What is business process design?

Think of a river. It starts as nothing — a tiny drop. Then, as it heads toward the ocean, more and more rivers feed into it. By the time it gets there, it’s not really one river, but the result of hundreds of streams and little rivers all flowing into it. In the same way, business process design looks at how all the small moving parts contribute to the whole.

It works on the basis that a business is the sum of lots and lots of processes all happening at once. Every action, every task, feeds into the organization’s output. But unlike a big, unruly river, these processes can (and should) be carefully managed so that the end result is as good as it can be. Let’s take a closer look!

What is a business process?

A business process is a series of repeatable steps that lead toward achieving a goal.

A process can be something small and simple, like approving an invoice — or something much bigger and more complex, like onboarding a new client or managing product delivery across departments.

For example, say you ran a sandwich shop. One business process might be to make sandwiches. And there would be a series of steps to go through to achieve that outcome.

Often, businesses do this implicitly — meaning they automatically run through various processes without formally mapping them out. Other times, there’s a mapped, structured, and carefully thought-out process design set out and optimized so it’s as efficient as it can be.

So what is business process design?

Business process design is the process of creating a workflow diagram that maps out a process. The ultimate goal? Improvement.

Most people’s hearts sink when they think of paperwork, which is part of the reason many businesses take the implicit route (‘implicit’ meaning generally accepted, but not explicitly expressed). After all, if everyone can get on with things as they are, why complicate it with a diagram? And why set aside valuable time to create a diagram in the first place?

While there is logic to this, it’s not necessarily the best approach to take.

What are the benefits of business process design?

Business process design usually happens for three reasons:

1. When you’re starting up and need to map out how things will be done
2. When you’re introducing a new process
3. Or, when you want to improve an existing process.

Business process design isn’t just busywork for people who love to be organized — it comes with plenty of benefits.

Here are some of the top reasons for mapping out your processes:

• Structure: When people follow an informal process, the chances of them occasionally deviating are high. This makes it tricky to plan. And if something does go wrong — for example, a deadline is missed — it’s trickier to work out what went wrong and why.

• Consistency: Let’s go back to that sandwich shop. Imagine you have several workers all making sandwiches. If there’s no official process in place, they might all do things slightly differently, which means their work and the results will vary.

• Efficiency: Structuring your processes will help you make sure they’re as efficient as possible. Each stage is mapped out step-by-step so you can spot time-wasting tasks. A more streamlined process means things get done faster.

• Professionalism: When clients ask you about the project and what they can expect at major milestones, having a structured process will make you look more professional. You can even share it with them.

What is a process flow diagram?

A process flow diagram is a simple way to show how something works, step by step. It uses shapes like arrows, boxes, and diamonds to map out the order of tasks in a process. Each shape stands for a different kind of action — for example, a rectangle often shows a task, while a diamond shows a decision point.

These diagrams help people see how work moves from one step to the next. They’re often used in business process design to make sense of complex systems and find ways to improve them.

Whether it’s handling a customer order, onboarding a new hire, or processing an invoice, a process flow diagram lays out the full path — from start to finish — in a visual way that’s easy to follow.

How to create a business process diagram

Creating a business process diagram doesn’t have to be hard. Here’s a simple step-by-step approach:

1. Choose the process you want to map

Start small. Pick a process that’s important to your business, like approving expenses or handling customer complaints.

2. List all the steps involved

Write down every step in the process, from the very beginning to the end. Be as clear and specific as possible. Talk to the people who actually do the work, so nothing gets missed.

3. Identify who does what

Note which person or team is responsible for each step. This helps make your diagram more useful and shows where work might be slowed down by handovers or confusion.

4. Use standard shapes

Draw the diagram using common symbols:

• Ovals show the start or end of a process.
• Rectangles show a task or action.
• Diamonds show a decision (like yes/no).
• Arrows show the flow from one step to the next.

You can use paper, whiteboards, or tools like Cacoo or even PowerPoint to build your diagram. We obviously recommend Cacoo for ease – more on that in the next section.

5. Review and improve

Once it’s done, share the diagram with others who use the process. Ask for feedback. Are any steps missing? Can anything be done faster or better?

6. Keep it up to date

Processes change over time, so check back in now and then. Update your diagram when needed to keep it accurate and useful.

Three ways to create a business process design diagram

Business process design begins with a diagram. And you have three options to choose from.

