STRATEGY: QUESTIONS AND ISSUES
Is process measurement a process, function, or both? Deciding which framework to guide, coordinate, and push organizational activities into different dimensions of success, competitiveness, market leadership, outstanding customer service, and so on is a difficult executive dilemma. Resolving this decision, or at least being clear on which approach best suits the organization, will determine how performance is to be measured.
One consideration in resolving this choice is results. Functional effectiveness can be incrementally enhanced; efficiencies, productivity improvements, and cost reductions are three examples. However, there is usually a point beyond which a function and its organization cannot proceed. On the other hand, as many case examples in this chapter will show, process-oriented activities can bring superior results, in addition to parallel gains in customer satisfaction, retention, and loyalty. This cannot be done, however, without pain. This chapter will opt for process because transition to processes has wider effects than simply the way work is conducted and measured. A second consideration is impact; impact on culture, structure, and human resources are three examples, Questions may arise, such as: What does process orientation mean for organizational capability? Are there special effects on individual competencies? How does training or education change in response?