BuildingtheProcess-BasedOrganizationJ.ChrisWhiteManager,ProcessImprovementsAlcatelNetworkSystemsRichardson,TX75081(972)996-6749BuildingtheProcess-BasedOrganizationWhyorganizebyprocesses?Overviewofprocess-basedapproachBenefitsoforganizingbyprocessesExample:ClearImages,Inc.WhyOrganizebyProcesses?“Thedesignofanorganizationcanbethemainbarriertochange,anditmaythereforebenecessarytoimplementafundamentalredesignbeforeanorganizationcanevenstarttohandlethecontinuouschallengeintoday’senvironment.”DavidO’Brien,CEOProvincialBuildingSocietySource:Coulson-Thomas,C.J.andT.Coe,“TheFlatOrganization:PhilosophyandPractice,”BritishInstituteofManagementReport,1991,p.11.WhyOrganizebyProcesses?StructuresinfluencebehaviorCustomerscareabout“total”Processes(notfunctions)createvalueInterfacesmustbemanagedStructuresInfluenceBehaviorSystemicStructureBehaviorEventsStructuresInfluenceBehaviorOrganizationsneedtouseprocess-orientedstructuresandsystemsExamples:Activity-basedaccountingandbudgetingCo-locationofteamsTeam-basedrewardsandincentivesProcessmetricsCustomersCareAbout“Total”Processes(NotFunctions)CreateValueCross-FunctionalProcessR&DManufSchedEngProcesses(NotFunctions)CreateValue(Relations)LowSimpleSystemComplexityPartsFewManyManyFewRelationsModerateHigh(Relations)(Parts)(Parts)InterfacesMustBeManagedCUSTOMERSUPPLIERCUSTOMERSUPPLIEROverviewofProcess-BasedApproachProcesshierarchyExtendedmodelofprocessmanagementProcessflowchartsInput/Output(I/O)diagramsProcesstrackingdatabaseProcessmodelingandsimulationProcessHierarchyFunctionalSupportMacroprocess1Macroprocess2Process1AProcess1BProcess2AProcessHierarchy

(Example)CustomerOrderFulfillmentOrderEntryManufacturingFinalAssemblyNewProductDevelopmentMarketAnalysisPrototypeDesignCustomerRequirementsGatheringExtendedModelofProcessManagementPHYSICALPROCESSResourcesControlsAuthorityResponsibilityAccountabilityProcessFlowchartsCUSTOMERMIKEJOHNPAMRequestLogrequestoncomputerInstock?YesNoWaitOrdernewitemCheckinventorylistforproductlocationInput/Output(I/O)DiagramsInput:Supplier:etc.Input:Supplier:etc.Output:Customer:etc.Output:Customer:etc.Process:Owner:Description:Resources:Metrics:ProcessTrackingDatabaseCategoryElementElementElementDesc.“From”process“To”processOwnerMetric(s)ProcessTrackingDatabaseCategoryProcessProcessProcessDesc.ParentprocessOwnerMetric(s)ProcessModelingandSimulationBenefitsofOrganizingbyProcessesProcessesaretheinfrastructureforsuccessBehavioris“guided”towardoptimizingtheentireprocessCustomer’sviewof“total”ismirroredCompanyisassuredthatithasthesameprioritiesasitscustomerBenefitsofOrganizingbyProcessesProcesscomplexitiesanddynamicsarebetterunderstoodManagementofprocessbecomesmoreeffectivewhichleadstobetterresults(e.g.,cost,quality,schedule)Processmodelsallowfor“risk-free”analysisAlternativeinitiativescanbecomparedExample:ClearImages,Inc.ImageDocumentsPrepareDocumentsScanDocumentsCustomerServiceIncomingdocumentationfromsupportingsitesExample:ClearImages,Inc.PREPAREDOCUMENTSSCANDOCUMENTSExample:ClearImages,Inc.SCANDOCUMENTSSCANNEDPAGEPREPAREDPAGEUNPREPAREDPAGEInputProcessOutputPREPAREDOCUMENTSUNPREPAREDPAGEInputProcessInput/OutputIMAGEDOCUMENTSSCANNEDPAGEProcessOutputExample:ClearImages,Inc.“From”process(previousprocess)PrepareDocumentsScanDocuments“To”processPrepareDocumentsScanDocuments(nextprocess)Metric(s)#incoming%preparedproperly%scannedproperlyElementNameUnpreparedPagePreparedPageScannedPageExample:ClearImages,Inc.ParentprocessCustomerServiceImageDocumentsImageDocumentsMetric(s)#throughput,%effo