Process map

What it means

A process map shows how something in the company actually happens: the steps in order, who performs them, what inputs they need and what comes out. It is not an org chart - that shows people, a map shows the flow of work.

It is drawn as reality is, not as it ought to be. The gap between the map and management’s idea of the process is usually the most useful finding of the whole exercise.

A basic map says what happens and in what order, not how long it takes. Add processing and waiting times to each step and it becomes the value stream map used in lean. An ordinary company can start with the simple version and add times only where work is visibly held up.

How it works in practice

For the accounting function three or four processes are enough: a purchase invoice from arrival to payment, a sales invoice from order to collection, payroll, and the monthly close. The map then yields a workflow in the system and SOPs for people.

It reveals where work waits, where data is retyped a second time and where no check exists. Responsibilities are added through a RACI matrix, control points through internal control.

In a small s. r. o. it often turns out that purchase invoices arrive at three different e-mail addresses and are approved by the managing director, who is travelling for a week. Once mapped, one invoice address and a deputy who can approve up to a set amount are enough. A small change like that shortens the time from arrival to posting more than new software would.

What to watch out for

Mapping processes during an ERP rollout is late and expensive - the system then bends to habits instead of simplifying them. And a map that is never updated after it is drawn becomes a historical document within a year.

A map drawn by management alone, without the people who do the work, shows the intended process and leaves out the exceptions. Yet exceptions such as credit notes, complaints and invoices without an order take up the most time. So the map is drawn with the staff at one table, and every branch is tested against a few real documents.