Process approach to management: the essence and basic principles

process approach in the management of commercial activities determines the company as a set of business processes that are linked the company's mission and purpose of its activities.

In modern conditions more and more companies come to the conclusion that you can most effectively manage the business, not as a collection of separate functions, but as a set of business processes, which represent the essence of the activity.This approach has been applied in the management of recently due to increased competition and an increase in the dynamics of the environment.It aims to enhance business agility, reducing the response time to market changes, improved performance and a better achievement of the objectives.

However, the process approach to management is not the only option, since there are other approaches - Situation or system, for example.The system treats a company, organization as a community of interconnected elements that are focused on achieving the goals during regular changing environment.The situational approach also argues that the use of different methods and actions are always determined based on the situation.

process approach to management: especially the introduction of the company

process of implementation of this approach in the company takes place according to the following stages:

  • revealed a network of key business processes (in the form in which they are located at the beginning of an approach);

  • processes are ranked by level of importance, to create a preliminary model;

  • going analysis of all processes and the identification of "bottlenecks", ie. E. The problem areas that should be explored more thoroughly;

  • on the basis of the findings are based model showing perfect during the process.

to introduce this innovation can both across the enterprise and at a certain portion thereof.

Process approach: basic principles

Perceptions of business as a system:

  • company in any way considered as a system, including its development;

  • solving local problems do not change the system, you can only change the totality of the whole.

perception activities as a process:

  • any activity can be improved - this is the goal pursued by process management;

  • in any activity there is a division on the availability of material resources, the personnel at the time and so on.

development of standards and the introduction of the principle of transparency, accountability:

  • any activity aimed at obtaining results by converting the input to the output of production;

  • in each process must be determined vendor input and output products - it is necessary to determine responsibility.Also, the input and output of the product has a consumer who is interested in its maximum capacity.

standardization and transparency of responsibility:

  • responsible for the creation of a system lies with the senior management of the company;

  • each process has its owner, who is responsible for the quality of its implementation;

  • all processes should be standardized and transparent, so you can quickly find the problem.

process approach to management includes a description of the business as a set of processes and control system, and improve the management of these processes.We can say that for the application of the process approach is necessary description, optimization and process automation.The most well it can be done with the help of special systems.Especially process approach to management helps in those units, which originally requires a high level of standardization of all processes and where most are painted - it's accounting, economic, planning department and so on.