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A business process is a set of recurring activities that produce an output/outcome that is of value to a customer not on the functions involved –A transformation of an input into an output –An integrative framework There are two main types of processes: Operating Processes and Infrastructure Processes.
Each Operating and Infrastructure Process is composed of Sub-processes, Activities and Tasks. Decomposing Processes into their Sub-processes, Activities and Tasks provides a full picture of the actions taken to complete the Processes’ outcomes. Processes that add value to an organization are those that are well defined and well managed.
Some characteristics of a well managed process Someone is responsible and held accountable for how well the process performs (process owner) It has: –well-defined boundaries (process scope) –well-defined internal interfaces and responsibilities –documented procedures, work tasks, and training requirements –measurement and feedback controls close to the point where the activity is performed –customer-related measurements and targets –formalized change procedures –known cycle time In these times, companies are measured on how well they manage their processes A Process Focus… Enables the organization to focus on customer Keeps the focus on outcomes Helps the organization understand inputs and how they become outputs Provides a systematic view of organization activities Uncovers low value added work and inefficiencies Provides a view of why and how error occurs and a method for correcting them Develops a complete measurement system for all business areas Assists the organization in effectively managing its interrelationships Provides a means to effect major changes to very complex activities in a rapid manner Provides an understanding of how good the company can be Allows the organization to predict and control change Prepares the organization for meeting future challenges
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