Functional and process approaches to management. Process approach in management

Systems theory views a process as a change in a system. Indeed, any activity is an action aimed at achieving a result, which is expressed in the fact that the system acquires a new state. We encounter processes in development, technology, chemistry and even sociology. However, each of us is a daily participant in work processes. As experience shows, company managers often avoid automating and formalizing processes; to them it seems like a not entirely democratic “tightening of the screws.” But in vain. Competent construction and management of processes in a company of any profile helps to ensure adequate interaction between employees, conditioned by responsibility and attention to deadlines. The process approach is not dead - it underlies many fashionable theories of development, company, and personnel management. Today we will tell you where processes are found, how to manage them and whether you need them in principle.

Process approach: from cybernetics to management

Process theory defines a process as a pattern of behavior that involves performing actions. Typically, a process is unaware of the implementation details of each of the actions (the behavior of the system to which it belongs). For example, in the process of approving a document, the company has established the timing and procedure for approval, but the process does not care from which device and in what geographic location the document will be approved. Another important property of the process is its controllability, the ability to be subject to changes from the outside.

In general, when talking about CRM and ERP, everyone is used to hearing the concept of “business process” and often discussions come down to how a business process differs from a process. There is a version that the term is a tracing-paper from the English language “business process” (business process) and the compound word business does not carry any load, except for isolating the processes taking place in companies from numerous processes (technical, chemical, biological, etc.). Actually, it’s easy to agree with this version, remembering how, for example, a trial is called simply a process, discarding the attribute.

  • predictability of the final result due to the accumulation of a knowledge base and resource management within the project
  • continuous quality control and creation of improvements through continuous process optimization and separation
  • involvement of all infrastructure elements and all employees through competent planning based on the results of previous results.
  • Ultimately, process management reduces the cost of the final product, saves on the release and redistribution of resources, makes the company's work transparent, but maintains flexibility - you can always make changes to the process.

    Important digression: the place of the process in the quality management system (ISO 9001)

    In the ISO 9000 quality system certification standards, one of the most important components of achieving quality is the principle of a process approach to the performance of any work. Here's what the GOST R ISO 9001-2008 standard says:

    “This standard advocates the application of a process approach to the development, implementation and improvement of the effectiveness of a quality management system with the aim of increasing customer satisfaction by meeting customer requirements.

    To operate successfully, an organization must define and manage numerous interrelated activities. An activity that uses resources and is managed to transform inputs into outputs can be considered a process. Often the output of one process forms directly the input of the next.
    The application of a system of processes in an organization, along with their identification and interaction, as well as the management of processes aimed at obtaining the desired result, can be defined as a “process approach”.
    The advantage of the process approach is the continuity of management that it provides at the interface of individual processes within their system, as well as during their combination and interaction.

    When applied in a quality management system, this approach emphasizes the importance of:

    A) understanding and fulfilling the requirements;
    b) the need to consider processes in terms of the value they add;
    c) achieving the planned results of the processes and ensuring their effectiveness;
    d) continuous process improvement based on objective measurement.

    The model of a quality management system based on a process approach shown in the figure illustrates the connections between processes (organizations - author's note). This model shows that customers play a significant role in establishing the requirements considered as inputs. Monitoring customer satisfaction requires assessing information about customers' perceptions that their requirements have been met. The model shown in the figure covers all the main requirements of this standard, but does not show the processes at a detailed level."

    Thus, the standard recommends that an organization identify all key activities and learn how to manage them. In turn, an activity that uses resources, has a goal and a result, is already considered as a process. Moreover, often the result of one process serves as the entry point of another. The GOST R ISO 9001:2008 standard itself designates the significant activities of the company as planning, direction, management analysis, resource management (including personnel and infrastructure), product life cycle process management, design and development, measurement, analysis and improvement.

    Processes in Ruli24 - how to steer correctly

    “Everything is a process” - it was from this position that we proceeded when designing the Ruli24 system. In the post about the growth of companies there were diagrams that reflected three main groups of processes in any company, regardless of its structure, commercialization and legal form.
    • Leadership processes. They come down to three components: organization, leadership, management. For these processes, it is important to implement a competent software process for coordination, analysis and data collection.
    This is what the document approval process looks like: everyone in the chain receives a notification about the action and electronically approves the document. At the same time, the human factor is minimized: the owner of the process can at any time see who has experienced a hitch and take action. By the way, such processes are configured in Ruli in BPMN notation, and we do not leave the user alone with the designer, but design processes accurately, quickly and for the client.

    All analytics are built in reports: the user can make the selections he needs and analyze sections using filters, graphical, tabular and checkerboard views.

    • Basic processes. They strongly depend on the type of activity of the company, but almost always include marketing, supply, and promotion.
    To implement these processes, a whole arsenal is required: this includes CRM, planners, calendars, and a Gantt chart. The actions of several units must be coordinated and focused on the final goal.
    • Supporting processes - elements of direct production and support of core activities. This includes personnel management, financial management, security, IT infrastructure, accounting, etc.
    Supporting processes are numerous and it is important to set them up to eliminate the same human error as in governing processes. For this purpose, comprehensive automation of the company is used, taking into account the interconnections of processes.

