The difference between Processes and procedures can be summed up as breadth and depth. A process defines the big picture and highlights the main elements of your business–breadth. A Procedure captures those elements and adds more information for functional responsibilities, objectives, and methods–depth. Taken together, they each have different roles to play in defining the standard operating model of your business.

Difference Between Processes and Procedures

What Is a Process?

A process is the conversion of an input into an output.

A process typically operates at a higher level, possibly across many functions, and may cross department lines. A process may contain one or more procedures and may refer to procedures from other processes. Work Instructions provide even more detail for a procedure. Processes, procedures, and work instructions can expand like an organization chart (see process Procedures Work Flow diagram).

Process maps are used to depict business processes, which make up and define your business. Critical business processes must be controlled and procedures help define, document and maintain that control.

Example Revenue Process

Let’s look at the Revenue Process, one of the ten core business processes. The revenue process starts when sales takes an order. The order is pulled from inventory and shipped. But the revenue process is not complete until the order goes through collections and is converted from merchandise into cash. Notice how the Revenue Process crosses various department boundaries from sales, to the warehouse, to accounting.

A process is in control when objective are clearly defined, metrics are tracking how well the process is achieving the objective, and actions are clearly taken when objectives are not met. Clearly defined responsibilities, measures, actions, and operating time frames help to establish the controls that are typically found within a procedure. The revenue process is complex and operates across many functions and departments, which may result in a number of different procedures. What is a Procedure?

5-Manual CFO Internal Control Procedures Bundle| Save 35%