Why Ignoring Business Processes Is Costing SMEs — And How to Fix It
- Hieu Do
- Jul 31
- 4 min read
For many small and medium-sized enterprises (SMEs), particularly in Vietnam’s fast-paced consumer sectors like Retail, F&B, Services, and Tech, growth often comes with mounting complexity. Founders and CEOs tend to focus on immediate business drivers — customer acquisition, cash flow, team management — while internal processes are frequently overlooked.
However, as businesses grow, these overlooked processes can become hidden obstacles. Left unmanaged, they slow teams down, frustrate customers, increase operational costs, and ultimately cap your growth potential.
1) Operational Inefficiency Often Goes Unnoticed
Most SMEs operate with a high degree of flexibility and improvisation in the early stages — which is often necessary. But as headcount increases and service demands rise, informal processes tend to break down. Warning signs include:
Repetitive errors in customer or internal workflows
Heavy reliance on specific individuals to manage critical tasks
Misalignment between departments or functions
Frequent delays or rework due to unclear responsibilities
Customer complaints, despite significant staff effort
These are not always people problems. More often than not, they stem from the lack of well-defined processes that ensure clarity, accountability, and consistency.
2) Better Processes, Not Just More People
When operations feel chaotic, the default response is often to hire more staff or adopt new software. But doing so without improving the way work is structured usually leads to added complexity, not greater efficiency.
The more sustainable solution is to re-evaluate and improve your business processes.
This does not always require external consultants or complex systems. In fact, many improvements can be initiated internally if you follow a structured approach.
Below is a simplified 5-phase methodology that any SME leader can use as a starting point. It is a proven framework used by many consulting firms (including ours) to help organizations reduce inefficiencies, improve team productivity, and manage growth with more stability.
3) A 5-Phase DIY Guide to Process Improvement
This step-by-step approach is designed to help you identify inefficiencies and build smarter workflows — whether you lead operations yourself or delegate it to a manager.
Step 1: Assessment & Analysis
Begin by mapping out your current workflows. Look at how tasks move between individuals or departments, where handoffs occur, and where delays, duplication, or confusion typically arise.
Questions to guide your assessment:
Where do issues or complaints frequently occur?
Which processes rely on one or two key people?
What are the most time-consuming or error-prone activities?
Tools such as flowcharts or swimlane diagrams (e.g., on draw.io) can help visualize your processes. Even a basic whiteboard or spreadsheet can be effective.
Additionally, compare your processes — in terms of time, cost, or output quality — with common industry benchmarks. This can reveal performance gaps and inform your next steps.
Step 2: Strategic Planning
With a clearer understanding of your current state, define what success looks like. Any process improvement initiative should align with your strategic business goals.
Consider:
Are you aiming to reduce costs?
Do you want to improve response times or customer satisfaction?
Are compliance or quality consistency emerging concerns?
Set realistic and measurable objectives (e.g., reduce processing time by 20%, eliminate 3 steps in onboarding, or cut inventory errors by half). This helps focus improvement efforts where they will make the greatest impact.
Step 3: Process Reengineering
Next, engage your team to redesign the selected workflows. Involve the people closest to the work—they often have valuable insights into what’s inefficient or unnecessary.
Focus areas:
Remove redundant or low-value steps
Clarify decision points and responsibilities
Eliminate avoidable manual inputs
Introduce standard forms or templates if helpful
Start small. Choose one or two processes that are critical but currently inefficient. For example: customer complaint resolution, order fulfillment, or supplier approval.
Step 4: Implementation & Change Management
Implementing changes is where good plans often stall. Success depends on communication and team involvement.
To support implementation:
Inform your team about what is changing, and why
Provide simple training or walkthroughs
Update documentation, tools, or templates
Monitor early adoption and gather feedback
Ensure that team members feel equipped and supported, especially in the early weeks of rollout. Assign a responsible lead to track adoption and address challenges as they arise.
Step 5: Continuous Improvement
Process improvement is not a one-time project. The goal is to build a mindset of continuous learning and refinement — known as Kaizen in Lean methodology.
Establish habits such as:
Monthly or quarterly review meetings
Tracking of 2–3 key performance indicators (KPIs) per process
Creating a feedback channel for staff suggestions
Recognizing and rewarding small improvements
This not only sustains improvements over time, but also fosters ownership and proactive thinking across your team.
4) Common Results When This Framework Is Applied
When done consistently, this structured approach often leads to measurable improvements in both performance and morale. In our past projects across Vietnam, SMEs applying this methodology have achieved:
20–30% reduction in operational costs
Up to 25% increase in customer satisfaction scores
30% improvement in staff efficiency
These are outcomes that stem from clarity — not complexity.
Final Thoughts: Start with What You Can Control
You do not need to overhaul your entire business overnight. Begin with one process. Map it, analyze it, and involve your team in making it better. Many meaningful improvements can be initiated internally with limited resources.
If your internal capacity is stretched or if your business faces more complex operational challenges, external support may be helpful. SOSP Consulting Group specializes in guiding Vietnam-based SMEs through process optimization, tailored to your growth stage and industry.
Need a practical starting point?
Don't hesitate scheduling a diagnosis call if you’d like a simple checklist or workflow template to begin your internal process review.
------
Helping SME CEOs Scale Operations & Boost Profitability
Cost Optimization | Process Improvement | Customer Retention | Service Delivery Enhancement
CONTACT SOSP Consulting Group
🏢 Rep Office: 17th floor, Vincom Center Buildings, 72 Le Thanh Ton Street, Saigon Ward, HCMC, VN
🏢 Headquarter: 3th floor, 126 Nguyen Thi Minh Khai street, Vuon Lai Ward, HCMC, VN
Comments