Sunday, November 8, 2009

FUNDAMENTAL CONCEPTS OF EXCELLENCE - MANAGEMENT BY PROCESSES AND FACTS


Management by processes entails design and deployment of systems that ensure implementation of policies, strategies, and action plans through a set of integrated processes (systematic and defined ways) to meet the stakeholders’ requirements. An important aspect of management by processes is a clear definition of process stakeholders (suppliers of inputs required by the process, customers using the output from the processes, and personnel responsible for carrying out different activities of the process), outcomes of the processes, key factors (measures and control parameters) in the process that influence the outcomes. The process performance can only be optimised through a clear understanding of how different units of work (tasks) fit into the whole end-to-end process. The process performance (in terms of measures defined) when documented and analysed scientifically and compared with desirable outcomes generate facts on the basis of which the processes can be effectively managed and improved continuously on day-to-day basis. This factual information supports decisions at all levels that improves the process performance further. The other part of management by processes and facts is that there is a well defined process for gathering expectations of the stakeholders, changes in the environment, and competitor’s activity and formulating the organization’s policy & strategy, which truly addresses the needs and expectations of all stakeholders (strategy based on facts and true projections).
Elements that support management by processes and facts:
  • Structured mechanism to gather expectations of all stakeholders and relevant external data
  • Gaining clarity on what expectations will be fulfilled in the best interest of company and addressing the same through policy and strategy
  • Design of well defined systems / processes (process stakeholders, process boundaries, process requirements and deliverables, and process measures) to implement the strategy
  • Defining the ownership of end-to-end process for optimizing the performance of the process as a whole (individual tasks focusing on overall process goal)
  • Mechanisms to measure, analyse, and compare process measures with desirables to improve the process performance

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