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How to Define Your Company’s Core Processes?

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Every organization relies on a series of processes to reach their goals. A business process is everything your business or organization does over the course of a day, week, or month. Core process is the process that is strategically important and contributes significantly to business success.


Core processes are characterized by the following aspects: Value creation, the (external) customer is at the beginning and end of the process, they contribute significantly to the company’s success and customer satisfaction, they have direct customer relevance and direct customer impact, the Customer is willing to pay for the output of the process.


Examples of these core processes could be hiring process, marketing process, sales process, operations process, accounting process, and customer retention process. The key is for the leadership team to meet and identify, clarify, and agree on the title and details of each core process for the company.


How to identify these core processes?

  1. Defining Your Business Model: You need to determine how you earn money and where it comes from. Look for all of the ways you can make money. Is there something you should be doing that you’re not? Write down your ideas before you move on to the next step.

  2. Identify Your Core Business Processes: a. Ask yourself what actions and activities drive your business. b. Create a list of all departments and roles. Don’t forget to identify who has input in company decisions at each level. c. Define each process with essential and non-essential activities. d. Detail transitions and places where products or materials transfer internally and externally.

  3. Map Your Processes: Compare your business model to your current processes. Use your list of core business processes then plug them into a cycle from beginning to end. Link suppliers, inputs, processes, outputs, and customers to develop a map that includes cash flow in both directions. Your finished map should represent the cash cycle of your business.


Your core processes should be a living entity, it is therefore essential to regularly review the performance of your process and adjust as business demands change. You can refine your business model and core processes map by analyzing your financial statements, resource utilization, manufacturing/production performance, and customer satisfaction.


If you need help identifying your business's core processes or require any further information, schedule a free 30-minute consultation with an IBEC expert.

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