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) 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 an Emergent Organizational Process to being a Designed Organizational Process, depending on ... ....
- 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 Organizational 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 range from being a High-Level Organizational Process to being a Organizational Operational Workflow.
- ...
- It can be represented using an Organizational Process Model.
- It can be changed by a Organizational Process Reengineering Project.
- It can be monitored through Business Process Monitorings.
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- It can progress through Process Lifecycle States:
- Conceptual Process State: Initial design and planning phase
- Experimental Process State: Pilot testing and refinement
- Standardized Process State: Formalized and documented
- Optimized Process State: Continuously improved
- Transformed Process State: Fundamentally redesigned
- …
- Example(s):
- Core Business Processes (directly create value for customers and drive revenue), such as:
- Product Development Processes, 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 Product Lifecycle Process: manages product development through product obsolescence (measured by product lifecycle measure, supported by product lifecycle capability).
- Customer Management Processes, such as:
- a Customer Support Process: handles customer inquiry handling and issue resolution (measured by customer support measure, supported by customer support capability).
- a Customer Onboarding Process: guides customer integration and initial setup (measured by customer onboarding measure, supported by customer onboarding capability).
- a Customer Facing Process: facilitates customer interaction and need fulfillment (measured by customer facing measure, supported by customer facing capability).
- a Customer Feedback Process: conducts feedback collection and improvement implementation (measured by customer feedback measure, supported by customer feedback capability).
- Revenue Generation Processes, such as:
- a Sales and Marketing Process: drives revenue generation and customer acquisition (measured by sales and marketing measure, supported by sales and marketing capability).
- Supply Chain Processes, such as:
- a Supply Chain Management Process: oversees goods flow from supplier management to customer delivery (measured by supply chain measure, supported by supply chain capability).
- Service Processes, such as:
- a Service Management Process: ensures service delivery and service quality maintenance (measured by service management measure, supported by service management capability).
- ...
- Product Development Processes, such as:
- Management Processes and Strategic Processes (guide overall direction and ensure efficient operations), such as:
- Financial Processes, such as:
- a Financial Management Process: oversees financial planning and budget allocation (measured by financial management measure, supported by financial management capability).
- Human Resources Processes, such as:
- a Human Resources Management Process: manages employee lifecycle from recruitment to retention (measured by HR management measure, supported by HR management capability).
- an Employee Performance Management Process: oversees performance evaluation and skill development (measured by performance management measure, supported by performance management capability).
- Governance Processes, such as:
- 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).
- Governance, Risk Management, and Compliance (GRC) Process, such as:
- Organizational Change Processes, such as:
- 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).
- ...
- Financial Processes, such as:
- Support and Operational Processes (enable and enhance the efficiency of core processes), such as:
- Quality Processes, such as:
- a Quality Assurance Process: ensures product quality and service standards (measured by quality assurance measure, supported by quality assurance capability).
- Technology Processes, such as:
- an IT Process: manages technology infrastructure and IT service delivery (measured by IT process measure, supported by IT process capability).
- Supply Processes, such as:
- a Procurement Process: handles supplier selection and goods acquisition (measured by procurement measure, supported by procurement capability).
- Operational Processes, such as:
- a Back-End Process: supports operational efficiency and internal operations (measured by back-end process measure, supported by back-end process capability).
- Knowledge Processes, such as:
- 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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- Quality Processes, such as:
- Compliance and Regulatory Processes (ensure adherence to laws and regulatory standards), such as:
- Legal Processes, 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).
- Environmental Processes, such as:
- an Environmental Compliance Process: manages environmental impact and sustainability practices (measured by environmental compliance measure, supported by environmental compliance capability).
- ...
- Legal Processes, such as:
- Improvement and Innovation Processes (drive continuous enhancement and new developments), such as:
- Customer Improvement Processes, such as:
- a Customer Feedback Process: conducts feedback collection and improvement implementation (measured by customer feedback measure, supported by customer feedback capability).
- Product Improvement Processes, such as:
- a Product Lifecycle Process: manages product development through product obsolescence (measured by product lifecycle measure, supported by product lifecycle capability).
- Performance Improvement Processes, such as:
- an Employee Performance Management Process: oversees performance evaluation and skill development (measured by performance management measure, supported by performance management capability).
- ...
- Customer Improvement Processes, such as:
- External Relations Processes (manage interactions and relationships with external stakeholders), such as:
- Public Relations Processes, such as:
- a Public Relations Process: manages public image and stakeholder communication (measured by public relations measure, supported by public relations capability).
- Customer Relations Processes, such as:
- a Customer Facing Process: facilitates customer interaction and need fulfillment (measured by customer facing measure, supported by customer facing capability).
