CORE PROCESS RULES

What you want to do is innovate on your product and your business model, management structure is not where I would try to innovate.

Sam Altman – Programmer and Investor

All companies, even global corporations, have discovered they can’t be all things to all VUCANs.  As companies attempted to please different customers with a large variety of products, problems arose.  Resources were spread too thin so a company could only do certain things moderately well.  The wise decision was to focus and develop ‘world class’, core process competencies.  There’s a good business reason for this.

Process orientation involves a change of mindset, a personal disruption in how you  perceive and approach work.  A process orientation is a paradigm shift away from the functional and hierarchal to a horizontal model of business.  A process orientation involves these interrelated factors:

  • Structure. A core process is smooth, balanced, structured, seamless, value-adding, replicable, efficient, effective, and economic.  The process has a beginning and an end.  It consists of a number of value-adding steps, each of which has a customer and a supplier.
  • Layout. A process orientation is a horizontal, end-to-end view of work.  A process may cut across an organization into the supplier base and even to the final customer.  A process can span different functions, plants, and departments throughout the organization.  Process orientation seems to work well in matrixed organizations.
  • Accountability. A project team or self managed individual is responsible for a process step or even for the entire process from beginning to end.  In process language, this accountability is called process ownership and self management.

Work Lesson Earned The closer an employee or manager is to the core, the easier it’s to demonstrate long-term value.  But, closer to the core means that functions will be the first to be automated.

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