Processes and procedures: Key differences and their relevance to business

In the business world, attaining operational excellence is a key objective for all types of organizations. This quest for efficiency, productivity, and quality outputs is often supported by clearly defined structures and systems, with processes and procedures being two of them.

Although people frequently use these two terms interchangeably, each carries a distinct meaning and serves a different function in helping the organization operate.

There are various definitions of processes and procedures; this article will examine the main features that distinguish one from the other.

By the end, you will know how to apply them to enhance productivity and compliance, eliminate waste, and improve efficiency within the scope of your company.

What is a process?   

A process is a collection of ordered, interrelated steps or activities, in which each step depends on the previous and the next to achieve a particular goal. It represents the broad steps that must be taken to achieve the end objective.

A process usually spans several business departments or functions and is key to realizing the strategic goals of the organization.

Typically, processes provide a general overview of multiple smaller actions like steps, decisions, and different team interactions. They outline an overall sequence of actions but do not limit how each of the given steps can be implemented.

Key characteristics of a process   

• Definitive: Processes are meant to result in something. Whether it’s creating a product, offering a service, or addressing a need, they all lead to a conclusive end.

• Interdepartmental: Processes are normally carried out with teams across various departments with varying tasks and responsibilities. For instance, a sales process involves marketing, customer relations, and financial processes.

• Flexible: Activities can be modified in response to recommendations, changes within the business context, or advances in technology.

• Ordered: A process is a concise, self-collapsing description of a series of steps or activities that must be carried out in a certain order.

• Continuous: Processes tend to be held in an ongoing and repeated manner. For example, an order processing and fulfillment process is initiated every time there’s a new order.

Example of a process   

Consider an illustration of a process within a business: customer onboarding. In this scenario, a company makes the effort to transform a prospective client into a paying customer through a sequence of activities. The progression could go as follows:

1. The customer makes the first advance.

2. Information is gathered by the sales team.

3. A product demo or a trial is arranged.

4. The parties involved in the contract negotiation meet.

5. The customer is taken through the onboarding process after signing the contract.

Even though this describes a sequence of steps that need to be completed, it does not prescribe how the different teams will perform their specific activities. For example, the manner in which the sales team interacts with the client may differ from how the product team conducts the demos.

What is a procedure?   

A procedure, in this context, is an operation carried out in pursuit of the goals stated in the process. The procedure is basically the instructions for executing the broader steps within the process.

They are more rigid than processes, which allow for flexible application of interpretations, and are meant to maintain the uniformity and standardization of processes and operations throughout their realization.

Procedures are often outlined in a sequential manner to show the user how to carry out specific actions. They help workers properly execute their functions to minimize performance discrepancies. Processes may be seen in broad and flexible terms, while procedures are viewed in narrow and rigid terms.

Key characteristics of a procedure     

• Step-by-step instructions: Procedures break down tasks into specific actions that must be followed in a particular order.
• Task-oriented: Procedures are focused on individual tasks or activities rather than broader outcomes. They provide explicit directions for completing a task.
• Standardized: The purpose of a procedure is to ensure tasks are performed consistently, regardless of who carries them out. This promotes quality and reliability.
• Rigid: Unlike processes which allow for flexibility, procedures are often rigid and must be followed precisely to maintain compliance or quality standards.

• Short-term: Procedures are typically executed as part of a single instance or task and are not continuous.

Example of a procedure   

To illustrate a procedure, consider the contract signing step from the customer onboarding process example outlined earlier. This step might have a detailed procedure outlining the actions that need to be taken:

1. Prepare the contract using a specific template.

2. Double-check all client details to ensure accuracy.

3. Send the contract to legal for review.

4. Forward the contract to the client via a specific platform (for example, Zoho Sign).

5. Follow up with the client for confirmation of receipt.

6. Once signed, save the contract in the company's document management system.

This procedure provides explicit instructions on how to complete the contract signing step in the onboarding process, ensuring every contract is signed in a standardized way.

Key differences between processes and procedures   

While processes and procedures are very much related and complement each other in many ways, they have a few distinctions.

Scope   

• Processes have a wider scope as multiple tasks and functions are performed for a certain outcome to be reached.
• Procedures are limited to particulars and specific features relating to how the activities concerning each task in these processes are performed.

Accountability   

• Processes are usually more liberal than procedures, and there may be some differences in how the steps are performed.
• Procedures are strict and will be executed to the letter in order to enhance uniformity and meet the standards set.

Emphasis   

• Processes attribute definitions to the "what" side and mainly focus on the order of activities.
• Procedures are attributed to the "how" side of the concrete tasks that need to be performed to finish a process.

Time frames   

• Processes are never-ending and take place on many occasions.
• Procedures are for a short time and are implemented during a task.

