Business Process - Definition, Steps and Examples

Here is something wild: 86% of managers say inefficient processes are blocking their company’s growth.

Not lack of funding. Not market conditions. Processes.

Yet most businesses treat their processes like that junk drawer in the kitchen - everything is in there somewhere, but good luck finding what you need when you need it.

What exactly is a business process?

A business process is a series of repeatable steps your team follows to achieve a specific goal.

Think of it like a recipe - you follow the same steps each time to get consistent results.

The key word? Repeatable.

You’re not figuring it out from scratch every single time.

Whether you are onboarding your 10th employee or processing your 1000th invoice, the steps stay the same. That is what transforms random work into predictable outcomes.

Let me show you what I mean. Take employee onboarding. Without a process, it looks like this:

• HR forgets to order the laptop
• IT doesn’t know there’s a new hire until they show up
• The new employee sits around for three days waiting for system access
• Someone realizes two weeks later they never signed the NDA

Sound familiar?

With a proper process, that same onboarding becomes:

1. Day -7: Equipment ordered, accounts requested
2. Day -3: Workspace prepared, team notified
3. Day 1: Paperwork signed, systems accessible, productive from hour one

The difference? One wastes time and money. The other doesn’t.

Managing business processes effectively requires the right approach and tools. Here is how Tallyfy helps organizations track, automate, and improve their core workflows.

The three types of business processes

Not all processes are created equal.

They fall into three distinct categories, and here is the thing - you need all three working together, or everything falls apart.

Operational processes - the money makers

These are your bread and butter.

Operational processes directly create value for customers and generate revenue. Without these, you don’t have a business.

Examples that keep the lights on:

• Product development - Taking an idea from concept to market
• Order fulfillment - Getting products from warehouse to customer doorstep
• Service delivery - Actually doing what clients pay you for
• Manufacturing - Turning raw materials into finished goods
• Sales processes - Converting leads into paying customers

When Sol8 streamlined their client onboarding process, they did not just save time - they transformed their entire service delivery.

What used to take days now happens in hours. That matters.

That’s operational process improvement at work.

Support processes - the enablers

Support processes don’t directly touch customers, but try running your business without them.

These keep your operational processes humming along smoothly.

The unsung heroes include:

• Human resources - Hiring, training, managing your people
• IT support - Keeping systems running and secure
• Accounting - Managing money flow and financial compliance
• Procurement - Getting the supplies and services you need
• Facilities management - Maintaining your physical or digital workspace

Here is what most people miss: Support processes are force multipliers.

Improve your HR onboarding process, and every new hire becomes productive faster.

Fix your procurement process, and every department saves money.

Management processes - the navigators

Management processes ensure everything else stays on track.

They are about governance, strategy, and making sure you are headed in the right direction.

Critical management processes:

• Strategic planning - Setting direction and priorities
• Performance management - Measuring what matters
• Risk management - Identifying and mitigating threats
• Quality control - Ensuring standards are met
• Compliance monitoring - Staying within legal and regulatory bounds

Without these? You are driving blindfolded.

With them? You have got GPS navigation for your entire organization.

Real business process examples

Let us get specific.

Here are processes that every business deals with - and most handle poorly.

Try these process templates

Example Procedure

Employee Onboarding

1HR - Set up payroll and send welcome email

2IT - Order equipment and set up workstation

3Office Manager - Prepare physical workspace

4IT - Create accounts and system access

5HR - Welcome meeting and company orientation

+3 more steps

View template

Example Procedure

Client Onboarding

1Gather Basic Information

2Send Welcome E-Mail

3Conduct a Kick-Off Call

4Conduct a 1 month check-in Call

5Request Feedback

+1 more steps

View template

Example Procedure

Invoicing Client(s)

1Accounts: Invoice creation

2Accounts: Invoice delivery

3Gather billable items

4Create the invoice

5Review and approve

+2 more steps

View template

The client onboarding process that actually works

Most agencies wing it with new clients.

Big mistake.

Here is a process that turns chaos into clockwork:

1. Discovery call (Day 1)
   • Understand their business model
   • Map their competitive landscape
   • Document specific pain points
   • Set preliminary expectations
2. Strategic assessment (Days 2-3)
   • Audit existing assets and resources
   • Identify quick wins and long-term opportunities
   • Define measurable success metrics
3. Proposal and alignment (Days 4-5)
   • Present customized strategy
   • Agree on KPIs and reporting cadence
   • Lock in timelines and deliverables
4. Kickoff and execution (Day 6)
   • Assign team responsibilities
   • Set up communication channels
   • Launch first initiatives

Notice something?

