Processes That Are Effective & Useful.

Written by Dianne Gilbert, Fathom Business Architects 

Posted on this newsletter last month was “Planning to grow? But are your processes up to it?”, an attention-grabbing article that sparked widespread discussion about maximising the growth of businesses by using effective and useful processes. The article prompted discussion about how to define and document these processes so that they are, in fact, efficient and enhancing. There are three questions that have been consistently raised about processes which will be addressed in this article.

But firstly, why all the sudden interest in process management? Partly, it is because tenders require-and prefer-that their suppliers explain how they systematically manage and undergo the delivery process of their particular good or service. In fact, as our economy booms with more tenders and even more suppliers, this preference is far becoming a necessity, and as such, the benchmark level of expectation as well as desired information to be delivered have been substantially raised. In addition to this, there is a general, but growing, emphasis on compliance across the recruitment industry. Legislation related to recruitment is ever-changing and indeed, it always has been – think of FairWork and Australian Consumer Law introduced earlier this year, and later this year there will be further changes to the National Privacy Principles and a harmonisation of the workplace health and safety legislation. Compliance with law is an undeniable must for all businesses, and it is little wonder that the industry associations are now seeking to educate Members about the ramifications of these changes (particularly on the way they run their businesses) and emphasising this need for compliance.

Now, what are these questions on process management? The three most commonly asked questions are: “How do I draft a process?”, “What should I document?” and “What is the difference between a process and a policy?”

Drafting a process is an iterative and ongoing task - a process that is rarely final or remains unchanged and unmodified. In order to successfully and, most importantly, effectively draft a process, it is essential that you first understand its purpose: to clarify the key steps in undertaking an activity. This can be done in a number of different ways, from written texts and flow charts to even a video recording: I once watched a video wherein a master raftsman demonstrated the key steps in building a sofa. That said, using written text is usually the easiest way to start, and it is as simple as writing out and numbering each step. There are 5 critical elements that should be contained in every process:

1. What to do (the step/activity)

2. Who is responsible for doing it

3. What forms or templates should be used

4. Where to file the record (form or data)

5. What to do when there is an “exception”, as in when the normal process cannot be followed.

Keep the process simple and straightforward – try not to clutter it with training notes and explanations, just record the critical “must dos”.

Now let’s look at what kinds of processes should be documented. The critical processes in most recruitment companies are typically:

• Recruitment - applications, employment screening, job orders, placement management
• Invoicing and payroll – authorizations, checking and approving
• Safety management – particularly in relation to on-hire employees

These are the ones that should be documented. The amount of detail required in said documentation will naturally vary according to the intensity of consequences in case of mistakes made, and the complexity of the task and the business itself. A one to three person agency, for example, that is placing administration staff from a single office, will not need the same level of process documentation as an agency with three offices and 30 staff members who are placing medical doctors and nurses.

Finally, what is the difference between a policy and process? A good question. When it comes to a written document, one often looks quite like the other. However, each actually has a very clear and distinct purpose.

• A policy is a principle- a statement of intention that is written to assist decision making. It is often only 1-2 pages in length.
• A process is sequential steps or activities that must each occur subsequently – do this activity then fill out this form etc. A policy may be supported by a process.

Generally speaking, policies remain valid for long periods of time. If they ever change, it is due to legislation modifications, management change or disruptive events that have occurred.

Processes, on the other hand, can change very often as a result of new technological and adaptive improvements, new services, new client requirements etc. As such, processes should be frequently checked and updated- at least once a year but possibly every quarter, especially when they are new.

Drafting really effective processes is a skill in its own right, and this article touches on only a few items to consider. You can still review the effectiveness of written processes in your business by asking these questions:

1. How current are these processes? Within the past 12 months is usually adequate.

2. Are they clear, focused and include only the critical “must dos”?

3. Do they contain the 5 critical elements?

4. Are they relevant? A good way to check this is to ask staff if they ever refer to them.

5. Are the important processes– recruitment, invoicing and payroll and safety management documented?