Sunday, November 8, 2009

Organization and processes


A process can be described as a transformation of input into output. Inputs are processed to create value for the customers.
Where do processes fit in organizational game plan
Organization is a means of achieving intended results through systematic and efficient allotment and usage of resources. An organization likewise can be described by the output it produces. An organization is analyzed by the results it produces for various stakeholders and creates an identity for itself through these outcomes, many of them might be intended and some unintended.
Design, flow, control and integration of processes is the sole purpose of establishment of organization structure and processes provide handle to assure better and improved outcomes for an organization. Organization structure is a means of running the processes and deliver the desired outcomes. In essence an organization is a set of complicated processes that convert tangible and intangible inputs into outcomes (that are valued by its customers and other stakeholders) to achieve specific objectives and goals. However, often we find an organization represented by an organization chart and not by a process map, which might depict what go on instead of who-is-who. Typically an organization chart depicts various positions (power centers giving rise to organizational politics) in the organization. The distance of the box from the top indicates its position in the hierarchy – closer a box is to the top the higher is its status.
The importance attached to ones’ position in the organization chart has resulted in perceiving departments, divisions and sections as units of measurements of ones’ span of authority and status, which were once designed to control and conduct various activities through distinct expertise available at such units. As a result the departments, divisions and sections gained more prominence and visibility for the people with in and outside the organization, while processes got obscured. Organizational lines are visible on organizational charts while process flow and process maps are forgotten. Organizational units have names while business processes most often do not. Organization charts are reviewed and updated while business process reviews are forgotten and dismissed as irrelevant activities. As a consequence obsolete practices become the norm thereby hampering the organizations’ performance.
The rationale of bringing processes to foreground
Just as companies have organization chart, they can as well have process maps that give a pictorial view of how work flows through the company. At the highest level an organization’s process map depicts the chain through which an organization conducts its business and creates value for its customers and other stakeholders. The high level processes typically flow across departmental boundaries and occasionally cross organizational boundaries too.
Organization charts depict hierarchy and emphasize boundaries and compartmentalization within an organization, where as process maps cut horizontally across the organization inspiring people to think in terms of breaking the artificial boundaries and fragmentation within an organization and create seamless flow of activities that deliver results.
It is processes which must get more prominence for it is these processes that yield desired results for an organization. Departments definitely have their place in an organization, as long as they are instruments for aiding and improving process flow.
Organization is about people driving and enhancing the processes that create outcomes and not about people heading and controlling departments, divisions and sections.

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