Every step has a clear owner, timeline, and outcome.

No wondering “what is next?” No dropped balls.

The accounts payable process that prevents disasters

Missing an invoice payment can destroy vendor relationships.

Here is how to make it impossible:

1. Invoice receipt and capture - Digital intake with automatic data extraction
2. Three-way matching - Invoice matches PO and receipt (automated, not manual)
3. Approval routing - Right person, right time, every time
4. Payment processing - Scheduled based on terms, not panic
5. Reconciliation - Closed loop with clear audit trail

One manufacturing client reduced payment errors by 76% just by documenting and following this process.

No fancy software required initially - just clarity on who does what, when.

Content marketing process

Content marketing without process is a graveyard of half-finished posts.

Here is what actually ships content:

1. Ideation and assignment - Topic approved, writer assigned, deadline set
2. First draft creation - Writer completes with image requests noted
3. Editorial review - Structure, accuracy, brand voice check
4. Design assets - Custom graphics created in parallel
5. Final polish - SEO optimization, final edits
6. Publication - Scheduled, published, promoted
7. Distribution - Email, social, outreach executed

The secret? Parallel processing.

While editing happens, design work proceeds. While SEO optimization occurs, promotion gets planned.

Everything moves forward together.

Why business processes matter more than ever

Still think processes are just bureaucratic overhead?

The numbers tell a different story.

The productivity explosion

Companies with documented processes report:

• 2 hours saved daily per employee on status updates and coordination (verified ROI data)
• 48% reduction in manual errors when tasks are standardized
• 42% faster task completion times with clear workflows
• 38% improvement in work quality through consistency

Do the math: For a 50-person company, that is 26,000 hours saved annually.

At $50/hour, you just found $1.3 million.

The hidden cost of process chaos

IDC research shows inefficient processes cost companies $37,000 per employee annually.

For that same 50-person company? That is $1.85 million bleeding out every year.

Where does it go?

• Duplicate work because nobody knows it is already done
• Endless meetings to figure out “where things stand”
• Fixing mistakes that proper processes would prevent
• Lost opportunities while deciding who should do what

The scalability secret

Here is what separates companies that scale from those that stall: repeatable processes.

You can’t grow if every new hire needs three months of tribal knowledge download.

You can’t scale if your founder has to personally approve every $500 purchase.

You definitely can’t expand if adding customers means proportionally adding chaos.

Gartner research found that companies using proper business process management frameworks see 70% higher project success rates.

Not 7%. Seventy.

The four moves that transform your processes

Knowing you need better processes is step one.

Actually improving them? That is where most companies get stuck.

Here is your roadmap.

Move #1: Process mapping

You can’t fix what you can’t see.

Process mapping takes the workflow that lives in everyone’s heads and puts it on paper (or screen).

Start simple:

1. Pick one process that is causing pain
2. Gather the people who actually do the work
3. Map out every step, decision point, and handoff
4. Identify the bottlenecks and black holes

What you will discover will shock you.

That “simple” approval process? It has 14 steps and involves 6 people.

That “quick” customer response? Takes 3 days on average.

Move #2: Process improvement

Once you see your processes clearly, the problems jump out.

Too many approvals. Unnecessary steps. Work bouncing between departments like a ping-pong ball.

Continuous improvement is not about massive overhauls.

It is about asking:

• Can we eliminate this step entirely?
• Can we automate this manual task?
• Can we do these steps in parallel instead of sequence?
• Can we move this decision earlier to prevent rework?

Simploy took their approval process from days to hours just by removing two unnecessary approval layers.

Sometimes the best improvement is subtraction.

Move #3: Process automation

Humans shouldn’t copy-paste data between systems.

They shouldn’t manually route documents.

They definitely shouldn’t spend time on “if this, then that” decisions a computer could handle in milliseconds.

Business process automation is not about replacing people - it is about freeing them to do work that actually requires human judgment.

Prime automation candidates:

• Data entry and transfer between systems
• Document routing and approval workflows
• Status notifications and reminders
• Report generation and distribution
• Task assignment based on rules

Move #4: Process re-engineering

Sometimes your process is not broken - it is obsolete.

That is when you need business process re-engineering.

