Sustainable Growth:

Business Project Management

Process-managed Enterprise

Focusing on the Whole Business System

By: Vadim Kotelnikov

Founder, Ten3 Business e-Coach Inspiration and Innovation Unlimited!

"Process companies seek to institutionalize success by designing high-performance ways of working."  ~ Michael Hammer

Characteristics of a Process Enterprise: Check List2

Check if your company is a process-managed enterprise:

  • Is there as much allegiance to processes as to functions?

  • Do your employees internalize process goals?

  • Do your employees understand how the process is performing?

  • Does everyone know customer requirements and strive to meet them?

  • Do your employees help manage each other instead of escalating conflict?

  • Do you measure processes objectively and frequently?

EBPM Business Outside-In e-Business Measurement and Control Corporate Vision, Mission, Goals Business Proccesses Corporate Strategy Business Design Inspiring People Strategic Alignment Enterprise-wide Business Process Management (EBPM), Process-managed Enterprise

Steps to Building a Process-managed Enterprise

  • Overcome traditional functional thinking and obsess about the end-to-end enterprise business processes (EBP) that create value for your customers.

  • Make process into a way of life. Create a process-friendly company by aligning resources, rewards, and structure around processes.

  • Establish business process management system (BPMS) and manage in process terms everything you do to deliver higher value to your customers and make your company better.

  • Establish process ownership and leadership.  Appoint senior process owners to lead, manage, measure, and improve the processes

  • Ensure that every employee understands processes, how the processes are performing and his or her role in them.

  • Ensure that everyone knows customer requirements and strive to meet them.

  • Develop a culture of teamwork and shared responsibility. Ensure that employees help manage each other instead of escalating conflict.

  • Set up a cross-functional team or process council "so that you don't replace functional silos with process sewers."1

  • Measure your processes objectively and frequently.

 

Process Enterprise vs. Functional Enterprise

In a functional company, no one has overall responsibility for a process. "Managers are responsible only for a narrow segment of a process. No one is empowered to create or impose a new process design, to knock down barriers, and to make the process work as it should... In innumerable ways, traditional organizations interfere with the ability of their people to perform process work."1

 

A process-managed enterprise supports, empowers and energizes employees, encourages their initiative, enables and allows its people to perform process work. "Process work is work that is focused on the customer, work that is directed toward achieving results rather than being an end in itself, work that follows a disciplined and repeatable design. Process work is work that delivers the high-level of performance that customers now demand."1

Customer Success 360

Yin-Yang of Value Innovation

Institutionalizing Success

The process approach rejects the idea that the company's success relies on luck, such as inspired individuals or visionary leaders, on the grounds that it is unsustainable. Your cannot control whether "lightning will strike, or depend on it to strike regularly. Process companies seek to institutionalize success by designing high-performance ways of working. They do not denigrate the talents of remarkable individuals, but they recognize that all human talent can and should be leveraged by an overall process. They believe that a company achieves its highest potential by designing processes that mobilize everyone's abilities rather than depending too much on any single individual, however gifted she or he may be."1

Balanced Organization: 5 Basic Elements

Creating a Lean Enterprise: 13 Tips

Areas Targeted by TQM in Japan

Process Thinking

Processes are what create the results that your company delivers to your customers. Shift from functional thinking i.e. engineering, marketing, finance  to process thinking is a revolution in thought that leads to business transformation. Processes represent a new way of thinking about the work of your enterprise. "The first step in creating a process enterprise is to make the new way of thinking the norm in the enterprise; everything else will then fall into place."1... More

Systems Thinking

Systems thinking "focuses on the whole, not the parts, of a complex system. It concentrates on the interfaces and boundaries of components, on their connections and arrangement, on the potential for holistic systems to achieve results that are greater than the sum of the parts. Mastering systems thinking means overcoming the major obstacles to building the process-managed enterprise - for every business process is a whole system."2... More

Business Architect

Balanced Business System

Systemic Innovation: 7 Areas

Process Ownership and Leadership

Every process in a process-managed enterprise requires a process owner a results-based leade "responsible for ensuring that the entire process keeps flourishing on an end-to-end basis, from start to finish, over and over."1 Actually, everyone involved in performing a process "should "own" the process in the sense of sharing the commitment to make it thrive. The process owner, however, is the manager in charge of designing the process, building its supporting tools, installing it in the organization, and ensuring its ongoing high performance."1

 

 

References:

  1. Agenda, Michael Hammer

  2. Business Process Management (BPM) is a Team Sport: Play it to Win!, Andrew Spanyi

  3. Putting the Enterprise into the Enterprise System, Thomas H. Davenport

  4. Business Process Management: The Third Wave, Howard Smith and Peter Fingar

Mini-courses

  1. Synergizing Business Processes, Vadim Kotelnikov

  2. Synergizing Value Chain, Vadim Kotelnikov

  3. Continuous Improvement Firm (CIF), Vadim Kotelnikov