Process-based Management: Improving Productivity In Small Businesses
Managing a small company is, no doubt about it
, a challenge faced by businessmen all over the world. Companies this size need to invest on average four times more than big companies to get to comparable rates of productivity and then sell enough to profit so that they are able to invest in new technologies and other improvements. However, the challenge faced by these companies becomes easier when their leaders realize the opportunity offered by process-based management tools, capable of designing workflows and controlling the execution of their processes, thus optimizing their productivity and the quality of the services in store.
The solution for them to fight these adversities might be found in the implementation of a process-based management system. Through the organization of a workflow that's just right for their production, small companies would have the chance to grow productively, and, as a consequence, they would be better prepared to cater for their customers' needs and face the enormous competition imposed by the market.
According to Renato Fonseca de Andrade, Small Business Management Specialist, process-based management is a solution that can help a lot when administrating a company. Process-based management is a very interesting way to manage a company because it makes it possible for you to watch over everything that's done, in the sense that you offer the client more value.
The specialist also says that, even if you manage a medium-sized or small company, or when you have few resources to invest in tools, it is very simple to develop a process-based management project. Small businesses can start to think of processes in a very simple way. For instance, by sticking a cardboard sheet to a wall and using post-it notes, imagining the process in a way that it starts with the client and gets to the company, and not the other way around. Everything must be taken into account so the client is satisfied with the service. When you do that, you can realize all the processes that each employee operates and that many times are not understood, as large companies work through departments and separate functions. This is a very interesting exercise to be done, actually, he adds.
To him, it is from a process-based management perspective that a company can identify the processes that are, in fact, required for the efficiency of the service or the product the company sells, and that directly affect the value presented to the client. When a small company is seen in all its processes from this perspective, it starts to be thought of as a chain. This understanding is valuable because it's possible to identify those processes that aggregate the most value to the client and those that aren't usually necessary, that do not aggregate any real value to the client.
Another interesting benefit of this kind of management is the definition of roles and the control of all the activities to be executed within the processes. With this kind of management, everybody's roles become clear and this enables the manager to understand what kind of professional she needs, making it easier to hire new employees, Renato explains.
Process-based management is also the key to spot non-conformities in executed processes and also to try and improve on them continuously. Process-based management allows for the monitoring of KPI's, through which it's possible to identify and apply improvements in the process in a cycle of learning. This way you stipulate a target, watch over the indicator and improve it. Process-based management enables us to improve everything that directly affects the quality as it is perceived by the client. That's why companies, when they want to automate their processes, need to model the processes in order to check their current state, and think about points to improve, so they are successfully automated, and it absolutely pays off for the company, Renato concludes.
by: Wallace Oliveira
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