Organizational growth depends on satisfying the minimum requirements fixed by the market for a product or service. There will be competitive advantage only from understanding and satisfying customer needs better than others. Because of the fastest growing environment in today’s market, “better” means delivering more than higher quality product or service. It induces doing it faster, with lesser steps and transactions. It also refers doing required work inexpensive by eliminating the costs, challenges, and unwanted process which adds no value and adding costs. The capability to create optimal value for consumers is the defining feature of a successful firm in this environment. Consumer value is the key for the price of a product or service in the target market. Consumer value cannot be created by one function or by one individual. It requires the ongoing, active participation and cooperation of multiple stakeholders, both within and outside of the organizational boundaries. Process management provides a firm with the framework required to fulfil the gaps among persons, process, functions, subunits, and trading partners where it avoids increase in costs and decrease the effectiveness of the value stream.
Process management highlight the flow of process and their linkage into high performing chains of customers. Its objective is to increase the value created for consumers by eliminating the unwanted process and constraints that causes delay and cost. Implementing process management induces a shift in the mind-set and thought process of management, active participation of diverse people and functions, and the ongoing search for continuous performance improvements. Process management guides an organization reconsider the structure and flow of work that supports the creation of consumer value, and process performance.
Defining process management
A process is a structured, hierarchical measured set of activities designed to receive a specified output for a particular consumer or market. Process management is a distinctive approach to arranging and correlating the horizontal flow of activities that integrates a company to its trading partners and the market. It is accelerated by a common set of objectives that serves to improve the focus, effectiveness, and efficiency of cross-functional initiatives. The lists of objectives are
- To provide optimal value to consumers.
- Designing the performance requirements for the process.
- To satisfy the performance requirements of customers and trading partners.
- To eliminating waste or unwanted activities from the value chain.
- To improving the profitability of the firm and its partners through reduction of unwanted costs and activities.
- To create and share best practices among trading partners.
- To increase the responsiveness and flexibility of the value chain to changing consumer requirements.
A process management structure is consumer driven and supplier supported and coordinated approach. It highlights gaining knowledge of how work is done, and what the impact of various procedures and structures is on the effectiveness and efficiency of the organization. Combating the traditional culture and structure of organizations, process management highlights the crucial interfaces or connections that define and shape firm performance. Processes stretch the underlying functions that have traditionally defined organizational structure. Processes do not substitute functions they implement functions to ensure that organizational objectives are attained. Process management integrates the efforts of multiple functions to undergo a smooth flow of goods and services to the consumer. Not all processes are core, directly related to external customer requirements; each is treated by the responsibility that the next person in the process is also a customer to be served. Business processes are the mechanisms that transform ideas, innovation, and plans into products and services. The greatest chance for performance improvement often lies in the functional integration. Since it looks logical to view an organization as a process, it has been found continuously that the process level is the weak element of an organization.
A traditional organizational chart does not help an organization to see the workflow used to design, develop, produce, and deliver a successful product or service. Process maps and a process perspective bring these into focus, confirms that the resources of the organization are driven toward those activities and outcomes. Process management includes the three ingredients that are looked by a traditional organizational chart which is customer, product, and the flow of work; helps an organization to look how work actually gets done? Which are the through processes that cut across its functional boundaries? Shows the customer-supplier relationships through which products and services are delivered. There are three levels of performance implant within process management: organization, process, and job or performance. The organizational level focuses on the organization’s ties to its market, customer, and its trading partners. The process level highlights the execution of the strategy, or how the work gets done? Process performance is defined and driven by stakeholder requirements. The job or performance level identifies that while outputs are managed through processes, because process work is performed and managed by people.
Strategic goals, process and organizational design, and creative management techniques integrate to create a distinct framework for action within process management. Objectives define the specific product and service quality, quantity, timeliness, and cost requirements. Design consists of the configuration of people, assets, and activities to support the efficient achievement of goals. Finally, management practices must identify that goals are met and design decisions got promised benefits. Process management brings the key drivers of business performance, encompasses the interdependencies that define, enable, or constrain an organization’s potential. Using the basic building blocks of a feedback control, process transformation, and repeatability process management serves an organization build flexibility and responsiveness into its structure.