Activity Based Improving Management Process Profitability

Activity Based Improving Management Process Profitability

Activity Based Improving Management Process Profitability

'Ready, fire, aim' might seem to be the wrong order, but it emphasizes that a process must be always open to change. Workable processes are devised and evolve through planning, execution, review of how it worked work during the execution, and modification of the process to strengthen what worked and eliminate what didn't.

This is just as important for a home business or small business as for a major corporation.

Process Planning

Business processes can be so highly structured that they can be built into a computer program. For example, the business software developer Sparx Systems proposes seven components of a process: The process has (1) a goal, (2) specific inputs and (3) specific outputs, it (4) uses resources, (5) has activities performed in some order, (6) may affect more than one organizational unit, and (7) creates value.

Some processes, such as creating invoices or organizing information and files, can be automated, but if the manual processes haven't been worked out well to begin with, the business manager can end up simply automating chaos.