Organizational Process

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.
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- 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 Individual Level Organizational Process to being an Industry Level Organizational Process, depending on its institutional scope.
- It can range from being a Simple Organizational Process to being a Complex Organizational Process, depending on its process complexity.
- It can range from being a Manual Organizational Process to being an Automated Organizational Process, depending on its automation level.
- It can range from being a Flexible Organizational Process to being a Rigid Organizational Process, depending on its control level.
- It can range from being an Emergent Organizational Process to being a Designed Organizational Process, depending on its design approach.
- It can range from being an Effective Organizational Process to being an Ineffective Organizational Process, depending on its performance level.
- It can range from being an End-to-End Organizational Process to being an 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 Technical Organizational Process to being a Business-Oriented Organizational Process, depending on its process type.
- It can range from being an Internal Organizational Process to being an External-Interaction Organizational Process, depending on its interaction scope.
- It can range from being a High-Level Organizational Process to being an Organizational Operational Process, depending on its abstraction level.
- It can range from being an Existing Organizational Process to being a Former Organizational Process, depending on its temporal state.
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- 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 for new product creation from product ideation to product launch (measured by product development measure, supported by product development capability).
    - a Product Lifecycle Process for managing product development through product obsolescence (measured by product lifecycle measure, supported by product lifecycle capability).
  - Customer Management Processes, such as:
    - a Customer Support Process for customer inquiry handling and issue resolution (measured by customer support measure, supported by customer support capability).
    - a Customer Onboarding Process for customer integration and initial setup (measured by customer onboarding measure, supported by customer onboarding capability).
    - a Customer Facing Process for customer interaction and need fulfillment (measured by customer facing measure, supported by customer facing capability).
    - a Customer Feedback Process for 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 for 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 for overseeing 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 for ensuring service delivery and service quality maintenance (measured by service management measure, supported by service management capability).
- ...
- Management Processes (guide overall direction and ensure efficient operations), such as:
  - Financial Processes, such as:
    - a Financial Management Process for 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 for managing employee lifecycle from recruitment to retention (measured by HR management measure, supported by HR management capability).
    - an Employee Performance Management Process for 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 for risk identification and risk mitigation (measured by risk management measure, supported by risk management capability).
  - Organizational Change Processes, such as:
    - a Change Management Process for organizational transition and change adoption (measured by change management measure, supported by change management capability).
    - a Crisis Management Process for emergency response and crisis mitigation (measured by crisis management measure, supported by crisis management capability).
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- Support and Operational Processes (enable and enhance efficiency of core processes), such as:
  - Quality Processes, such as:
    - a Quality Assurance Process for ensuring product quality and service standards (measured by quality assurance measure, supported by quality assurance capability).
  - Technology Processes, such as:
    - an IT Process for managing technology infrastructure and IT service delivery (measured by IT process measure, supported by IT process capability).
  - Supply Processes, such as:
    - a Procurement Process for supplier selection and goods acquisition (measured by procurement measure, supported by procurement capability).
  - Operational Processes, such as:
    - a Back-End Process for supporting 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 for knowledge sharing and best practice dissemination (measured by knowledge management measure, supported by knowledge management capability).
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- Risk Management Processes by industry sector, such as:
  - Financial Risk Management Processes, such as:
    - a Banking Risk Management Process using Value-at-Risk models and stress testing for market risk and credit risk.
    - an Investment Risk Process for trading desk operations and portfolio management.
  - Healthcare Risk Management Processes, such as:
    - a Clinical Risk Management Process for patient safety, infection control, and medical compliance.
    - an IT Security Risk Process for healthcare data protection and HIPAA compliance.
  - Government Risk Management Processes, such as:
    - a Compliance-Driven RMF Process for information security and system authorization.
  - Technology Risk Management Processes, such as:
    - an Agile Risk Iteration Process integrating security testing with software development.
  - Manufacturing Risk Management Processes, such as:
    - a Manufacturing Risk Lifecycle Process using FMEA methodology for production risk and safety management.
  - Retail Risk Management Processes, such as:
    - a Multi-Phase Risk Management Process for store operations and supply chain management, including risk identification, risk assessment, risk mitigation, and risk monitoring.
  - Academic Risk Management Processes, such as:
    - an Academic Risk Process for research integrity and educational compliance.
  - Energy Sector Risk Processes, such as:
    - an HSE-Centric Risk Process for operational safety and environmental protection.
  - Insurance Risk Management Processes, such as:
    - an Underwriting Risk Process for actuarial analysis and claims management.
  - Nonprofit Risk Management Processes, such as:
    - a Field-Operational Risk Process for humanitarian operations and donor fund management.
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- Industry-Specific Processes, such as:
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- Digital Process Evolutions (modernize or evolve existing workflows), such as:
  - a Legacy Process Digitization for converting manual workflows to digital workflows.
  - an AI Process Enhancement for adding AI capability to existing processes.
  - a Process API Development for creating standardized interfaces for system integration.
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- Process Interface Patterns (architectural or design patterns for workflow execution), such as:
  - an Event-Driven Process Chain using event triggers to advance tasks.
  - a Service-Oriented Process leveraging service calls for modular functions.
  - a Data Pipeline Process managing and orchestrating data flows.
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- Specialized Processes (standalone processes with specific functions), such as:
  - Data Processes, such as:
    - a Data Annotation Process performing data labeling and information categorization (measured by data annotation measure, supported by data annotation capability).
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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.
  - Process Characteristics:
    - Complexity Levels:
      - Processes range from simple linear workflows to complex, interconnected systems.
      - Complexity depends on number of steps, dependencies, required resources, and stakeholder involvement.
    - 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.
  - Continuous Improvement:
    - PDCA Cycle:
      - Plan: Set goals and identify improvement areas.
      - Do: Implement changes.
      - Check: Measure results.
      - Act: Standardize successful changes.
    - 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.
- 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:
  1. Management processes, the processes that govern the operation of a system. Typical management processes include “corporate governance” and “strategic management”.
  2. 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.
  3. 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).

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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.

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[4] Information Resources Management Association USA, Enterprise Information Systems: Concepts, Methodologies, Tools and Applications, p. 1065

[5] William Bentley, Peter T. Davis, Lean Six Sigma Secrets for the CIO, p. 19

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Organizational Process

References

2024-12-03

2023

2015

1990

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