    In addition to this division, there is a division described above: into research, design, production and information processes. They are not only interconnected, but also act in relation to any object or its part.

    The process management mechanism includes the organization of work regarding the four specified types of processes. Each process has its own order of execution, form of control and expected result. The input and output of the process are works.

    The system provides several forms of work management. The use of one form or another is determined both by the specifics of various types of activities and by organizational aspects. Work with information processes carried out using control forms:

    • “Incoming document” - registration of external incoming documents;
    • “Outgoing document” - registration of documents sent to external organizations;
    • “Request” is a universal mechanism for official correspondence, regardless of the administrative hierarchy of relationships.
    Work with research and search processes
    • “Forum” - registration of collective work, distribution of internal documents, discussion mechanism;
    • “Meeting” is a mechanism for scheduling meetings.
    Work with project processes carried out through control forms:
    • “Subjects” - the form is used to highlight works in certain areas;
    • “Project” - the form is used to group work into specific projects;
    • “Total work” is the registration of work of a general nature, which includes work assigned to specific performers.
    • “Project task” - registration of a specific task to the contractor for the project.
    Work on production processes is recorded using management forms:
    • “Business process” - the form is based on a description of the sequence of work to achieve a certain result.
    • “Task” is a form by which work is organized and execution is monitored, depending on the hierarchy of service relationships
    As we have already said, the input and output of every process is work. Each job has its own life cycle:


    During the execution of work, the following functions are performed:
    • Creating a new job - as a result, a record is created in the system with a description of the job in the “Attention” state.
    • Familiarization with the work – the work is transferred to the “Open” state.
    • Execution of work – the work is transferred to the “Active” state.
    • Registration of the fact of execution - enter the completion date of the work and a report on the work performed. The job is moved to the Completed state.
    • Closing a job – the author of the job checks the fact that the job has been completed and transfers it to the “Closed” state. If the result of the completed work is unsatisfactory, the author transfers the work to the “Closed (-)” state.
    If we turn to Russian development (and the development of their CIS), you can find several classic CRMs with built-in business processes, but none of them treats the process as a component of each level of management and production. At Ruli24, we started from a focus on the process approach, and did not implement processes as a separate module or fashionable functionality.

    If you are reading the post not for the sake of interest in the process approach, but are choosing a CRM or a suitable automation system for all components of your business, look under the spoiler - it clearly shows the implementation of processes in the Ruli24 interface.

    Slides, slides!


    Ruli24 Process management– includes 13 tasks.


    Ruli24 Process Management Administrator– allows you to configure activities, objects and user rights.


    Ruli24 Organizer allows you to conduct both personal and collective time management. Here, personal affairs, simple production (tasks, requests, operational tasks) and research work (meetings and forums) are planned and controlled. Planning can be done through your calendar or through an employee’s calendar. Various types of files and electronic documents are also available here. All types of work are available in the “My Cases” folder, where widgets reflect new, open and overdue cases.


    In the problem Ruli24 Office work Incoming, Outgoing and Organizational distribution documents are added to the Organizer objects. Now these documents are also available in the “My Cases” folder.


    In the problem Ruli24 Project Management Subject, Project, Summary Work, Project Task are added to the Organizer objects. All these works can be seen not only in the Calendar, but also on the Gantt chart and in the Planner. Now these works are also available in the “My Cases” folder.


    In the problem Ruli24 Business process management you can create standard business processes and launch and monitor instances of business processes.


    In the problem Ruli24 Work management collected all the work from the research process (discussion), from the information process (office work), the design process (design) and the production process (production). Now all the work from these processes is available in the “My Cases” folder.


    In the problem Ruli24 CRM Administrator, CRM, CRM B2B, CRM B2C, Leads, Transactions, Work with B2B clients, Work with B2C clients are added. Work from CRM is now available in the “My Cases” folder.


    Conventionally speaking, all processes within an organization lie between requirements and customer satisfaction. And this is precisely the main process of production of goods (goods, work, services). Let's look at the example of our client. There is a bank, it has Ruli24, as we joke, in the “luxury” configuration. The bank has two types of clients: legal entities and individuals. They make demands on products: they open accounts, conduct transactions, make deposits. They make demands on the level of service, want a client bank, a mobile version, mailing lists, etc. The bank satisfies the requirements, and all processes take place within the Ruli24 system: from accounting to product portfolio analytics and internal ticket system. At the same time, all processes are interconnected, which reduces the average service time and simplifies the collection of business information, on the basis of which new product offers are formed.

    However, a system for managing processes in a company is needed not only by such colossians as banks, but also by almost any company. For a deeper understanding of the process approach, you can apply the so-called Deming-Shewhart cycle “Plan - Do - Check - Act” (PDCA). It is "plan - act - check - improve action". Using this cycle allows you to continuously implement continuous process improvement aimed at increasing the efficiency of the organization. This concept was deeply reflected in the development. This is what the volumetric management model looks like, which underlies the idea of ​​the entire system. If you imagine the model as interactive, the relationships and intersections of all components become clear.

