Systematizing Business Processes: Step-by-Step Guide

Where to Start

You have likely heard phrases such as “business is a system” and “business is processes.” Both can be described as establishing a state in which a company delivers predictable outcomes and a high level of organizational interchangeability by applying a process approach, an appropriate management structure, and the necessary automation systems.

My name is Yaroslav Chernykh. I am a professional business architect and business process consultant with hands-on experience in the industrial sector since 2016. In this article, I will share a step-by-step sequence for structuring and systematizing a company’s business processes while avoiding common mistakes.

What to do first

Let me break down a basic methodology to gradually describe and build your company’s process structure.

Before you begin, it is important to define your goals and formalize the expected outcomes—what you want to achieve as a result:

• increase process transparency and traceability;

• optimize processes and reduce operating costs;

• prepare for automation.

Doing this sets the right direction and helps the working group focus on specific aspects.

It is also important to assign a dedicated project lead within the company or bring in an external consultant.

Step 1 — Identify lines of business

The first step is to identify the company’s lines of business—what the company specializes in and which products or services it delivers.

For clarity, visualize them using an ArchiMate-based diagram or a simplified format with Excel and SmartArt. The specific tool is not critical.

Methods for identifying a company’s lines of business are described in detail in a separate post.

Step 2 — Define the core business processes

Based on this input, identify the business processes that enable each line of business.

Start from process inputs and outputs and the resources required to execute a given line of business. You can model this using IDEF0 or ArchiMate, or with any convenient diagramming tool such as MS Visio or Draw.io.

For convenience, group the resulting processes into three categories:

• core;

• enabling;

• management.

Step 3 — Decompose the core processes

Next, decompose each process into its constituent parts. The number of decomposition iterations depends on the project goals:

• for clarifying roles and responsibilities, use level 2 or 3;

• for automation, greater detail is needed—levels 4–5.

This step is challenging, especially if no prior work has been done. Do not start from the functions of specific departments to avoid a distorted process architecture.

The result should be a hierarchical structure of business processes prioritized by importance.

Step 4 — Prioritize the business processes

After the previous step, you will have a process register. Now determine what is critical versus secondary.

Define an expert metric or a set of indicators to prioritize which business processes to document first, such as:

• the average number of process instances launched;

• the criticality of operations for core activities;

• the number of nonconformities or findings;

• process cost.

This allows you to progress systematically through the approved list and allocate resources efficiently across internal staff or external specialists for subsequent phases.

Step 5 — Document the business processes

Next, describe the current processes in graphical or textual form. This is the most labor-intensive step, typically taking one to three months due to the need for detailed analysis of each process.

Use specialized software such as Business Studio. This tool has the required functionality and significantly reduces documentation time. A comprehensive comparison with alternatives is available in a separate review.

BPMN is the most intuitive and widely adopted notation for participants and is suitable for downstream automation. For this phase, it is advisable to develop a “Modeling Agreement” to ensure consistency of outputs; you can find an example in the channel.

Developing “as‑is” process models and process maps is the launch pad for optimization. Yet, according to a survey, 54% of business analysts skip this stage and jump ahead, losing the ability to assess before‑and‑after results.

Step 6 — Optimize the business processes

At this stage, review the documented processes and conduct reengineering, i.e., a full reconsideration of structure and execution sequence.

You can apply basic optimization methods such as:

• parallelizing operations;

• reducing process inputs and outputs;

• improving information capture and handoffs;

• eliminating idle time and delays.

If these are insufficient, use comprehensive methods such as:

• functional cost analysis (FCA);

• activity-based costing.

Step 7 — Develop process regulations

At this step, develop process regulations. Functional regulations can be deferred until the need is clear.

Create an internal standard for drafting regulations that specifies key requirements for formalizing and managing internal normative documents.

The working group and functional representatives should develop these documents step by step, followed by review and approval.

Regulations and normative documents are created by people for people. They must be written in clear, accessible language without compromising their purpose.

Step 8 — Implement and pilot the updated processes

The final stage—on which the payoff of prior efforts depends—is the implementation of the modified processes.

To ensure a smooth rollout, involve employees starting from Step 5. Otherwise, resistance to changing established routines may arise, delaying the initiative and turning into passive resistance.

A Win‑Win approach enables all participants to benefit. Company leadership and the project lead must communicate the value of the modified processes, provide training and support to key participants, respond quickly to questions, and adjust regulations if needed.

The concluding stage of business process systematization is automation. A separate Step 9 could cover migrating processes into IT systems, but that is a topic for another publication.

Results

Completing this set of actions leads to positive changes in a company’s operations. It creates the foundation for further organizational development and business automation.

Investing in the structuring of business processes yields a stable, controllable business system that:

• makes employees’ work transparent and comprehensible;

• reduces operational load on managers;

• increases company value for owners;

• enables long-term development and scaling.

To address process systematization in your company, engage a certified business process consultant.

FAQ

• What is the difference between core, enabling, and management processes?
  Core processes create value for customers, enabling processes support infrastructure and resources, and management processes set direction and control performance.

• How detailed should a process be for automation?
  Automation typically requires level 4–5 detail with clear inputs, outputs, roles, rules, and exception handling per activity.

• Why document “as‑is” before optimization?
  It provides a baseline to measure improvements, align stakeholders, and avoid shifting bottlenecks to other parts of the system.

• Which notation should I use—BPMN, IDEF0, or ArchiMate?
  Use BPMN for workflow logic and automation, IDEF0 for function-oriented decomposition, and ArchiMate for enterprise-level architecture views.