What is a Process Driven Organization?

A process driven organization is as it sounds, focused on process. This means that the organization sharpens their process, working to become extremely efficient while maintaining value. This allows for operational growth, efficiency, and organizational knowledge. Many major companies have made the evolution from people driven organizations to process driven organizations given the numerous benefits achieved from focus on process.

Making the Shift from People Driven to Process Driven

People driven organizations are structured differently than process driven. People driven organizations depend on the input from individuals; entrepreneurs, managers, stake holders, etc. This method of operation can often limit efficiency, as progress is dependent on individual decision-making. The same is not true in a process driven organization. A process driven organization is set up so that the operation can run regardless of individual decision-making. The show will go on as long as the process is maintained. In order to make the shift from people driven to process driven, an organization needs to begin implementing some of the following process driven principles.

Process Driven Principles:

Knowledge

The knowledge of a process driven organization is rooted in the end-to-end business system, not in the people employed there. This shift allows the organization to continuously scan the environment to update practices to ensure efficiency in every business process. Improvement is continuous. Training is seamless as employees simply jump into a process with little variation.

Time

Process driven organizations do not find themselves constrained with time as people driven organizations often do. The process driven system is expandable; if additional labor hours are required, the process driven organization hires additional employees and trains them on the process. In this instance, a people driven organization may have to pass on the opportunity to hire additional labor because of the challenge associated with transferring knowledge and training.

Control

A process driven organization holds a self-governing mechanism. This means that control and balance is held through the systems within the organization. Systems are constantly being evaluated for performance to ensure pre-set standards are being met. Improvements in process and systems are made continuously.

Replication

One of the most attractive elements of a process driven organization is its easy replication. Operations are very easily replicated to additional locations, acquisitions and partners. The functionality and efficiency of the process can be easily implemented into other operations with minor modifications. The ability to scale the organization is also important as it affects the growth and future function of the enterprise.

Adaptability

Process driven organizations are adaptable. They signal adaptation in departments requiring change. Adaptation is quick and is implemented without disruption. Consider the dynamic of Ford Motors and Toyota; Toyota was born because Ford failed to recognize the Japanese company’s inventory management process in time to be competitive. To avoid these kinds of situations, process driven organizations are continuously adapting. They work to identify new strategic processes and implement them quickly and efficiently.

Managing Complexity

Complexity is often the result of the rapid growth of a business. Process driven organizations are able to manage this complexity effectively. Business growth can result in an expansion and alteration of rules, expectations and functions. Siloization takes place, diving the business into functions, segments and units. Processes are enabled to ensure that complexity is managed and the company continues to be driven on process, not people.

Wrap Up

Despite the benefits of process driven organizations, a large percentage of people driven organizations fail to recognize the importance of process at all. In these organizations processes are disconnected and poorly functioning. Often run by middle managers, there is little incentive to move towards a process driven organization because of its associated transparency. The fact remains that a large percentage of multinational corporations have developed a process driven approach. Process driven organizations deliver value and efficiency while limiting the variability seen in a people driven organization.

EKI Digital has worked with businesses of all sizes, and in various industries to help them benefit by designing, and deploying Business Process Modernization as a tool to improve how their business, run, grow and transform. If you would like to learn more about this service please contact us at Info@eki-digital.com .

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