Each project is the work of specific people. If you forgot about motivation...
Modern realities make it necessary to adapt the management apparatus to a dynamically developing environment with fierce competition. The opinions of professionals in this regard differ. Some completely deny the importance of organizational and economic methods, others propose to appoint a person responsible for each management function.
Practical experience shows that the use of only a functional approach leads to a decrease in the effectiveness of management. What is the essence of other management methods? What is the process approach focused on and what are its advantages?
4 approaches to management
In modern management, there are four types that allow you to take a different look at the organization and management process. This is a quantitative, process approach, systemic, situational, which arose in the twentieth century.
An approach | |
Quantitative | Arose in 1950, with the development of the exact sciences. Computers, achievements of mathematics, physics began to be actively used in management. Construction of virtual models for resource allocation, inventory management, maintenance, strategic planning, etc. |
process | The founder of the direction A. Fayol, the time of occurrence is the second decade of the twentieth century. According to the approach, management is presented as a continuous process or cycle. Its foundation is formed by the main functions: planning, organization, motivation and control. |
Systemic | Appeared in the middle of the twentieth century. Considers the organization as an open system interacting with the external environment. The internal environment contains elements of the subsystem: divisions, technologies, management levels. |
situational | Formed in 60 of the XX century. Supporters of the approach recommend choosing management methods taking into account the situation and environmental factors. The most effective method is the one that suits the circumstances. |
Process approach in management
The modern process approach is based on a systematic approach to management and considers any organization as a single organism. At each enterprise, a variety of business processes take place, taking resources at the input, and giving a semi-finished product or product at the output. The whole cycle is closed on the release of finished goods, services.
This approach consists in such an organization of work, which is based on the division of all enterprise activities into business processes, and the management apparatus into blocks. The whole system can be represented as a scheme, a chain with separate links - operations. The end result of the production chain is the product. The links responsible for a specific business process are formed from structural units.
Basics of the process approach
In order to make it more clear, we have arranged all the postulates in the table below.
The process approach is based on several principles. | Main features of the approach |
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Problems in the implementation of the process approach
In theory, the process approach looks simple and logical, but its implementation in the activities of the enterprise in practice turns out to be difficult. At the same time, it is worth paying attention to real examples, the practical result of other organizations, the opinion of professional consultants. For any organization, the implementation of an untested theory results in large monetary and other costs.
The application of the process approach in practice is associated with a number of problems:
- management introduces a process approach in management only at a formal level;
- the created system does not correspond to the real state of affairs in the organization;
- an attempt to introduce an approach at an informal level;
- managers do not perceive the approach as a new organizational ideology;
- management does not think about the need to regulate processes or does not know how to manage them;
- managers are not ready for fundamental changes, for example, a revision of the company's structure;
- lack of competence, motivation, dedication, perseverance in optimizing processes.
Process approach in the organization and quality management system
One of the main requirements of ISO 9001:2000 is the implementation of the process approach. According to the standard, it is necessary to identify processes and organize their management, but a specific system of actions is not given.
Many managers, starting work on the creation of a QMS, perceive its implementation as informal. At the same time, they emphasize how significant are the expected changes for the better that arise during implementation, and not the QMS certificate itself. In practice, the implementation of the project creates difficulties. They frighten the management of the organization, which decides to confine itself to complying with the formal requirements of ISO.
Thus, QMS remains at the formal level. As a result, frustrated staff have a negative attitude towards the system itself and the process approach.
Methods of transition to process management
All of them are presented in the table:
Full method | through method |
The process and system approach is based on the allocation of business processes based on the current organizational structure. After that, there is a transition to the process structure. Its foundation is based on several provisions. | Process and situational approach. The management identifies end-to-end business processes for which a description of the workflow and sequence of work is prepared. At the next stage, they are included in a new process structure, usually a matrix one. |
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What does the description and regulation of processes provide?
The increase in efficiency is not directly related to the regulation of processes. Descriptions and regulations may not be in the enterprise. The work will still be carried out by employees according to the accepted rules, since the staff knows the production process. Such an organization of work leads to a constant loss of resources. Description and regulation of processes open up a number of possibilities:
- Activities within the framework of standards, repeatability of processes create opportunities for management.
- Identification of problems, difficult moments, loss of resources in the implementation of processes.
- Development of measures to improve processes.
- Experience and knowledge of work processes that can be transferred to new employees, branches, other organizations.
- Implementation of benchmarking, comparing your company with competitors to improve business processes.
- Internal audit.
Regulation is effective if it is accompanied by analysis, development and implementation of improvements.
The ideology of the process approach
The process approach and its real, rather than formal, implementation in the management system causes many difficulties. The problem for management is the lack of leadership skills and the ability to involve staff. Change in the creation of new systems must first occur in the minds of workers.
Employee involvement is facilitated if this approach is perceived as an ideology. First, the idea penetrates the minds of people, and then becomes a tool. Then the staff will be ready to apply new methods and programs, for which they must be encouraged.
