statement of problem
The concept of process management was introduced from abroad and has been mentioned in China for many years. Many companies have established a "standard" process management system. However, in the face of the vast sea of forms and symbols in the process documents, in the face of the nameless Many companies can't help but be confused: where is the management benefit of the process?
Sorting out the process list of the enterprise and classifying and grading the process are inherently important to management, but is the value of process management only so?
Many consulting firms are happy to help clients build a perfect process management system, or even do it in multiple stages over many years. And after the consulting firm leaves, what is left for the enterprise?
Such enterprises have not figured out why they need process management, or what their current problems are, and what process management can solve.
Process management without a real driving force is an important reason why companies cannot feel the value of process management. This driving force does not come from the mentality of blindly following the trend and learning the so-called advanced management ideas, nor from the statement of the CEO of the company at the project mobilization meeting, but from the business and management benefits that the process can really bring. .
Depending on the nature of the customer itself, the purpose or value of process management will not be exactly the same. But in general, we can boil down to the following three common drivers.
Driver 1: Business Model Change
Among the drivers of process management or optimization, business model changes are infrequent, but when they occur, more radical process changes are triggered. Due to the re-selection of the strategy or the change of the business model, it will play a decisive role in the profitability of the enterprise. Therefore, the benefits of process management in this case can be seen from the following points.
1. Help enterprises re-master the entire business and management system from the dimension of the process. The business model has changed, and the organizational structure, process, and performance appraisal have all changed accordingly. Process management is a good tool for one-dimensional entry and multi-dimensional penetration. For the business department, the reorganization of the process can clarify the next step and how to deal with the change after the business model has changed.
2. A smooth transition to corporate turbulent times. Process changes caused by changes in business models are very similar to the business process reengineering (BPR) concept we were once familiar with: "Fundamental rethinking and Radical redesign of an enterprise's business processes to achieve Dramatic improvements in performance in cost, quality, service and speed." Business process reengineering forces companies to think: What are their strategic goals? How to get more market and customer satisfaction? What should be the way of working? Wait for such a question. It generally leads to the adjustment of the organizational structure of the enterprise, the change of employees, and so on. In this case, a complete set of process management methodology can reduce the confusion and confusion caused by business model changes from a system perspective, and reduce the risk of change.
From the perspective of the object of process management, process management in this period is mainly used to realize the optimization of the overall process structure, which is the basis for the optimization of a single process. Corresponds to the concept of the overall flow chart. Let's look at the case of a fast-moving consumer goods company.
This company used to be the market leader in the industry, and experienced a high-speed "free growth" stage from 2002 to 2003. The so-called free growth means that despite the extensive management of the headquarters and the immobility of various dealers, the sales volume can still skyrocket and become popular all the way. However, in 2004, the early and extensive management methods began to show drawbacks. Market competition is becoming increasingly fierce, and each of its brands is facing the impact of first-tier brands and even second- and third-tier brands in various markets. This led to a rapid decline in sales. At the same time, the company found that most dealers were operating at a low level and were far from being able to adapt to market challenges.
In a large number of interviews with the company's front-line sales agencies and distributors, we deeply realized that the adjustment of the strategic focus and the change of the business model are imminent. Therefore, starting from the sales and marketing division of labor, performance compensation design, resource planning and allocation strategy, customer management (reform of traditional channels and modern channels) and other aspects, the company has established a key direction for development in the future. Correspondingly, in order to implement the business model, we have established a general diagram of the process structure:
This general process diagram fully reflects the processes that we should focus on and sort out under the guidance of the business model. For example, in order to be closer to the market demand and to develop a long enough product line recognized by consumers more quickly, the process of new product development and launch should be sorted out, and the cooperation between sales, marketing, research and development, procurement and other departments should be done well. In an environment where modern business channels are increasingly emerging and dealers are passively waiting for the market, in order to implement the mechanism of survival of the fittest for dealers and improve the level of dealers' operation and management of the regional market, it is necessary to implement the dealer management process, and to add, cancel, and manage dealers. The examination is standardized.
We see that the process management driven by the business model aims at the implementation of the strategy, and uses a series of methods and steps to alleviate the shock and confusion brought about by the change, and the benefits are significant.