When it comes to standing out in a crowded market, it’s not just what you do that matters—it’s how you do it. Well-designed and well-executed processes can transform routine tasks into powerful tools for differentiation, giving your business a significant competitive edge.
"It’s not only what is done, but also how" states Process specialist and investor Ivan Seselj
Process is important.
By leveraging smart processes, you can build consistency, improve efficiency, and set your business apart from the competition. Here’s how you can make process management your secret weapon.🤩
Why Process is the Key to Competitive Advantage
Processes are often the unsung heroes of business success. They ensure that every part of your operation runs smoothly, from onboarding new employees to delivering top-notch customer service. But the benefits of process go beyond mere efficiency:
- Consistency: Standardized processes ensure that customers receive a reliable experience every time.
- Faster Onboarding: Clear processes help new employees get up to speed quickly, saving time and money.
- Decision-Making Ease: A good process reduces the need for constant decision-making, freeing up leaders for more strategic work.
- Risk Reduction: Well-established processes reduce the chance of errors, enhancing trust for both customers and investors.
When used correctly, processes aren’t just tools—they’re strategic assets that can help your business thrive and grow.
Defining Competitive Advantage Through Process
Competitive advantage means creating value that customers can’t easily find elsewhere. Often, businesses focus on what they do, but the true advantage can lie in how they do it. For example, Apple stands out not just for its innovative products but for its smooth and cohesive product ecosystem.
Example of Competitive Advantage
In 2021, Apple shipped over 28 million Macs—a growth rate twice as fast as the overall PC market (Statista, 2022). Why? Because Apple’s streamlined processes make their products consistent, reliable, and desirable.
The takeaway? .
Three Types of Differentiators—and Why Process is King
Differentiators in business tend to come in 3 categories; People, Process and Technology (PPT).
People 👥
For the most part, people are replaceable, but the level of accomplishment and specialist knowledge of individuals within an organization can make a difference.
Technology 🖥️
The unique and compelling business value of technology and how it is deployed can create differentiation.
AND Process 🎯
How a business accomplishes its activities, goals, and positioning in alignment with customers’ business goals can create differentiation.
☝️ Incidentally, it’s process that can also help mitigate the risk associated with losing people and specialist knowledge in deploying technology.
The 10 Principles of Effective Process Management
Professor Jan vom Brocke from the University of Liechtenstein and his clever colleagues created the Ten Principles of Good Business Process Management 😎.
- Principle of Contextual Awareness
- Principle of Continuity
- Principle of Enablement
- Principle of Holism
- Principle of Institutionalization
- Principle of Involvement
- Principle of Joint understanding
- Principle of Purpose
- Principle of Simplicity
- Principle of Technology appropriation
We thought we’d take their work and break it down into easy principles and ways to apply it in a business. We’ve also created an easy-to-use checklist to ensure that your organization can utilize process as a competitive advantage.
To maximize the impact of processes, Professor Jan vom Brocke from the University of Liechtenstein and colleagues identified ten key principles. Here’s how to use each one to gain a competitive advantage.
1. Principle of Contextual Awareness
Create processes that align with your organization’s unique culture. Avoid a one-size-fits-all approach and customize processes to fit your business’s specific needs.
How to Use It: Identify what your business does differently and document those methods as unique processes.
2. Principle of Continuity
Keep your processes up-to-date and adaptable to changing circumstances. A continuous improvement approach helps your processes evolve as your business grows.
How to Use It: Review processes regularly, such as quarterly, to keep them aligned with current goals and strategies.
3. Principle of Enablement
A good process is one that everyone understands and can follow. Ensure that your processes are clear, accessible, and easy for your team to use.
How to Use It: Use user-friendly tools like Whale to document processes in a way that’s engaging and easy to follow.
4. Principle of Holism
Processes should serve the entire organization, not just specific departments. Taking a holistic view ensures that processes support overall business objectives.
How to Use It: Involve representatives from multiple departments when designing processes to ensure broad relevance and alignment.
5. Principle of Institutionalization
Build a culture where process is a core focus. This means assigning responsibility for processes to specific people and embedding it into everyday work.
How to Use It: Assign process management KPIs to relevant roles to ensure accountability and follow-through.
6. Principle of Involvement
Include employees in the design of processes to foster ownership and commitment.
How to Use It: Involve subject-matter experts and team members in process design to make processes both relevant and easy to follow.
7. Principle of Joint Understanding
Make sure everyone understands the processes. Clear, jargon-free language is essential for creating processes that team members can actually use.
How to Use It: Simplify language, use visuals, and integrate multimedia elements to make processes engaging and easy to understand.
8. Principle of Purpose
Every process should have a clear purpose that supports a specific business goal. Avoid unnecessary steps that add complexity without value.
How to Use It: Focus on the 20% of processes that deliver 80% of the results (Pareto Principle).
9. Principle of Simplicity
Overly complex processes can create confusion and waste time. Aim for simplicity and clarity in every process.
How to Use It: Review processes regularly to eliminate redundant steps and maintain clarity.
10. Principle of Technology Appropriation
Use technology to streamline and automate processes, freeing up time for creative and strategic tasks.
How to Use It: Invest in process automation software that integrates well with your current systems and workflows.
Measuring process as a competitive advantage
How can you tell if your processes are making a difference? By tracking specific metrics, you can measure the impact of processes and continuously optimize them:
- Onboarding Time: Track how long it takes to onboard new employees with your processes.
- Process Compliance: Measure adherence to processes, which indicates clarity and effectiveness.
- Revenue Growth: Analyze how processes contribute to operational efficiency and ultimately, profitability.
Processes aren’t just a one-time task—they’re living tools that need regular care and attention. By tracking their impact, you can ensure they continue delivering value as your business evolves.
Bottom Line? Process is a competitive advantage
By embedding strong, well-optimized processes, your company can enhance its competitive edge, improving consistency, reducing risks, and ultimately creating an experience customers and investors value. Process management isn’t just about keeping operations smooth—it’s about building a strategic advantage that keeps you ahead of the competition.
FAQs on Process as a Competitive Advantage
What is a competitive advantage in business?
A competitive advantage is what sets your business apart from the competition. It’s a unique quality that adds value for customers, making them more likely to choose your company over others. This could be a product feature, customer experience, or—often overlooked—importance of standard operating procedures in how efficiently you run your operations.
How can processes contribute to a competitive advantage?
Processes contribute to competitive advantage by creating consistency, improving efficiency, and reducing risk. When processes are well-designed, they help your business deliver a reliable experience, streamline operations, and adapt quickly to changes. This level of organization often appeals to both customers and investors.
How do I keep processes up-to-date?
Regularly reviewing and updating processes is essential for keeping them effective. Schedule periodic process reviews—monthly, quarterly, or yearly—to ensure they stay relevant as your business grows or changes. Involving team members in these reviews can also provide fresh insights and encourage process adoption.
Can processes help with employee retention?
Yes! Well-designed processes provide clarity and make employees’ jobs easier. Clear processes reduce stress, ease decision-making, and provide structure—key elements for employee satisfaction and retention. They also make it easier to onboard new hires, contributing to a positive work environment.
