Company Failures can be due to Inadequate Processes
Operations affect every aspect of a company. If the product/service does not meet quality expectations, is not delivered in a timely manner and/or within the cost allocation, both revenues and profitability will suffer.
Efficiency is the outcome of numerous documented procedures, integrated seamlessly and completed without error or waste. Many company failures are caused by inadequate processes and communication breakdowns. Most small companies do not invest adequate time and resources into system development, and their growth is hindered accordingly.
Processes develop over time as the company grows and are often the result of errors and problems that occur along the way. A deadline is missed due to a communication breakdown and as a result, a paper flow process is created. Things go well for some time and then another issue is discovered and a process is created to solve that specific issue; eventually a system is developed.
However, this method has inherent flaws (1) the system is comprised of a series of individual solutions to specific problems and may not be fully cohesive (2) the company lost time, money and possibly even staff during the error/solution process.
Given the disadvantages of developing processes in a haphazard fashion, the more effective method is to develop the entire system right from the start. By investing in the infrastructure early on, the company will have everything in place to grow to the next level. This is accomplished through process mapping, which in its simplest form can be utilized by any size company.Excerpt from the book, 60 Key Essentials for Business Success, which can be purchased as PDF format onwww.BusinessSimplyPut.com or on Amazon for the Kindle at http://www.amazon.com/dp/B005C708OY
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Many company failures are caused by inadequate processes and communication breakdowns.
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Lori
I agree completely. I work with companies on IT solutions and business process which are tied together. With today's technology including electronic document management, mobile device applications and electronic workflow, many processes can be made much more efficient than before. Companies that make an investment in this type of technology leapfrog their competition.
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