From Start-ups to Scale-ups: The Process gap
http://www-comic.com/?comic=6-16-2019-no-one-whatsoever As the Financial Service revolution gains traction, FinTech start-ups can soon expect a period of rapid growth.
Scaling up however, is no piece of cake. Technical challenges aside, a company’s processes should also be re-assessed for compatibility with any additional operational capacity. Unsurprisingly, process problems – or gaps – are a common sight in young businesses trying to expand in scale or scope, regardless of which field they operate in.
It‘s common for certain processes to work very well when servicing small number of clients, but easily fail when the number starts to pile up. Control may have been put in place when workload was small and it’s still better to deal with queries individually and manually, but automation will be needed if operation expands.
These are findings cibsys uncovered in a recent process review. The client, in the midst of rapid expansion, experienced low efficiency across operations. Post analysis, we found that the root of the problems was one of their key processes being under-utilised. Inefficiency was caused by outdated documentation, bottlenecks, and KPIs/SLAs that weren’t streamlined or standardised. Clearly the process wasn’t updated against new business objectives which, due to the nature of an upscaling business, can be hard to track. In the case of start-ups, the problem is even worse: young and small businesses often don’t have the time or resources in place to perform reviews. Add in the pressure of meeting overarching growth targets set by investors and stakeholders, it‘s all too easy to forget the initial check-ups on existing processes and procedures. The result can be severe.
The growth of FinTech disruptors is most certain. However, from start-ups to scale-ups, they will need more than just technical capability. To succeed in such a fast paced and ever-changing environment, one would always need to keep an eye on their processes, and make sure those in place are compatible with new capacity and objectives.