Why are processes and procedures so vital to the success of a firm?
Some say they help guide employees when decisions need to be made without involving upper management. To some extent I find this true, if employees follow the processes put in place and base the majority of their decisions on the firm’s procedures, then it tends to remove upper-management from the day to day, micromanaging of employees and allows them to focus on the long-term aspects of the firm such as revenue growth, operations analysis and culture. Another benefit to having processes and procedures is they help add an element of scalability to the firm.
As an operations officer, I find it essential to understand not only the capacity of the firm in terms of volume and variety of work, but also have a strong grasp of what types of resources are required for services the firm provides. By understanding these two dynamics I can properly plan for new business and maximize efficiency and profitability. No one wants to experience top-line growth only to turn around and use unnecessary and costly resources to manage the growth because the business has no scalability. The ultimate goal is to consistently add top line growth while only increasing expenses by a small percentage.