Formalising Business Procedures: Why It’s Important

By May 7, 2019 No Comments

For some people, the greatest challenge running a business is actually starting one. With the many naysayers out there, it takes a great deal of courage and bravery to power through them. And when you’ve finally proven yourself and set aside your doubts, you feel like a million bucks!

While that is a difficult part, it gets even trickier once you actually have to run the day to day operations of a business. How do you get it running smoothly or turn around an unprofitable business? Do you simply tackle it on a daily business, or should you place defined, thorough procedures that standardize the way you do things?

Benefits of Formalising Business Procedures

The advantage of formalising processes and standards is never overstated. It does wonders for your business, and here are a few perks of doing so.Formalising Business Procedures - Why Its Important

  • Conform to International Quality Standards

    • There are international standards, such as ISO 9001, ISO 14001, and OSHAS 18001, that require a certain degree of management formalisation. It’s not just meant for recording purposes, but to make every process you undertake uniform, effective and seamless.
  • Create Uniform Understanding on All Levels

    • When everyone is in the know of the standards that you uphold, whether in training or in actual production, everyone lives up to it. In doing do, every member of the organisation understands the importance of what they are doing, and why it must be done in a certain way.
  • Save Time and Money

    • When formalised procedures are in place, your staff become more efficient, allowing them to finish more work in a lesser amount of time. This also means you spend less time in supervising operations. And because things are done better quickly, that means lesser expenses!
  • Improve Consistency of Product and Service Delivery

    • Because you have a set of standardised practices, the output is the same throughout the business. Whether it is about customer service or the actual production of product, customers can expect no less from you. This in turn creates a good reputation for you and your business.

Creating formalised business procedures can take a bit of time, but once they are in place, you should reap the fruits of your labor. After all, you don’t go to war without a battle plan, right? Call us.

Formalising Business Procedures: Why It's Important - Infographic

Jake Elliott

About Jake Elliott

Jake Elliott is a Chartered Accountant with extensive experience offering Outsourced CFO and other consulting services to businesses. His background working "in-business" allows him to provide clients with insights into their operational and financial performance beyond the capabilities of their accountant/bookkeepers.