Process improvement: how it impacts the profitability of the company

It is essential that you understand that processes do not necessarily have to be made up of complex tasks. For them to be considered as such, it is enough that the tasks that compose them are chained to each other and generate added value.

According to this definition, we can say that almost everything that happens inside a company, whatever the activity it develops, can be considered a process. That is why it is important to adopt a model based on process management. To do so, the essential thing is that you understand your company as a whole, that is, it is not just the sum of each of its areas, but a unit.

At present, many companies are incorporating work processes or optimizing processes to achieve a higher level of efficiency and effectiveness at the lowest possible cost, which allows them to be more competitive, more profitable, and differentiate themselves from their competition due to their quality and customer service.

As you well know, during the execution of any process, people, technological resources, materials, infrastructure, and time. The good or bad use of these resources will determine, in the end, the degree of customer satisfaction and, as a consequence, the profitability of the company.

If in the reality of your company you are thinking of carrying out or improving some of the following aspects, it means that you should focus on incorporating processes or improving the ones you already have.

• Eliminate duplicate work or processes and reduce those processes in a critical state, reducing or eliminating errors and/or product defects. You should also try to eliminate those activities that are unnecessary and that do not generate greater value.
• Try to reduce the time of each process as much as possible, this will allow you to improve the delivery time of a product or service to the final customer.
• Improve service quality to increase customer satisfaction.
• Improve the productivity and efficiency of employees in their daily activities.
• Generate greater value to the client and their interests to provide a better experience.
• Optimize the costs that are included in the execution of each process and improve profitability.

So, it should be understood that process optimization is aimed at helping the company to redesign its business processes to reduce costs and improve efficiency, thus obtaining the greatest possible benefit using the appropriate improvement tools. A defective process generates cost overruns and if it is one of the main processes, it will reduce competitiveness and eventually affect profitability.

The advantages of applying this model or improving processes that are already being carried out are several. Here, we offer you a series of benefits that you will obtain after the application and/or improvement of your processes.

• Decision-making:

It facilitates decision-making since all the areas of the company are aligned, avoiding the unnecessary reiteration of orders; therefore, you can make decisions, and without entering into contradictions. In addition, your messages will be more effective and you will have adequate communication channels in each case.

• Management and implementation of resources:

By improving communication and the relationship between the different areas, it is logical that the use of resources also improves at the same time. In this way, you avoid having to formulate additional solutions, which produces additional expenses to correct errors.

• Product quality:

The implementation of processes and their improvement favors the interconnection between different areas, which helps improve the unproductive areas of the processes or those in which the added value is minimal. This helps the products to have better quality and adapt to customers' needs.

• Customer satisfaction:

And if the products are better… you will notably increase customer satisfaction, which should be the main objective of any sales strategy.

Finally, you must understand that the implementation of work processes and their improvement will allow you to reduce waste and reduce costs. This will allow you to ensure that no unnecessary steps will be taken and no unwanted actions will be performed, thus increasing the profitability of your company.