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Your company’s business processes are at the core of your initiative. Your processes directly affect your company’s reputation and profitability. As an entrepreneur, you need to make sure every process you implement is efficient and effective and there are no wasted resources. The best companies that we have worked with in the past have excellent business processes that have outperformed their competition.
The best companies are at the top due to effective, efficient, and well-designed business processes. The most successful companies are the ones that can effectively set up and simplify their business processes so that they can perform better, faster and cost-effectively.
Here are the 5 points to keep in mind to make processes smooth and effective
1. Review alignment to your customer’s needs
You need to ensure that each step in your company’s processes is contributing to the value addition to your customer. Processes may get outdated and inefficient with changing customer needs, hence, there is a need to re-evaluate each step in your processes and determine what is and isn’t valuable! A good place to start is by conducting an internal audit of your processes to review the alignment of your processes to your customers’ needs. Internal Audit helps by identifying process steps that are not value-adding or redundant and hence need to be changed. Regular internal audits will lead to better customer satisfaction and improvement in their trust in your company.
2. Challenge the status quo
As your company grows, the processes established in the past become redundant, costly, risky and may lack adequate controls. It can be daunting to try and change old and established processes, no matter the size of your company. An Internal Auditor gently challenges the status quo of processes in order to reduce risk, improve controls, and uncover cost-reduction opportunities across the company, all while striving to make the operation more efficient in any manner feasible.
3. Keep your business objectives in sight
As a business, you need to evaluate your internal processes to ensure that the day-to-day operations of your company are aligned with your business objectives. An internal audit will assist you in this evaluation of all the processes of your company and ensure that each step is effective and properly executed to bring your company closer to achieving its objectives. The internal audit ensures that your employees understand the process they are working on and they know what they have to achieve. Alignment of your company’s processes to your company’s objectives is the best way to ensure the achievement of objectives.
4. Monitor and evaluate your business risks
Enterprise Risk management is an important tool for businesses such as yours, especially medium to large corporations. A risk management framework helps you to identify, assess and manage risks in your business. This framework is comprised of a number of tools designed to track and manage risk, while also helping to reduce it. One of these tools to manage and reduce risk is to implement controls that mitigate risk. These internal controls can be made effective through periodic internal audits that evaluate the effectiveness of internal financial controls in your company. When you start to look at controls from this perspective, you are making sure every action you take will lead to a more efficient operation.
5. Control your costs
To ensure that you’re being thorough about your pricing and costing is to know your overall cost of delivery for goods or services to your customers. As an entrepreneur, it’s important for you to stay on top of your company’s costs and finances at all times. Costing methods and tools that are used for monitoring your costs might not be effective, or they may not be representative of what is actually taking place, so it would be a smart idea to get the cost methods evaluated by the Internal Auditors. Internal Audit can evaluate whether the costing methods are effective, cover all the processes and represent the expenditure incurred as per the financial statements.
Regular internal audits ensure that your employees adhere to the standardized processes and maintain a high level of accuracy in operational and financial reporting.