Conclusion
In many countries of the world, the process approach to management is perceived as the main success factor in business. It is no coincidence that it became the basis of quality management standards. The effectiveness of the approach has not yet been confirmed by real examples of implementation at Russian enterprises. There are few examples, as well as new benefits from the implementation of the standard. The reason is that many organizations simply changed the terminology: there was a sales department, there was a “Sales” process. Department heads have become process owners.
The process approach in management is the main tool among the tools that are used by management to reorganize the management system.
Annotation: The purpose of the lecture: Presentation of the process approach to the organization of enterprise management
Introduction
Process approach assumes that the activity of the enterprise can be represented as a set of running business processes. It is effective for enterprises in whose production activities there is a repeated repetition of the same chains of actions performed by different performers. Such enterprises are the majority of office companies engaged in various types of work with documents, such as banks, insurance, investment companies, consulting companies, publishing houses. Also, the use of the process approach is effective in enterprises whose activities are described by detailed regulations, for example, in government bodies.
About a hundred different definitions of the concept of business process are used in the literature. Therefore, in this course we will not give a general definition of a business process, we will only note that, as a rule, the definition assumes that a business process has a graphical diagram on which nodes and transitions (arrows) are located. Control points move along transitions.
The appearance of a control point in a node of a certain type corresponds to the performance of some action in the production activity of the enterprise. Transitions in the business process diagram, as well as nodes for branching and merging control points, are arranged in such a way that the actions taken into account in the business process are performed in a coordinated and in the correct order. Process approach does not imply mandatory automation of the enterprise. Business processes can be of two types: Business processes for analytical modeling of enterprise activities and executable business processes.
Business processes for analytical modeling are actually a special language of communication for managers, business analysts and business leaders and are used to develop and explain basic decisions for organizing an enterprise's business. Their task is to ensure the perception and understanding of these decisions by people, therefore they do not contain details, as a rule, they are limited to describing only frequently used sequences of actions that do not contain any deviations, the sequences of actions described in them are not intended for real execution.
Executable business processes, on the other hand, involve moving control points around a business process diagram in a computer environment in exact accordance with the actions performed in the enterprise. Implement such computer environments - business process management systems and. Further we will call them - SUBPiAR. In fact, the SMSAP distributes tasks to the executor in accordance with the movement of control points along the business process diagram and controls the execution of these tasks.
Historically process approach initially included only business processes for analytical modeling. As part of this approach, the company's business processes were identified, the identified business processes were analyzed, and proposals were generated to improve business efficiency by changing business processes. Further, the implementation of changed business processes in the enterprise was carried out. It happened, as a rule, rather long and complicated - through a change in job descriptions, organizational structure, direct instructions from managers.
The advent of executable business processes has brought many new benefits to the process approach. The main ones are:
- the use of SMS and AR as an analogue of the production line and, as a result, a significant increase in the productivity of office workers
- the ability to quickly change the business processes of the enterprise in response to changing business conditions
In recent years, there has been an active introduction of SMS and AR both in business and in government organizations. Therefore, there was a need to train students of both economic specialties and specialties related to information technology, the process approach and work with SMS&AR.
This course deals primarily with executable business processes. The course provides the definition and main characteristics of executable business processes, describes business process management systems and administrative regulations and their main components. The bases of development of business processes of the enterprise are stated. It is assumed that within the framework of this course, students will study the theory of executable business processes, the main components of typical SMSS, get acquainted with graphic notations for describing business processes, and gain practical experience in developing and executing business processes.
The description of the main elements of business process management systems is given on the example of a free open source system - RunaWFE. RunaWFE is freely distributed along with its source codes under the open license LGPL. The system is free, it can be freely installed on any number of computers and used without any restrictions. You can download distributions and source code via the Internet from the sourceforge free software developer portal. net at: .
The address of the RunaWFE project website is http://www.runawfe.org/rus .
Process approach to the organization of enterprise management
Process control levels
The modern view of process management involves dividing management into several levels.
At the first level, the overall strategic management of the enterprise is considered. This level uses business processes for analytical modeling. The task of business processes of this level is the formation of general ideas about the main business processes of the enterprise and the exchange of these ideas between managers. This level does not imply the actual execution of the developed business processes. At the first level, it is convenient to depict business processes in graphical notations IDEF0, IDEF3, DFD, EPC, and related ones. You can also use some BPMN 2.0 notation constructs at this level. As software tools for working with business processes at the first level, you can use, for example, programs such as Business Studio, Microsoft Visio or ARIS.
It is possible to describe the sequence of actions in the business processes of the first level simply in the form of text, such descriptions are called text regulations. However, people perceive visual information much faster and easier than textual descriptions. Therefore, it is the graphical representations of the simulated business processes that are most widely used.
At the first level of process management, simulation tools are also used. This class of programs does not provide for the actual execution of enterprise business processes in a computer environment. Simulation systems contain a customized statistical model of an organization's business processes. By setting various parameters of this model and repeatedly "playing" business processes on conditional automatic users, it is possible to obtain the values of various performance indicators and thus predict the change in the real indicators of the enterprise in the future, depending on certain changes in business processes. If the statistical model is built correctly, then simulation modeling can be a means of determining the optimal parameters of business processes.
