5 Ways Processes Make SMBs More Agile

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“Processes” often sound like a dirty word for small and medium-size businesses (SMBs). When you’re working in a small organization, your team has no choice but to work together to ensure maximum productivity.  Many SMBs worry that processes will actually hurt productivity.

The common concern goes something like this:

  • Having a process will just slow down projects by requiring approvals and meetings 
  • Once a process is in place, the organization will need to pivot or focus in another direction because they must be nimble – and processes will only get in the way of pivoting
  • Defining and implementing a process takes too much time and most people don’t stick to it – so why bother implementing it?

These worries result from badly implemented and poorly designed processes. Good processes won’t cause the above problems. In fact, good processes make your company more agile. 

Here are 5 ways that good processes will improve your organization.

1. Processes increase transparency within organizations

Even in SMBs, there can be silos and lack of communication on goals and initiatives because everyone is so focused on their individual roles. A proper process ensures effective collaboration between everyone. When everyone is clear on process and more importantly, the reasons for a process, they are more likely to support that process from their respective position.

But that’s not all.  This second part is especially important for SMBs. Often, team members understand what everyone else is doing but not necessarily why they are doing it or how it drives business. A process breaks down those communication barriers so that everyone is confident in each role and the projects that are driving the company forward. 

2. Greater accountability 

Usually in SMBs, everyone wears many hats. Your marketing person may also be in charge of sales and web development and your HR person could also be in charge of customer service.

This can be a great thing and it can make your company extremely agile — sometimes.  But when people handle many different responsibilities, it can be difficult to see who is really doing what. 

Generally, when a small group of people are doing many different things and the processes aren’t clear, projects can get dropped or mistakes are made. With so many overlapping responsibilities, it’s easy to point blame on everyone or no one. You may often hear: “I have so much going on that I didn’t realize that project was on my plate” or “I just assumed So-and-So was handling that.”

Processes eliminate this problem because they make everyone’s responsibilities very clear. With a process, no one can say “I didn’t realize that activity was on my plate to do” because they – and everyone else – will know exactly what falls under their roles and responsibilities.

3. No More Throwing Spaghetti at The Wall

A common problem among SMBs is that employees often feel there is no time to actually find long-term solutions to issues.  As a result,  they’re constantly forced to fix things quickly and making it work “for now.”

But, the “for-now” approach actually leads to lost time and less productivity because you are constantly having to go back to fix that same problem over and over again. In short, you’re just throwing spaghetti at the wall just hoping one of these solutions will stick.

Processes create clear paths to reliable and repeatable long-term solutions. When you create a process that efficiently creates a long-term solution, this results in your team having the time to take care of their other projects and responsibilities.

4. Your budget will go farther

SMBs have limited budgets – everyone knows this. Processes help you to do things more efficiently and effectively, with more of a focus and connection to the bottom line.

When you have haphazard projects, you’re “throwing spaghetti at the wall”.  There is no accountability, and it is very easy for your team to be working on things that don’t connect to the bottom line.  

This means your team is working hard – they might even be overworked – but you’re not actually growing your business. 

What then happens is one of two things: your team feels overworked and under-appreciated and their work starts to decline or you hire more people to get more work done, even if it’s for projects that don’t necessarily provide value to the organization. 

Either way, you are paying for a company that might not be delivering as much value as it could.

Developing efficient and effective processes helps ensure every project connects to the bottom line. This way your team won’t be wasting their time or energy, and you won’t be wasting money paying for work that doesn’t actually grow your business!

5. You can be continuously improving

In an SMB, many owners and team members are often just trying to stay afloat and put out fires as they come up. They are finding quick fixes, squeezing by on tight budgets and just trying to stay ahead of the competition. 

It can be hard to see much growth or understand how the business is actually growing. With a process, you can establish a baseline from which to measure improvements. You’ll be able to say “This is where we started and this is where ended up and here’s what went right and what went wrong.”

Defined processes give your business a chance to improve. You’ll have a clearer picture of what decisions you as the business owner need to make.  You will enable your team members to feel empowered about what they are able to accomplish and it provides a greater sense of responsibility and contribution to the company’s success.

The point of this is: the right process can help your organization accomplish more and grow faster. So instead of questioning the value of processes or avoiding them all together, take the time to establish the right processes or improve the ones that you already have. By defining processes, you actually become more agile – you can quickly and confidently identify and implement the operational changes required to quickly respond to changes in the market and keep you ahead of your competition.

Looking for more support?

Tedder Consulting’s new Process Improvement Workshop can help you quickly and effectively improve your processes in your organization! Learn more about it here!

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