What makes for a good process m

By Cielo C. Diano CPA, CIA

Before one talks about a process manual, one must first understand what a
business process is and how it works. Put simply, a business process is a series
of activities within a company that leads to a specific end -- could be the
correct reimbursement of expenses incurred by an employee or the hiring of
the best job applicant. The forms and approvals required for the correct
reimbursement, or the procedures required for an applicant to be evaluated
constitute the relevant business processes.
As anyone who runs a business or is
employed in one would know, even the
simplest business process, if applied
differently or even circumvented, may
result in something other than the specific
end it was intended for. A business
process only works if all its process
owners agree on and understand how it is
supposed to run. A process manual, where
business processes are documented, works
like a map that leads users to the right
destination. A well-documented process
manual can act as reference to ensure and
check consistency and compliance of the
actual practice to that of the manual.
A good process manual, therefore, has to
contain the following necessary and/or
ideal elements in order for it to be helpful
and relevant to its users.
1. Document information
information. This
includes information about the
manual, its scope and users,
revision and approval history
(showing the latest version number
and date of approval), limitation as
to its distribution and control
information.
2. Glossary. This section contains
the definition for certain terms and
abbreviations that are used
throughout the manual.
3. Objectives. This states the
purpose and importance of the
process documented.

4. Related processes. The

process documented in one manual
may be related to other business
processes documented in other
manuals of an organization. This
section lists down such related and
relevant processes.
5. Policies. This section enumerates
the general policies involved in
performing the business process.
However, some departments of an
organization may require a more
extensive documentation of
policies (e.g., Human Resources)
and, therefore, a separate policy
manual. In such instances, a
reference to the policy manual
should be indicated in this section.
6. Organizational chart. The
organizational chart illustrates
the reporting and working
relationships of the personnel
involved in the documented
business process.
7. Roles and responsibilities.
This section summarizes the
roles and responsibilities of the
personnel involved in the
documented business process.
8. Process map. This may be in the
form of a high-level diagram
showing the various sub-processes
that comprise the main process
documented, or a detailed process
flow.

manual?

9. Procedures. This section

contains the detailed steps required
to carry out the business process,
including steps for exceptions.
Each step may indicate who
performs it, and when and why it is
performed. Some steps may
require notes and guidelines as
further information and/or
guidance to the process owner or
user.
For a process manual that is also
used as reference for SarbanesOxley (SOX) testing purposes, a
particular step may be noted as a
control point. As part of the
Procedures Section, a summary of
process inputs and process outputs
may be included, serving as a
checklist of the documents
required from other departments
before the process is performed
and the expected documents to be
forwarded to other departments
(or file) after the process is
completed. Any input or output
document should contain a
reference to the Annex section (see
No. 10).

10. Annexes. This contains the

sample forms and documents used
in the performance of the process.
Aside from the actual content of a
manual, there are other considerations
that can define its effectiveness. For one, a
manual should be easily understood and
should not have any ambiguity. Thus, the
writing style and design of a process
manual should rely on clarity and conciseness of language and consistency of
format.
A business process also does not happen
in a vacuum. There may be changes in the
environment where such process occurs,
and the said process may need to account
for the said changes to remain effective in
its accomplishment of its specific
objective. A process manual should thus
be reviewed periodically: It is useful only
if it is relevant and current.
The author is a Managing Consultant with the
Advisory Services Division of Punongbayan &
Araullo.