    The process description form below resembles a PERT diagram, i.e. network schedule. The difference is that not all work can be performed in a specific implementation of the production process, depending on the “crossroads” conditions. In addition, each job can be further defined (in some of its attributes) depending on the conditions in the process description. But, as we remember, the process does not know about the implementation of procedures and instructions within it.

    So, we have decided on the model and will draw up an approximate checklist for managing processes in your company.

    • Atomize processes. Each process should be an independent regulated unit, then it will be easier for you to manage the company as a whole. In addition, in the case of organizing company automation as a combination of many small processes, it is easier to identify and correct the weak link; there is no need to interfere with large-scale processes. And this saves a lot of time and does not allow work to stop.
    • Structure your processes. Each process must have an owner, responsible persons, entry and exit points, procedures within, a goal and a result. The process must have time parameters and metrics for its successful/unsuccessful completion. It only looks like bureaucracy from the outside - the human brain quickly adapts to the convenience of automation, and also receives an additional “bonus”: you don’t need to keep everything in your head, reminders and notifications will do the work for the manager.
    • Link processes- this is the only way to achieve an effective management model. Connections and dependencies between atomized processes will allow you to collect maximum information about leads, clients, work results, etc., and streamline and significantly speed up the activity itself.
    • Use a suite of process management tools(reports, funnels, Gantt chart, plans). This will allow you to quickly identify problem areas and make changes.
    • Continuously work with processes and improve them. Even if the best experts in the industry, your company and Ruli24 developers gather in one place, it will not be possible to create an ideal process and establish management. After the next iteration, it is necessary to review the process parameters, analyze its progress and results, and compare them with expectations. After several runs, you will be able to create the most polished “gear” processes that, without exaggeration, will help your company run like clockwork.
    • Include suppliers, counterparties, part-time workers, and freelancers in the processes. The more elements you take into account, the more controllable your company will be for you. Most business automation systems (and Ruli24 is no exception) are open to connecting external agents, but this feature is rarely used. We must remember that everyone on whom the result depends is significant.
    • Draw processes on paper, correct in work groups, distribute resources. Introduce a clear process with unambiguous nodes, stages and transitions into the business automation system.
    “Who are you telling this to now? I have a small business, guys in the palm of my hand, what processes!” - surely some of Habr’s readers will think so. We assure you, you are wrong. Company management begins not from the first day of its existence, but from the birth of the very idea of ​​​​creating one. And it is at this stage that the first processes are formed. Start small - automate primary communications and actions, then increase automation as management grows. Then, when the company grows and the flow of requests or clients becomes noticeable, you will not have a mess and the need to automate it. After all, as fellow crm specialists have repeatedly joked here, an automated mess remains a mess.

    More than business processes Add tags

    Any activity is always a certain process, as it has an extension in time, stages and a result. Therefore, from craft or cottage industries to modern high-tech companies, everyone is involved in processes. What has changed recently? Why has the topic of business processes become so relevant today? In this material, I will try to analyze the process approach to managing an organization and reflect the specific features of a new view of management that the theories of modeling and reengineering brought with them.

    Background

    Management researchers are invariably concerned with the question of the universality of theories and the provability of solutions. It is desirable, as in mathematics, to find axioms and constants that one could confidently rely on when searching for and making decisions. The second important topic is the language for displaying decisions related to organizational and management systems. The most successful attempts to make the science of management more harmonious are accounting and financial statistics. These are very valuable parts of management, but, unfortunately, not suitable for “mere mortals” who need not only to make the right decision, but also to communicate it to the entire staff. Here we can also talk about network planning and graph theory, but still this approach remains controversial for many.

    In the 70s of the last century, in complex military projects, American specialists came to the need to visually structure activities, and since then the concept of a business process has been firmly entrenched in management practice. This period can be conditionally called “structuring” of the business, since the purpose of constructing visual activity diagrams at that time was to identify the logic, divide areas of responsibility, determine the flow of documents and products, and this action itself largely accelerated and simplified understanding, identified inaccurate places and ruptures.

    At this stage, a business process was defined as a set of sequentially and/or parallel operations that transform material and/or information flows into corresponding flows with other properties. Of course, here we are not talking about the fact that for the first time they saw a process in activity (processes were already improved by Adam Smith in the 18th century, and Henry Ford perfectly built production processes), but about the fact that a tool for displaying and systematically analyzing the company’s activities through process diagrams appeared .

    A visual reflection of an enterprise's business processes significantly accelerated and simplified automation activities, so in the 80s the emphasis shifted to the description of automated business processes. This was a period of active involvement of computers in all areas of production and management. Naturally, one description soon became insufficient for managers, so a new level of complexity began to form - process management.

    The process approach views management as the work of a special person (“process owner”) to design an effective sequence of actions to create a formulated result under given conditions and ensure the implementation of these actions (process). That is, the focus from managing people in process management shifts to managing flows of actions and results.

