Why 'PROCESSES' are a key productivity factor in business

The Importance of Processes, Policies, and Procedures in Engaging and Enabling People to Perform

In any successful business, clear processes, policies, and procedures (the "Three P’s") are essential to ensure employees can work efficiently, be empowered to make informed decisions, and align with organisational goals. These frameworks provide structure, reduce ambiguity, and empower teams by defining roles, expectations, and workflows. Companies with optimised processes see 35% faster decision-making (Bain & Co., 2024).

1. The Role of Processes in Engaging and Enabling Employees

Processes outline the high-level workflows that guide employee actions. They ensure consistency, efficiency, and collaboration across teams. "Chaotic processes don’t just slow work—they drain morale." — Gartner HR Advisory

The cost of poor processes are:

-          $8.8 trillion is lost annually due to inefficiencies in business processes (McKinsey,2024).

-          60% of employees waste 1+ hours daily due to unclear procedures (SHRM, 2025).

Key Aspects of Effective Processes:

• Clarity in Workflow: Structured processes (e.g., onboarding, project management) help employees understand their role in achieving business outcomes.

• Enablement and Cross-Department Collaboration: Well-defined processes (e.g., sales-to-fulfilment handoff) reduce bottlenecks and miscommunication.

• Empowerment: Processes that give the employee transparency and predictability to make informed decisions and call out key risks or roadblocks.

2. How Policies can set the framework for decision-making and accountability

Policies establish rules, values, and expectations, guiding employees in their daily tasks while maintaining compliance and ethical standards.

• They reduce uncertainty by providing clear boundaries and business rules.

• Align individual actions with desired company culture (eg this is how we do things here).

• They enable performance by setting the minimum standards. 52% of companies faced legal penalties in 2024 due to outdated policies (PwC Employment Law Report).

3. Best Practices for Effective Procedures:

Procedures break down processes into actionable steps, ensuring tasks are performed correctly and efficiently. 83% of workers say well-documented procedures improve job satisfaction (LinkedIn Workforce Learning, 2025). Some ways to ensure effective procedures are:

• Clear and accessible: Centralise and use checklists, flowcharts, or video guides for clarity. Develop them with the team to give them accountability and allow cross-collaboration.

• Role-Specific Instructions: Define responsibilities (e.g., "Finance approves invoices over $5K") linking to individual performance expectations, KPIs and training.

• Regular Updates: Adapt procedures to feedback and communicate effectively.

Well-designed processes, policies, and procedures create an environment where employees feel supported, competent, and motivated. By investing in these frameworks, businesses can:

✔ Boost productivity through streamlined workflows.

✔ Enhance job satisfaction by reducing frustration and ambiguity.

✔ Ensure compliance and risk management with clear guidelines.