Process Improvement Improves More Than Just Processes
Published on by Jenny Houck in Client Accounting & Advisory, Consulting
Process improvement. It might sound boring on the surface, but it’s one of the most important things you can be doing for your business on a regular basis – and in my role as a fractional CFO, it’s one of the things that brings me the greatest joy; seeing what improved processes do for our clients every day makes my day, every time.
Process improvement can mean a lot of things because it can (and should) touch every area of the business. In this post, we’ll focus on a few of the top benefits of continually reviewing business processes.
Increased efficiency
No surprise here – efficiency is likely what comes to mind for most people when they hear “process improvement.” There’s a good reason for that. When you take a good hard look at how you’re doing things, you’ll inevitably find ways to eliminate waste and reduce the time, effort, and resources required to complete tasks. That not only creates more efficient operations, but also frees up valuable resources you can use to grow the business.
Cost savings
Streamlining processes often drives cost savings – you’re eliminating unnecessary stops and optimizing resource use, so it makes sense. Something as simple as how you handle credit card transactions can reduce potential fraud, increase rebate dollars, reduce labor hours, and even improve employee satisfaction; streamlining repetitive and often boring tasks means more opportunity to work on other projects and add value to the organization. People like to contribute, and to be valued for those contributions. Talk about a win-win.
Higher quality
Smoother, more streamlined processes reduce the opportunity for human error, so you can produce higher-quality products and services. That leads to our next benefit – increasing customer satisfaction.
Enhanced customer satisfaction
Improved processes help ensure your customers’ needs are met faster and more consistently – and that means happier customers. Higher customer satisfaction leads to higher customer retention as well as happier employees, who don’t have to contend with frequent complaint calls. You’ll love seeing those 5-star Google reviews rolling in.
Enhanced employee satisfaction
We’ve already covered several ways that process improvement leads to increased employee satisfaction – eliminating unnecessary or repetitive tasks, reducing customer complaints, and providing an opportunity to add value all make for happier employees. And happier employees are more likely to stay with the organization, reducing turnover and cutting recruiting costs (higher than ever in today’s tight talent market).
Competitive advantage
Organizations that continuously improve their processes have an inherent competitive advantage – not only are their operations more efficient, their employees happier and more likely to stay, and their quality higher, but they’re also better positioned to rapidly adapt to change – meeting customer demands faster and more effectively. An enduring lesson from the pandemic is that being ready to pivot at any moment can make or break your business.
Drive innovation
Continuous process improvement encourages a culture of innovation, as employees are always looking for new and better ways to do things. It’s simply fun to watch employees from all levels offer ideas that help the company move to the next level! (Not to mention how it benefits your business).
The CFO’s role
Process improvement is crucial for sustaining growth, maintaining high standards, and achieving long-term success, and it’s an integral part of the CFO’s role. We evaluate operations and processes and make recommendations for process improvement – not only driving the benefits outlined above, but also helping our clients achieve regulatory compliance and effectively manage risk.
It’s an area I love, but it’s only one of the things a fractional CFO can do to drive your business forward. To get more, you might consider downloading The Fractional CFO: Your Guide to Success, our Fractional Accounting Services Toolkit, or this short video overview of how fractional accounting and advisory services work. You can also contact us for a free consultation with one of our fractional CFOs. As always, we’re here to help.
More Insights