    Modeling development stages

    Having embarked on the path of streamlining business processes, management must sooner or later switch to process management on a company-wide scale, since the flow of activity, like the flow of water, cannot exist in a confined space where movement is limited. That is, the company is forced to conceptualize all its activities as a network of interconnected processes, to link them so that they strengthen and not weaken each other. This requires modeling of all activities in a complex. This stage began in the West around the 90s. Everything happens with some lag, but it depends greatly on the industry. Fast-growing industries (such as telecommunications) have long and successfully mastered these technologies.

    A feature of process-oriented management is the definition of business processes as an interconnected set of works that ensure the achievement of the goals set by the company (implementation of the strategy), which is an order of magnitude more difficult than managing a local process. Here, the focus of management’s attention is transferred from production and logistics processes to “office” ones.

    The assessment showed that design, planning, accounting, etc. processes are often the main culprits in low speed and high cost production processes. That is, they ultimately determine the properties of the processes that create value for the customer.

    Thus, to achieve success, the company’s management itself must be subjected to modeling and optimization, but sometimes this is extremely difficult, since most often the following is observed:

    • high uncertainty in the actions of managers;
    • lack of necessary competencies in process management;
    • psychological unpreparedness of specialists and managers to “drive themselves into limits.”

    Therefore, the next stage in the development of modeling tasks is inevitable - this is the initial competent design of all company processes as a single effective system - business engineering. Business engineering methodology views management as a service provider to the value stream, as it should be. At the same time, the implementation of the process approach occurs almost automatically and does not require efforts to overcome the resistance of any of the personnel groups (of course, if everything is designed correctly from the beginning).

    I plan to consider the topic of business engineering in more detail in future articles. Here I would like to pay attention to the options and subtleties of the business process as a modern management phenomenon.

    Managerial phenomenon

    Having examined the dynamics of the development of the process approach to enterprise management, I think that no one doubts that this is serious and will last. My personal opinion is that the transition to process management is comparable to the transition from calculations on your fingers to calculations using records, formulas, and rules. As the object of management becomes more complex, management technologies must inevitably become more complex.

    But is it so difficult? Where does a modern manager encounter a barrier to the benefits of a process approach? My observations show that the manager, by virtue of tradition, imagines the organization in the form of an organizational structure, where the main information is about the division of employees into departments and about responsibility for each group. Let's compare what structure and business process diagrams look like, drawn using the same visual tools.

    Structure

    Obviously, the main difference between the schemes is the presence of a thread in the second scheme, which unites all participants with a certain logic. Managerial work is similarly different. With traditional functional management, this is a “division” of attention, work, and reward, which is a very labor-intensive task and does not guarantee anything.

    When moving to a process-oriented approach to management, company management can no longer be considered as the work of an “overseer,” but rather as the work of a coach, conductor, director, etc. – that is, the task changes from separation and control to the formation of the best configuration of conditions for maximizing the flow of created value.

    We can conclude that the whole difficulty lies in the habit of the traditional version of management, and partly in the fact that there are no visual ready-made process models, and their creation from scratch requires serious efforts of the management team.

    Fundamental elements of process management

    1. Identifying key performance results and comparing them with the company’s business processes.
    2. Identification of clients of business processes and their requirements (in the future, it is necessary to establish a strong connection with them and continuously monitor their satisfaction, since it is the client with this approach that becomes the main measure of the quality of the process).
    3. Creating a structure of business processes based on importance, nesting, and chronology of activities.
    4. Determination of business process parameters.
    5. Determination of those responsible and executing each process.
    6. Logic design – technology that should ensure the creation of the desired result in the required time frame.
    7. Setting up a system for synchronizing the activities of different processes (ideally, automation of planning and control of all process indicators).
    8. Personnel training is the formation of readiness for group responsibility for results (often this requires a fairly strong restructuring of the motivation system).
    9. Formation of a cyclical mode of design-analysis-adjustment of processes, based on the results of the analysis - the so-called “rhythm of business”.

    An important stage in the development and description of activities is the determination of the characteristics of business processes. Almost every methodology highlights the following elements.

    1. Process boundaries, which are defined by starting events and inputs (resources), as well as ending events and outputs (results).
    2. Regulatory documents of the process. These include both external legislation and company-issued rules, plans and instructions. Unfortunately, it is rare to find well-written management documents in companies, so the main delay in the transition to process management arises from the need to develop the required number of rules and instructions.
    3. Process resources: performers and participants, equipment and tools, information systems and other important elements, without which the process is impossible or ineffective.
    4. Process indicators – measured process variables and their standard values. These may include not only the volume of the result, but also the time spent on the process, the amount of material or money lost, the number of defects, customer satisfaction index, etc.

    All this can be described in simple text or tabular form, but it’s not for nothing that designers use graphical methods. Any design, including an organizational one, will be much more deeply detailed and meaningful if it is presented visually and in the context of the activities of the rest of the system.