Instead of improving your paper-based approval process by 10%, you eliminate paper entirely.

Instead of making your phone system more efficient, you move customer service to chat and cut response time by 90%.

Re-engineering means asking: “If we were starting from scratch today, knowing what we know now, how would we design this?”

The answer is usually radically different from what you are doing now.

How to actually implement better processes

Great processes on paper mean nothing if nobody follows them.

Here is how to make change stick.

Start with the pain

Don’t fix processes that aren’t broken.

Start where it hurts most.

What is causing the most complaints? Where are you losing money? What is making customers angry?

Fix that first.

Quick wins build momentum.

Involve the people doing the work

The executive who designed your expense approval process probably has not submitted an expense report in years.

The people living with the process daily know exactly what is wrong with it.

Get them involved from day one.

They will tell you:

• Where the real bottlenecks hide
• Which steps add no value
• What workarounds they have created
• Why the “official” process gets ignored

Document everything but keep it simple

A 50-page process manual helps nobody. Good process documentation is:

• Visual - Flowcharts beat walls of text
• Accessible - Available where work happens
• Current - Updated as processes evolve
• Actionable - Clear on who does what, when

The best documentation lives in the workflow itself, not gathering dust on a shelf.

Measure what matters

You can’t manage what you don’t measure.

Pick metrics that matter:

• Cycle time - How long from start to finish?
• Error rate - How often do things go wrong?
• Cost per transaction - What does each process iteration cost?
• Customer satisfaction - Are stakeholders happy with outcomes?
• Employee effort - How much work does it actually take?

Track these before and after changes.

The improvements (or lack thereof) will be undeniable.

Common process problems and how to avoid them

Every organization falls into these traps.

Here is how to avoid them.

The “we have always done it this way” syndrome

Just because a process worked in 1995 does not mean it works now.

Markets change. Technology evolves. Customer expectations shift.

Question everything.

If the only justification is tradition, it is time for change.

The complexity creep

Processes tend to accumulate steps like boats accumulate barnacles.

Each new requirement adds a step. Each mistake adds a checkpoint. Each edge case adds an exception.

Before long, your simple process has become a monster.

From what I’ve seen across many implementations, the fix is simple: regularly ask “What if we just… didn’t do this step?” One mid-sized e-commerce team told us their product launch process had grown to 47 steps over three years. After asking this question, they cut it to 23 steps and launched four new products in the time it previously took to launch one. That single question often unlocks the biggest improvements.

The automation obsession

Not everything should be automated.

Some decisions require human judgment. Some situations need flexibility. Some interactions benefit from personal touch.

Automate the routine.

Keep humans for the exceptions.

The perfect process paralysis

Waiting for the perfect process means waiting forever.

Start with good enough. Ship it. Learn from it. Improve it.

A decent process used today beats a perfect process planned for next year.

Related questions

What is meant by business process?

A business process is a set of connected tasks that transform inputs into outputs to achieve a specific goal.

Think of it as your organization’s recipe book - each process tells you exactly what ingredients (resources) you need, what steps to follow, and what you will get at the end.

The magic happens when these recipes are clear enough that anyone can follow them and get the same great result every time.

Companies can transform chaos into clockwork just by writing down and following their processes consistently.

What is a key business process?

A key business process directly impacts your bottom line or customer experience - if it breaks, you are in trouble.

For most companies, this includes client onboarding (first impressions matter), order fulfillment (getting paid depends on it), and customer service (keeping customers happy).

These are not the “nice to have” processes - they are the “cannot live without” ones.

When Corestream optimized their key processes with proper management tools, meeting times dropped from hours to minutes.

That is the power of focusing on what truly matters.

What are the five types of business processes?

Rather than memorizing categories, think about value flow: processes that generate value (product development, sales), recover value (billing, collections), sustain value (HR, IT support), safeguard value (compliance, quality control), and enhance value (innovation, optimization).

Each type plays a critical role - break one link and the whole chain fails.

We have watched companies focus only on revenue-generating processes while ignoring support processes, then wonder why they cannot scale.

You need all five working together.

What are the 7 steps of business process?

The classic seven steps are: identify, define, map, analyze, improve, implement, and monitor.

But here is what textbooks will not tell you - most companies get stuck between steps 3 and 4.

They map their process, see the mess, and freeze.

The secret? Do not aim for perfection. Make it 10% better, implement, then improve again.