Interdepartmental collaboration   

• Processes tend to cut across departments and teams and involve more than one team working together.
• Procedures are more or less limited to an undertaken duty and are within a single department or team.

The significance of processes and procedures in the operations of an organization   

In any organization, both processes and procedures are critical. Here’s how they impact business operations.

Curation of consistency and quality   

Every process or procedure should be documented. This is because all employees are required to engage in similar steps to achieve a similar outcome. This is especially true in industries where failure to do so is against regulations, like in the healthcare and manufacturing sectors, since the stakes are quite high if there are errors.

Processes provide assurance that each department or team is actually on the same page relative to organizational objectives. Processes are the ones that will state how it is supposed to be done from Point A to Point Z, ensuring quality control is observed within the different functions.

Tackling efficiency   

Processes help organizations plan operations in a way that eradicates unnecessary functions as well as performing various necessary functions in the proper manner. They assist in the stepwise flow of operations, helping calm confusion and clearing bottlenecks.

Procedures offer employees the specific steps they need to take to accomplish particular goals, thus facilitating optimum efficiency. This reduces the chances of making mistakes, minimizes time for general orientation or day-to-day training, and enhances the productivity of workers.

Supporting compliance   

Procedures are a requirement in specific industries to ensure legislation and industry practices are not breached. What the organizations manage to achieve through this is proving that these activities are still within the set limits and that the risks are minimal.

Processes also provide safeguards for compliance activities by establishing guidelines for tasks. They ensure the compliance posture of the business is aligned with the entire organization according to the organizational structure and external compliance.

Improving communication and collaboration   

Processes define inter-departmental cooperation as they specify the sequence of work from one group to another. This helps foster understanding, avoid work duplication, and optimize productivity.

Procedures improve communication amongst the members of the team by outlining what each employee is expected to do for a particular task. This decreases the amount of supervision and clarifications that need to be done on a continual basis, allowing the employees to be more self-reliant.

Encouraging continuous improvement   

Just like processes, normal procedures are also useful to reveal areas that can be improved on in the operations of an organization. Organizations review processes, identify areas where improvement is needed, and take corrective measures to rectify shortcomings.

In such reviewed procedures, organizations will be forced to make amendments to the procedures in line with changes in the business environment or technology.    

When to discern processes fr  om procedures  

Knowing when to shift attention to processes and when it needs to be directed towards procedures can save an organization from wasting time and effort in unproductive significant endeavors.

Focus on processes when:

• The organization seeks to enhance workflow and its efficiency.
• Working in cross-functional teams is not effective.
• Different departments undertake the same task in quite different ways.
• There are high-level, end goals that need to be completed.

Focus on procedures when:

• Standardization of some tasks is required in order to achieve uniformity in the performance of the tasks.
• There are cases or events where a particular task is performed but mistakes are made or there are no time efficiencies.
• Employees spend a lot of time trying to figure out how they can perform their lines of duty.
• Regulations or rules are crucial in this situation.

How to integrate processes and procedures effectively

In order to enhance the use of processes and procedures, organizations should follow some best practices.

Record keeping and graphic presentation 

Both processes and procedures should be documented so employees are aware of them universally. Complex processes should be broken down into simpler forms such as flowcharts, checklists, and other visual aids where procedures are involved.

Train employees 

Training is a core requirement in order to be able to implement processes and procedures successfully. Employees have to undergo training not only on the tasks that they are required to do, but also on why these tasks are important in the first place. 

Knowing the pain they have to face to achieve that particular goal makes them understand why they are implemented in that organization.

Regularly review and update 

Processes and procedures should not be put into place permanently; they should be reviewed as time passes to check if they are still presentable and efficient.

There might be a need to revise procedures and processes in order to maintain productivity toward the given targets due to changed circumstances that might affect the business.

Encourage feedback 

Imagine how useful employee perspectives will be if feedback on instructions has to be provided by those who are actively engaged in processes and procedures. Do not hesitate to speak out; always listen to your team and ask for their opinions.

Conclusion   

Processes as well as procedures serve as a framework for organizations to operate and fulfill their mandates in an effective, consistent, and compliant manner with laws and regulations.

While processes provide a general view of how tasks should flow in order to meet an objective, a procedure will outline how each of the specific activities within a process is to be performed. Both are necessary for success in business operations.

It also enables management to amend processes and enhance them within the work cycle without causing chaos.

Through the establishment of unambiguous structures and systems within the organization, it is possible not only to enhance effectiveness and efficiency but also to foster order in the workplace, which in turn contributes to the success of the organization in the long run. Sign up for a custom Qntrl demo to see how we can improve support for your processes.