    Visualization of processes in the form of technologies can be simple, as shown in the figure above, consisting of infographics accessible to any employee, or it can be more complex, performed using special process modeling tools. As part of this series, I plan to describe all the most interesting and accessible modeling notations. For now you can familiarize yourself with two of them - and.

    In any case, the methodology provides direction and tools, while value for the company is created by the management team, which forms the management system. No even the most accurate technique guarantees that the mechanism will work like a clock if there is no master who understands, sets and maintains this “clock”.

    I think no one has a question about whether business processes are needed or not and why they are being developed, since when there is a business, by definition there are business processes. Therefore, we cannot say that working with business processes is a fundamentally new era. But still, a shift in emphasis, new tools and technologies are significantly changing the essence of management work. Those who understand this have a chance to create a much more manageable, mobile and effective business than those who focus on managing the old fashioned way - often through psychological pressure on subordinates.


    To determine the process approach to management, it is necessary to consider the so-called PDCA cycle (it is traditionally called the “Deming cycle”, although E. Deming himself refers to the work of W. Shewhart). The Shewhart-Deming cycle includes four steps: process planning (Plan), process execution (Do), measurement and analysis of process performance indicators (Check), process adjustment (Act). An example of a business process controlled by PDCA is shown in Fig. 1.17 (IDEFO description standard, BPWin).
    The process shown in Fig. 1.17, corresponds to the PDCA cycle and the basic requirements of the process approach formulated in the ISO 9001:2008 standard. The design features of the ISO 9001:2008 standard make it possible to apply it in any field of activity when managing any organization. Requirements for process descriptions are contained in sections 5-8 of this standard. If you read it carefully, you can highlight the following main points: The control system consists of at least two levels. Management decisions are made by: a) the general director - the “first person” (section 5.6 ISO 9001:2008); b) process owner - manager responsible for the effectiveness of the process (section 8.4 of ISO 9001:2008). The control system is based on mandatory, regulated feedback described in the PDCA cycle.






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    All stages of the PDCA cycle are carried out according to regulations. When measuring and analyzing process indicators, four main streams of information are used: Process indicators. Product performance. Customer satisfaction indicators. Results of process audits. The standard requires the establishment of these indicators, methods for collecting and processing information, the boundaries of indicators for the normal course of the process and criteria for taking corrective actions. A management decision to change regulations or resources must be made based on facts. It is necessary to appoint responsible people - “process owners” who manage the processes, are responsible for their effectiveness and have the necessary resources and powers. Their interaction must be defined and formalized. The PDCA principle is replicated to lower levels of management (decision making), if appropriate.
    The process shown in Fig. 1.17, meets all the above requirements. The methodology for building a process control system based on the PDCA cycle is discussed in detail in Chapter 4.
    It should be noted that the ISO 9000 series standards understand the process approach to consider an organization as a network of interconnected and interacting business processes, each of which is managed by its owner.
    Let us define the process approach to managing an organization:
    The use of a system of interrelated processes to manage the activities and resources of an organization can be called a process approach.