The first being a hand-drawn diagram — usually a flowchart. This is fine, but it works better as part of the planning stage: One bit of paper can get lost, look messy, and can’t update it without starting from scratch.

The second option is to use MS Word or Google Docs. With these tools, you can edit the diagram without too much hassle, then just reshare it with everyone once it’s done.

The downside is that you’ll need to let everyone know there’s a new version — and hope they look at it. You’ll also need to grapple with formatting and use shapes and arrows to create the diagram yourself, which can be time-consuming.

The third option? Use cloud-based diagramming software. Simply create the business process design using a premade template, edit it, then… that’s it.

Everyone gets an automatic notification (if your software does that), and they’ll be able to see the new diagram immediately. And with some tools, like Cacoo, you can add steps, assign responsibilities, and add comments to the diagram for others to read. It makes the whole process that little bit more streamlined and collaborative — which is what business process design is all about.

Business process design: Next steps

If efficiency is the name of the game, then you’ll want to revisit your process design from time to time to make sure it still does what it’s supposed to do. After all, teams, tools, and responsibilities change — and keeping up with these changes is important if you’re to stay on your A-game.

Business Process Improvement (BPI) and Business Process Management (BPM) are two ways to do this.

Business Process Design is about creating the process in the first place — working out the steps, assigning responsibilities, and mapping everything out clearly. But once that’s in place, it’s not a “set it and forget it” situation. Over time, things will shift — and you’ll need ways to respond.

As the name implies, BPI is all about improving an existing process. It involves examining the current flow and seeing if there’s any room for improvement. For example, you might be able to automate some tasks thanks to new software. Or perhaps you can eliminate a step that’s no longer needed. Think of it like a periodic spring-clean — a focused effort to make a process better.

BPM, on the other hand, is about the ongoing management of processes. It’s a longer-term, continuous improvement approach — one that’s baked into how a team or organization works. While BPI happens at specific points in time, BPM is always running in the background. It’s about keeping an eye on your processes, measuring their performance, and making sure everything is running as smoothly and efficiently as possible.

In short:

• Business process design creates the process.
• Business process improvement makes it better.
• Business process management keeps it running at its best.

To get the most out of the exercise, you’ll want to engage all three stages.

Business process design: 7 golden rules to follow

Business process design is all about delivering value to the client and ensuring profit (or reach) for the organization. Here are some basic principles to keep in mind when creating your process.

1. Add value for the customer

One way to work out whether a process should go or stay is to ask yourself the question — would the customer pay for this? Everything should lead to that moment where the client feels like their needs have been met. Any activities that don’t feed into this should get the chop.

2. Reduce handoff delays

Handoffs happen when responsibilities are transferred from one party to another. Failures and delays happen when this process doesn’t run smoothly. For example, not enough information is shared, or the other team isn’t ready to start work. Making sure your business process design is fine-tuned can help mitigate handoff risks.

3. Don’t rely on automation

Automation can be great, but if it’s used without discretion, issues arise. There’s no substitute for quality, and if a human can produce a better result, they should always be chosen over machines.

4. Use business process standardization

Most businesses have a multitude of processes all going on at once, some of which can be duplicated or consolidated. Taking a top-down view of every process within an organization can help you see a unified way to solve a problem, then implement a cohesive solution across the whole lot.

5. Incorporate compliance rules

Many processes have stages that need to be included for compliance reasons. Business process design should incorporate rules and regulations in all the regions in which your business operates.

6. Keep it simple

It might take a few goes before your design is as distilled as it can be, especially if you’re starting from scratch. Poorly thought-out processes will result in mistakes, a slower workflow, and delays — the exact opposite of what business process design seeks to achieve… so give this stage the time and care it requires.

7. Use diagramming software

Take advantage of diagramming tools with team sharing capabilities to make the process as collaborative as possible. With cloud-based software like Cacoo, you can create, edit, and share your process diagrams in real time. That means everyone can access the latest version instantly — no more emailing updated documents or wondering if someone is using an outdated version.

It also features live comments, version history, and permission settings, so you can gather feedback directly on the diagram, track changes over time, and control who sees or edits what.

By keeping your diagrams visible and editable, you’re creating a living document — one that evolves with your processes and helps your team spot and act on improvements faster. This kind of visibility not only boosts efficiency but also encourages team ownership, making your business process diagram a true team effort. Ready to take it for a spin?

This post was originally published on February 5, 2021, and updated most recently on May 23, 2025.