Once you have designed the process out of all the alternatives, you must involve everyone and make them understand the process. This is one of the most critical steps in creating a business process. The task is to find the most suitable option with the least opportunity cost.Į.g., There are multiple solutions to decrease the traveling time of your delivery boys like dividing them into shifts, giving them skateboards, setting their routes in a way they don’t need to detour, but only a few of them will be suitable and feasible. There will be an opportunity loss attached to each of these alternatives. Now you need to create all the alternatives that you can come up with. Once you have defined what exactly you want as an outcome, half of the problem is solved. You must define this objective and take all the further steps to achieve this objective. Your objective might be to decrease the traveling time by 30 mins of each of your delivery guys. Attach some quantitative metrics to your objective, so that you can find out the results after implementation.Į.g., Let’s assume you have a courier business, and you want to prepare a business process for your delivery guys. This would help you create the base of your process and give it a suitable direction. Just like any other process, business processes also need you to be clear about what outcomes you want to achieve. When everyone in the organization knows what they are supposed to do chronologically, it decreases a lot of redundancies and increases the efficiency of the whole organization.
An increase in efficiency is another advantage attached to it. Processes will increase the clarity of work in your business. If your HR is not busy with the onboarding of the new employee, they can work on something more productive. This is how business processes are essential to reduce the opportunity cost. That’s why if you save your time in doing one thing, you can utilize it by doing the other stuff. We all can’t be like Schrodinger’s cat, living in multiple realities at the same time. Opportunity cost is the benefit you lose when you choose to do one thing instead of its alternative. This will save the time of both HR and the new employee. Now the HR won’t have to manually find missing pieces every time a new employee joins the company. Let’s say you create a process of onboarding new employees. It also boosts the productivity of the people in your business. So it would save you money if you keep customer satisfaction as your top priority. Acquiring customers is 5-25X more expensive than retaining current customers. Time is precious for the customers, and when you are able to deliver your promises in time, you increase customer satisfaction. When your business processes are aligned and crystal clear, you can save a lot of time for your employees and customers. The aphorism ‘Time is money’ is being used since ages and is still relevant.
Here are a few reasons why knowing and implementing your business process is essential. When you know your business processes and are able to put them into practice, you will see a considerable difference in the amount of work you do.
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