A process map is a flow diagram of the primary processes within an organization. It very specifically shows you both who and what is involved in a process.  Process maps visually describe the flow of activities of a process and are not limited to a single business department or function.

Process mapping is about communicating your process to others so that you achieve your management objectives.  You can build stronger communication and understanding with process maps.

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The simplest and best definition of a procedure is “a documented process“. Think of any business process. Of what does that process consist? A number of ordered steps. Are those steps followed from start to finish and they’re done? Not exactly.

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According to the Institute of Internal Auditors (IIA), an effective system of internal controls helps ensure that our organizational processes are functioning properly, that our financial information is reliable, and that we’re in compliance with applicable regulations. Businesses primarily implement internal controls systems to protect themselves from internal fraud and abuse, while many do so with regulatory or standards compliance in mind.

It is interesting to note that, in many cases, the internal control system at many companies consists of volumes of instruction-like procedures that document activities. If a company is taking the time and effort to develop a procedure-based financial control system, it’s worth the additional effort it takes to:

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Last week, we established how important process maps are in developing policies and procedures.  In the course of this series, we will present seven types of process maps. This week we will discuss three types: High-Level, Low-Level, and Cross Functional or “Swim Lanes” Maps.

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We always start our Well-Defined Processes Class by asking the participants “what’s wrong with your policies and procedures where you work?” and we always get the same answers.  Students come to the class from different industries, companies, and geographies and yet we still get the same answers every time.

People tell us how hard it is to keep their procedures up-to-date.  Information gets stale fast and it is difficult keeping procedures current and relevant without becoming outdated.  One reason for this is that the procedures are too long in the first place.  If you have a 35-page procedure then, yes, it is difficult to keep all 35 pages up-to-date.  Especially, if the procedure is unclear, overly complicated or just too difficult to understand in the first place.

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We know that it is important to collect information and feedback from external and internal sources in order to identify problems and non-conformances.  But once you have found a problem, what steps do you take to resolve it?

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Last week we identified another common process maturity level in many organizations, Phase Two — Documentation.  Frequently, this is where organizations get stuck, and are not able to advance in their management system maturity.  We also covered Phase three – Process Stability.  This week we will describe the next two levels in our process maturity model that we use to describe the phases of an improving effective management system.  We call the third level Corrective Action Phase and the fourth level Preventive Action Phase, and we will see why they are so difficult to reach.

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Last week we identified the most common process maturity level in many organizations, phase one — Reactive.  Few organizations are able to advance much farther up in management system maturity.  This week we will look at the next two levels in our process maturity model that describe the phases in which an effective management system comes to life.  The Documentation and Stability Phases.

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Your management system consists of business processes that interact with each other through documents and records.  Yet in many companies the system appears to be functioning whether anything is documented or recorded.  Can this be an effective management system?  It depends on the process management maturity of your organization.

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Question of the month: Do you understand the meaning of the term “internal controls?”

The internal controls requirement in Sarbanes-Oxley Section 404 has created the most uncertainty and distress in businesses. Frequently those of us involved in office processes are not accustomed to having our work planned and verified to the degree that is common on most factory floors.

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