Admin's other articles

4349 The World without Bankruptcy Laws

Bankruptcy is one of the natural states which a company may find itself in. Entrepreneurship is primarily about taking risks. When companies take risks, some of them succeed, whereas others fail. Hence failure is a natural part of the business. However, many critics of bankruptcy laws believe that there isn’t a need for an elaborate […]

4348 The Wirecard and Infosys Scandals are a Lesson on How NOT to Treat Whistleblowers

What is the Wirecard Scandal all about and Why it is a Wakeup Call for Whistleblowers Anyone who has been following financial and business news over the last couple of years would have heard about Wirecard, the embattled German payments firm that had to file for bankruptcy after serious and humungous frauds were uncovered leading […]

4347 Why the Digital Age Demands Decision Makers to be Like Elite Marines and Zen Monks

How Modern Decision Makers Have to Confront Present Shock and Information Overload We live in times when Information Overload is getting the better of cognitive abilities to absorb and process the needed data and information to make informed decisions. In addition, the Digital Age has also engendered the Present Shock of Virality and Instant Gratification […]

4346 Why Indian Firms Must Strive for Strategic Autonomy in Their Geoeconomic Strategies

Geopolitics, Economics, and Geoeconomics In the evolving global trading and economic system, firms and corporates are impacted as much by the economic policies of nations as they are by the geopolitical and foreign policies. In other words, any global firm wishing to do business in the international sphere has to be cognizant of both the […]

4345 Why Government Should Not Invest Public Money in Sports Stadiums Used by Professional Franchises

In the previous article, we have already come across some of the reasons why the government should not encourage funding of stadiums that are to be used by private franchises. We have already seen that the entire mechanism of government funding ends up being a regressive tax on the citizens of a particular city who […]

See More Article from Admin

It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout.

Visit Us

Our Partners

Search with tags

  • No tags available.

A process driven organization has certain obvious advantages over a people driven organization. Many old fashioned entrepreneurs still prefer to be people driven for the fear of losing control over their organization. However a large majority still aims as process oriented as the ultimate way to create an organization. Many have tried and failed because they have not truly understood what the concept means. Below is an explanation of the same:

Documenting Processes Does Not Make You Process Driven

Many corporations believe that if they explicitly document their process and provide it to their employees as a reference manual than they are being process driven. There are certain flaws with this approach which are as follows:

Firstly the processes which are generally documented are operating processes. This means that they are just processes which transforms inputs to outputs in the normal course of business.

Higher order processes such as control operations which ensure processes are being followed as intended as well as processes which need to exchange information with the external environment and make decisions still largely people driven. This means that laborer’s job has been streamlined, all decisions are still constrained by the people approach. A truly process driven organization is a learning organization. The description of such an organization is mentioned below:

Learning Organization: The Real Test

  • Ability to Scan The Environment: A process driven organization will have a process to regularly scan the environment. They will take the ability of the experts to scan the environment and map it into a mental model. This model will then become a series of steps which can be implemented as a process for environment scan.

  • Ability to Identify Opportunities And Threats: There must be processes set up which lay down best practices to help ensure that you document the moves of the competitor and the changes in the technology as well as demographics in the marketplace. Once again the challenge is to create a mental model of an expert and use average people to get above average results.

  • Ability to Adapt: The organization must then be able to provide the necessary signals to the required departments to adapt. The process of adoption must be quick and non disruptive. Consider for example, had Ford Motors seen the Toyota inventory management process in time and streamlined itself to compete, the Japanese legend would not have born. A large number of business upsets are because of the arrogance and ignorance of the mega businesses. This is because the process of environment scan and adoption is people driven. To standardize it is one of the biggest challenges facing business today.

  • Ability to Manage Complexity Arising Out Of Growth: While it has been said that systems can be easily replicated, it is easier said than done. As businesses grow larger, the number of rules increase and many of these become self-contradictory or self defeating. Siloization takes places and business is divided into functions. Hence processes also have to ensure that they effectively manage such complexity to actually make a company less people driven and more process driven.

Article Written by

Admin

Leave a reply

Your email address will not be published. Required fields are marked *

Related Posts

Why are Companies Constantly Upgrading their ERP Systems?

Admin

It’s Now or Never: Why Business Must Embrace Sustainability before it is Too Late

Admin

The Pharma Sector and Intellectual Property Rights: Pros and Cons

Admin