The organization in the company has a decisive influence on its success. One company has a fantastic sales management that pulls in orders, the other a manufacturing management that can handle increasing orders. Both companies have one thing in common: They are very much tied to the line structure organization. Read this article to find out what the process organization can do to counteract this!
Estimated reading time: 6 minutes
What is a process organization?
For the company organization there is usually the organizational structure with an organizational chart and the process organization with the process modelling. The first runs vertically through departments, the second horizontally along end-to-end processes. However, there are regular conflicts and wrangling over competencies, budgets or employees. If you, as management, tackle the process management project without redesigning the organizational form, you risk failure and high levels of dissatisfaction among your workforce. It is therefore worthwhile to examine your own organization in its current organizational model at an early stage and to redesign it as best as possible.
Process organization briefly explained in the video
From my practical experience I know the pitfalls when you want to bring line organizations together with process management. Avoid the mistakes of other companies and follow the proven steps towards a successful process organization!
How does the process-based organization work?
There can be no magic formula, since every company is structured differently, but these six important steps provide a good framework for process organization:
- Create process map
Create a process map or add inputs, outputs and the main process goals to your existing overview. From human resources management to your value proposition with marketing, sales, production, logistics and accounting, all the important elements should be included. The process-oriented organization forms the company holistically.
- Post and appoint process managers
Instead of the higher-level department heads, you rely on the process managers who keep an eye on their process. This is broader than the previous departmental boundaries. Encourage your leaders to apply for these new positions as the old org chart will be phased out afterwards but no downsizing will take place.
- Redesign sub-processes
First task of the process managers: redesign of the sub-processes in their area of the process organization. For example, the former sales manager is now the process owner for “Edit market” and creates sub-processes for marketing and order acquisition with the outputs inquiries and then orders.
- reassign employees
The staff, of course, need a reassignment. Based on the skills and a transfer matrix, you assign the employees to the new process areas according to their suitability.
- Set a date and keep to the reorganization
The preparatory work is done, then get rid of your old organizational structure. Avoid double organization, but start with the prepared process map.
- live process organization
Rely on the interaction of the roles in process management and give those responsible for the process the necessary leeway if they stick to the process organization.
Process organization from the start for start-ups
Especially with start-ups, we often have to deal with a lot of idealism and zest for action, but we still lack the technical know-how to run a business in the long term. The basic work with the process organization is particularly suitable for young entrepreneurs not to lose sight of the big picture. With my founding customers, I therefore create an initial process map as early as possible, which serves as a memory aid and plan for the following years. Of course, some sub-processes change, especially in the early phases, but the leap from a sole proprietor to a young company with several employees and flat hierarchies is much easier with a well thought-out process map. Because then everyone is part of their process and silo thinking has a harder time. This prevents later conflicts and wrangling over competences.
From process management to process-oriented organization
Rapid growth in particular can lead to more employees and managers who are usually promoted without further ado, who must be integrated into an existing process landscape at the same time. It is precisely this phase that leads to the first organizational crises in many companies, because tried and tested line organization is used, which is then to be saddled with successful process management. This leads to problems internally, since not everyone is suddenly a manager or has the right skills for a position, and externally, when ideal candidates bring in their own ideas from outside. In this case, too, the process organization makes it possible, with the expansion of the process map to include the positions of those responsible for the process, to successfully reassign employees and managers based on the processes – instead of ignoring them.
Established companies with line organization
The classic established company has deployed its employees in areas alongside management and executives. There is little communication between departments apart from handovers, but there is sometimes a tussle over budgets and team strengths. As a rule, it is in these companies that we find the most inefficiencies due to silo thinking and a lack of process management. If we now want to implement structural process management, there are often problems with the line organization. No one wants to give up skills, even if that means making work easier for the individual. In the worst case, there is a climate of fear of job cuts through more efficient processes and sometimes people work consciously or unconsciously against the reorganization. Apart from the 6-step plan above, there is no patent recipe here, because every company has grown and positioned itself differently. The guiding values are:
- The process map shows the company’s operations from start to finish.
- Goals help process optimization and each individual employee.
- The organizational structure must not interfere with the operational structure.
- Transparency and information are important and require a strategic approach.
- Half measures bring nothing, but make everything worse in the worst case.
Tips and advantages of process organization!
Actually, process organization is just right for most companies, but the hurdle to change everything is enormous. So the advantages in a nutshell:
- more efficiency through a smooth process flow
- better integration everyone in the whole process with problems and improvements
- less silo thinking and departmental disputes
- clear responsibilities for each sub-process instead of shifting responsibility.
And my tip for you: I am happy to take the time to talk to you about your situation without obligation via my contact page! Because from the outside, the situation usually looks a little different.
Best regard
Axel Schroeder
The transfer and competence matrix for employee assignment
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