Business Processes Driving Organizations

Organizations world over have realized the need for re-structuring themselves and adapting business processes to be able to survive in the global scenario. This process of change management from an old hierarchical structure of Organization to a Business process oriented organization began two decades ago. What has aided the new design is the development of ERP and other IT systems that support seamless business and process integration across all departments, functions, locations as well as between companies as well.

The path of transition to Business Process driven Organization has got to be initiated from the top management who will have to redraw the vision and the goals for their Organization. Change management process is not easy and has got to be driven by the top management through planned and sustained programs that are based on training and retraining the resources until the new culture and process is established.

Most Organizations engage the services of external Management consultants who are specialists in building Business processes and managing the transition for the client Organization. They would however need to involve the experienced resources of the client Organization to be able to understand the specific business needs and draw up detailed processes accordingly. Multi National Companies like IBM & HP etc have departments and resources identified to work internally as full time process analysts, auditors and risk assessors who’s primary job would be to keep working on refining the existing Business processes as well as draw up new business processes in line with new requirements.

Drawing up business processes involves understanding every little nuance or transaction involved in each and every department or function and building a process around each activity, defining the sequence of process, as well as detailing who, what, why, how and when the transaction or the process is to be carried out. Each process would also have the predecessor as well as successive process owners defined and interconnectivity established clearly.

Each department can have anywhere from a few to a large amount of processes depending upon the business functions. An important department like Finance can have detailed processes under Financial planning and accounting. Financial planning processes would involve clear cut processes in the areas of Budgets and controls, costing process, financial planning for the year, inventory control, business planning, financial forecasting, and many more important processes defined and laid out in the form of process manuals. Financial accounting processes would involve business process as well as process controls through the systems. Every detailed function like Payroll, Taxation, Accounts Receivable, Payable, Invoicing, sales accounting, Cash Management, Fixed asset management and many more functions as necessary for the business would be covered under the Financial Accounting Business Process.

It is through such well defined Business processes that the large Organizations manage to carry on their day to day business operations and expand their business across the world. Managing thousands of employees, hundreds of business processes with multiple manufacturing locations across geographies and managing procurement functions engaging hundreds of vendors across the world as well as concentrating on product development and marketing across the globe is made possible thanks to the Organizational design having been drawn up based on business processes which in turn is driven through integrated IT software and systems that enable standardization and integration across all locations possible and feasible.


❮   Previous  Article Next  Article   ❯


Authorship/Referencing - About the Author(s)

MSG team comprises experienced faculty and professionals who develop the content for the portal. We collectively refer to our team as - “MSG Experts”. To Know more, click on About Us. The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to ManagementStudyGuide.com and the content page url.