How Process Enterprise Works
How Process Enterprises Really Work
Summary
• Many companies have changed their core processes to improve productivity which has not only improved the jobs of employees but also the value provided to customers through higher quality products. This has in turn increased profits for shareholders.
• Many companies have changed their core processes and cut out those that don’t add value but few have changed the way they manage the organization and align it with their processes.
• Companies whose organization is at odds with its core processes end up with employees and functions being pulled in different directions causing confusion and conflict which diminishes performance.
• Some companies, such as IBM, Texas Instrument, and Duke Power, have figured out a way to effectively incorporate process management into their strategy. They have changed to organizational culture to focus on processes rather than tasks. All of these companies discovered they had to change the organization and mission of their existing groups to align with their new processes.
• Companies that are effectively aligning their organization appoint their best manager to be process owners and hold them accountable. Process ownership is a permanent role responsible for evolution of the process as business needs change. Additionally process owners play a key role in setting performance targets.
• To align a company’s organization with it its processes, many have changed the way they train their employees, emphasizing the importance of processes rather than narrow tasks. Additionally companies need to change the way managers interact with one another and the front line workers.
• Split authority is common in companies that employ process enterprise. Split authority requires cooperation in decision making. Managers need to negotiate and collaborate, they need to exert influence.
• Many companies face the question of process diversity vs. standardization. There is not one right answer in this
Summary
• Many companies have changed their core processes to improve productivity which has not only improved the jobs of employees but also the value provided to customers through higher quality products. This has in turn increased profits for shareholders.
• Many companies have changed their core processes and cut out those that don’t add value but few have changed the way they manage the organization and align it with their processes.
• Companies whose organization is at odds with its core processes end up with employees and functions being pulled in different directions causing confusion and conflict which diminishes performance.
• Some companies, such as IBM, Texas Instrument, and Duke Power, have figured out a way to effectively incorporate process management into their strategy. They have changed to organizational culture to focus on processes rather than tasks. All of these companies discovered they had to change the organization and mission of their existing groups to align with their new processes.
• Companies that are effectively aligning their organization appoint their best manager to be process owners and hold them accountable. Process ownership is a permanent role responsible for evolution of the process as business needs change. Additionally process owners play a key role in setting performance targets.
• To align a company’s organization with it its processes, many have changed the way they train their employees, emphasizing the importance of processes rather than narrow tasks. Additionally companies need to change the way managers interact with one another and the front line workers.
• Split authority is common in companies that employ process enterprise. Split authority requires cooperation in decision making. Managers need to negotiate and collaborate, they need to exert influence.
• Many companies face the question of process diversity vs. standardization. There is not one right answer in this