At the next level, the strategic business processes of the enterprise are translated into executable business processes. At this level, business process diagrams are usually depicted in BPMN, UML (Activity Diagram) and related notations. At the second level, the current activity of the enterprise is represented as a set of running instances of business processes. At this level, SMS&AR are used. The main task of these systems is to distribute tasks to performers and control their implementation. Together with the task, the executor receives the information required for its execution. The sequence of tasks is determined by the business process diagram, which can be developed and then quickly modified using a graphic designer. This diagram is similar to the block diagram of an algorithm. Control points move along the scheme. In certain nodes of the scheme, tasks are generated for executors.
There are certain similarities between an executable business process and a computer program. Both an executable business process and a computer program are based on algorithms. For computer programs, as well as for business processes for analytical modeling, there are graphical notations (such as the UML class diagram) that programmers and software architects use to explain various software and architectural decisions. However, computer programs themselves are still not massively developed in the form of graphic objects, they are mainly written in the form of texts in programming languages. How is the situation for executable business processes different from computer programs? Unlike a computer program, the commands of which are executed by a computer, part of the actions of a business process are performed by people. They do this much longer than a computer, so business process instances take a relatively long time to complete, and their state changes slowly. Moreover, unlike a computer program, during the execution of business processes, the management of an enterprise can significantly influence their implementation, for example, increase or decrease the number of employees performing certain actions.
Therefore, it is important for the leaders and managers of the enterprise to quickly understand the state of the running instances of the business processes of the enterprise. Such an understanding is given by a graphical diagram of a business process with the current positions of control points plotted on it, as well as the routes passed by these points since the start of the business process instance. For computer programs, such diagrams in most cases do not make sense, because. the speed of movement of control points will significantly exceed the limits of human capabilities to track them.
The third level corresponds to the business objects of the enterprise. The state of the entire enterprise at the current point in time is determined by the state of all business objects of the enterprise at that point in time. The process approach assumes that the states of business objects are changed by second-level business process instances when the corresponding tasks are performed. For this layer, content management systems (ECM systems) or database management systems are traditionally used as repositories. It is also possible to use ERP systems at this level (for example, you can use the 1C system, or Galaktika).
In the business process development examples, we will sometimes use sheets of Microsoft Excel documents as the storage for business objects. This is for educational purposes, to demonstrate the concept of the third layer easily and quickly.
Advantages of the process approach
The use of a process approach at the first level leads to the emergence of a common language for describing business processes for all managers of an enterprise, based on graphical diagrams. After the employees of the enterprise have mastered this language, they will be able to quickly read existing business processes, discuss their features, and propose various changes. After conducting an enterprise survey, identifying repetitive sequences of actions and grouping them into first-level business processes, it becomes possible to analyze selected business processes, identify and correct unsuccessful decisions, optimize bottlenecks and critical sections of business processes. If the activity of the enterprise is not formalized, business processes are not described, then it is difficult to improve and optimize management.
Using executable business processes provides the following benefits:
- Significantly increases productivity
- Significantly simplifies the activity of monitoring the work performed. Increases the transparency of the enterprise.
- Increases the quality of the company's products, because - due to automatic regulation and monitoring means, compliance with all stipulated rules is ensured
- Allows you to quickly change business processes in response to changing conditions of the enterprise
- Allows you to solve the problem of enterprise scale integration
- Reduces the cost of enterprise automation work, increases the speed of development and reliability of software.
Let's take a closer look at these benefits.
Previously (before the advent of executable business processes), the implementation of business processes in organizations was carried out mainly indirectly - through changes in job descriptions, the organizational structure of the enterprise, direct instructions from managers. However, the degree of automation of modern enterprises allows for the direct execution of business processes in a computer environment. In this case, an analogue of the production conveyor appears at the enterprise, from which it is possible to obtain an increase in labor productivity comparable to that obtained from the introduction of the conveyor in production. The increase in labor productivity is achieved due to the fact that this mechanism makes it possible to exclude routine operations, inefficient procedures related to the search and transmission of information from the actions of employees, and significantly increase the speed of interaction between employees. Employees perform assigned tasks without being distracted by:
- Obtaining from other employees the data necessary to complete the task
- Transferring the results of your work to other employees
- Studying job descriptions
Everything necessary appears in front of the employee on the computer screen. The sequence of work elements execution is determined by the business process diagram. In the nodes of the scheme, the SUBP&AR distributes tasks to the performers and controls their implementation.
The use of executable business processes also allows you to quickly rebuild the organization's business processes. In many cases, task performers may not even be informed of a change in business process, as this will not affect the nature of their work. That is, it is easier and faster to change the execution of processes. Thus, the enterprise can more effectively respond to changes in internal or external conditions.
A modern Russian enterprise, as a rule, already operates several heterogeneous automated systems that participate in any business processes of the enterprise. Since business processes permeate the entire enterprise, in the process of execution they will have to interact with all automated systems. Thus, the task of implementing an SMS and AR turns out to be a special case of the task of integrating enterprise-wide computer applications. In other words, when implementing an SMS and AR, applications should appear in the enterprise that ensure its integration with existing systems.
