Business Process Automation Readiness Checklist

Introduction

Most businesses know they need to automate, but struggle to identify which processes to tackle first.

This checklist helps you evaluate your automation readiness and prioritize high-impact opportunities.

What You'll Learn:

Which processes are ripe for automation
Hidden costs of manual workflows
How to calculate ROI potential
Red flags that indicate urgent need
Whether to build custom or buy off-the-shelf

How to Use This Checklist:

Work through each section systematically. Check boxes that apply to your business, fill in the calculator fields, and tally your scores. By the end, you'll have a clear picture of:

Your automation readiness level
Which processes to prioritize
Expected return on investment
Concrete next steps

💡 Tip: Be honest in your assessment. The goal isn't to check every box—it's to get an accurate picture of where automation will have the biggest impact on your business.

Section 1: Process Identification

Which processes should you automate first?

Check all boxes that apply to your current operations:

High-Volume, Repetitive Tasks

Team spends 5+ hours/week on data entry

Same information is entered into multiple systems

Copying data between spreadsheets, emails, or software

Creating the same reports manually each week/month

Reconciling data across different sources regularly

Error-Prone Manual Processes

Mistakes happen frequently and require rework

No validation checks to catch errors before they cascade

Errors have caused customer complaints or financial loss

Corrections take significant time to trace and fix

Quality control relies on manual double-checking

Communication Bottlenecks

Critical info lives in email chains or chat messages

Team members ask 'where's the latest version?' regularly

Customer-facing staff can't access real-time operational data

Handoffs between departments cause delays

Status updates require chasing people down

Spreadsheet Dependency

Business-critical data lives in Excel/Google Sheets

Multiple people editing the same spreadsheet causes conflicts

Version control is a constant challenge

Spreadsheets have complex formulas that break easily

Finding specific information requires searching multiple files

Your Section 1 Score

Count the total number of boxes checked above: 0 / 20

0-3 checked: Low urgency - monitor for changes
4-7 checked: Moderate opportunity - plan automation roadmap
8-12 checked: High impact potential - prioritize automation now
13+ checked: Critical need - manual processes are significantly holding you back

💡 What This Means: If you checked 8 or more items, automation could save your team 10-20 hours per week and significantly reduce errors. That's 500-1,000 hours per year that could be redirected to growth activities.

Section 2: Cost of Inaction Calculator

What are manual processes actually costing you?

Time Cost Assessment

Calculate your annual labor cost for one manual process:

Process name:

Hours spent per week:

Hourly rate of staff: $

Annual cost:

$15,600

Common Examples:

Manual invoice processing: 10 hrs/week × $30/hr = $15,600/year
Data entry across systems: 15 hrs/week × $25/hr = $19,500/year
Report generation: 8 hrs/week × $40/hr = $16,640/year

Error Cost Assessment

Errors per month:

Time to fix each (hours):

Hourly rate for fixes: $

Cost impact per error: $

Annual error cost:

$0

Hidden Costs (Check all that apply):

Customer dissatisfaction from errors

Delayed decision-making from outdated data

Lost opportunities due to slow processes

Employee frustration and potential turnover

Section 3: Automation Readiness Indicators

Is your business ready to automate successfully?

Readiness Assessment

Mostly Green Flags: Your organization is ready for automation. Start with a pilot project.
Mix of Green & Yellow: Automation is feasible, but address yellow flags during planning.
Any Red Flags: Work on organizational readiness before investing in automation.

💡 Pro Tip: "Garbage in, garbage out" applies to automation. If your current process is broken or poorly defined, automation will just make the problems happen faster. Fix the process first, then automate it.

Section 4: Prioritization Framework

Which automation should you tackle first?

Rate each process on a scale of 1-5 (1 = Low, 5 = High):

Process Name	Frequency	Pain Level	Time	Error Rate	Impact	Total
						0
						0
						0
						0
						0

Scoring Guide

20-25 points: High priority - automate first for maximum impact
15-19 points: Medium priority - include in your roadmap
10-14 points: Low priority - monitor and revisit later
Below 10: Not worth automating yet

Quick Wins (Prioritize These):

High-frequency tasks that are simple to automate

Processes with clear, consistent inputs and outputs

Tasks with regulatory or audit trail requirements

Customer-facing workflows that impact satisfaction

Section 5: Build vs. Buy Decision Matrix

Should you use off-the-shelf software or build custom?

