Business Process Foundations

Business Process Foundations

Definition of Terms

• Processes: Repeatable activities.

• Projects: Unique, one-time activities.

Business Process

• Defined by Dr. H.J.Harrington: Activities that take an input, add value, and provide output to customers.

• Key Characteristics:

  • Step-by-step breakdown.

  • High-quality results consistently.

  • Minimal resource utilization.

Qualities of a Good Process

• Goal-Oriented: Clear intentions and stakeholder consideration.

• Reproducible Results: Documented and easily understood steps.

• Measurable & Manageable: Define good outcomes and have metrics to assess them.

• Accountability: Identify accountability for each step and establish problem-solving plans.

Business Processes Organizational Role

• Fabric of the organization, essential for operational efficiency.

Supply Chain Management Relation

• Supply chains consist of interconnected processes, each managing inputs and outputs.

• Process importance increases with scale; larger organizations require standardized processes.

• Effective process management ties into growth, quality, design, and improvement.

Cow Path Theory

• Insights on establishing new vs. old processes.

Reasons for Bad Business Processes

• Never Was Good: Unclear goals, misalignment, unreasonable expectations.

• Used to be Good: Poor/no training, miscommunication, market evolution challenges.

• Process Limitations: High demand, resource availability issues.