Organizational Process
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An Organizational Process is a process (set of interrelated tasks) in an organization that collectively transform inputs into outputs to achieve a business objective.
- AKA: Business Process, Org. Workflow.
- Context:
- Performance Measure: Efficiency, Effectiveness, Timeliness, Quality, and Cost.
- ...
- It can (typically) be associated with an Organizational Capability required to carry out the process.
- It can (typically) be owned by a Process Manager.
- It can (often) be represented using an Organizational Process Model.
- It can (often) require specific Process Capability for execution.
- ...
- It can range from being a Simple Organization Process to being a Complex Organization Process, depending on its complexity level.
- It can range from being a Effective Organization Process to being a Ineffective Organization Process, depending on its performance level.
- It can range from being an End-to-End Organizational Process to being a Organizational Sub-Process, depending on its process scope.
- It can range from being a Domain-Specific Process to being a General Organizational Process, depending on its domain scope.
- It can range from being a Manual Organizational Process to being an Automated Organizational Process (including an AI-supported organizational process), depending on its automation level.
- It can range from being a Technical Organizational Process to being a Business-Oriented Organizational Process, depending on its process type.
- It can range from being a For-Profit Organization Process to being a Non-Profit Organization Process, depending on its organization type.
- It can range from being a Existing Organization Process to being a Planned Organization Process to being a Former Organization Process, depending on its temporal state.
- It can range from being a Internal Organizational Process to being a External-Interaction Organizational Process (such as a customer facing process), depending on its interaction scope.
- ...
- It can be changed by a Organizational Process Reengineering Project.
- It can be supported by an Workflow Management Application.
- …
- Example(s):
- Core Business Processes (directly create value for customers and drive revenue), such as:
- a Product Development Process: manages new product creation from product ideation to product launch (measured by product development measure, supported by product development capability).
- a Customer Support Process: handles customer inquiry handling and issue resolution (measured by customer support measure, supported by customer support capability).
- a Sales and Marketing Process: drives revenue generation and customer acquisition (measured by sales and marketing measure, supported by sales and marketing capability).
- a Supply Chain Management Process: oversees goods flow from supplier management to customer delivery (measured by supply chain measure, supported by supply chain capability).
- a Service Management Process: ensures service delivery and service quality maintenance (measured by service management measure, supported by service management capability).
- a Customer Onboarding Process: guides customer integration and initial setup (measured by customer onboarding measure, supported by customer onboarding capability).
- ...
- Management Processes and Strategic Processes (guide overall direction and ensure efficient operations), such as:
- a Financial Management Process: oversees financial planning and budget allocation (measured by financial management measure, supported by financial management capability).
- a Human Resources Management Process: manages employee lifecycle from recruitment to retention (measured by HR management measure, supported by HR management capability).
- Governance, Risk Management, and Compliance (GRC) Process, such as:
- a Risk Management Process: conducts risk identification and risk mitigation (measured by risk management measure, supported by risk management capability).
- a Change Management Process: facilitates organizational transition and change adoption (measured by change management measure, supported by change management capability).
- a Crisis Management Process: handles emergency response and crisis mitigation (measured by crisis management measure, supported by crisis management capability).
- ...
- Support and Operational Processes (enable and enhance the efficiency of core processes), such as:
- a Quality Assurance Process: ensures product quality and service standards (measured by quality assurance measure, supported by quality assurance capability).
- an IT Process: manages technology infrastructure and IT service delivery (measured by IT process measure, supported by IT process capability).
- a Procurement Process: handles supplier selection and goods acquisition (measured by procurement measure, supported by procurement capability).
- a Back-End Process: supports operational efficiency and internal operations (measured by back-end process measure, supported by back-end process capability).
- a Knowledge Management Process: facilitates knowledge sharing and best practice dissemination (measured by knowledge management measure, supported by knowledge management capability).
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- Compliance and Regulatory Processes (ensure adherence to laws and regulatory standards), such as:
- an Organizational Legal-Related Process: ensures legal compliance and regulatory adherence (measured by legal process measure, supported by legal process capability).
