The importance of defined processes for corporate success

I have now worked in the automotive industry for well-known manufacturers of components and modules for almost 30 years. I spent a large part of this time in the area of quality management and made it to the globally responsible head of the QM division. My experience has shown me that the establishment and consistent application of regulated processes is not only an obligation for successful certification, but rather represents a fundamental basis for corporate success.

The need for a management review

A central element in quality management is, for example, the management review. A requirement that forces the company to critically question the effectiveness of its management system at regular intervals. In my professional career, I have often seen how these reviews were initially perceived as a formal and annoying exercise. The purpose was primarily to document compliance with standards. It was therefore necessary to convey to the organization the benefits of a management system beyond the receipt of a certificate. The challenge was to develop the economic added value of a living system for all areas.

By implementing a process-oriented process organization and focusing on defining effective and efficient interfaces, we were able to use the reviews not only to validate the management system, but also to establish it as a tool to promote the company's financial success. A management review thus became an opportunity where process owners came together to agree on economically relevant KPIs that reflect the financial health and success of the company. This strategic orientation enabled top management to clearly see and evaluate the impact of the quality management system on the organization's financial performance, which significantly increased the importance and value of these reviews.

With this interpretation, we were able to transform the QM sector from the shadowy existence as a police officer and admonisher in the organization to a valued partner for other areas. It was only the joint entrepreneurial view of the results and the focus on monetary results and customer satisfaction that led to acceptance of the management system.

Containment action and repair: A practical example

The application of defined processes in practice is also particularly impressive when dealing with customer complaints in the automotive industry. As a responsible quality manager, I often experienced situations that underline the importance of a well-structured containment action. If a customer complained about a defect that could result in a production standstill, action had to be taken quickly. The challenge was to immediately supply the supply chain with certified material and then establish a careful analysis of the cause and permanent corrective measures.

The risk of rapid containment action is always the unintended possibility of a new mistake. We used a checklist for this, which was very close to initial sampling. The most important thing was to carry out a short FMEA to reassess the risk of deviating from the standard process. The rule here is that deviations from the established process always increase the risk of errors. We were always able to promptly supply the customer with certified goods and thus “buy” time to correct the cause.

This structured problem-solving process illustrates that a well-thought-out approach based on clear processes not only minimizes potential damage, but also strengthens customer confidence in the reliability and professionalism of the company.

The process of invoicing

Another example that underlines the importance of defined processes is often the invoicing process. In many companies, the poor payment practices of customers are perceived as a problem. But on closer inspection, the cause is often internal, poorly defined processes. An efficient “end to end” process, which starts with the offer and extends through order processing to invoicing and bookkeeping, is crucial for maintaining the company's liquidity.

By optimizing this process, in particular by avoiding data breaches and minimizing time losses at the interfaces between departments, we were not only able to improve our customers' payment practices, but also increase internal efficiency. “Cash is king” and our outstanding invoices were credited to the account earlier.

This approach shows how essential clear, well-defined processes are to ensure financial flow within a company and at the same time create a solid basis for customer relationships.

Conclusion and practical tips for everyday life

Valuable tips for daily practice can be derived from these experiences:

• Documentation and communication:
  The importance of clear documentation and communication of processes cannot be emphasized enough. It is the basis for understanding and effectively implementing processes throughout the company.

• Processes lived through regular training:
  Regular training is essential to ensure that all employees understand and use the processes correctly. This not only strengthens process discipline but also promotes a culture of continuous improvement. When the benefits are understandable, the processes become routine in the daily workflow.

• Incorporation:
  A well-documented, up-to-date management system helps new employees get started. By studying the processes and tasks on their own, a new employee is able to arrive at the organization more quickly and complete their tasks effectively.

• Gather and implement feedback:
  Continuous improvement of processes should be a central goal. By collecting and taking into account feedback from all levels of the organization, processes can be made more efficient and effective. There must be a low-threshold opportunity for all employees to feed their feedback back into the documentation.
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• Monitoring and review:
  Regular monitoring of process performance based on defined key figures and a periodic review of process effectiveness help identify weak points and address them promptly.

• Leaders as role models:
  The importance of managers' commitment and role model function in process management should not be underestimated. Your active participation in process design and improvement sends a strong signal to the entire organization.

In conclusion, it can be said that the application of defined processes is much more than a formal requirement. It is an essential component of a company's long-term success and competitiveness. In a company, process descriptions can be understood as the veins and nerve pathways of an organism. Through regular impulses and use, an organism becomes stronger and more resilient. Development can take place more easily on a healthy basis. By consistently implementing and constantly improving processes, companies can not only increase their efficiency and productivity, but also create a strong basis for sustainable growth.