergoing a process of trial and error. Having standardized procedures eliminates the need for all these wasted time, therefore, saving time in the long run as well as in the short term of any project.
10. It eliminates redundancy
With standardized procedures in the business environment, clarity is achieved, and every task that contributes to the realization of goals and completion of projects can be recognized. Because each task is planned out with a business process, it is rare that a task would be accidentally repeated, and employees will not needlessly complete work that’s already been done. For example, when a business has not created standardized procedures, it is possible for more than one person to be assigned the same task without realizing it because their roles had not been previously mapped out and reviewed.
11. Easier feasibility studies
A business may have to partake in feasibility studies that will guide them on the right path to take at the start of making important changes. When there is already a framework of operations, it is easier for the company to undergo feasibility studies and determine if the company is going in the right direction considering the employees, resources, and systems in place. In this case, if the new change being implemented is important, the business can easily decipher what changes to make that will make the goal possible.
12. It makes the tasks of the project manager easy
If a business does not already have a project manager, then it is only a matter of time before they may have to employ one. Department heads also play the role of a project manager in businesses, and it is their duty to plan and harness the strength of the team to realize team’s goals. With standardized procedures in place, the managers can easily carry out their responsibilities of planning out a new project, and it is easier to delegate responsibilities, to evaluate the team and to better harness the team’s strength and to correct flaws and weaknesses.
13. It can drive innovation in the business
Standardized procedures create room for specialization and focus with staff. Specialization helps every member of the team to perfect their roles and duties and produce at top notch, but specialization does not just stop at perfecting roles. Specialization encourages team members to be innovative about how to better carry out their designated roles since everyone knows what is expected of them, they have the ability to apply their creativity to carrying out those duties. Simply put, having focus encourages growth and innovation as strengths are properly channeled.
14. The business builds a standard of work
Following a standardized process of operations builds consistency of business output because it is an application of the same methods over again to achieve results. Therefore, all things being equal it produces consistent results. In order to develop a standard of works for your business, it is important that the business output is consistent over time. This consistent output becomes the standard of the business. The standard of business is reoccurring in the business portfolio and is what new clients use to measure the expected product output from a business. A company like McDonalds overtime has been able to use this approach to create a niche of “the McDonalds service” that extends beyond just their food.
15. Longer lifespan of the business
When a business has standardized processes, it means that the business has a book of work and operation charts that goes beyond the people on the team. Therefore, a change in ownership or team members will not lead to a closure of the business. This is because the standardized procedures have become a handbook for the business. A good example is with a company like KFC, where the company, as well as the service standards, has lived beyond the founder.
In conclusion, there are numerous benefits to establishing standardized processes for a business. Business processes can make teams more efficient when it comes to resources, working hours, and output. Additionally, standardizing business processes can increase the health and longevity of a business, enabling a company to pass from one team of employees to the next seamlessly and without roadblocks.