Business Processes: Build Them & They Will Scale

There comes a time in the life of every small business when someone says "we need a better process," usually in exasperation. Or when a critical customer or vendor asks how they can better fit into your process for taking orders, committing delivery dates, beta testing products, or whatever. 

This is perfectly natural - as you grow, you can't do everything the way you used to.  It's time to put some formal business processes into place.

But oh, the horror stories you'll hear - about business processes run amok, consultants taking over, more bureaucracy, less flexibility...it goes on and on. All of this happens sometimes, but it doesn't have to happen to you if you pay close attention to a few critical principles.

First, processes are tools to get the job done, NOT ends in themselves.  A process can take on a life of its own, especially if you are using consultants who feel compelled to promote their wares. This one rule trumps all the others. 

Second, be selective.  Don't try to "processize" everything.  Where will the payoff be the greatest?  Look at work that involves multiple sites or functions, or has enough handoffs that people need clarity on who does what, for whom, when? 

Third, focus on analysis before design. Be thorough but practical.  The real problem may not be what everybody says it is. We used to say, "staple yourself to a purchase order" when we talked about how to get a real-world view of business processes. (It works pretty well, other than the occasional bloodstain on a PO.)  You will learn a lot more by following how things really get done than by papering a war room with flow charts. 

Fourth, try it and fix it.  Don't get hung up on endless process design cycles.  You won't know what really works until you try it out.  Things that don't work as planned are OK, as long as they get fixed.  

Finally, don't let perfection get in the way of progress.  Ralph Waldo Emerson said it best: "A foolish consistency is the hobgoblin of little minds".  If a particular process is going to make you head and shoulders better than the competition where it really matters, then shoot to be the best you can be.  Otherwise, "good enough" is probably just that. 

Also, never insist on customizing off-the-shelf IT systems to your particular processes.  Standard systems will work fine for most of your tasks, and maintaining them will be much less painful. 

What is your role as CEO in this process?  First, only you can impress on everyone the need for changes that will probably impact your corporate culture - and only you can insist that these changes happen.

Second, as CEO you are the only one who can really make sure that the other rules I discuss here prevail. You should have a program leader who is the "go-to person" for making these changes happen, but it's just as important that they stay front and center on your personal agenda.

Follow these rules whether you are using a consultant or your own folks.  Be patient, be focused, and be willing at times to accept a bit of inconsistency -- and you will get there.