The fourth component of a regular management system is the BUSINESS PROCESS.
Let’s be honest, the phrase “business process description” probably makes you want to take a nap. But fear not! What exactly is a business process description? In a nutshell, it answers the who, what, and in what order should do to consistently achieve the results your company desires. It’s like organizing a well-rehearsed dance routine, where everyone knows their moves and hits their marks without missing a beat.
Of the “three pillars” of management (planning, organization, control), “organization” means you’ve described your business processes in excruciating detail, you constantly optimize them, and demand that your team executes them flawlessly. In other words, you’re knee-deep in PROCESS MANAGEMENT.
Business processes might be the least glamorous part of management, but it is the most important part in the context of operational management. Why, you ask? Because essentially, process management is operations management. It’s the backbone that keeps everything running smoothly.
So, why does regular management insist on this process approach?
First, let’s embrace the boredom! Every standard, repetitive operation must be detailed and regulated. It’s what we call “order,” and it’s a big deal. During this tedious work, you’ll uncover those not-so-great parts that need fixing, especially those pesky “functional joints” where departments collide: production meets sales, sales meet logistics, and so on.
But here’s the kicker: process management isn’t just about controlling workflow. It’s a whole mindset – a way of thinking that brings you face-to-face with tangible reality. When you break down your business into tiny gears and ask questions like: What needs doing here? Who’s responsible? What’s the input? What’s the output? – you’re speaking the language of a true manager.
And when your team learns to think in this language, your company culture hits a new level of professional awareness and responsibility. Want to be an effective manager? Embrace the world of business processes.
Now, this might sound straightforward, but let’s not kid ourselves. Many process management projects crash and burn. Why? It’s not just the resistance from every level of the company. The real issue: businesses aren’t purely process-based.
Let me explain. Businesses can be organized in two ways: PROCESS and PROJECT.
- Process-Based: Think of it like a conveyor belt, where operation B follows operation A predictably. Sure, the conveyor gets upgrades, but it’s still the same process, looping around in a spiral of improvement.
- Project-Based: More common in the IT world, where every task is unique, like developing bespoke software for a specific client. Projects start, finish, and never repeat, like a limited-edition collectible.
Most industries are hybrids, combining standardized processes with creative challenges. And even well-laid workflow chain can be tossed aside for a VIP client’s whims, a speedy response, or a strategic opportunity. Each deviation turns into a micro-project, impossible to predict or regulate.
In short, process management is essential but shouldn’t be your only focus. Only regulate what can and should be regulated, for efficiency’s sake. Understand that process management isn’t a magic wand, and every management tool has its limits.
Now a few words about the role of the Business Process Owner. Who are they, and how do they differ from a “head of function”?
- Business Process Owner:
- Has all the intel on the business process,
- Defines its structure and operations,
- Is responsible for its overall results and efficiency.
Meanwhile, the process might work across various departments and functions, therefore cover several structural (functional) units.
- Function Manager:
- Has the team, infrastructure, software, and resources,
- Manages operational activities,
- Ensures the efficient performance of their specific function.
Meanwhile, the structural unit might participate in several business processes.
Remember, a well-oiled process management system is key to operational excellence – just don’t get too lost in the details!
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