Process Management

What is process management?

Process Management refers to aligning processes with an organization’s strategic goals, designing and
implementing process architectures, establishing process measurement systems that align with
organizational goals.

Need?

 Lack of clarity on
o Right Start
o Measurement of progress
o Goal
 Ineffective decision-making strategy
 Goal oriented planning
 Error and rework
 Conflicts amongst employee
 Disagreement in ideology.
 Defining Ownership

Process Drivers
 Leadership
Commitment towards business process approach.
 Culture
Value customers, teamwork, personal accountability, and a willingness to change
 Expertise
Skillset, knowledge of process redesign.
 Governance
Measurement of metrics as per defined criteria.

Who are Process Enablers?

- Determines how well a process can function over time.

- Encompass the comprehensiveness of a process’s design.
- Ability to operate a process
- Appointing top level process owner to track success criteria.

Benefits of Process Enablers

 High Performance
 Enabling organization to deliver greater value to its customers
 Increase in profits for shareholders
 Teamwork
 Personal Accountability
 Governance of project
5 Process & 4 Enterprise capabilities
Process Design (6 Sigma)

Specification of which people must perform what tasks, in what order, location, under what
circumstances, with what information etc.

The Process and Enterprise Maturity Model

5 Process Enablers
- Process design: The comprehensiveness of the specification of how the process is to be
executed.
- Performers: The people who execute the process, particularly in terms of their skills and
knowledge
- Owner: A senior executive who has responsibility for the process and its results.
- Infrastructure: Information and management systems that support the process.
- Metrics: The measures the company uses to track the process’s performance.

4 Process Enterprise Capabilities

- Leadership: Senior executives who support the creation of processes.
- Culture: The values of customer focus, teamwork, personal accountability, and a willingness to
change.
- Expertise: Skills in, and methodology for, process redesign.
- Governance: Mechanisms for managing complex projects and change initiatives. Companies can
use their evaluations of the enablers and capabilities, in tandem, to plan and assess the progress
of process-based transformations.

4 Level of Process Enabler Strength:

P-1; P-2; P3; P4

 At the P-1 level, a process is reliable and predictable; it is stable.

 At P-2, a process delivers superior results the company has designed and implemented it from
one end of the organization to the other.
 At the next level, P-3, a process delivers optimal performance because executives can integrate
it, where necessary, with other internal processes to maximize its contribution to the company’s
performance.
 At P-4, a process is best in class, transcending the company’s boundaries and extending back to
suppliers and forward to customers.

4 Level of Process Enterprise Capability:

E-1; E-2; E-3; E-4

 At E-1 level, different things in the case of each capability.

 At E-2, using cross-functional project teams and people familiar with teamwork.
 At the next level, E-3, Teamwork is a norm of an organization.
 At E-4, teamwork with suppliers and customers must be routine
Row- Enablers
Column- Strength Level

Audit Lifecycle
Michelin Redesign Effort Initiative

To help increase customer focus and reduce costs.

Order fulfilment Process named as Demand to Cash.

Process Design: large customers with single points of contact, with personnel who knew them, and with
accurate information

Process Strategy:

 Expansion of process after successful pilot results (Michelin decided to deploy the new process
in 30% of its North American operations by 2006)
 Conducting workshops to equipped managers with the D2C process.
 Process owner to ensure smoother implementation/execution of D2C process.

CSAA Analysis on Process Gaps

On analysis it was found that the problem lay in its enterprise capabilities.

 Shortcoming in the Organization governance and expertise, specifically in process owner

trainings.
 Ineffective cross-functional teamwork, hence one part of team was performing as per
expectation wherein others way below as expected.

Outcome of Process
 Providing process owners with more responsibility
 Integrating process priorities into strategic planning exercises
 New Leadership Model that emphasized process capabilities.
 Assess strength of organization and then improvement plan.
 Boost in performance at organization level.