    When implementing a process approach to management, the following techniques are used: creating a network of business processes; identification of business process owners; modeling (description) of business processes; regulation of business processes; business process management using the PDCA method; business process audit.
    There are five key points for implementing a process approach to management: Identification and description of existing business processes and the order of their interaction in the overall network of processes of the organization. A clear distribution of management responsibilities for each segment of the organization’s entire network of business processes. Determination of performance indicators of business processes and methods for measuring them (for example, statistical). Development and approval of regulations that formalize the operation of the system. Managing resources and regulations when detecting deviations, inconsistencies in a process or product, or changes in the external environment (including changes in customer requirements).
    The introduction of a process approach to management gives the organization the following opportunities:
    Opportunity 1. The process approach allows you to optimize the corporate governance system, make it transparent to management and able to respond flexibly to changes in the external environment. When introducing a process approach, the following are regulated: the procedure for planning goals and activities; interaction between processes and departments of the organization;
    responsibilities and powers of process owners and other officials; procedure for employees to act in emergency situations; the procedure and forms of reporting to senior management; a system of indicators characterizing the effectiveness and efficiency of the organization as a whole and its processes; the procedure for reviewing performance results and making management decisions to eliminate deviations and achieve planned indicators.
    The introduction of a process approach in an organization primarily implies work on the description and regulation of business processes, within the framework of which: the distribution of responsibility for the results of work included in the processes is carried out; a system of interaction between processes and with external suppliers and consumers is determined; a list of documentation necessary for the functioning of processes is determined (instructions, regulations, regulations, methods, job descriptions, etc.); a schedule for the development and implementation of this documentation is drawn up; indicators of process performance, methods and forms of information collection and reporting procedures to managers are established; the boundaries of indicators characterizing the normal course of processes are determined; criteria are established by which work begins to eliminate the causes of deviation.
    Possibility 2. The process approach allows you to obtain and use a system of indicators and criteria for assessing management effectiveness at each stage of production/management
    chains. The system of indicators, built within the framework of process management, is structured in four areas: Indicators of the performance of individual processes and the organization as a whole (achievement of planned results - in terms of volume, quality, nomenclature and timing). Performance indicators of individual processes and the organization as a whole (the ratio of the results obtained to the costs of time, financial and other resources). Indicators of the products produced by the organization's processes. Indicators of customer satisfaction with the results of the organization's activities.
    When introducing a process approach, a two-stage system of indicators is developed: a) indicators by which the process owner evaluates the effectiveness and efficiency of his process and the work included in it; b) indicators by which the process owner reports to senior management on the results of the process. Among the processes that exist in an organization is the process of managing the organization. The owner of this process is the CEO. The organization's activities are managed on the basis of reporting indicators that process owners transmit to senior management.
    Opportunity 3. The process approach provides confidence to the co-founders of the organization that the existing management system is aimed at constantly improving efficiency and maximizing the interests of stakeholders, since: the system is based on measuring the organization’s performance indicators, planning and achieving continuous improvement of performance results; the system is aimed at meeting the needs of five groups of people interested in the organization’s activities: co-founders (investors); consumers in the market;
    organization personnel; suppliers; society.
    Possibility 4. The developed and implemented business process management system ensures the implementation of a process approach in the organization in accordance with the requirements of the international standard ISO 9001:2008 and obtaining the appropriate certificate.
    The presence of a certificate of compliance of the quality management system with the requirements of ISO 9001:2008 guarantees consumers that the organization will not only fulfill the established requirements of the consumer, but will also try to establish and fulfill its intended requirements. The presence of an ISO 9001:2008 certificate guarantees consumers that the organization pays great attention to quality issues, which gives the organization a competitive advantage in the service market.
    Opportunity 5. The introduction of a process approach and the construction of a quality management system guarantees a clearly defined order and responsibility for the development, coordination, approval and maintenance of documentation.
    Possibility 6. The requirement of process management is decision-making based on facts, therefore the presence of an information system in the organization is of great importance for creating process management. An information system implemented in an organization allows process owners to obtain objective information for management if it is built within the framework of a unified organization management system based on a process approach. If an automation system is implemented without taking into account the needs of the actual management of the organization, then the probability of unsuccessful completion of such a project is very high.
    The implementation of a process management system in an organization is considered as a project. The main customers of the results of this project are the top management of the organization and process owners.

    Process approach

    The essence of the process approach is that each employee ensures the functioning of specific business processes by directly participating in them. Responsibilities, areas of responsibility, and criteria for successful performance for each employee are formulated and make sense only in the context of a specific task or process. The horizontal connection between structural units is much stronger. The vertical relationship “superior-subordinate” is slightly weakened. An employee’s sense of responsibility changes qualitatively: he is responsible not only for the functions assigned to him by his boss, but also for the business process as a whole. The functions and results of the activities of parallel structural units are important to him. Responsibility for the result of the business process as a whole pushes him to be responsible to his colleagues, the same participants in the business process as himself.

    When building a process-oriented management system, the main emphasis is on developing interaction mechanisms within the process both between structural units within the company and with the external environment, i.e. with customers, suppliers and partners. It is the process approach that allows us to take into account such important aspects of the business as focus on the final product, the interest of each performer in improving the quality of the final product and, as a consequence, interest in the final performance of their work. The process approach to management ignores the organizational structure of managing an organization with its inherent assignment of functions to individual departments. With the process approach, the organization is perceived by managers and employees as an activity consisting of business processes aimed at obtaining the final result. The organization is perceived as business process network, which is a set of interrelated and interacting business processes, including all functions performed in the organization’s divisions. While the functional structure of a business determines the capabilities of the enterprise by establishing what should be done, the process structure (in the operating system of a business) describes the specific technology for achieving set goals and objectives, answering the question of how it should be done.

    The process approach is based on the following principles:

    1. The company's activities are considered as a set of business processes.

    2. The execution of business processes is subject to mandatory regulation or formal description.

    3. Each business process has an internal or external client and an owner (the person responsible for the result of the business process).

    4. Each business process is characterized by key indicators that describe its execution, result or impact on the outcome of the organization as a whole.

    The principles of the process approach to management determine the basic rules, guided by which it is possible to organize the effective functioning of a business aimed at the final result.

    The first principle defines the vision of the company’s activities as a set of business processes. It is he who determines the new culture of perception of the organization in the process approach.

    The second principle of the process approach, which requires mandatory regulation of business processes, is based on the fact that regulations is a document that describes the sequence of operations, responsibility, the procedure for interaction between performers, and the procedure for making decisions to improve a business process.

    Isolating a business process is always associated with identifying client or the consumer of the result of a process that has a certain value for him. In addition to the client, each business process has owner - an official who has the necessary resources at his disposal, manages the progress of the business process and is responsible for the results and efficiency of the business process. The owner of a business process is an official, a formal leader, therefore he has the necessary powers, has the resources required to implement the process, manages the progress of the business process and is responsible for its result. These advantages guarantee high performance of the organization, the management of which has a pronounced process-oriented nature.

