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Related Experiment Videos

How process enterprises really work.

M Hammer, S Stanton

    Harvard Business Review
    |February 8, 2000
    PubMed
    Summary
    This summary is machine-generated.

    Companies can achieve greater flexibility and responsiveness by aligning organizational structures with reengineered business processes. This involves empowering process owners, shifting focus to process goals, and fostering a culture of teamwork and customer centricity.

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    Area of Science:

    • Business Management
    • Organizational Studies
    • Process Engineering

    Background:

    • Many companies excel at reengineering core processes but struggle to align organizational structures.
    • Misalignment between integrated processes and fragmented management creates cognitive dissonance.
    • This disconnect hinders organizational adaptability and responsiveness.

    Purpose of the Study:

    • To explore the transition from process redesign to comprehensive process management.
    • To identify strategies for aligning organizational structures with reengineered processes.
    • To examine how leading companies achieve a state of process enterprise.

    Main Methods:

    • Analysis of organizational changes in companies like IBM, Texas Instruments, and Duke Power.

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  • Examination of shifts in management roles, measurement systems, and employee training.
  • Investigation of cultural changes emphasizing teamwork and customer focus over hierarchy.

    • Main Results:

    • Companies that align structure with process achieve harmony between management and operations.
    • Key changes include appointing process owners, focusing on process goals, and whole-process training.
    • Strategic decisions on process uniformity versus unit autonomy are crucial.
    • Cultural shifts towards teamwork and customer centricity are fundamental.

    Conclusions:

    • True process enterprises harmonize organizational structure with core processes.
    • This alignment results in significantly more flexible, adaptive, and responsive organizations.
    • Successful process management requires integrated organizational and cultural transformation.