Competent management of an organization involves constant improvement of the entire sequence of actions – from setting a goal to achieving a result. It is necessary to pay due attention to this aspect in order to maintain its position in the market. It is important to learn how to correctly use methods and tools for improving business processes.
Today, there are two main ways to improve them:
A gradual (step-by-step) approach to process improvement (according to Deming). It involves actions within the framework of an existing management structure. It requires almost no financial investment.
The radical approach (according to Hammer and Champy). It implies key changes in the organizational management structure and leads to significant transformations of business processes.
Both methods have a common skype database foundation in the form of a methodology for managing procedures and operational theory. The main aspects of these topics are as follows: description of boundaries and characteristics of the processes themselves; identification of control points; measurement of indicators; analysis of the obtained data and improvement options.
The approaches coincide not only in this. Their goal is to identify: bottlenecks, duplication of functions, missing information and the quality of individual operations. In addition, they are aimed at identifying the possibilities of automating procedures and quality management.
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Despite the external similarities, the approaches differ significantly from each other:
The first option is aimed at increasing the efficiency of fragmented processes within functionally specialized management structures. Its goal is their standardization within the ISO framework and unification. Because of this, it is impossible to get away from functional specialization. On the contrary: flexibility decreases, and bureaucratization, on the contrary, increases. The applied standards continue to strengthen the hierarchical management model. In practice, this approach is ineffective: in essence, its result is the transfer of the functions of structural divisions to the process department. Roughly speaking, only the renaming of the tasks set occurs, and the order of their implementation does not change.
The second approach involves moving from process to structure. It involves direct research of the activity system as a set of procedures important for the consumer. This option allows for the full implementation of process management tasks and moving away from functional specialization or reducing its role, which is achieved through the integration of business processes.
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Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
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