    Process-oriented management allows you to qualitatively change the activities of an organization at the operational, cross-functional and inter-organizational levels of its integration. Functional integration ceases to be a source of difficult to resolve interfunctional conflicts. The operational level of integration receives a new vision thanks to the network of business processes of the organization and allows:

    a) more effectively delineate the powers and responsibilities of personnel;

    b) develop an effective system of delegation of authority;

    c) ensure standardization of requirements for performers;

    d) minimize the risk of dependence on an individual performer;

    e) reduce the workload of managers;

    f) reduce costs;

    g) increase the efficiency of personnel management;

    h) identify sources of reducing costs and time for executing business processes;

    i) reduce the time for making management decisions.

    As a result, the controllability of the organization increases, the influence of the human factor and the cost of products and services are reduced. All this leads to a change in the quality of the organization itself and the formation of a process-oriented organization , in which the entire team is a conscious participant in the continuous process of activity associated with the final result of the production of products or the provision of services.

    The development of the process approach to management has received wide resonance; virtually all the leading organizations in the world are process-oriented organizations.

    Based on an understanding of what business processes are carried out in an organization, it is possible to build an effective organizational structure for managing them. If the organizational structure has developed traditionally, the business operating system can help in analyzing its quality.

    Thus, the lack of a process approach in management leads to spontaneous results that cannot be relied upon and which cannot be analyzed, since they are difficult to reproduce. It is the process approach that makes it possible to understand that the final product of a company’s activities is the result of the joint work of all its employees without exception; in addition, it allows you to eliminate gaps at the junction of processes, restoring the connection between them. The process approach does not reject the company’s existing management system, but determines ways to improve it and qualitatively modify it.

    In table 2 identifies the advantages and disadvantages of the process approach to enterprise management.

    Table 2 - Analysis of the advantages and disadvantages of the process approach to enterprise management

    Advantages

    Flaws

    A clear system of mutual connections within processes and in their corresponding departments;

    A clear system of unity of command - one manager concentrates in his hands the management of the entire set of operations and actions aimed at achieving the set goal and obtaining the desired result;

    Giving employees greater authority and increasing the role of each of them in the company’s work leads to a significant increase in their productivity;

    Quick response of executive process units to changes in external conditions;

    In the work of managers, strategic problems dominate over operational ones;

    The criteria for the effectiveness and quality of work of departments and the organization as a whole are consistent and co-directed.

    Increased dependence of the organization’s performance on the qualifications, personal and business qualities of ordinary employees and performers;

    Managing functionally mixed work teams is a more complex task than managing functional departments;

    The presence of several people in a team with different functional qualifications inevitably leads to some delays and errors that occur when transferring work between team members, but the losses here are significantly less than in the traditional organization of work, when performers report to different departments of the company

    Of course, it is impossible to achieve increased efficiency through the formalization of business processes alone, and the process approach is not a panacea for all the ills of the organization. It allows you to diagnose problems both throughout the company and the interaction of its various departments when performing a common task. Sterligova A.N. Operational (production) management: textbook / A.N. Sterligova, A.V. Fel. - M.: INFRA-M, 2009. - P.32-35.

    However contrast between process and functional approaches fundamentally wrong. Functions, as well as processes, are equivalent concepts of management activities and cannot exist in isolation from each other. At the same time, the result of both functional and process approaches is the design of both the organizational structure (i.e. functional areas) and the order of interaction within its framework (i.e. processes). The only difference is in the design starting points: whether to allocate functional responsibilities based on processes or design interaction processes between functional areas.

    In table 3 shows a comparative analysis of the two approaches to management. The advantages of the process approach over the functional approach described in the table allow us to conclude that in a dynamically developing market, from the point of view of competitiveness, process-oriented management of an organization seems to be more effective.

    Table 3 - Comparative analysis of functional and process approaches to management

    System elements

    Functional approach

    Process approach

    Control object

    Defining the approach

    Management of an organization divided into structural elements according to functional characteristics

    Management of business processes as a set of activities that, using a certain technology, transforms inputs into outputs that are valuable to the consumer

    Consumers

    The functional manager acts as a consumer of the results of the department’s activities, i.e. need satisfaction moves upward through the levels of the hierarchy

    The consumer of the process results is the next process in the chain, i.e. satisfaction of needs goes along the enterprise towards the end consumer

    Suppliers

    The supplier is an employee or head of a department of the enterprise who provides employees of another department with resources for processing, which limits the ability of performers to directly influence the characteristics of the materials provided. At the same time, employees of another department are not interested in meeting the requirements of colleagues from other departments, if these requirements do not come directly from the functional manager

    The previous process in the chain acts as a supplier, which allows you to directly put forward and agree on requirements for the materials provided. The previous process is interested in meeting the requirements put forward

    Distribution of Responsibility

    Responsibility is fragmented, distributed among functional managers, limited to the sphere of influence of a single function, and concentrated to a greater extent at the highest levels of the hierarchy. Thus, responsibility for the final result of the enterprise’s activities falls fully only on the top management of the enterprise, which has the ability to influence activities only after problems arise

