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Identifying and Improving your Core Processes


paperfree Aditi Bansal


Updated on Friday, August 11, 2017

In any existing business, there is a common set of core business processes which must be in place for the company to function well. Pinpointing a gap in one of your business’s core processes can be a daunting task. Many people don’t know where to begin.

tags  #Core Processes  #Process Map #

 

Steps to pinpoint and improve your core processes:

Describe the model of your business

How you earn profits and where the profits come from is what defines the model of your business. This also sets how you make money. By assessing your business model, you should be able to see how you can make money and how you should make money. You will know what to do with your organization to increase the revenue

Create a process map

After defining your business model, identify your company’s core process in cash to cash sequence by continuing to follow the money path. The next thing to do is to connect the core processes in a process map. You should link dealers, input, outputs, and clients together to get the general cash cycle of conversion.

With the help of the process map, you can see the departments over which cash flows. You should be able to know which process to start improving after you identify and break down the core processes.

Evaluate financial statements

While continuing along the money trail and pinpointing the core processes, look at your fiscal statements, cash flow statements, balance sheet and income sheet. Your financial statement indicates where your money is piling up. It shows you what your current velocity is.

Set speed

The rate at which your system is presently operating is what is referred to as velocity. This can be the reaction to orders and goods supplied on time. It is important to know the set of speed that your business needs to preserve good client happiness to design one of the efficient core processes.

Control leverage

This is the final element in following the money trail. Find out which process upgrading will create a robust Return on Investment (ROI) by examining the five core processes to satisfy your clients. Always keep in mind the risk element. For instance, what will be the consequences of the changes?

Create a gap analysis

Operations assessments impacts to a gap analysis which later shows you where to begin to achieve your target.



This page has a focus on Core Processes, Process Map was shared by Aditi Bansal.

 
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