- a Contract Review Process: conducts agreement evaluation and risk assessment (measured by contract review measure, supported by contract review capability).
- an Environmental Compliance Process: manages environmental impact and sustainability practices (measured by environmental compliance measure, supported by environmental compliance capability).
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- Improvement and Innovation Processes (drive continuous enhancement and new developments), such as:
- a Customer Feedback Process: conducts feedback collection and improvement implementation (measured by customer feedback measure, supported by customer feedback capability).
- a Product Lifecycle Process: manages product development through product obsolescence (measured by product lifecycle measure, supported by product lifecycle capability).
- an Employee Performance Management Process: oversees performance evaluation and skill development (measured by performance management measure, supported by performance management capability).
- ...
- External Relations Processes (manage interactions and relationships with external stakeholders), such as:
- a Public Relations Process: manages public image and stakeholder communication (measured by public relations measure, supported by public relations capability).
- a Customer Facing Process: facilitates customer interaction and need fulfillment (measured by customer facing measure, supported by customer facing capability).
- ...
- a Data Annotation Process: performs data labeling and information categorization (measured by data annotation measure, supported by data annotation capability).
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- Core Business Processes (directly create value for customers and drive revenue), such as:
- Counter-Example(s):
- a Business Event, ...
- An Organizational Structure, which refers to the arrangement of entities within the organization, rather than the processes they perform.
- A Individual Habit, which is a personal routine unrelated to organizational goals.
- A Community Practice, which refers to collective actions within a communal setting, not necessarily aiming at business objectives.
- a Household Routine.
- See: System, Culture.
References
2023
- (Wikipedia, 2023) ⇒ https://en.wikipedia.org/wiki/Business_process Retrieved:2023-11-9.
- A business process, business method or business function is a collection of related, structured activities or tasks performed by people or equipment in which a specific sequence produces a service or product (serves a particular business goal) for a particular customer or customers. Business processes occur at all organizational levels and may or may not be visible to the customers. A business process may often be visualized (modeled) as a flowchart of a sequence of activities with interleaving decision points or as a process matrix of a sequence of activities with relevance rules based on data in the process.[1][2] The benefits of using business processes include improved customer satisfaction and improved agility for reacting to rapid market change.[3][1] Process-oriented organizations break down the barriers of structural departments and try to avoid functional silos.
2015
- (Wikipedia, 2015) ⇒ http://en.wikipedia.org/wiki/business_process#Overview Retrieved:2015-12-15.
- There are three types of business processes:
- Management processes, the processes that govern the operation of a system. Typical management processes include “corporate governance” and “strategic management”.
- Operational processes, processes that constitute the core business and create the primary value stream. For example, taking orders from customers, and opening an account in a bank branch.
- Supporting processes, which support the core processes. Examples include Health & Safety, accounting, recruitment, call center, technical support.
- A business process begins with a mission objective and ends with achievement of the business objective. Process-oriented organizations break down the barriers of structural departments and try to avoid functional silos.
A complex business process may be decomposed into several sub-processes, [4] which have their own attributes, but also contribute to achieving the goal of the super-process. The analysis of business processes typically includes the mapping of processes and sub-processes down to activity/task level. Business processes are designed [5] to add value for the customer and should not include unnecessary activities. The outcome of a well designed business process is increased effectiveness (value for the customer) and increased efficiency (less use of resources).
- There are three types of business processes:
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- ↑ Information Resources Management Association USA, Enterprise Information Systems: Concepts, Methodologies, Tools and Applications, p. 1065
- ↑ William Bentley, Peter T. Davis, Lean Six Sigma Secrets for the CIO, p. 19
1990
- (Hammer, 1990) ⇒ Michael Hammer. (1990). “Reengineering Work: Don't Automate, Obliterate.” Harvard Business Review, 68(4).
- QUOTE: “Reengineering work through organizational processes involves the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed.”
- NOTE: It emphasizes the importance of rethinking organizational processes entirely rather than simply automating existing ones for true transformation and efficiency gains.