Google: Conflicts of Interest
Google is the most dominant search engine in the United States as well as in the world. It controls more than two-thirds of the readership in the United States. This means that if it were an actual newspaper, Google would have been open to antitrust violation lawsuits. Google has a greater stranglehold on the readership […]
Proven Quality Management Tools for Professionals
Quality Management tools help organization collect and analyze data for employees to easily understand and interpret information. Quality Management models require extensive planning and collecting relevant information about end-users. Customer feedbacks and expectations need to be carefully monitored and evaluated to deliver superior quality products. Quality Management tools help employees identify the common problems which […]
Why are Wages Not Rising in America?
Most Americans earn their income in the form of wages rather than in the form of investment income from shares, bonds or real estate. It is therefore important for the people of America that the wages keep increasing in proportion to productivity. However, this has not been the case. The average American worker has stagnant […]
The Two Conflicting Theories of Recession
The “R” word is back in town. Economists and analysts all over the world are now wary about the fact that a major recession may be just around the corner. They have different facts that make them believe that a recession may be about to happen. However, their conclusions are pretty much the same. For […]
BPO and the Global Economy – The Powershift to the East
In recent years, the BPO phenomenon has accompanied the increasing globalization of the world economy and has spawned a shift in the way the United States and Europe view the developing countries of the East. For instance, the increasing movement of companies wishing to outsource their back office work to India and Philippines has meant […]
Business in present times is very challenging and dynamic. The nature of markets, life cycle of products and services as well as the Customers and their expectations have changed. So has competition. No business can survive this change unless and until they re-invent themselves and equip themselves to face competition. While some Organizations build their competitive edge on research and development, some bank of human resource and delivery or support capabilities while many choose to bank on their Organization as the competitive edge.
By Organization we mean an Organization structure that is built on sound business processes that enables each and every resource to bring the best to the table and to deliver their promise to the customer. It also enables them to change and adapt to new requirements very fast thus enabling them to meet the new challenges emerging in the business environment on daily basis.
When we talk about Business Process Engineering or improvement, we are not referring to something that is entirely new to the business world. Along with industrialization we do see that the Organizations developed processes to help increase their productivity, aid in mass production as well as to help eliminate the obstacles. But then these processes were being relied upon to help co-ordinate the functions and not necessarily to drive the business operations. The processes relied upon people to follow them and the people needed to be supervised all the time to ensure productivity. At the same time we also see the earlier Organizations existing with hierarchical structures and division of authority, power and absence of delegation.
If we look at the phenomenal growth of the multinational companies who have made global impact in the past few decades, it is very clear that these Organizations chose to re-invent themselves and change to be ahead of the times. The re-invention of the Organization happened on the basis of business processes driving the business operations. Such processes depended upon delegation of authority as well as specific responsibilities too. These Organizations chose to end the bureaucracy that plagued them and embrace efficiency in the form of re-orienting themselves to the market requirement. The outcome of such changes is very evident as under:
Entire Organization aligned itself to focus on customer with every individual from management to operations keeping customer satisfaction as the goal of the entire Organization. Such alignment naturally leads to the Organization tuning in to the Customer requirement, anticipating his needs and focusing on planning for products for tomorrow. Automatically we see such Organizations building on their competitive advantage and an edge over competition.
Organizations gain a lot by improving their business processes. The removal of redundant processes and bureaucracy in decision making and un necessary paper work/documentation as well as hierarchical structure helps increase the productivity, efficiency as well as yields better return on investments made in the operational areas besides reducing mistakes and errors that cost the Company.
With efficient processes and visibility of performance, people get motivated to perform better. Imagine the effectiveness of the sales team when they find the new business process demanding less of their time in writing reports and documentation and giving them more time to be in front of the customer and close sales. The Organization will definitely benefit on the sales front.
Finally Business processes when designed and implemented well are very effective in driving, controlling and managing the business operations. The responsibilities and authorities get defined making the Organization more democratic and dynamic.
In the long run, bringing in business processes to manage the business helps the Organization expand its operations and businesses in multiple locations, geographies and markets while continuing to retain effective control over all business units.
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