SMSS is a central part of modern enterprise-wide systems. If there is no SMS&AR in the corporate information system (CIS), then the logic of business processes is scattered across various elements of the system - databases, individual applications, etc., such systems are difficult to maintain and develop further.
At enterprises with stable repetitive chains of operations, the implementation, configuration and maintenance of systems based on SMS and AR is faster and cheaper than traditional automation, in which separate application components are developed for various tasks and departments. SMS and AR allow:
- Quickly adapt development to changing tasks and new ideas during development
- Reduce development costs by:
- Development of business processes by means of SMS and AR instead of writing code
- Exclusion of interaction between programmers and the customer. It is much more comfortable for a business analyst and a customer to interact with each other when jointly developing the main elements of an executable business process scheme than for a customer and a programmer when discussing the text of a technical task
- In this case, the programmer is freed from routine tasks and can focus on the development of complex graphic elements and connectors, which increases the efficiency of his work.
- Reduce the cost of technical support
- Significantly reduce the cost of improvements and maintenance
In traditional development, the solution is described twice: once with the help of the text included in the terms of reference or technical project, the second time - in the form of program code. The process approach allows you to describe the solution only once, in the form of an executable business process, and thus reduce the cost of automation.
These advantages (faster, cheaper, easier to support and maintain) coincide with the advantages of the object-oriented programming paradigm in comparison with the procedural programming paradigm, which was almost superseded by it. By analogy, automation based on executable business processes can be interpreted as a new paradigm of high-level programming and can be expected to significantly increase the scale of its use compared to traditional automation.
Executable business processes and SMSS
Business process management is an actively developing area and many terms in it have not yet fully settled down. Various authors resort to concepts such as SMSS, workflow management systems (Workflow), document management systems (Docflow), enterprise-wide integration systems (EAI - Enterprise Application Integration), etc.
We will use the term workflow management in relation to cases where the executors of business process tasks are only people. We will consider the term SMS and AR as more general in relation to workflow management: the executors of the tasks of a business process or regulation in an SMS are both people and computer applications. As a rule, SMS&AR coordinates the work of all performers in a uniform way, without highlighting in a special way the work performed by a person or computer systems.
In addition to SMS and AR, document management systems, or DocFlow systems, have become widespread. Instead of control points, document management systems use "document flow". DocFlow-systems describe the activities of the enterprise in the form of documents traveling between their editors along certain routes in accordance with specified rules.
DocFlow systems are the heirs of paper workflow. Their natural limitations follow from here: a limited set of actions can be performed with a document: approve / refuse, approve, delete, edit, etc. Usually, document management systems are supplemented by systems for storing images of paper documents and version control systems. The main advantage of document management systems is the possibility of their rapid implementation in the enterprise, if the workflow is already well established there.
In workflow systems, as well as in SMSS, there are graph-based schemes that consist of nodes connected by possible transitions. However, it is not control points that move along these columns, but "baskets" of documents. In DocFlow systems, as a rule, data is contained within documents that directly move along the workflow scheme.
In SMSA, data does not move with the management point, but is contained in global (corresponding to the entire business process) and local (corresponding to one node) variables.
Currently, SMS and AR systems are systems of different types, however, in terms of functionality, document management systems are gradually approaching SMS and AR. With the help of modern DocFlow systems, it is possible to model many types of business processes, and with the help of SMS and AR, it is possible to automate the elements of workflow.
Executable business processes
The evolution of SMSS development has led to the use in modern systems of such concepts as the definition of a business process and business process instance. Sometimes a business process definition is also referred to as a business process template. A business process definition contains a business process diagram, business process roles, rules for assigning executors to roles. During the execution of a business process, control points move along the diagram. The easiest way to think of control points and their movement is by analogy with moving pieces in a children's board game with a dice.
The business process definition also contains a description of the data storage structures. During the execution of a business process, these structures contain specific data. Even in modern SMSS and AR, the definition of a business process contains a description of the means of interaction between the business process and the task executor. Usually this is a graphic form for user interaction, or a software interface for interacting with an information system. Another element of the business process definition is the business rules that are used to select a specific path for the further movement of the control point at the branching points of the routes.
For each business process definition, you can create and run instances of that business process. The difference between a definition and a business process instance corresponds to the difference between a variable type and a traditional programming language variable instance. That is, if the business process definition contains a business process diagram, data types, role names, then in the running instance of the business process, the diagram contains moving control points, specific executors are assigned to the roles, business process instance contains specific data whose types correspond to the data types in the business process definition. Also, in business process instances, specific task executors are assigned to roles.
Business processes that can be executed in a computer environment must be formally defined rigorously enough so that they can be easily translated into a computer-understandable representation. For this, it is convenient to use mathematical concepts.
