Outdated Processes: The Silent Killer of Company Growth

Bonus episode #88: Your internal business processes are either empowering your team or quietly sabotaging your organization's success. As finance leaders, we must ensure our systems add value rather than create obstacles to growth and profitability.

Monthly close procedures provide a perfect example of process challenges. While the goal remains consistent across organizations—producing accurate financial statements and comprehensive business performance snapshots—execution varies dramatically. Many finance teams struggle with inefficient sequences, excessive approval layers, and outdated methodologies that transform what should be a streamlined operation into a dreaded monthly ordeal. The growing interest in "day zero close" reflects this widespread frustration with traditional approaches.

Episode outline:

1. Do your processes cause frustration?
2. Are your senior leaders receiving what they need?
3. Do your processes encourage long-term growth?
4. Are you reviewing your processes?

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2. Twitter: smclainiii
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4. LinkedIn: stephenjmclainiii

For more resources, please visit Finance Leader Academy:  financeleaderacademy.com.

Chapters

• 0:00 Leadership and Achieving Results
• 0:39 Internal Processes and Systems
• 1:44 Process Frustration Issues
• 3:00 Supporting Decision Makers
• 3:34 Processes and Business Growth
• 4:18 Regular Process Review
• 5:13 Closing Thoughts and Reminders

Transcript

Stephen McLain: 0:00

Hi. This is Stephen McLain of the finance leader podcast. This is bonus episode number 88 it's another amazing day to be leading a team influencing positive actions and elevating the people around us. That's leadership. One of our core responsibilities as leaders is to achieve results, to get things the right things done on time and to a high level of expectation. Leaders set priorities, establish clear guidelines and expectations, and set up their teams to succeed with the resources and training that they need. That's what we are supposed to do every single day this week, I want to talk briefly about our internal processes, which also include systems you use your routine tasks, recurring meetings and anything else you use to conduct daily business. These processes are set to help guide us to a standard or the way we want to see something completed. They should always be used to guide instead of to hinder progress. We don't let processes stop us from growing the business. If that's happening, we need to update our processes. A great example is how we conduct monthly close every organization almost does it differently. The concept might be the same, but the processes, I bet, have lots of variation. The end product of monthly close are accurate financial statements, a better understanding of critical metrics and a complete snapshot of business performance for all stakeholders to use in their duties. To achieve that, the internal processes for monthly close have to be correct and timely. Are yours now, let's discuss a few issues regarding your internal business processes. Number one, do your processes cause frustration? Your business processes should create easy to execute tasks that save time and not cause frustration. Are there multiple layers to your processes, or required manager approvals for every single task, or even horrible micromanagement? Monthly close is especially notorious for having archaic processes that often slow everything down because of how the steps may be assigned monthly clothes, particularly on the accounting side, has to be completed in the proper sequence. But does your sequence make sense? Are people waiting on one process to end before they begin theirs? Or do the files move around the staff in a frustrating way? All this and more can make monthly close dreadful. I am also very curious about our profession moving to a day zero close in the future for this very reason, and I'm very curious how we are going to accomplish that. More to follow, I'm sure. Number two, are your senior leaders receiving what they need to make better decisions. Our processes must support timely decision making. If we are not properly supporting decision makers, then we need to start by considering everything we are doing. Decision makers, our senior leadership, need timely and accurate information so they make better decisions. It's our duty and responsibility ask senior leaders, if they are getting what they need, it's also possible that they really don't know what they need, so it's a great time to manage up to help them. Number three, do your processes encourage or hinder long term business growth? What I don't like hearing is an excuse why something can't be done due to a process or system issue. If there is a great opportunity for the company to increase growth by adding a new line of business, and then someone on the finance team says we can't support that due to our accounting structure, or maybe the Chart of Accounts doesn't have the right account set up, well, then we have some updating to do. We have to get uncomfortable for a short time so we can support long term growth, fix and update the process to support what needs to be tracked, recorded and analyzed to better support long term business growth. And number four, are you reviewing your processes on a regular basis? We have to review our systems, our processes, our workload, our recurring meetings and really everything on a regular basis, so that you know that your team is focused in the right direction and that the structure in place supports your team and supports senior leadership in what they need. Don't let old processes hinder growth and profitability. Don't let your team members, or your leadership gets stuck in old ways, continually challenge how something is done. Now, our processes should be adding value, not taking away value. They should be supporting the business and the team in a positive way. If they are not, you need to review everything and make the necessary adjustments. We. Ultimately talking about having a growth mindset. So we focus on improving in everything we do, never becoming too comfortable, always challenging the status quo and continually striving to achieve positive results. Our mindset is the gateway in becoming better in performance and in leadership. One last thought, and I'll mention again next week, we are approaching the end of the quarter, so it's a great time to review our goals. Ensure you schedule some time with your team members so you can help coach them on performance and goal achievement. And don't forget about yourself too. Now thank you again for listening. Please visit finance leader academy.com to find more resources. Thank you. Applause.