The Ultimate Guide on Approval Workflows – Tips and Strategies

If endless email chains, chasing approvals, and lost requests sound familiar, you're not alone!  

SaaS approval workflows can significantly improve organizational efficiency by simplifying processes, reducing errors, promoting transparency, and empowering employees to be more productive. This translates into faster decision-making, quicker project completion times, and ultimately, a more competitive organization.

However traditional approval processes can be a real drag on productivity.

There's a better way to do it.  

This article will explore all about approval workflows, whether you're looking to improve your current approval system or implement one for the first time, this guide will provide valuable insights to help you navigate the difficulties of workflows. 

What is an approval workflow?

An approval workflow is a set of steps that a request, document, or task needs to follow to get approved or rejected by designated people within an organization.  In simple terms, it defines all the rounds of revision requests and iterations a deliverable must pass before the sign-off.

Take the finance department as an example, an approval workflow maps out the approval process for financial requests, such as invoices. It ensures that only valid expenses are approved and paid by the appropriate individuals. This leads to faster processing times and improved tracking of financial transactions. 

For example, an approval workflow includes:

1. Initiation: A request is submitted by an employee or department.
2. Routing: The request is automatically sent to the appropriate decision-makers.
3. Review: Designated approvers evaluate the request based on predefined criteria.
4. Decision: Approvers either accept, reject, or request modifications to the proposal.
5. Notification: All relevant parties are informed of the final decision.
6. Implementation: If approved, the request is executed or put into action.

Approval workflows can be applied to various business processes, from expense reimbursements to project proposals, ensuring consistency, accountability, and compliance across the organization.

The next section will guide you through the steps to create an effective approval workflow.

How to create an approval workflow

Creating an approval workflow involves designing a process for requesting and receiving approvals on documents, decisions, or actions. 

Here's a general guideline to get you started:

Define the trigger

Identify what initiates the workflow. This could be submitting a document, requesting time off, making a purchase, launching a new project, or any other action requiring approval. For example, in an HR context, the trigger might be an employee submitting a leave request.

Choose approval type

Decide how approvals will occur. Will it be sequential (one by one) or parallel (all at once)?

• Sequential: Approvers review and decide in a designated order. This is suitable for complex approvals or following a hierarchy.
• Parallel: Approvers review and decide independently. This is ideal for simple approvals or when speed is crucial.

Set up approvers

 Determine who needs to approve and in what order (for sequential workflows). You can choose by role, department, or specific individuals.

Design approval process

Craft a clear and informative request form outlining details for approvers and establish deadlines or time limits for approvals to prevent delays.

Automate actions (Optional but most efficient option)

Simplify your SaaS approval process with workflow management tools, like Slack for team collaboration and communication which can also be used for procurement workflows.

PRO TIP 💡You can now Integrate Slack with Spendflo (your SaaS Buying Platform) and streamline vendor management, procurement, and all related processes in one centralized platform by automating sending notifications, following up with reminders, and keeping project statuses up-to-date, freeing you up for more strategic work.

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Implement and test

Put your workflow into action and test it thoroughly to ensure smooth operation and identify any potential bottlenecks.

SaaS approval process –The Steps

A SaaS approval process is a structured workflow designed to evaluate, authorize, and manage the adoption of cloud-based software solutions within an organization. 

This process is important for maintaining security, ensuring compatibility with existing systems, and controlling costs associated with software subscriptions.

Key steps in a typical SaaS approval process include:

Step 1: Request initiation 

The initial step involves submitting a formal request and conducting a preliminary assessment. Employees or departments clearly outline the software's purpose, expected benefits, and potential impact on existing workflows.

Before submitting, they ask themselves crucial questions like: 

• Does this address a specific pain point? 
• How will it benefit the company? 
• Are there existing tools that could achieve similar results? 

Additionally, they identify key stakeholders who might be impacted, potential integrations with existing systems, and a budget range to provide initial financial context.

Step 2: Initial screening 

IT or a designated team reviews the request to ensure it doesn't duplicate existing tools and aligns with company needs. 

Once submitted, a cross-functional team of IT, security, and legal collaboratively evaluate the request. They ensure it doesn't duplicate existing tools and aligns with company needs. 

Each team member focuses on their area of expertise: 

• IT assesses integration feasibility
• Security evaluates the provider's security measures, and 
• Legal reviews the service agreement for data ownership, privacy, and liability. 

They utilize pre-defined criteria including security measures, data protection compliance, system integration, cost comparison with alternatives, and legal considerations to ensure a comprehensive evaluation.

Things to consider: Does this tool already exist within the company? How does this align with our strategic goals?

Step 3: Security and compliance assessment 

Following approval, the implementation process begins. The cybersecurity team evaluates the SaaS provider's security measures, data protection policies, and compliance certifications. 

The IT team, working with relevant departments like Security and Training, creates a comprehensive rollout plan. 

