Effective process management is not something that can be built overnight but is critical to the success of process management programs. Recent research by APQC indicates that only 52% of organizations feel their process management programs are somewhat effective, and only 11% feel they are very effective. However, the survey findings also point out three opportunities for growth:

 

1. Align process programs with organizational strategy
2. Measure process performance
3. Ensure a strong focus on process governance

 

Organizations looking to leverage opportunities for growth and to build their process program on a strong foundation should consider the points outlined in this article.

First, the structure.

Organizations can structure their process team in a variety of ways; and most often, the same way won’t work best for every organization. According to APQC’s research, most organizations (44%) have centralized process teams, 29% have federated teams, 14% have decentralized teams, and 13% follow an ad hoc approach.

 

While organizations will favor the structure that works best with their organization’s overall structure; there are pros and cons to consider with each structure.

 

Next, align to strategy.

Process work has traditionally involved teams driving efficiencies in cost, cycle time, and throughput. However, over the last few years, process teams are shifting these tactical objectives under broader organizational drivers. ​

While some organizations are not aligning to strategy as well as they should, 49% of organizations do align their process efforts to organizational strategy.

 

Strategy and process management activities should intertwine and inform each other. The following best practices lead to greater alignment of strategy with the work of the rest of the organization:

1. Planning – Do not limit strategic planning processes to the corporate level, and make sure that the planning process is constantly evolving with business needs and forecasts. Continuous improvement is a best-practice mantra.
2. Measurement – Use qualitative data in addition to carefully selected quantitative data points to set strategic plans but remember that financial numbers only tell part of the story. Qualitative information can provide the context needed to make valid decisions.
3. Organizational structure, communication, and culture – Strategic plans should include processes for communicating strategy. The organization will never be aligned if strategy is not clearly and consistently communicated and discussed. Embed strategic planning into people’s roles, driving employees to feel motivated to contribute and feel that their time is valued.
4. Process design – Integrate the strategic planning process with quality processes. Be sure that quality and strategy inform each other and enable enterprise success.

 

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Lastly, measure process performance.

Once organizations have selected their team structure and defined their strategy, it’s time to consider how they will measure the performance of their process efforts. When organizations were asked how they use measures in managing process performance, 30% of organizations only use ad hoc measures, and 16% have no process measures at all.

 

Measurement enables decision making at all levels in the organization. Without measuring, leaders manage and make changes in the dark, without a clear view of which changes need to be made and where.

Determining which measures align with strategic goals is the first step. Once the organization selects the initial sets of measures for the different audiences (e.g., executives, business units, departments, managers, frontline workers), those measures can be tracked over time and tweaked as necessary. When an organization can look at its performance on a granular level and see how those pieces roll up into high-level metrics, it can begin to adjust in the places where they will make the biggest difference.

Don’t forget about process governance.

Organizations can have the best process program strategies, linked to organizational objectives and with smart measures in place; however, if the right governance is not in place, those plans can fail.

Governance encompasses all the structural elements that help process management function and often dictates the efficiency and speed at which an organization implements and embeds process management into its practices. Appropriate governance ensures that the right changes are made to processes and that policies surrounding process design and management are clear and relevant to the entire enterprise.

 

According to APQC’s survey, 75% of organizations have process owners present in their organization and 57% have process improvement specialists. Only 38% of organizations have champions or steering committees, which vitally provide oversight and governance for process work, help to prioritize opportunities, and align processes and process work with organizational strategy and objectives. Thankfully, the number of process sponsors and champions at organizations has improved since the last time this survey was conducted in 2020, showing the increased importance organizations have placed on these more strategic process roles.

Process management programs are not built overnight, and they all follow a different path. Starting with the key topics outlined in this article can help organizations get off on the right foot.