Our most successful customers follow this iterative approach rather than trying to revolutionize everything at once.

Why are business processes important?

Without processes, you are dependent on heroics and tribal knowledge.

Every task becomes an adventure in figuring things out from scratch.

With processes, work becomes predictable and scalable.

Companies using documented processes save 2 hours daily per employee - that is 520 hours annually per person.

More importantly, processes let you grow without proportionally growing chaos.

You can onboard employee #100 as smoothly as employee #1.

What makes a business process effective?

Effective processes are simple enough to follow, flexible enough to handle exceptions, and transparent enough to show problems immediately.

They reduce friction instead of adding it.

The best processes almost disappear - work just flows naturally.

We have seen this repeatedly: when a process truly works, people stop complaining about “the process” and start focusing on actual work. A mid-sized financial planning team cut their training time by 50% simply by documenting what “good” looked like. That transition from friction to flow is the clearest sign of success.

If your team constantly works around your official processes, they are not effective.

How do you identify business processes?

Follow the work, not the org chart.

Start where work enters your organization and track how it flows until value is delivered.

Look for the pain points - where do things get stuck? What makes people groan when it lands on their desk?

Where are the workarounds and shadow systems? These reveal broken or missing processes.

One technique that works: ask your team “What tasks do you dread?” The answers point directly to processes that need attention.

What are common problems with business processes?

The biggest killers are “that is how we have always done it” thinking, silent handoff failures where work disappears for weeks, zombie processes that continue long after they stopped being useful, and processes designed by people who never actually do the work.

We see this constantly - beautiful flowcharts that have zero connection to reality.

The fix? Involve the people who actually do the work in designing the process.

How can you improve business processes?

Start with measurement - you cannot improve what you cannot measure.

Track cycle time, error rates, and effort required.

Then apply the subtraction principle: what steps can you eliminate entirely?

Often, the best improvement is removing unnecessary approvals, redundant checks, or outdated requirements.

Small, continuous improvements beat massive overhauls.

Our data shows that companies achieving 1% daily improvement are 37 times better after a year.

What role does technology play in business processes?

Technology should amplify human capability, not replace human judgment.

The best workflow automation handles routine tasks - routing, notifications, data transfer - so humans can focus on decisions, exceptions, and relationships.

But here is the catch: automating a broken process just helps you fail faster.

Fix the process first, then add technology.

We have seen too many companies throw software at process problems and wonder why nothing improves.

How do you document business processes?

Forget the 50-page procedure manuals nobody reads.

Effective process documentation is visual, accessible, and lives where work happens.

Use flowcharts over text walls. Focus on decision points and handoffs.

Include just enough detail - not every mouse click, but enough that someone new could follow along.

The test? Can someone execute the process using only your documentation? If not, it needs work.

How do business processes impact company culture?

Processes broadcast your real values louder than any mission statement.

Complex approval chains scream “we do not trust you.” Efficient workflows say “we respect your time.”

Transparent processes build accountability. Opaque ones breed politics.

When employees see that processes make their work easier, not harder, they embrace them.

When processes feel like bureaucratic obstacles, they create workarounds.

Your processes shape your culture whether you realize it or not.

What is the difference between a process and a procedure?

A process is the journey from start to finish - the what and why.

A procedure is the turn-by-turn directions - the how.

Think of it this way: “employee onboarding” is a process, while “how to set up email accounts” is a procedure within that process.

Processes define the flow; procedures define the specific steps.

You need both, but do not confuse them.

Too many companies have detailed procedures but no clear process, leading to perfect execution of disconnected tasks.

How do you measure business process success?

Look beyond simple metrics like time and cost.

The best measurements combine hard data (cycle time, error rates, costs) with soft insights (employee satisfaction, customer feedback).

Leading indicators (process compliance, quality checks) predict problems before they happen.

Lagging indicators (output, revenue) confirm results.

The most overlooked metric? Employee experience.

If your process makes your team miserable, it will eventually fail no matter how “efficient” it looks on paper.

Why is process visibility critical for success?

When you cannot see where work is, you make decisions in the dark.

Teams duplicate effort. Customers get inconsistent experiences. Managers spend hours in status meetings.

With process visibility, everyone knows exactly where things stand.

No more “I thought someone else was handling that” moments.

No more emergency expediting because something got lost.

Visibility transforms chaos into control.

It is why our customers consistently report dramatic reductions in coordination overhead.