"Writing is a solitary process publishing is a collaboration."

For me 'Editing' is the part of the process done by someone else.  When I am changing stuff around in my story I call it 'Rewriting'.  I can rewrite a draft hundreds of times before I am happy with it enough to hand it on.  When I do I am petrified.
Editors are the gate-keeper between you and the world.  They should have as much invested in the book as you do and they have to be totally honest with you.  
They should be there to make sure that you, the author, presents your work in the best possible way.  

So, When I think the book is finished and fantastic I hand it over to my editor this is the process from that point:

  1. The first edit is is to make sure the story flows and there are no gaping holes in the plot and the characters work. 
  2. I re-write.
  3. The second edit is to check for the same things with the addition of some grammar and punctuation.  
  4. Then we have a "read-through".  This is reading the entire book aloud  a chapter or two at a time for rhythm, pace, repetition some punctuation also testing the flow in the storytelling.  (All the read-through session are recorded and are hilarious to listen to afterward...I swear an awful lot)  
  5. I rewrite.
  6. The third edit checking plot, character, punctuation again.
  7. This is my last chance to make changes if I have too then it is gone from me for good until the proof copy from the printer.
  8. The manuscript receives a full proof read edit checking every word, sentence, paragraphs, scenes, chapters.
  9. Then the book goes to the second editor.