Business Automation 101 - Identifying Key Processes to Automate

In the brutal arena of modern business, efficiency isn’t just a buzzword—it’s the difference between thriving and dying. As we hurtle towards a future marked by demographic decline and geopolitical chaos, the ability to do more with less isn’t just smart—it’s survival.

Enter business automation. But here’s the rub: not all processes are created equal when it comes to automation potential. Identifying the right processes to automate is like finding the pressure points in a fight—hit them right, and you’ll gain a massive advantage. Miss, and you’ve wasted time and resources you can’t afford to lose.

So, how do we separate the automation wheat from the chaff? Let’s dive in.

The Automation Triage

First things first: you need to perform triage on your business processes. Which ones are bleeding your resources dry? Which ones, if optimized, could give you a killer edge?

Here’s your hit list:

• High-Volume, Repetitive Tasks: These are your prime suspects. Think data entry, invoice processing, or inventory updates. If you’ve got employees mind-numbingly repeating the same task day in and day out, you’ve struck automation gold.

• Error-Prone Processes: Humans are brilliant, but we’re also fallible. Any process where a small error can cascade into big problems is ripe for automation. Financial reconciliations, compliance checks, quality control—these are areas where machines can outperform humans in accuracy and consistency.

• Time-Sensitive Operations: In a world where time is money, processes with strict deadlines are prime automation candidates. Order fulfillment, customer service response times, or financial reporting—automation can help you meet and beat deadlines consistently.

• Data-Heavy Analyses: If you’re drowning in data but starving for insights, it’s time to automate. Machine learning algorithms can crunch numbers faster than any human analyst, spotting patterns and anomalies that could give you a crucial edge.

• Cross-Departmental Workflows: Processes that involve multiple departments are often rife with inefficiencies and communication breakdowns. Automating these workflows can streamline operations and reduce the all-too-human problem of interdepartmental friction.

The Geopolitical Angle

Now, let’s zoom out and consider the global context. We’re living in an age of deglobalization, where supply chains are shortening and labor markets are tightening. In this environment, automating key processes isn’t just about efficiency—it’s about resilience.

Consider a manufacturer in the American Midwest. As labor costs rise and skilled workers become scarcer, automating key production processes isn’t just a nice-to-have—it’s essential for staying competitive against rivals in regions with cheaper labor.

Or think about a European financial services firm grappling with an aging workforce. Automating routine financial processes isn’t just about cutting costs—it’s about maintaining operational capacity in the face of demographic decline.

You can read more about what deglobalization looks like in Europe in this article: The De-industrialization of Europe: BASF Downsizing and the Impact on Industry

The Assessment Framework

So, how do you systematically identify these key processes? Here’s your battle plan:

Process Mapping:

Start by mapping out all your business processes. This isn’t busy work—it’s reconnaissance. You need to know the lay of the land before you can identify the high-value targets for automation.

Impact Analysis:
For each process, ask:

• How much time does this process consume?

• What’s the current error rate?

• How does this process impact customer satisfaction?

• What’s the financial impact of this process?

• Complexity Assessment

Not all high-impact processes are suitable for automation.

Assess the complexity:

• Is the process rule-based or does it require significant human judgment?

• How many exceptions or variations does the process have?

• Does the process require human interaction or empathy?

• ROI Calculation
  Automation isn’t free. Calculate the potential return on investment:

• What’s the cost of automating this process?

• What are the projected savings in time and resources?

• How long will it take to recoup the investment?

Strategic Alignment:
Finally, consider how automating each process aligns with your broader business strategy. Does it support your core competencies? Does it free up resources for innovation or expansion?

The Human Element

Here’s a critical point many miss: identifying processes for automation isn’t just about cold, hard metrics. It’s also about your people.

Which processes are soul-crushing for your employees? Which tasks, if automated, would free up your best minds to focus on high-value, strategic work? Remember, in a world of demographic decline, retaining top talent is crucial. Automation that enhances job satisfaction can be as strategically important as automation that cuts costs.

Check how I helped employees of a Real Estate company in this case study: Automated Offer Creation and Posting with Airtable and Make Unlocks 65% Productivity Boost for a Real Estate Company

The Road Ahead

As you embark on this journey, keep this in mind: automation isn’t a one-and-done deal. It’s an ongoing process of optimization and adaptation. The processes you automate today may not be the same ones that will give you an edge tomorrow.

Stay agile. Keep reassessing. And always keep one eye on the horizon—both within your industry and in the broader geopolitical landscape.

In a world careening towards demographic collapse and geopolitical upheaval, the businesses that survive and thrive will be those that can adapt the fastest. Identifying and automating key processes isn’t just about efficiency—it’s about building a business that’s resilient enough to weather the storms ahead.

The future belongs to the automated, the efficient, the adaptable. By systematically identifying and automating key processes, you’re not just optimizing your business—you’re future-proofing it.

So, take a hard look at your operations. Where are the pressure points? Where are the opportunities? The answers to these questions are your roadmap to a leaner, meaner, more competitive business. In the Darwinian world of modern commerce, it’s automate or perish. Which side of history will your business be on?