Organize an Organization
Covid 19, a pandemic, blocked physical movement, which effect economic activities globally. In this scenario, we would like to discuss about SMEs, a major stakeholder of any economy and feel this is the good time to think about how to get ready for post COVID scenario.
It is a layman’s thought to furnish some important, well known words used in the daily business life.
Professionalism: We often called people professionals, and advice others to be professional. We need to understand in simple way, this term mean to us in our practical life. There is no much difference in executing a task by an ordinary person and a professional. Then why we are telling to the first to be a professional. Because a professional will study the task, plan it with a best method of execution, then execute the task, record it, put into a performance audit, analyse, looking for an improvement possibility, standardize the process and put into a continuous improvement process.
MNC Culture: Literally a business entity having presence in more than one country can call as a Multi National Company (MNC). If any business organisation wanted to operate in multiple countries, it is important to standardise the business processes in a best possible method suits to manage, monitor and communicate. Then wherever they go, they carry the very structured “modus operandi “ created, practised and standardised and that become the culture of the firm.
ISO Certification: Certifying authorities are closely looking in to the processes and procedures to execute various tasks in an organisation to attain a Standard Operating Procedure (SOP). Here we need to understand that whatever processes and procedures suits you and/or better for you (not contrary to legality) will be you SOP. So eligibility to be certified is standardising your own procedures to run your business.
How to organise:
Challenges faced by the SMEs are numerous, because they are not organised or more to organise. To overcome these challenges, we will look into the prism of “ Business Process Management (BPM) ”.
It defines as the method used to manage a company’s structured or unstructured business processes is BPM. If you are interested to achieve a BPM enabled control environment in your business entity, you adopt a “ top to bottom approach “ to know the organisation better, to fix procedures, to structure the processes and to monitor outcome on outlay. In another words it is an outcome based approach. We will go through certain terminologies with simple case studies to know better the BPM.
Business is termed as a separate legal entity from its owner/s, so it should have its own behaviour pattern to be visible. Generally it comes from vision and mission statements. This has to be translated into outcome based structuring internally.
Structuring business process is described in sections for more clarity with a case study. Here we have taken car rental and leasing industry to understand better.
Business goal can be profit, market share, brand visibility and so on. To achieve any of these goals, we should understand the challenges of doing business. If look through BPM in car rental and leasing industry as an example, we see the industry is an asset oriented industry, occupation is the sales volume, high exposure of assets, every sale is happens through agreement which can attract disputes, violations of user can attract legal liability, risk of handover of vehicle for a service period and follow up. Setting up a procedure is the solution to set induction process with costing for viability, monitor to achieve minimum idle time, up keeping of asset with a structured maintenance management, perfect documentation, time framed securities, automated tracking mechanism and a perfect procedure for follow up.
It is very important to see in a different perspective to achieve the set business goals. As a BPM mechanism, will furnish some factors to be addressed to reach a point, where business is organised.
Information management: Instead of dealing with whatever gathered, we have to plan to get required information from bottom level and incremental in various levels, for monitoring, analysis and decision making. Information from lead management to execution and follow up shall be routed through verifications and validations with restricted access as per hierarchy.
Process Flow: Simplify processes with legible flow and ensure highly visibility across the board. Check points or staging is required in between the process flow to build interactive mechanism of confirmations to forward for further actions. As a simple example, a registered enquiry should come for a follow up procedure to qualify (in terms of its information gathered and/or documents received) before it forwards to estimation or quotation. Qualification process shall have a check list and be available to the concerned. A free flow in procedure is required as per the nature of tasks and execution.
Approval procedure: Keeping in mind that approval stops further action in the flow. So it is important to make sure the necessity of approval within process flow. Point to highlight is the responsibility to approve or reject is very high than the authority to do so. This culture change will enhance the organization.
Internal audit mechanism: This procedure will not stop any action unlike approval process, it is an inline scrutiny of activities or tasks executed and shall be a regular exercise. As an example in rental and leasing industry a client information gathered with documents, shall be forwarded for audit to make sure that all documents and information are evident and released the vehicle to the client.
Communication: Clarity in communication is very important to avoid wrong decisions, disputes etc.. within and outside the company. Legible and transparent communication edge can be structured through templates and automate with various technologies wherever possible.
Paperless office: Retrieval of information and documents in time are most difficult and time consuming everywhere. Digitalise documentation is the only way to ease the retrieval process in necessity from anywhere. There should be a procedure for what to collect, when to collect, how to store and whom to be visible.
Proactive approach: Every individual in an organisation should know what, when and how to be executed a task. As an example in rental and leasing industry, vehicle insurance has to be renewed timely. Instead of keeping reminders on expiry, we should know for a coming period, which are the vehicles to be renewed, how to renew, what is the money required etc.. to organise this process.
Pendency: It is very challenging to know and monitor pending items in various departments and with concerned individuals. Everyone should know the statistics of pending items in numbers as well as ageing. At the same time a monitoring facility is required to the management to minimise the damages caused to the company by unattended pendency.
Operational Accounting: As per the complexity of operations, every company will have own mechanism to departmentalise operations, fixed asset management, HR, Finance and accounting etc. and also sections with in the departments. But it is very rare to see an operational accounting department. It facilitates as a service department to the operation in order to support, control and monitor functionality for finance department. This nomenclature attracts the importance of knowing more operations of the company and it results in getting right information for financial decisions.
Automation: Business process automation means converting manuals and work instructions into real time process oriented mechanism to smoothen the flow of information with inbuilt approval, audit and analysis with mobility. Implement a BPM enabled software solution to organise all departments in a single platform to have real time visibility across the board. Management should have the capability to understand every breath of the company in real time. Enable Business Process Management (BPM) with in the system as a permanent solution for control and growth.