Let's give a formal definition of an executable business process, which is based on the ideas of S. Yablonsky and S. Bussler:
An executable business process is defined by specifying the following perspectives (viewpoints or layers/levels of consideration):
- control-flow perspective
- data perspective
- resource perspective
- operational perspective
Let us consider in detail all levels of the formal definition of an executable business process. In this case, as an example, we will use the business process "Payment of the supplier's invoice". With its help, we will try to explain all the prospects for the formal definition of a business process.
Control Flow Perspective
The control flow perspective follows the business process diagram. Initially, the scheme was defined as a mathematical concept - a directed graph: a set of nodes connected by transitions (arrows). Business process nodes could be of two types - nodes corresponding to process steps and route nodes. A control point (a pointer to the active process node) moves along transitions, guided by business rules in the route nodes (business rules also apply to the control flow perspective).
The node corresponding to the process step contains the Activity node. If the control point came to the action node, then the SMSS gives the task to the executor (employee or information system) and waits for a response (message that the work has been completed). After the worker responds, the control point moves along the transition to the next business process node. A node corresponding to an action node can have only one incoming and one outgoing transition adjoining it.
A route node corresponds to the appearance, removal, branching-merging of control points, or the selection of a transition along which the control point will be moved further. At such nodes, the SMSR selects, based on the business rules contained in the routing nodes, the next node(s) to which control will be transferred. Often more than one incoming or outgoing hop is associated with these nodes.
The fundamental difference between a process step and a route node is that the route node only needs to make a decision about the further path (paths) of the control point based on existing data, so the control point should not stay in the route node for a long time. A control point can stay at a process step for a long time. An exception to this rule is merging route nodes, in which incoming control points "wait" for the arrival of control points along the remaining incoming transitions, after which all incoming control points are destroyed and control points are generated along outgoing transitions. However, if we assume that the control point that came to the merge node is deleted immediately, while the node stores information that the control point has already arrived via this transition, then this exception disappears.
A running business process instance can have multiple control points at the same time. In accordance with the business logic, the control point in the route node can be divided into several control points, also the control points can wait for each other in a certain route node and then merge into one control point.
Later, with the advent of various standards and specifications related to business processes, this definition was expanded:
- Combined nodes have been added, which are the merging of a process step with one or more route nodes. For example, when an action node is merged with a route node behind it, which selects one of several possible directions, only the action node is placed in the scheme and transitions that must exit from the route node are directly attached to it.
- Additional structures have been added, the elements of which are not elements of the graph (hereinafter referred to as additional structures), however, transitions and route nodes can be attached to these elements, or transitions can intersect these elements. For example, events and break areas have been introduced that enclose the steps of a business process. When the control point is located inside the area with interruption, an event may occur (the client may change his mind about placing an order, force majeure circumstances may occur during the validity of the contract, etc.). In this case, the control point can immediately move from any node inside the area to the route node attached to the area and from there continue moving along the transition attached to it.
- Nodes have been added that correspond to a process step, but are not action nodes. For example, waiting nodes, in which no tasks are given to the process executors, SMS&AR simply waits in these nodes for the occurrence of a certain event, after which the control point moves on. Subprocess nodes have also been added. For these nodes, a specific executor is not defined; in these nodes, the SMS&AR starts another business process as a sub-process of the current process and transfers the corresponding data to it.
With additions, the control flow perspective can be defined as follows:
The Control Flow Perspective is a Business Process Diagram A business process diagram consists of a directed graph and possibly additional constructs. Business process nodes can be of three types - nodes corresponding to process steps, route nodes and combined nodes, which are the merging of a process step with one or more route nodes.
Process steps are action nodes or optional nodes. Control points move along transitions. At the moment the control point arrives at the action node, the SMSS gives a task to the executor. After the task is completed by the executor, the control point moves along the transition to the next node of the process. A node corresponding to an action node can have only one incoming and one outgoing transition adjoining it.
A route node corresponds to the appearance, removal, splitting, merging of control points, or selection of a transition. These nodes can contain business rules based on which further paths of management points are selected. In route nodes, SMSAR selects the next node(s) to which control will be transferred.
Let us explain the behavior of the nodes most commonly used in business processes, and also provide their graphic images.
The "start" node corresponds to the start point of the business process execution. It has no incoming edges and one or more outgoing edges. At the moment of launching a business process instance, a control point is placed in the node, which immediately exits it along the outgoing edge. There must be a single "start" node in a business process. Denoted by a "thin" circle (Fig. 1.1 a). In the case of multiple outgoing transitions, the node is co-located with an exclusive gateway, so when starting a business process instance, the user selects one of the outgoing edges along which the control point will move further.
Rice. 1.1.
A "flow termination" node must have one or more incoming edges and no outgoing edges. When any management point enters this node, it is deleted. A business process instance that has no control points left is considered to be terminated. There can be multiple thread termination nodes, but there must be at least one such node. Denoted by a "bold" circle (Fig. 1.1 b).
The "end" node corresponds to the end point of the business process execution. The End node must have one or more incoming Transitions and no outgoing Transitions. When control hits End, all threads of this process, as well as all its synchronous subprocesses, are stopped. There can be multiple Finish nodes in a business process. However, this node is not required in a business process if there is at least one flow termination point in the business process. It is indicated by a black circle inside the circle (Fig. 1.1 c).
