Business is a complex mechanism that consists of a large number of internal interconnect elements. In other words, it is a system of business processes. If a company wants to develop and increase profits, it nes to ensure that specific processes are well-tun and work smoothly. This is not always easy to achieve.
In today’s dynamic environment, companies must constantly seek new methods of managing and optimizing their operations. The goal is to influence internal business processes so that production can begin to work more efficiently.
The main essence of the process approach
The process approach is a well-known management method that presents the company’s work as a sequence of interdependent and complementary business processes aim at increasing its efficiency. Each such process or element contributes to the creation of the final product.
Functional and process approachThe functional approach is a management method in which the organization is divid into departments, groups, each of which has its own functions. Departments specialize in a specific area, for example, marketing, finance, production, and often perform tasks independently of others. All tasks are “set from above” and controll by managers.
Example of process managementNow let’s look at an example of how the process approach can be us and how it looks in practice. The company delivers rolls throughout Moscow. The main business process may look like this:
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The manager takes the order from the client via the website or by phone and passes it to the kitchen → the cooks prepare the rolls and pass them on to the courier service → the delivery person gets to the consumer, gives the order and accepts payment.
Key elements of the process approach
Each business process that we seek to improve within the framework of the process approach implementation must necessarily include several basic elements. Let’s consider the following parts of which it consists.
1. Process input and output. All processes have a start and end point. Business process inputs are catalysts that allow the process to start. For example, input data, certain materials or resources. In the example above, the process input is an order for rolls that the restaurant chef must prepare.
Business process outputs are the final result that we plan to receive. A product, service or any data, documents that will be ne to perform the next business process. In our case, these are ready rolls that the client was able to receive.
Why do we ne a process approach?
Almost any large or mium-siz business can implement a process approach. It helps to effectively manage the internal work of a business. And including structuring it, finding successful solutions, ensuring more coordinat interaction between departments, and analyzing the company’s business processes.
All this allows us to optimize costs, improve product quality and employee work spe, and implement high production standards. Let’s take a closer look at the main goals of the process approach.
1. Creating horizontal connections
An important function that underlies the process approach is the formation of horizontal links. That is, different departments, divisions and their employees work together to implement one large process at one level.
All employees interact with each other constantly, and managers only occasionally monitor the implementation of a group of processes and almost do not interfere with it. They determine resources, distribute roles and issue criteria for evaluating the result.
2. Improving the efficiency and productivity of activities
In a broad sense, the process approach is aim at overall optimization of production. For example, it helps to identify and eliminate repetitive or unnecessary actions. This allows for a ruction in the time requir to perform operations, lower costs, and increase process transparency and overall productivity.
3. Increas transparency and increas control
The use of a process approach ensures a high degree of transparency in the organization’s work. All parts of the business are clearly structur. This allows us to determine:
- who is responsible for what;
- how the work is going;
- what resources are us;
- at what stage is the execution of a particular task;
- the degree of quality of manufactur goods;
4. Obtaining data to improve the organization’s performance
Work within the process approach cannot be done without auxiliary tools. They allow collecting analytical data and generating reports and allow understanding how successfully and effectively a particular process is proceing. Such tools include software — CRM , ERP or analytical BPM systems, as well as special documentation.
Advantages and disadvantages
Advantages of the process approach1. Increas efficiency. Processes become automat and standardiz, which ruces the amount of defects, makes work more open, transparent and simpler for employees.
2. Flexible structure. The business process can be rebuilt. If changes occur in the external business environment, you can quickly make adjustments to the process structure, replace element A with element B, and adapt to the new conditions.
Disadvantages of the process approach
The process approach system has its own shortcomings, or rather nuances, which every manager should be aware of.
1. Large financial investments and transition costs. Implementation of the process approach may require significant initial investments: development, continuous improvement of business processes, team training and implementation of new management systems.
You can spend a lot of money and time what is a full-service marketing package? advantages and benefits on a complete transition. During this time, profits may decrease, there is a risk of “weakening” and losing market share, since the company will not be operating at full capacity.
2. Implementation of new tools. You will have to use new auxiliary analytical tools for yourself, implementing the process approach.
Stages of implementation of the process approach
Implementing a process approach to managing an organization is a fairly complex process that requires strict adherence to certain steps. Below we will look at the key actions that ne to be perform.
1. General information
First, it is necessary to announce to everyone that the company is switching to an updat business process management model. It is important to clearly demonstrate to employees why the business nes such an innovation, what benefits the company and each employee in particular will receive. In particular, it is necessary to convey to the team what structural changes await them.
If you do not prepare people and convince them that the transition is right, they may perceive such news negatively. Some may even want to leave the company, because they are afraid of new, possibly more complex, working principles.
2. Defining goals and objectives
At this stage, the company’s management should clearly formulate what results are plann to be achiev. For example, improving the phone number it quality of products, rucing costs, increasing productivity, or improving customer service. Understanding the goals will allow you to correctly plan further actions and assess in advance how successful the implementation will be.
4. Implementation, monitoring and optimization
Then all that remains is to implement all business processes into the company’s work. After implementation, it is necessary to constantly monitor their effectiveness and make adjustments if necessary – perform quality control.
Including regular data collection, analysis of results, monitoring of possible deviations. Constant monitoring allows to quickly respond to changes in the business environment and maintain high performance.
Let’s sum it up
The implementation of a process approach allows businesses not only to improve the efficiency and quality of their activities, but also helps them to adapt more quickly to changing environmental conditions.
If the work of the entire organization consists of a dozen interconnect, consistent and regulat processes, this creates a transparent structure in which each employee understands what he is responsible for, who he is connect with and what he must do. The work itself becomes simpler and more productive.