Consider Off-the-Shelf When:

Your process is standard/common (CRM, accounting, project management)

You can adapt your workflow to fit the software

Integration with existing systems isn't critical

Monthly subscription cost is acceptable long-term

Standard features meet 80%+ of your needs

Consider Custom Development When:

Your process is unique to your business model

Off-the-shelf solutions force awkward workarounds

You need tight integration with existing systems

Data ownership and control are critical

Long-term total cost of ownership matters

Your workflow provides competitive advantage

You need self-hosted or on-premise deployment

Decision Guide

Mostly "Off-the-Shelf" checked: Start with proven SaaS platforms. Customize only if needed later.
Mostly "Custom" checked: Custom development will provide better ROI and operational fit.
Mixed results: Consider a hybrid approach - use SaaS for standard functions, build custom for unique workflows.

💡 Real Example: A law firm needed case filing automation. Generic legal practice software didn't match their specific banking litigation workflow. Custom software reduced filing time by 75% and created audit trails that off-the-shelf couldn't provide.

Section 7: Your Action Plan

Next steps based on your assessment

If You Scored HIGH (Section 1: 13+ Pain Points)

Immediate Action Required

This Week:

Document your top 3 most painful processes
Calculate annual cost using Section 2 calculator
Identify stakeholders who would be involved

This Month:

Get leadership alignment on priorities
Research potential solutions (Section 6)
Schedule consultations with 2-3 vendors
Create preliminary ROI projection

If You Scored MODERATE (Section 1: 4-12 Pain Points)

Strategic Planning Phase

This Quarter:

Complete prioritization framework (Section 4)
Pick ONE high-impact process to start
Create detailed ROI business case
Allocate budget for implementation

Next Quarter:

Begin vendor evaluation process
Pilot automation with selected process
Measure results and refine approach

If You Scored LOW (Section 1: 0-3 Pain Points)

Monitor & Optimize

Ongoing:

Reassess quarterly as business grows
Watch for signs manual processes are scaling poorly
Keep this checklist for when needs change
Focus on optimizing current workflows

Bonus: ROI Projection Worksheet (Optional)

Use this to build your business case for automation investment. You are able to skip this and go straight to the assessment summary.

Current State Costs (Annual)

Labor cost (from Section 2): $

Error correction cost: $

Opportunity cost estimate: $

Total Annual Cost:

$0

Automation Investment

Development/Implementation: $

Annual maintenance/hosting: $

Training and change management: $

Expected Benefits (Annual)

Time savings (% of labor cost): %

Error reduction (% of error cost): %

Capacity increase (revenue opportunity): $

Total Annual Savings:

$0

Payback Calculation

Year	Investment	Annual Savings	Net Benefit	Cumulative
Year 0	$0	$0	$0	$0
Year 1	$0	$0	$0	$0
Year 2	$0	$0	$0	$0
Year 3	$0	$0	$0	$0

Typical Payback Period: 6-18 months for well-scoped automation projects

3-Year ROI: 200-400% for high-impact process automation

Your Assessment Summary

Use this page to consolidate your key findings:

Section 1: Pain Points Score

Total checked: / 20

Priority Level:

Section 2: Annual Cost of Manual Processes

Labor Cost: $

Error Cost: $

Total Annual Cost: $

Section 3: Readiness Assessment

✅ Green Flags: / 6

⚠️ Yellow Flags: / 5

🚫 Red Flags: / 5

Overall Readiness:

Top 3 Processes to Automate (from Section 4)

1. Score:

2. Score:

3. Score:

Recommended Approach (from Section 5)

Off-the-shelf software solution

Custom development

Hybrid approach (SaaS + custom)

Is Your Business Ready for Automation?