The "action" node generates a task for the executor, is indicated by a rectangle with rounded corners, in the center of which the name of the node is written (Fig. 1.1 d), it can have several incoming and several outgoing edges. In the case of several outgoing transitions, the node is combined with an exclusive gateway, therefore, for each control point that came to it, when the node is specified, the user selects one of the outgoing transitions (edges), along which the control point will be moved further.
An exclusive gateway node can have multiple incoming and multiple outgoing edges. For each control point that comes to it, it is selected which of the outgoing edges it will move next. It is designated by a rhombus, in which a "cross" is depicted (Fig. 1.2 a).
Rice. 1.3. Example of a business process diagram "Payment of a supplier invoice" (BPMN - notation)
On fig. 1.3 shows an example of a graph of the business process "Payment of the supplier's invoice". The steps of the process are shown as rectangles with rounded edges, the beginning of the process corresponds to a circle, the end - a circle with a circle inside. The "Pay bill" element is a combined node, which is a composition of a hop connection route node and an action node. The remaining rounded rectangles are action nodes. Elements in the form of rhombuses correspond to route nodes - places where the routes of control points branch.
At the beginning of the business process, the supply business manager enters the parameters of the proposed payment (account number, invoice date, invoice amount, counterparty company, agent company, comment). Further, the control of the execution of the budget of the unit is automatically performed. If the current deal exceeds the budget, then it is automatically rejected and the business process ends. If the unit's budget is not exceeded, the transaction amount is compared with the payment limit. Further, if the limit is not exceeded, the invoice is automatically paid, after which the business process is completed. If the limit is exceeded, it is necessary that the payment be confirmed by the financial director.
The business process "Vendor invoice payment" corresponds to the following business rules:
- If the external application called in the "Get data from the budget" node returned the value "no" to the variable "Is the department budget exceeded", then go to the limit check, otherwise go to the business process completion node.
- If the value of the "invoice amount" variable is less than the value of the "one-time payment limit" constant, go to the "invoice payment" node, otherwise go to the "confirm payment" node.
- If the executor belonging to the "Financial Director" role, filling in the fields in the appropriate form, returned the value "yes" to the variable "whether the manager approved", then go to the "invoice payment" node, otherwise - to the business process completion node.
- business process management can also be complex and differ from the behavior of a control point in a traditional flowchart: in this example, if the application is approved by the boss, the control flow is divided into two parallel flows (separation and merging of flows corresponds to an element in the form of a diamond, inside which shown "plus sign"), running simultaneously, which then "merge" at one point.
Data perspective
The data perspective corresponds to a set of internal business process variables. Business process variables can be incoming and outgoing parameters when interacting with SMS&AR with enterprise information systems. With the help of variables, information is exchanged between process steps and, as a result, between external information systems, i.e. a business process can transfer information in a corporate information environment between heterogeneous information systems. Business process variables are also used when choosing a specific internal movement of the control point between nodes along any of the possible transitions.
| Variable name | Variable type |
|---|---|
| Account number | Line |
| invoice date | date |
| Invoice amount | Number |
| Id (identification number) of the counterparty firm (legal entity to which the invoice is issued) | |
| Id of the firm - agent (legal entity that will make the payment) | Number - unique identifier |
Modern realities make it necessary to adapt the management apparatus to a dynamically developing environment with fierce competition. The opinions of professionals in this regard differ. Some completely deny the importance of organizational and economic methods, others propose to appoint a person responsible for each management function.
Practical experience shows that the use of only a functional approach leads to a decrease in the effectiveness of management. What is the essence of other management methods? What is the process approach focused on and what are its advantages?
4 approaches to management
In modern management, there are four types that allow you to take a different look at the organization and management process. This is a quantitative, process approach, systemic, situational, which arose in the twentieth century.
An approach | |
Quantitative | Arose in 1950, with the development of the exact sciences. Computers, achievements of mathematics, physics began to be actively used in management. Construction of virtual models for resource allocation, inventory management, maintenance, strategic planning, etc. |
process | The founder of the direction A. Fayol, the time of occurrence is the second decade of the twentieth century. According to the approach, management is presented as a continuous process or cycle. Its foundation is formed by the main functions: planning, organization, motivation and control. |
Systemic | Appeared in the middle of the twentieth century. Considers the organization as an open system interacting with the external environment. The internal environment contains elements of the subsystem: divisions, technologies, management levels. |
situational | Formed in 60 of the XX century. Supporters of the approach recommend choosing management methods taking into account the situation and environmental factors. The most effective method is the one that suits the circumstances. |
Process approach in management
The modern process approach is based on a systematic approach to management and considers any organization as a single organism. At each enterprise, a variety of business processes take place, taking resources at the input, and giving a semi-finished product or product at the output. The whole cycle is closed on the release of finished goods, services.
This approach consists in such an organization of work, which is based on the division of all enterprise activities into business processes, and the management apparatus into blocks. The whole system can be represented as a scheme, a chain with separate links - operations. The end result of the production chain is the product. The links responsible for a specific business process are formed from structural units.
