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A business process diagram is a visual representation of one of your core business processes. It shows on a screen what happens as data passes from one task to the next until it is completed.

Business Process Diagram: What It Is And Examples

Creating business process diagrams is the best way to optimize processes for enterprises.

As a CIO, whether you are planning to revamp internal processes or looking for areas of improvement, detailed process diagrams can help document everything in one place and make better data-driven decisions.

To leverage the many benefits of business process diagrams, it's crucial to understand how they work and the steps to create one.

What is a business process diagram?

A business process diagram refers to a visual representation of the flow of activities involved in achieving specific business goals. They are used to document and analyze business processes and can be helpful for identifying bottlenecks, inefficiencies, and opportunities for improvement.

Why should you diagram a business process?

Nearly everyone has an answer to the question, “How should this process run?”. But if your explanation is only verbal or text-based, you are missing out on a lot.

By creating a visual business process flow diagram, you unlock your mind to actually see the invisible road that your data is travelling.

Business Process Diagram Example – Notice this difference between typing out this process:

>Complete a PTO request form
>Get approval from manager
>Send to HR for recordkeeping
>Send to Payroll for documentation
>Add days off to shared calendar

And seeing this visual:

Your business process diagram can quickly show the sequence of tasks, if they are conditional, if they are done simultaneously, if they are a system task, or assigned to a human.

4 Steps to Create a Business Process Flow Diagram

1. Make a rough draft on paper

It’s often helpful to start with an easily editable visual of what you think the business process diagram should look like.

2. Get input from stakeholders

Everyone involved in the process will have a different insight to share.

3. Digitize the process

Enter the information into a BPM tool to show the relationship between tasks.

4. Assign roles and conditions

Who should do each task? Should it be a person or a system? Do the tasks need to happen every time?

Example of business process diagrams: Invoice approval

The invoice approval process in an organization can require many steps before the payment is actually processed and released to the vendor. By breaking down the entire process with a process diagram, it can become easier to identify bottlenecks and inefficiencies.

Here are the steps involved in the invoice approval process diagram:

Invoice received: The company receives the invoice from the vendor or supplier.
Review for accuracy: The invoice is then reviewed automatically to ensure all the billed items, invoice format, and account details are correct. If there are any discrepancies, the invoices can be rejected and returned.
Assign to approver: After the initial check, the invoice is assigned to the approver, who then manually reviews the invoice.
Forward to finance: When the approver reviews and approves the invoice, it is directly forwarded to the finance team.
Review by finance: The finance team reviews the invoice for compliance and approval.
Payment processing: The finance team processes the payment
Process ends: Once the payment is cleared, the process ends.

Your Guide to Business Process Diagrams

What is a business process diagram?

Why should you diagram a business process?

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