Business Process: A NASCAR Perspective

This idea was an article in the February 2005 Harvard Business Review released with the title “Breakthrough Ideas for 2005.” The article has a brief summary of the 20 breakthrough ideas for 2005. One of these sub-title was “Seek Validity unreliability” and was by Roger L. Martin, dean of the Rotman School of Management at the University of Toronto and Director of the AIC Institute for Corporate Citizenship written.

Reliability versus validity

The article referenced above, the increase is a challenge for businesses the need for reliability-driven process with a search for validity has been balance. Here’s a key paragraph of the article, “Six Sigma, CRM, Sarbanes-Oxley, and most other enterprise systems have one thing in common. These are processes that affect reliability, they are designed to produce identical results or consistent in all circumstances to produce, often in the analysis of objective data of the past. for example, would be a perfectly reliable survey capable of producing the same result of samples of ten voters. In contrast, a perfectly valid his survey of the situation, the winner predict an election. “The article goes on to highlight the negative consequences of highly structured process. Loss of creativity and innovation here is a picture of the object to add more clarity.

Although the HBR article discusses the negative impact of business processes must be strictly applied, it is not to apply a model to assess the degree of structure for a particular business processes. The purpose of this paper is to provide such a model.

The view NASCAR

During my education and career, I have tried the business and business processes to assimilate biological systems, the thinking of organizations as organisms. Each agency has its own mental and physiological functions. This is the traditional model.

With this model, but I struggled with the question of how to apply much longer process and what functions? Instinctively I know that business processes are critical for success, regardless of the maturity of the organization. They ensure the effectiveness and coherence. Unfortunately, the search tend to yield reliable results through the application of highly structured business processes, to break the spirit of innovation.

I contend that “Excellent Company”, methods for balancing these competing, but develops critical to success. You must feel that the traditional view of society as is “body corpus” is wrong.

The model I propose is an additional component: the machine. To put it in the context of NASCAR, you have the attitude of the driver / knowledge (intellectual), physical fitness of the driver / experience (physiological) and the vehicle itself (engine). To win at NASCAR, the driver must have the confidence in his abilities and strategy, it must first take control of his vehicle and the vehicle must be perfectly adapted to training.

Intellectual

Develop is to win the trust of the hardest, because it has the largest number of variables. How does the driver now? Is it trust? What are their relationships? Has dependencies? What is she afraid of? Did she buy into the strategy?

Physiological

Control of the vehicle is a function of training, practice, coordination and endurance. It must be at the exchange rate with the performance characteristics of the vehicle with the track conditions. It must be capable of executing the strategy on track.

Machine

Finally, to see if they have a good mental and physical strength to achieve strategic goals – a car, the minimum acceptable performance specifications to be taken to implement its strategy successfully.

Process Matrix

The purpose of this exercise is to determine which have the above three areas to concentrate or process change based on the life of your business and industry respectively. In the traditional model, the operative (machine) and coordination (physiological) processes in the same structure have been treated at the maximum. The new model allows a more moderate to coordinate these processes that the organization. This allows for human intervention. It is changing the business of intellectual freedom and physiological processes to exceptions that sound strategies and creates intimacy with customers, design excellence, creativity, meaningful work, to check companies and corporate social responsibility ultimately successful. Here is an illustration of the process matrix.

Company type I
(New Society in Industry-News)

This company should focus on physiological processes and machines. The industry is new, so the idea was redesigned. It is now time to focus on execution. However, the mental processes (eg, SWOT analysis, strategy in the short term, long-term strategy, etc.) are checked periodically to ensure that you are on track.

Business Type II
(New mature companies in the industry)

This company should focus on physiological and mental processes. The industry and thus the “machine” now. The operating characteristics of the industry are well known and perfected. Your competitive advantage will be, different and refining coordination of your company (you can control the machine) think.

Company Type III
(Privately Held maturity in industry news)

This company should concentrate on the mental process and machine data. The industry may be new, but a mature society can change their thoughts on competition in this new space. It is to be defined and necessary, the basic machine processes such as production, shipment, delivery, order processing, etc. The term of the society is an indication that he decently physiological processes (for example, sales training, employee feedback, logistics, goal setting, communication, prioritization systems, payroll, etc..) However, it is important that they be reviewed in the light of further messages.

Company Type IV
(Privately Held mature mature industry)

This company should focus on intellectual processes. The company and the industry have been in the area. The company has a clear operational skills and strong coordination skills. And it is likely that this also applies to its competitors. The area where the company can still obtain a competitive advantage in the differentiation is line extension, the development of new products / services, other uses for existing products / services, etc. This field of intellectual processes – designed for a revolutionary concept.

No matter where you are located in the matrix (adults or new) as soon as you identify areas of interest, simply a set of rules: If mentally – minimal structure when physiological – moderate structure when the machine – structure maximum. It is not complicated!

What is the meaning

The point is that people performed tasks in three areas: intellectual, physiological and machine. Instead of a binary approach to the height / structure shall handle – it must be a graduate of maximizing the potential of human creativity and innovation is considered desirable. This article will help you determine where your priorities and how local structure to apply the process or processes relevant.

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