Basics of the process approach
In order to make it more clear, we have arranged all the postulates in the table below.
The process approach is based on several principles. | Main features of the approach |
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Problems in the implementation of the process approach
In theory, the process approach looks simple and logical, but its implementation in the activities of the enterprise in practice turns out to be difficult. At the same time, it is worth paying attention to real examples, the practical result of other organizations, the opinion of professional consultants. For any organization, the implementation of an untested theory results in large monetary and other costs.
The application of the process approach in practice is associated with a number of problems:
- management introduces a process approach in management only at a formal level;
- the created system does not correspond to the real state of affairs in the organization;
- an attempt to introduce an approach at an informal level;
- managers do not perceive the approach as a new organizational ideology;
- management does not think about the need to regulate processes or does not know how to manage them;
- managers are not ready for fundamental changes, for example, a revision of the company's structure;
- lack of competence, motivation, dedication, perseverance in optimizing processes.
Process approach in the organization and quality management system
One of the main requirements of ISO 9001:2000 is the implementation of the process approach. According to the standard, it is necessary to identify processes and organize their management, but a specific system of actions is not given.
Many managers, starting work on the creation of a QMS, perceive its implementation as informal. At the same time, they emphasize how significant are the expected changes for the better that arise during implementation, and not the QMS certificate itself. In practice, the implementation of the project creates difficulties. They frighten the management of the organization, which decides to confine itself to complying with the formal requirements of ISO.
Thus, QMS remains at the formal level. As a result, frustrated staff have a negative attitude towards the system itself and the process approach.
Methods of transition to process management
All of them are presented in the table:
Full method | through method |
The process and system approach is based on the allocation of business processes based on the current organizational structure. After that, there is a transition to the process structure. Its foundation is based on several provisions. | Process and situational approach. The management identifies end-to-end business processes for which a description of the workflow and sequence of work is prepared. At the next stage, they are included in a new process structure, usually a matrix one. |
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What does the description and regulation of processes provide?
The increase in efficiency is not directly related to the regulation of processes. Descriptions and regulations may not be in the enterprise. The work will still be carried out by employees according to the accepted rules, since the staff knows the production process. Such an organization of work leads to a constant loss of resources. Description and regulation of processes open up a number of possibilities:
- Activities within the framework of standards, repeatability of processes create opportunities for management.
- Identification of problems, difficult moments, loss of resources in the implementation of processes.
- Development of measures to improve processes.
- Experience and knowledge of work processes that can be transferred to new employees, branches, other organizations.
- Implementation of benchmarking, comparing your company with competitors to improve business processes.
- Internal audit.
Regulation is effective if it is accompanied by analysis, development and implementation of improvements.
The ideology of the process approach
The process approach and its real, rather than formal, implementation in the management system causes many difficulties. The problem for management is the lack of leadership skills and the ability to involve staff. Change in the creation of new systems must first occur in the minds of workers.
Employee involvement is facilitated if this approach is perceived as an ideology. First, the idea penetrates the minds of people, and then becomes a tool. Then the staff will be ready to apply new methods and programs, for which they must be encouraged.
Conclusion
In many countries of the world, the process approach to management is perceived as the main success factor in business. It is no coincidence that it became the basis of quality management standards. The effectiveness of the approach has not yet been confirmed by real examples of implementation at Russian enterprises. There are few examples, as well as new benefits from the implementation of the standard. The reason is that many organizations simply changed the terminology: there was a sales department, there was a “Sales” process. Department heads have become process owners.
The process approach in management is the main tool among the tools that are used by management to reorganize the management system.
To determine the process approach to management, it is necessary to consider the so-called PDCA cycle (it is traditionally called the "Deming cycle", although E. Deming himself refers to the works of W. Shewhart). The Shewhart-Deming cycle includes four steps: process planning (Plan), process execution (Do), measurement and analysis of process performance indicators (Check), process adjustment (Act). An example of a business process managed by PDCA is shown in fig. 1.17 (IDEFO description standard, BPWin).
The process shown in fig. 1.17, corresponds to the PDCA cycle and the basic requirements of the process approach, formulated in the ISO 9001:2008 standard. The construction features of the ISO 9001:2008 standard make it possible to apply it in any field of activity in the management of any organization. Process description requirements are contained in clauses 5-8 of this standard. If you read it carefully, you can highlight the following main points: The management system consists of at least two levels. Management decisions are made by: a) the general director - the "first person" (section 5.6 of ISO 9001:2008); b) process owner - the manager responsible for the effectiveness of the process (clause 8.4 of ISO 9001:2008). The control system is based on mandatory, regulated feedbacks described in the PDCA cycle.
