Line Vertical Thin Streamline Icon: https://streamlinehq.com
Home / General knowlegde / Building a Financial Management System / The necessity of process development
Category

The necessity of process development

1. What is process development?

A business process is a set of tasks and activities performed in a fixed order to transform inputs into outputs. Based on the function and management objectives, the necessity of process development in a business can be divided into many large, integrated processes with various smaller processes.

2. Why is a process necessary?

Each individual possesses different knowledge and skills, leading to different work styles. A well-structured process helps individuals understand the steps involved in a task, how to perform them, and what desired results should be achieved. This prevents situations where employees receive instructions from their boss without knowing how to proceed, or where they repeatedly attempt tasks without meeting the boss's expectations.

For example: The Human Resources Department has a recruitment process, and HR staff will know what information should be included in the "List of Applicants" so that the Head of HR and the Head of Department/Division can review and screen applications, selecting those who meet the criteria for interviews.

For work processes that require teamwork, a process helps team members coordinate seamlessly and in the right order without having to wonder who should do it or how.

For example, the accounting department's purchasing process will help HR staff understand and correctly follow procedures when purchasing assets for the company, and coordinate better with accounting staff in payment processing.

The process also helps managers monitor the progress and quality of work performed by employees.

For example, the Head of Human Resources can look at the Candidate Evaluation Form, which includes salary, allowances, start date, and signatures of relevant parties, to determine whether the HR staff drafted the employment contract correctly.

3. What are the barriers to implementation?

Managers themselves are unwilling to invest the time or don't see the need to build processes, believing that creating processes is time-consuming and that they have many other things to do to make money. However, this perspective isn't long-term, and they haven't truly grasped the benefits of processes, nor the understanding that while it might take a little time now, it will greatly simplify their management and control of employee work later on.

They argue that the process is time-consuming, complicated, and cumbersome, suggesting that direct communication is faster. Direct communication is excellent, but after discussion and agreement, those points must be documented. Often, people forget what they said three days later, or remember but not fully grasp it. In many cases, this leads to unnecessary arguments, such as "That's not what I meant" or "You say something different every day, how am I supposed to know what to do?"

Those responsible for implementing processes may not fully understand the operational aspects. The measure of an effective process lies in how smoothly those following it can perform their tasks, and whether the process helps them achieve better quality results.

The content of the existing guidance documentation system is too rudimentary. The documents do not accurately and comprehensively reflect the practical activities actually taking place within the enterprise. Meanwhile, the enterprise has not undertaken improvements or reviews of the documentation system after a long period of ineffective implementation.

There are too few forms and records reflecting employee activities, making it difficult to measure and evaluate work performance, and to resolve disputes or violations. There is also a lack of management tools suitable for the company's production and business operations.

4. What is the significance of these processes?

4.1. Build it once, and the business will continue to grow.

Without a process, you'll keep doing the same thing over and over again in a way that might be inefficient, and the brain, being inherently lazy, won't recognize mistakes in its daily work.

By establishing processes, your business minimizes operational risks because tasks/duties are clearly defined and standardized in sequence. This allows for rapid advancements and breakthroughs thanks to optimized and thoroughly resolved existing tasks.

Building a dynamic work spirit, ensuring smooth operations, increasing productivity, and creating a more professional company work environment.

4.2. Liberating the leadership

When someone else can replace the leadership team in doing something as well as, or even better than, they can do it themselves. This is a joy because the leadership team can then focus on other tasks, face new challenges, and no longer endure the agonizing hours of dealing with daily affairs. The minor mistakes that used to waste their time will disappear forever.

With established procedures and standards in place, the leadership team can transfer all their expertise, experience, and solutions to new hires, who will then automatically perform their duties, freeing up the leadership team to focus on more important tasks.

5. How do I set it up?

  1. Identify the needs and objectives of the business;
  2. Define the scope of application of the process to be developed;
  3. Learn about how the business operates by communicating with relevant departments;
  4. Gather information and assess the current systems of the department where the process needs to be developed;
  5. Gather information and assess the personnel who will carry out the process;
  6. Gather information and evaluate the company's existing software systems and management tools.
  7. Gathering information, analyzing, evaluating, and outlining proposals for businesses.
  8. Establish processes, interpretations, and forms according to business needs, and advise on the suitability of software and management tools for the business, as well as the suitability of relevant personnel.
  9. The company's leadership approves processes, personnel organization plans, and plans for using management software and tools.
  10. Implement the processes in practice and guide the company's personnel in carrying them out.

6. How can we use the process effectively?

Establishing and consistently implementing procedures is essential for employee work and serves as a control tool for management at all levels. Human factors and management tools play a crucial role in ensuring the effectiveness of these procedures.

A process is judged by its practical application and its ability to improve the quality of the work performed.

Regularly review and check processes, and update them to suit current business conditions. The following methods can be used: expert services External testing to assess the risks arising from a specific process.

The established process is not meant to be a rigid, standardized procedure; in some cases, it must be applied flexibly to avoid excessive paperwork.

Tag #
Zalo