When a new company is just starting out, managers often believe that they do not have time to implement processes because they are too busy generating revenue to break even or make a profit. Interestingly, even when companies think they do not have any processes in place, as soon as a company starts doing business it has processes—revenues are generated, receivables are received, bills are paid, and employees are hired. Unfortunately, often these processes are not well thought out and they are desultory at best.
Important Process Attributes
All processes have attributes that are important in determining how successful they are in getting a job done and getting it done well. Some process attributes, or types of processes, include informal, formal, measurable, flexible, extensible, and repeatable. These can be defined as follows:
- Informal processes
- Informal processes are those that many times randomly happen and become “the way that we do things around here,” often as an agreed way of working with two or more colleagues. Informal processes can work well when two or more co-workers work together cohesively, and when nobody else is impacted by the process apart from the individuals involved. Problems with informal processes can arise when members of the cohesive group begin to leave the company or move on to other teams, and there is no formally agreed process in place.
- Formal processes
- Formal processes are usually documented procedures. They are often established by agreement between two or more key players, teams, or departments in a business, or between different businesses. Formalized processes should work well to help businesses become more efficient and effective. If a formal process is well thought out, documented, and understood, it is less likely that costly mistakes will occur since, in theory, everyone understands the processes and potential conflicts are easier to identify.
- Measurable processes
- A measurable process is exactly that—one that can be quantified. If it is not possible to measure processes, then it is nearly impossible to figure out whether or not they are effective, and whether they might benefit from improvements. Good processes should be measurable either overall or in their component parts, because some bits of a process may work well, while other bits might benefit from improvement.
- Flexible processes
- A process that is flexible is one that can be adapted to fit a number of different situations, or most possibilities that may arise. Processes that are not flexible can cause huge problems for organizations. Processes need to be flexible and adaptable in order to deal with situations that fall outside of the norm without causing problems for the business and without negatively impacting revenues.
- Extensible processes
- Similar to flexibility, processes need to be extensible so that they can be adapted for different and new situations that might arise, but also so that they can be scaled up as businesses get larger. Extensible processes are those that can handle the launch of new products or services and can be easily broadened over time as the company grows. Processes need to be extensible in order to be able to easily accommodate changing business needs and priorities.
- Repeatable processes
- A repeatable process is one that time and time again yields a consistent outcome. Repeatable processes are usually documented, making them considerably easier to follow. Repeatable processes can be informal, but they are more often formalized so that they can be carried out by anyone, even if the person is new to the organization or partnership.
Takeaways
Whether processes are informal or formal, it is important that they include the following attributes:
- Measurable
- Flexible
- Extensible
- Repeatable
Processes that have these attributes tend to be more successful because they can be measured and improved; they are flexible enough to change as needed based on changes in the environment; they can scale with the growth of the organization due to their extensible nature; and more importantly, they are repeatable so that successful outcomes can be replicated.
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About The Author
Dr. Milton Mattox is a senior-level business executive, leader, and technologist who has worked with some of the world’s most acclaimed companies. An expert in software engineering, information technology, and quality process management, he continues to practice the leadership techniques and methodologies outlined in his books and articles to successfully increase return on investment for organizations and companies.