This plan focuses on three key areas: 

• User training tailored to the specific software functionalities, 
• Data migration strategies to ensure minimal disruption and data integrity, and 
• Ongoing support procedures to address user queries and troubleshoot potential issues.

Questions to ask: Does the provider comply with industry standards? How secure is the data with this provider?

Step 4: Integration and cost analysis 

IT assesses how the new software will integrate with existing systems and data flows, while the finance team reviews the pricing model, compares it with alternatives, and ensures it fits within budget constraints. Based on these findings, the team can make necessary adjustments to ensure the chosen SaaS continues to meet the company's needs.

Things to consider: How will this software integrate with our current systems? Is the cost justified by the benefits?

Based on the assessments, a senior executive or committee makes the final decision. If approved, IT creates a rollout plan, including user training and data migration strategies. 

Questions to ask: What is the timeline for implementation? What training will be required for users?

Benefits of effective approval processes

Effective approval processes offer a range of advantages for organizations, including:

Increased efficiency and speed

By establishing clear workflows, you eliminate confusion about who does what and when. Tasks are routed to the right people with the necessary skills, minimizing delays and bottlenecks.  Furthermore, automation can be implemented for repetitive tasks like approvals, significantly speeding up the entire process. 

This translates to faster turnaround times, quicker decision-making, and ultimately, a more productive workforce.

Improved control and compliance

Defined workflows ensure that everyone adheres to established protocols, mitigating risks and fostering financial accountability.  Every step in the process is documented, providing a clear audit trail for compliance purposes. 

This reduces the chance of errors and ensures that your organization operates within legal and ethical boundaries.

Improved decision-making and transparency

Involving relevant stakeholders in the approval process leads to more informed decisions. With input from various experts, decisions are more informed, leading to better outcomes and reduced errors.  Additionally, the system provides transparency and visibility into the entire process. 

All parties involved can track the progress of requests, fostering trust and open communication. This collaborative approach empowers employees and leads to a culture of continuous improvement.

Reduced costs and systematic operations

A systematic process minimizes wasted time and resources associated with manual approvals and rework. Automating repetitive tasks frees up employees to focus on higher-value activities. 

The system can also identify bottlenecks and inefficiencies within your workflows, allowing you to optimize them for maximum cost-effectiveness. This translates to significant cost savings over time and a leaner, more efficient operation.

Challenges of Effective Approval Processes

Implementing an effective approval process can come with several challenges. This includes overly complex workflows that create delays, difficulty in balancing thoroughness with efficiency, maintaining accountability, and adapting to remote work environments can pose significant hurdles. 

Here are some of the most common challenges to be aware of: 

Using a SaaS management tool like Spendflo to simplify this process, ensures a smooth transition and maximizes the return on your investment in improved workflows.

Take a cue from Airmeet, a leading virtual events platform, that achieved 3x faster procurement and optimized their SaaS spending with Spendflo.

How Spendflo helps manage your SaaS approval workflows with ease using Slack-first platform

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We all love Slack for streamlining workflows – collaborating on projects, sharing documents, and staying connected. But when it comes to SaaS procurement, Slack can fall short in two key areas:

• Managing approvals: SaaS approvals often get bogged down in email threads, causing delays and frustration.
• Centralized visibility: Tracking requests and approvals across various email chains makes it difficult to maintain a clear picture of the procurement process.

Spendflo integrates with Slack to solve these challenges and presents a smoother SaaS procurement experience. Here's how:

• Initiate and approve requests directly in Slack, your go-to communication platform.
• Track request progress and stay informed with real-time updates.
• Discuss and clarify requests seamlessly within Slack threads.
• Reduce procurement time and improve team productivity.

With Spendflo integrated into Slack, your SaaS approval process becomes smooth, transparent, and lightning-fast. Your team can focus on what they do best, and you can stop wasting time on endless back-and-forths.

Ready to ditch the approval headache? Spendflo can help!

Book a free demo with our experts today

Frequently asked questions on approval workflows

1. What is the manual approval process?

A manual process involves an individual personally approaching their supervisor to obtain approval for their work or to get a document signed. While this method might function for basic needs, it creates significant bottlenecks that slow down operations.

2. Why is approval workflow important?

Approval workflows can increase efficiency, improve accountability, ensure compliance, and speed up decision-making processes. By creating a structured process for stakeholder review and approval, these workflows help minimize errors and promote alignment among all parties involved in the decision.

3. What is the purpose of an approval?

Organizations use approval workflows to streamline the review and approval of various things, like documents, projects, and daily tasks. This helps make sure everything aligns with the company's established guidelines and objectives.

4. What is the sequence of approval?

Approval workflows define the order in which approvals are required. Lower numbers signify earlier steps in the sequence. Once an approver at a specific level grants approval, the workflow automatically triggers the next step in the sequence. This ensures certain approvals happen in a specific order, maintaining control and accountability.

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