Advantages of Process Approach in an Organization

When organizations start measuring the processes, then they have to take actions for those processes where actual result is less than the targets. In such cases organizations have to take remedial steps. Since these remedial steps are for improving the processes, it means these steps will help strengthen the very foundation of the organization. This is what is commonly known in management as Institution Building which comes only when you adopt Process Approach.
From these remedial steps, organizations can extract following benefits:

1. The performance management tools such KPIs (Key Performance Indicators) of individual staff and MAIP (Manage's Annual Incentive Programme) etc. can be built upon these remedial steps. Individual staff will work hard to achieve the targets set in these tools in other words the underlying processes will improve.
Similarly BSCs (Balanced Scorecards) can be prepared on the basis of the processes and their remedial actions.

2. It will unleash great energy when every department starts measuring it's processes. This will lead the organization towards perfection in achieving output of desired characteristics.

3. The focus of every individual will be shifted from issues towards processes. In other words towards delivery of the desired targets hence achieving the organizational long term goals will be very easy since long term goals can be achieved only by effective processes.

4. This will help in institution building and thus will strengthen the system foundation for delivery of desired targets.

5. The Process Approach advocated by ISO 9001:2008 under "Guidance on the concept and use of the process approach for management systems" will be fulfilled. You will strengthen your Quality Management System and implementation of ISO 9001:2008 clauses.

6. This will help in laying emphasis on conducting Performance Audit of the QMS instead of Documentation Audit which is generally being undertaken. Auditors will have ready made sheet in front of them and they can see if sincere actions were initiated and followed by organization or not.

7. When every individual's focus is on process measurement and improvement then automatically organization will help build Process Approach Culture. This is the ultimate aspirations of management and business leaders.

8. This is what Peter Drucker advocates in his MBO (Management By Objectives).

9. There will be uniformity in organization in handling day to day business operations.

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