    Responsibility is clearly distributed and assigned to the “owner” of the process, who controls all stages of the process, is endowed with the right to make decisions and, accordingly, has the ability to quickly influence the progress of the process. Thus, responsibility for the results of the process is close to specific performers of the work

    Top management functions

    Coordinating the goals of various divisions of the enterprise, resolving controversial issues and conflicts that arise between functional departments, making decisions on current issues often does not leave time for solving strategic problems

    Relief from operational management through delegation of responsibility and authority allows senior management to focus on analyzing activities and resolving strategic issues

    Competence and career growth of employees

    Uniting employees across functional departments promotes professional growth. Career growth is determined by advancement through hierarchy levels

    Uniting employees by process reduces opportunities for professional growth. The desire for a “flat” organizational structure with a minimum number of hierarchical levels complicates career prospects

    At the same time, contrasting functional and process approaches to management is not legitimate. The result of both approaches is the simultaneous design of the organizational structure (functional areas) and the order of interactions within this structure (processes). These approaches, to a certain extent, should be applied in parallel. The object of management should be a unified system of interconnected business processes that create value for the consumer, and functional areas that combine similar functions within various business processes. These two approaches have significant similarities in basic premises: both approaches postulate an initial set of standard processes / functions, which are further detailed and tied to a specific enterprise. The functional approach answers the question “What to do?”, the process approach “How to do?”. There should be no contradictions between the two approaches - they not only complement each other, but to a certain extent should be applied in parallel.

    Summarizing the above, we can conclude that a process-oriented management system, along with the advantages of a function-oriented system, has a number of advantages where the latter has obvious disadvantages. The need to use process-oriented management in recent years has been increasingly recognized by Russian society. Process-oriented management will allow transformations to be carried out faster and with fewer errors, since with this approach it is easier (compared to the functional approach) to determine what exactly needs to be changed and in which departments. Many domestic enterprises have already begun to work on improving their business processes within the framework of the concept of process-oriented management, which increases operational efficiency; without increasing staff, reduce customer service time and reduce costs. However, it should be remembered that a process-oriented management system is suitable and will bring tangible benefits to such organizations that exist in a dynamic, actively developing market with healthy competition. It is advisable to implement such a management model in organizations that, for example, have mass transactions with individuals or a large flow of similar transactions. For organizations where each contract or transaction is individual, and business processes are constantly changing for each specific order, process-oriented management will not only not be useful, but will also significantly complicate the work process.

    Based on the foregoing, we can conclude that the construction of process-oriented systems allows the organization to better understand the interrelationships of individual aspects of activity and increase its efficiency.



    A company as a set of business processes that are interconnected and the purpose of its activities.

    In modern conditions, more and more companies are coming to the conclusion that it is possible to manage a business as efficiently as possible not as a set of individual functions, but as a set of business processes, which represent the essence of the activity. This approach began to be used in management relatively recently due to increasing competition and increasing dynamics of the external environment. It aims to increase business flexibility, reduce reaction time to market changes, improve business results and better achieve goals.

    The process approach to management is not the only possible option, since there are other approaches - situational or systemic, for example. Systematic considers a company-organization as a community of interconnected elements that are focused on achieving goals under regularly changing conditions. The situational approach states that the use of certain methods and actions is always determined based on the situation.

    Process features of implementation at the enterprise

    The implementation process at the company occurs according to the following stages:

      a network of key business processes is identified (in the form in which they are at the beginning of using the approach);

      processes are ranked by level of significance, a preliminary model is created;

      all processes are analyzed and “bottlenecks” are identified, i.e. problem areas that should be worked out most thoroughly;

      Based on the findings obtained, models are built that show the ideal course of the process.

      This innovation can be implemented both throughout the enterprise and in a specific area.

      Process approach: basic principles

      Perception of business as a system:

        an enterprise in any form is considered as a system, including its development;

        solving local problems does not change the system; only the entirety of it can be changed.

      Perception of activity as a process:

        any activity can be improved - this is the goal pursued by process management;

        in any activity there is a division according to the availability of material resources, personnel, time, and so on.

      Development of standards and introduction of the principle of transparency of responsibility:

        any activity is aimed at obtaining a result by transforming input products into output products;

        In each process, the supplier of input and output products must be determined - this is necessary to determine responsibility. Also, the input and output product have their own consumer, who is interested in its maximum quality.

      Standardization and transparency of responsibility:

        responsibility for creating the system lies with the top management of the company;

        each process has its own owner, who is responsible for the quality of its execution;

        all processes must be standardized and transparent so that the problem can be quickly found.

      The process approach to management includes a description of the business itself as a set of processes, as well as a system for monitoring, improving and managing these processes. We can say that to apply the process approach you need to describe, optimize and automate processes. This can be done most efficiently using special systems. The process approach to management especially helps in those departments where a high level of standardization is initially required and where all processes are as detailed as possible - these are accounting, economics, planning departments, and so on.