Effective Process Hierarchy: Two Structures Explained

Publishing date: 2025-02-28 00:00:00

A new LinkedIn newsletter of Caspar Jans was published on Feb 28, 2025 with the original title:

Process Hierarchy and Politics

Overview:

This episode discusses the concept of process hierarchy in business, highlighting the importance of organizing processes into functional and end-to-end structures to enhance governance and management. It emphasizes that while some elements remain consistent, each client may require tailored approaches.

Core content:

• Three meetings with different clients focused on a common topic: process hierarchy, a key area for effective business management and governance.
• Process hierarchy involves creating two connected structures: a fully functionally decomposed hierarchy and an end-to-end process hierarchy.
• The functional hierarchy breaks down business domains into sub-domains, vital for establishing process ownership.
• End-to-end processes, such as procure-to-pay, cross functional borders and present unique challenges for assigning ownership within organizations.
• Managing variations across countries and product lines in process execution is essential for addressing different organizational needs.

Learnings:

• Understanding two types of process hierarchies enhances your approach to designing and managing business processes effectively.
• Process ownership must be strategically assigned, particularly for end-to-end processes, to avoid political challenges.
• Identifying the most impactful processes aids in determining ownership, crucial for overall process efficiency.
• Addressing variations in processes across different contexts provides a pathway for more tailored business solutions.
• Common challenges in process management often require unique solutions, emphasizing the need for adaptability in approach.

The original content was published in English.

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