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Process Management: The Foundation for Achieving Organizational Excellence © 2006 OLC1 Understanding Process Management: An Internationally Recognized Strategy for Achieving Organizational Excellence
Process Management: The Foundation for Achieving Organizational Excellence Understanding Process Management © 2006 OLC2 The Evolution of Process Management Continuous improvement ISO 9000 Total Quality Self- Assessment Process Management ReactiveProactivePredictiveGuaranteed Time Maturity How to embrace process management, part of the series Business Process Management by EFQM, 1999.
Process Management: The Foundation for Achieving Organizational Excellence Understanding Process Management © 2006 OLC3 The Ten Eras of Management Rise of the marketeers (focus on the customer) Process management Distributed strategies Commitment to quality Mgmt. by objectives (MBO) Teambuilding Functional disciplines Continuous improvement Agility Specialized skills Importance of management paradigm Developing Agile Organizations: Skills for Managers and Team Leaders by Mike Woodcock and Dave Francis, Gower Training Centre, FOCUS ON ORGANIZATIONAL TEAMWORK FOCUS ON MANAGEMENT TEAMWORK
Process Management: The Foundation for Achieving Organizational Excellence Understanding Process Management © 2006 OLC4 What is a Process? A system of operations in producing something…a series of actions, changes, or functions that achieve an end result. Websters Dictionary A sequence of steps performed for a given purpose. IEEE-STD-610 OLCs definition of a business process is: A set of activities that people undertake to transform the inputs they receive into the outputs they desire.
Process Management: The Foundation for Achieving Organizational Excellence Understanding Process Management © 2006 OLC5 What is a Business Process? A business process is a series of tasks that transforms inputs into outputs. Some business processes result in delivering a product or service to an external customer. Some business processes receive inputs from an external supplier and provide products or services to an internal customer. Some business processes are internal to the organization - internal suppliers and customers. Organizational performance depends on the efficiency and effectiveness of these business processes. CustomerOutputs Business Process Inputs Transformation Process Supplier
Process Management: The Foundation for Achieving Organizational Excellence Understanding Process Management © 2006 OLC6 Business Processes Usually Cross-Functional Boundaries What are the implications of the conflict in the direction of control and the direction of process flow? Direction of Process Flow Functional Hierarchy CEO Dept. 1Dept. 2Dept. 3Dept. 4Dept. 5 Direction of Control
Process Management: The Foundation for Achieving Organizational Excellence Understanding Process Management © 2006 OLC7 What is Business Process Management (BPM)? BPM is the management of the processes an organization uses to conceive, develop, produce and deliver its products and services. Traditional management functions include: Planning: deciding in advance what to do, how to do it, when to do it and who is to do it. Organizing: establishing an intentional structure and definition of the roles people play in performing work. Staffing: ensuring that knowledgeable and capable people are available to fill the roles in the organization. Leading: motivating people to work towards the achievement of a common purpose. Controlling: measuring progress towards achieving organizational goals and facilitating changes needed to achieve them. BPM can then be viewed as planning, organizing, staffing, leading and controlling the processes used to get work done.
Process Management: The Foundation for Achieving Organizational Excellence Understanding Process Management © 2006 OLC8 What is Business Process Management (BPM)? (Continued) BPM is a structured approach to analyse and continually improve fundamental activities (process areas) such as planning, design, manufacturing, marketing, communications and other major elements of a companys operation. 1 Having a process view of the organization means understanding the elements that drive and direct the business. 2 Management by process focuses on a holistic view of the complete set of processes for the organization. It means managing and reviewing the business as a system of inter-related processes to improve business and process performance. 2 1.Zairi, Mohamed (1997), Business process management: a boundaryless approach to modern competitiveness, Business Process Management Journal, Vol. 3 No. 1, pp How to embrace process management, part of the series Business Process Management by The European Foundation for Quality Management (EFQM), 1999.
Process Management: The Foundation for Achieving Organizational Excellence Understanding Process Management © 2006 OLC9 Business Process Management and Functional Management Strength in managing functional skills is important to the success of process management. A business process is the framework within which the organizations functional knowledge and skills are applied. Organizations whose current management style emphasizes success in functional performance need to gain knowledge and experience in business process management to understand its value. Gaining this understand enables the organization to better use its functional skills. Business process management is a strategy for managing daily work that is aligned with a majority of strategies proposed for achieving excellent performance in the 21st century.
Process Management: The Foundation for Achieving Organizational Excellence Understanding Process Management © 2006 OLC10 Business Process Management Works What do IBM, Texas Instruments, Owens Corning and Duke Power have in common? They are all redesigning their organizations around their core processes - and reaping enormous benefits as a result. Business process management is not merely a way to address specific problems - poor quality, or high costs. It is a platform for capitalizing on new opportunities. A process enterprise is the organizational form for the world in constant change. Reference: How Process Enterprises Really Work by Michael Hammer and Steven Stanton, Harvard Business Review, November-December 1999.
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