Think "Business Processes" Not "Departments" - 5 Compelling ReasonsLearn Management Articles on management-info.biz. Think "Business Processes" Not "Departments" - 5 Compelling Reasons article will help answer your questions on Management Articles.We at management-info.biz specialize in Management Articles. Management Articles at management-info.biz provides the most up to date news and articles. If you have questions please do not hesitate to contact us.
A business process is a collection of interrelated work tasks triggered by an event and geared towards providing results or outcomes valued by the 'customer'. The adoption of process thinking causes an organisation to align its activities and systems with the natural flow of materials and information from the start to the end of the value chain. Functional thinking creates silos with boundaries across which information and other resource flows are not seamless, leading to the absence of a shared understanding of what the business is about, what factors are critical to the achievement of objectives and how efforts can be coordinated to best attain those objectives. Carry out an experiment in your organisation. Take any core process: ask five managers in different departments involved in the process the following questions.
* Describe this process If yours is a functionally oriented organisation, their answers, where they understand your questions at all, are likely to be all different. Some processes you might consider are order processing, product development, recruitment etc. 2. Business Process Thinking focuses the organisation on customer needs Because of the insistence on definite identifiable outcomes valued by the customer, process thinking helps the organisation focus on correctly identifying and satisfactorily meeting and exceeding their expectations. Measures of performance are tied to current customer satisfaction levels as well as the enhancement of capacity to satisfy the customer in the future. Departmental or functional thinking is, on the other hand, focused on internal measures of no value to the customer. Examples of the different kinds of measures are input measures (e.g. items delivered by suppliers), process measures (e.g. cost, time, involvement, efficiency) and output (e.g. timeliness, quality, ease of use, returns on investment) measures. Decisions on appropriate measures must meet the dual requirements of value to the customer and improvability. 3. Business Process Thinking Encourages Focus on Value Addition Organisations that have adopted a business process mentality constantly strive to ensure that certainly all their processes, and as much as possible, all activities within those processes contribute towards the final outcome paid for by the customer. All non-value adding processes and activities are eliminated or minimised. Many functionally oriented organisations for example have lengthy approval requirements that serve no purpose. A company drastically collapsed its approval chain after an experiment in which unsuspecting approvers failed to detect that the documents they had just endorsed only had the usual cover sheet followed by a sheaf of blank sheets. This meant they were approving requests without reading the contents! Talk about non-value addition! Consider also that in many processes the actual contact time between a process document or work piece and the workers or process operators is usually a ridiculously small fraction of the process cycle time. The balance of the time is wasted on such non-value activities as waiting, unnecessary movement, locating misplaced items or documents etc. 4. Business Process Thinking Encourages a Focus on Quality The bane of good quality products or services in majority of organisations is the variation or inconsistency of process outcomes. Organisations with a process mentality continuously ferret out and eliminate sources of variation to achieve consistent results. This is almost impossible to achieve within functionally oriented organisations as their narrow focus prevents awareness of the causes of problems that span functional boundaries. While a functional organisation might call for an arbitrary amount of improvement in quality (e.g. 10% reduction in defects) process oriented organisations apply a fact-based understanding of the relationship between results and the processes that drive them. Statistical tools are used to study what factors have the most significant impact and effort is focused on influencing these factors. 5. Business Process Thinking Institutionalises High Performance and Guarantees Execution of Organisational Priorities A focus on business processes institutionalises high performance in the following ways.
* Uses measures of performance that are meaningful to the customer and other stakeholders. This is very important in view of the axiom that what gets measured gets done. Rewards are aligned to measures, which in turn support valued customer and organisational outcomes.
|
More Articles:1. Small Business Checking Accounts By Lance Winslow ACCOUNTING AND BILLINGCHECK BOOKSWe recommend that you maintain a business checking account in addition to a small business credit card merchant account so that you can take credit cards from purchasers. This way you will know exactly how much is going into your merchant account and how much of your volume percentage is being done through credit card usage. You should shoot for 50-60% credit card sales and debit cards. If you are an owner/operator, you may not be as concerned with this numb… 2. Show Me the Money! By Skip Shuda Are you ready to raise money for your startup?Leslie Mitts, Managing Practice Leader at the Wharton SBDC and Lead Advisor for the Wharton Venture Initiation Program, tells us that most entrepreneurs coming through her programs are focused on raising capital, even though there are higher priorities in many of their businesses. Since fresh dollars help drive the business engine, this is a natural entrepreneurial concern.But are you ready to raise money?Going to investors before you are really re… 3. Business Management - Be Aware Of Fear And-Greed By Hans Bool This is probably such a day as many others. Business as usual. Nothing wrong, no alerts, you loose some, you win some. You go with the flow and let your profits grow.... Do not think that this jargon is for investment managers only; business management and investment management is not that different.When you are in the business arena you know that you have to follow the market. You watch the competition, you check the trends and you respond to other incidents that you are involved in. Until th… 4. What I would include in a Coaching Book A coach is an essential figure in providing direction and leadership to his/her team. In sports, coaches are sometimes evaluated on the number of wins they can produce. In a business setting, coaches are evaluated on how efficient they are in providing a healthy work environment for employees. I have never been a coach myself, but as an avid athlete, I have had many coaches along the way who have had different approaches as to how they would direct and lead their team. From an athletic standpoi… |
||||
