Clearly Define Processes
Clearly defining processes in your firm is important for a number of reasons. First, it provides consistency in timing and quality of decision-making. It also creates alignment with your staff and transparency to other stakeholders. Defining processes also highlights what can be automated and/or optimized to improve both the efficiency and the efficacy of each process. All of these outcomes increase firm productivity, transparency, and agility as you continue to build the foundation of your firm’s differentiation.
Critical processes for your firm to define include:
- Raising capital
- Identifying new deals or investment opportunities
- Reporting performance to investors
- Managing and understanding your portfolio of investments
It is not enough to simply define processes. You must build alignment and excitement around them across the organization. This alignment must start from the leadership level and permeate through the rest of the organizations. Because if people aren’t being managed to the processes that are defined, they end up being words in a document that never gets opened again.