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All stages of the PDCA cycle are performed according to the regulations. When measuring and analyzing process performance, four main streams of information are used: Process performance. Product metrics. Consumer satisfaction indicators. Results of process audits. The standard requires the establishment of these indicators, methods for collecting, processing information, the boundaries of indicators for the normal course of the process and criteria for taking corrective actions. The managerial decision to change regulations or resources should be based on facts. It is necessary to appoint responsible - "process owners" who manage the processes, are responsible for their effectiveness and have the necessary resources and authority. Their interaction must be defined and formalized. The PDCA principle is replicated to the lower levels of management (decision making), if appropriate.
The process shown in fig. 1.17, meets all the requirements listed above. The methodology for building a process control system based on the PDCA cycle is discussed in detail in Chapter 4.
It should be noted that the ISO 9000 series standards understand the process approach to consider an organization as a network of interrelated and interacting business processes, each of which is managed by its owner.
Let's give a definition of the process approach to managing an organization:
The application of a system of interrelated processes to manage the activities and resources of an organization can be called a process approach.
When implementing a process approach to management, the following methods are used: creating a network of business processes; identification of business process owners; modeling (description) of business processes; regulation of business processes; business process management according to the PDCA methodology; audit of business processes.
There are five key points for implementing a process approach to management: Identify and describe existing business processes and how they interact in the organization's overall network of processes. A clear distribution of the responsibility of managers for each segment of the entire network of business processes of the organization. Determination of performance indicators of business processes and methods for their measurement (for example, statistical). Development and approval of regulations that formalize the operation of the system. Management of resources and regulations when deviations, inconsistencies in the process or product, or changes in the external environment (including changes in customer requirements) are detected.
The introduction of a process approach to management gives the organization the following opportunities:
Opportunity 1. The process approach makes it possible to optimize the corporate governance system, make it transparent for management and able to respond flexibly to changes in the external environment. When implementing the process approach, the following is regulated: the procedure for planning goals and activities; interaction between processes and departments of the organization;
responsibility and authority of process owners and other officials; the procedure for employees in emergency situations; the procedure and forms of reporting to top management; a system of indicators characterizing the effectiveness and efficiency of the organization as a whole and its processes; the procedure for reviewing performance results and making managerial decisions to eliminate deviations and achieve planned targets.
The introduction of a process approach in an organization primarily implies work on the description and regulation of business processes, within which: distribution of responsibility for the results of work included in the processes; the system of interaction between processes and with external suppliers and consumers is determined; a list of documentation necessary for the functioning of processes is determined (instructions, regulations, regulations, methods, job descriptions, etc.); a schedule is drawn up for the development and implementation of this documentation; indicators of the activity of processes, methods and forms of collecting information and the procedure for reporting to managers are established; the boundaries of indicators characterizing the normal course of processes are determined; criteria are established according to which work begins to eliminate the causes of the deviation.
Opportunity 2. The process approach allows you to obtain and use a system of indicators and criteria for assessing the effectiveness of management at each stage of the production / management
chains. The system of indicators built within the framework of process management is structured in four areas: Performance indicators of individual processes and the organization as a whole (achievement of planned results - in terms of volume, quality, nomenclature and timing). Performance indicators of individual processes and the organization as a whole (the ratio of the results obtained to the cost of time, financial and other resources). Indicators of products produced by the organization's processes. Indicators of customer satisfaction with the results of the organization's activities.
When implementing the process approach, a two-stage system of indicators is developed: a) indicators by which the owner of the process evaluates the effectiveness and efficiency of his process and the work included in it; b) indicators by which the process owner reports to top management on the results of the process. Among the processes that exist in an organization is the organization management process. This process is owned by the CEO. The management of the organization's activities is based on reporting indicators that the owners of the processes transfer to the top management.
Opportunity 3. The process approach provides the co-founders of the organization with confidence that the existing management system is aimed at constantly improving efficiency and maximizing the interests of stakeholders, because: the system is based on measuring the performance of the organization, planning and achieving continuous improvement in performance; the system is aimed at meeting the needs of five groups of people interested in the activities of the organization: co-founders (investors); consumers in the market
organization personnel; suppliers; society.
Opportunity 4. The developed and implemented business process management system ensures the implementation of the process approach in the organization in accordance with the requirements of the international standard ISO 9001:2008 and obtaining the appropriate certificate.
The presence of a certificate of conformity of the quality management system with the requirements of ISO 9001:2008 assures consumers that the organization will not only fulfill the specified requirements of the consumer, but will also try to establish and fulfill its intended requirements. The presence of ISO 9001:2008 certificate guarantees consumers that the organization pays great attention to the quality of work, which gives the organization a competitive advantage in the service market.
Opportunity 5. The introduction of a process approach and the construction of a quality management system guarantees a clearly defined procedure and responsibility for the development, coordination, approval and maintenance of documentation.
Opportunity 6. The requirement of process management is decision-making based on facts, therefore, the presence of an information system in the organization is of great importance for the creation of process management. The information system implemented in the organization allows process owners to obtain objective information for management if it is built within the framework of a unified organization management system based on the process approach. If the automation system is implemented without taking into account the needs of the real management of the organization, then the probability of unsuccessful completion of such a project is very high.
The introduction of a process management system in an organization is considered as a project. The main customers of the results of this project are the top management of the organization and process owners.