- ...
- Public Relations Processes, such as:
- Digital Process Evolutions (modernize or evolve existing workflows), such as:
- a Legacy Process Digitization: converts manual workflows to digital workflows.
- an AI Process Enhancement: adds AI capability to existing processes.
- a Process API Development: creates standardized interfaces for system integration.
- ...
- Process Interface Patterns (architectural or design patterns for workflow execution), such as:
- an Event-Driven Process Chain: uses event triggers to advance tasks.
- a Service-Oriented Process: leverages service calls for modular functions.
- a Data Pipeline Process: manages and orchestrates data flows.
- ...
- Specialized Processes (standalone processes with specific functions), such as:
- Data Processes, such as:
- a Data Annotation Process: performs data labeling and information categorization (measured by data annotation measure, supported by data annotation capability).
- Data Processes, such as:
- ...
- Industry-Specific Processes, such as:
- Enterprise-Level Processes, such as:
- Enterprise Chatbot Strategy implementation.
- Large Language Model (LLM) Strategy execution.
- No-Code Software Development Platform adoption.
- Specialized Management Processes, such as:
- Core Business Processes (directly create value for customers and drive revenue), such as:
- Counter-Example(s):
- An Ad-hoc Workflow, which lacks the structure, repeatability, and defined objectives of an organizational process.
- A Technical Interface, which only provides a connection point without representing the process logic or flow.
- An Isolated Task, which operates independently and does not integrate into broader organizational goals or workflows.
- A Business Event, which is a single occurrence and not a structured sequence of activities.
- An Organizational Structure, which refers to the arrangement of roles and entities within an organization, not the processes they perform.
- An Individual Habit, which is a personal routine and not aligned with organizational objectives.
- A Community Practice, which focuses on collective behaviors within a community, lacking formalized goals specific to organizational processes.
- A Household Routine, which is a domestic sequence of tasks unrelated to organizational or business objectives.
- See: Business Process, Organizational Workflow, Process Improvement, Process Automation, Process Reengineering, Process Management, Organizational Capability, Process Lifecycle, Performance Metrics, Process Model, Business Process Management (BPM) Task, Organizational Process Model, Process Owner, Enterprise Architecture, Workflow Engine, Business Process Automation (BPA) Task, Capability Maturity Model (CMM).
References
2024-12-03
- Perplexity.ai
- Question: What are organizational processes, their types, and key characteristics? Please provide a comprehensive overview of different business processes, including core processes, management processes, and support processes. Include information about how these processes can vary in terms of complexity, automation, and scope. Also, explain the role of compliance and continuous improvement processes in organizations.
- Answer: Organizational processes form the backbone of how companies operate, deliver value, and maintain efficiency.
- Types of Business Processes:
- Core Processes:
- Directly create value for customers and generate revenue.
- Include product development, innovation, manufacturing, service delivery, sales, marketing, and customer service.
- Management Processes:
- Oversee and coordinate other processes, focusing on:
- Strategic planning.
- Resource allocation.
- Performance monitoring.
- Decision-making activities.
- Support Processes:
- Enable core processes by providing necessary resources and infrastructure.
- Include human resources management, IT support, accounting, finance, and facility management.
- Core Processes:
- Process Characteristics:
- Complexity Levels:
- Automation Capability:
- Modern processes incorporate automation for enhanced efficiency through:
- Digital workflows.
- Process intelligence technology.
- Automated monitoring and reporting.
- Standardized operating procedures.
- Compliance Management:
- Process compliance serves critical functions:
- Enforces accountability and transparency.
- Minimizes operational risks.
- Reduces legal consequences.
- Protects financial stability.
- Key Components:
- Policy adherence through clear documentation.
- Regular training and education.
- Continuous monitoring and evaluation.
- Standard operating procedures.
- Process compliance serves critical functions:
- Continuous Improvement:
- PDCA Cycle:
- Benefits:
- Increased operational efficiency.
- Improved quality standards.
- Enhanced productivity.
- Reduced waste and defects.
- Integration Framework:
- Successful process management requires:
- Clear alignment between different process types.
- Regular evaluation and updates.
- Employee engagement and training.
- Technology integration for monitoring and automation.
- Successful process management requires:
- Types of Business Processes:
- Citations:
[1] https://www.mega.com/blog/why-business-process-compliance-critical-meet-regulatory-requirements [2] https://businessmap.io/lean-management/improvement/what-is-continuous-improvement [3] https://www.processmaker.com/blog/process-compliance-explained/ [4] https://blog.kainexus.com/continuous-improvement-process [5] https://www.comprose.com/blog/compliance-management-role-of-policies-and-procedures
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.