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A Process Analysis Protects the Process from the Interests of the Existing Organisational Structure

   

Perhaps with the exception of the introduction of quality management systems, there is no method in current management practice which can more significantly influence real management than the so-called process analysis of an organisation.

[19.9.2001, TREND / RENÁTA KISELICOVÁ, PAVOL BOROŠ]

  
The core of a process analysis in an organisation is a very simple principle, which in the end, however, changes in a fundamental way the view to date of managers and employees of the management and decision-making in individual areas of management and individual sections of the organisation.

  

Process versus structure

 
The difference between a traditional approach to an organisation’s management and the approach based on an analysis of processes by their mutual comparison is the quickest to understand. The traditional approach assumes that if the management is able to correctly think up and implement in practice an organisational structure and the related management system, it is possible for the system of work organisation created in this way to fulfil all the tasks which need to be carried out in order to achieve the organisation’s targets.

  
Processes which are operational in individual management areas are in this case “subordinate” to the organisational structure. The quality of their performance directly depends on the quality of the work organised in the relevant section, which participates in its realisation in the organisation. The opposite is the case when the organisation implements elements of process management in its management practice. When deciding on the realisation of the performance of individual processes, the processes are “superior” to the organisational structure and the overall management system in the organisation adapts to the logic of the processes.

  

For an organisation, the fact that the performance of individual processes is carried out in the most economical, quickest and highest quality manner as is possible under the given circumstances is of primary importance, and not whether the organisational structure used suits the subjective needs and ideas of certain managers.

  
Wide application

   
In current practice, it is possible to use a process analysis in four management areas. In other words, a slightly modified method of carrying out a process analysis can be used in these four cases:

    
- re-engineering, organisational consulting, optimisation of human resources
- optimisation of costs
- implementation of information systems
- introduction of quality management systems.

   

The answer to the question of how it is possible for an almost identical method of carrying out a process analysis to be used in so many management areas is very simple. It is possible thanks to the development of a systematic approach to organisational analysis over the last few years and, last but not least, the use of computer technology and special applications which are capable of processing in real time a large quantity of analysed data and providing the necessary feedback for the solvers of process analyses to make decisions.

   

Principle of a process analysis

  

Each process analysis is usually carried out in the following order of actions:

  

1. Identification of the main processes taking place in the organisation.

  

2. Analysis of the organisation from the point of view of the current organisational structure whose aim is to identify the most important activities belonging to each process.

  

3. Identified activities are allocated to the processes and sub-processes carried out in the organisation – a so-called process model of the organisation is created.

   

4. Depending on which of the above-mentioned four management areas is defined as the project target, necessary resources are allocated to individual activities, and thus also to processes and sub-processes, which allow them to be performed realistically in the circumstance of the organisation. In the case of projects focused on re-engineering, these resources are usually human resources, in the case of projects focused on costs, these are financial resources in various forms, for example direct costs, operational costs or the costs of tied up resources.

  

5. As well as resources allowing the performance of each analysed activity, material, financial or information input which is necessary to create output from the given activity is also allocated at this stage to individual activities. For example, for the activity “calculation of salaries”, information on the number of processed documents is allocated to the input, and information on the number of processed employee salaries is added to the output.


6. After a detailed description of the whole organisation, there follows the final phase of resolving the project of process analysis, which changes once more according to the project target.

    
The project target can be, for example:

  

- the definition of a new organisational structure and an overall management system according to the results of the process analysis
- cost savings in the performance of individual activities, processes and sub-processes
- the elimination of lost time in the performance of processes
- the separation of certain selected processes outside the current organisation
- definition of performance indicators for individual activities for managing processes and the support of the company’s strategic direction
- support for implementing company information systems

    
Despite a simplified explanation of the basic principle and use stemming from the realisation of a process audit, it is obvious that the added value of their realisation is very high, especially in comparison with traditional methods of analysis for individual management areas.

  

RENÁTA KISELICOVÁ works for the consulting company S&K Management Systems, s.r.o., Bratislava, PAVOL BOROŠ works for the company Transfer Slovensko, s.r.o., Bratislava.

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