Article 1: The Value of Up-to-date Process Documentation in an Organization

One of the core aspects of any BPM initiative is the documentation of an organization’s business processes. This largely takes the form of process maps (flowcharts) and/or policies and procedures manuals.

Implementation of well written and up-to-date process documentation in an organization comes with the following benefits:

1. Reduced Operating Costs

Reduction in operating losses – as employee clarity on how to perform business processes improves, operating errors and mistakes are significantly reduced. This leads to an overall reduction in operating losses.

Reduction in fraud – Most fraudsters (both internal and external) take advantage of process weaknesses and the lack of definitive instructions on process performance. Putting in place sound operating procedures can contribute to a drastic reduction in such frauds.

Improved efficiency – when employees have clarity on how to perform business processes, they become more agile leading to faster turnarounds. This is also likely to contribute to a significant reduction in wastage of business resources. This efficiency translates into cost savings in terms of man-hours and other key business resources.

2. Improved Revenue

Maximum revenue collection – Properly documented policies and procedures covering all revenue collection areas will ensure maximum revenue collection and eliminate income leakage.

More business – Improved efficiency, faster turnaround, improved reputation, better customer service etc. will all lead to new business and enhance customer retention.

3. Motivated, Confident and Competent Employees

Improved employee performance - The main determinants of staff performance are Behavior, Environment, Clarity, Knowledge and Skills (BECKS). Implementation of well-documented operating procedures addresses clarity and knowledge all at once thereby reducing employee frustration and enhancing productivity. This also means that managers can concentrate on driving business performance instead of spending time fire-fighting.

Streamlined and well documented business processes also encourage and enable staff to be more creative and proactive.

Employee induction tool – A well-documented policies and procedures manual is one of the most powerful induction tools available. Any intelligent new employee should be able to read the organization’s process documentation and commence work immediately with minimal guidance only.

Improved employee accountability - Without well-documented operating policies and procedures, it is almost impossible for the organization to prove a breach of procedure on the part of an employee especially in a court of law.

Performance measurement – Proper process documentation provides a good basis for measuring employee performance. Key Performance Indicators (KPIs) derived from the operating procedures can be used as part of the Balanced Scorecard or any other performance measurement framework.

Business Continuity – Most business organizations invest a lot of time and money in designing their business processes. The bulk of the knowledge/information regarding these processes is held in the minds of their more experienced employees. When these experienced employees leave the organization, those details leave with them, sometimes straight to the competition!

4. Happy Customers

Faster turnaround – The efficiency and agility resulting in the implementation of well-documented business processes means that products/services can be availed to customers much faster than was previously possible.

Quality products/services – Employee clarity on process performance, reduction in operating errors and frauds and the resultant process efficiency will definitely lead to better quality products/services for the benefit of the customer.

Improved reputation – When an organization implements proper and well-documented operating policies and procedures leading to quality services/products, its reputation grows making its customers proud to be associated with it.

5. Others

Enhanced regulatory compliance

Improved audit profile (both internal and external)

Proper process documentation serves as a basis for performing process; audits, improvement, automation, risk assessment and re-engineering.

Overall agility – The organization is able to easily adapt to changes in the business environment.

There are many more benefits that accrue to an organization that properly documents its business processes. From the few listed above, it is clear that paying more attention to your organization’s business processes results in all round benefits for your stakeholders that far outweigh the cost involved.