Sep
14
Written by:
adayal
9/14/2011 6:45 PM
Question: We have Products and Plant, we have six Ms, we make Strategic Plan, we make Annual Operation Plan and we review the same regularly - DWMQA, We have now ERP, we are ISO certified, we have HR process, largely a copy of practices of multinational and a bit of localisation in certain areas. Our compensation is average but we have attractive incentive scheme. People earn 35 % of the amount provided? Why should we look at Business Processes (A Business Process is a Process that cuts across several functions)? In fact, we already have processes?
Answer: A combination of following factors /circumstances /anxieties would demand a look at Business processes with an external partner :
1. The company has looked at processes associated with a job /department or at best a function. Processes cutting across functions have not been examined. There are huge holes when process travels from one function to another. .
2. What do people do everyday? Each guy says he is slogging but end outcome is poor. There is lack of alignment among executives across functions and levels and they blame each other at transactional level , operational level, tactical level as well as strategic level
3. Sudden /fast changes in business environment has led to steep fall /fall /stagnation in performance and calls for reinventing what we do i.e. processes
4. There are major /significant gaps in accuiring new customers and retaining them. We have not recently revamped processes to align with specific customer segments.
5. There is a gap between strategy and its execution..
6. We have cut cost and have exhausted vertical tools of Cost Reduction.
7. There is an invisible piece in the business, now we realise. It is Business Processes. It is time to look at all the major flows like Prospect to order, Order to cash, Flow of materials, Flow of money, Flow of information and decissions, Recruit to retire, etc.
8. The current processes are imbalanced. They do not meet expectations of all the business stake holders as well as statutatory stakeholders.