Identifying and Improving your Core Processes

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.

last updated Monday, July 8, 2024
#Core Processes #Process Map

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John Burson

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CONTENTS

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 and 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 a cash-to-cash sequence by continuing to follow the money path. The next step is to connect the core processes in a process map. You should link dealers, inputs, outputs, and clients together to get the general cash cycle of conversion.

The process map helps you see the departments over which cash flows. After you identify and break down the core processes, you should be able to know which process to start improving.

Evaluate financial statements

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

Set the 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 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. Examine the five core processes to satisfy your clients and determine which process upgrades will create a robust return on investment (ROI). Always keep in mind the risk element. For instance, what will the consequences of the changes be?

Create a gap analysis.

Operations assessments impact a gap analysis, showing you where to begin to achieve your target.

 
 
 

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