End2End Process Management

E N D 2 E N D P RO C E S S M A N AG E M E N T THE IS

FUNCTION

AS

CROSS

- F U N C T I O N A L I N T E G R ATO R

End2End processes as natural advancement of functional silo perspective Inconsistent process management fails to institutionalize End2End processes in organizational set-up

Process optimization in functional silos

End2End process optimization

End2End process optimization & organizational framework

Organizational bodies Function I

Function II

Process Efficiency

Process optimization within functions lacking harmonization and alignment with other functions & businesses

 Functional processes optimized

Function I

Function II

…

Cross-functional integration but without group-wide governance structure

 Functional processes optimized  Cross-functional process integration

Function I

Function II

…

Integrated processes embedded in organizational structure for sustainable management

 Functional processes optimized  Cross-functional process integration  Strategic E2E process management

2

Do not loose the orientation in times of increasing complexity

Multiple organizational dimensions influence corporate processes Due to a lack of unified governance processes frequently suffer severe shortcomings Business Units

Functions s

Flexible & agile business models

Standardized & efficient processes

Processes

Geographic specifics; e.g. time zones

Regions (geographic dimension)

Constant technological innovation

External (technologic innovations)

There is a strong need to align, integrate and implement the diverging process requirements in process design 4

You have to know the details in order to see the big picture

IS function as organizational integration node The IS function possesses insights in all organizational dimensions and technological innovations Central role of IS function in organization Business Units BU A Regions

Business Units

Functions

IS supports and enables businesses in multiple business areas

IS contains insights into all functional areas from systems administration and operational support

BU B

BU C

Functions

HR

External (technology)

Finance

Procurement

IS

IS BU D

The Global IS Organization is present in all regions

IS continuously screens the market for tech. innovations and aligns with partner companies

BU E

Regions

External (technology)

SCM

Quality

Legal

BU F

New role of the IS function: Integrator of the different organizational dimensions 6

Find the right balance between the organizational dimensions

Cross-functional integration contains process and structural elements Two-step approach for End2End process optimization I End2End processes  Group-wide harmonization of functional and business processes and systems  Definition and assignment of End2End process accountabilities Business Units

Functions IS

Regions

External (technology)

II Organizational frame End2End committee approach

End2End structure approach

O2C

P2P

…

Degree of organizational institutionalization

8

End2end processes for smooth cross-functional interfaces

I

End2End processes as next evolutionary step in process optimization

Group-wide End2End process alignment and cross-functional integration

Business

Function 1

Function II

Function III

Optimization in functional silos

Evolution of process optimization

 Functional process ownership  Functional process KPIs

Business

 Heterogeneous systems  Media breaks

Function 1

 Handoff failures  More waste & exception handling

Function II

Function III

End2End process optimization  Functional process ownership & End2End process accountability

 Cross-functional integration  Harmonized systems

 Faster cycle times  Interface friction reduction

Cross-functional process integration to be embedded in process board structure 10

Initiate cross-functional collaboration by connecting the right people

II

First step: Cross-functional integration through committees

Two committees complement each other on long-term and midterm goals

Process Initiatives

Boards

Process Demands

Group-wide process demands

Efficiency- vs. flexibility-oriented demands

Business Units Functions

Change requests and best practices

Continuous Improvement by process owners

… …

End2End process committees Regions Global Business Process Council (GBPC) Global Process Optimization Board (GPOB)

IS experts (External

Project prioritization

System harmonization

Process accountabilities

Two-layered committee structure for all process-related topics GBPC provides process governance and strategy GPOB details and implements decisions taken by GBPC

Group-wide End2End process alignment Project alignment

Different types of process demands/initiatives to be discussed and aligned

… …

All organizational dimensions of a cooperation are involved

12

Hardwire end2end orientation into the structure

II

Second step: End2End orientation as structural principle for new set-up

End2End orientation is institutionalized in organizational design

End2End service organization

Functional organization

O2C

P2P

...

R2R

HR

Finance

Procure... ment

… …

… …

… …

… …

… …

… …

Business Unit 1

Business Unit II

Business Unit III

Business Unit IV

Business ...

Unit ...

 Service delivery from End2End organization without functional boundaries  Functional departments providing expertise and governance

 Business is served directly from End2End service organization  Business interacts with functional organization for governance and steering issues

Business Units

14

Santiago: The Strategy and Structure Advisors

Santiago Advisors: Competent partner for CIO’s Selected IS programs and contact to Santiago Santiago Advisors are experts for organizational design and many leading companies rely on our services when it comes to fundamental organizational changes and complex reorganizations in the corporate and functional set-up.

We are thought leaders in IS Organization. Please do not hesitate to order other programs of interest (selection beneath) or visit our website www.santiago-advisors.com for more:  Building the IS Organization of the Future

 Enabling IS Structure

 IS as internal value partner

 Rethinking Business Relationship Management

 Bringing a new IS organization to life

 Project Insight IS Reorganization

Contact Santiago:

Your Data (for fax orders: +49 2156 4966 919)

Santiago GmbH & Co. KG

Company: ___________________________

Postfach 40 12 02

Name:

___________________________

D – 47866 Willich

Street:

___________________________

Fax +49 2156 4966 919

City:

___________________________

www.santiago-advisors.com

Tel.:

___________________________

Mail:

___________________________

Dr. Juan Rigall Managing Director

Dr. Alexander Tarlatt Managing Director

juan.rigall@santiago-advisors.com

alexander.tarlatt@santiago-advisors.com

Mobile +49 151 2033 53 21

Mobile +49 151 2033 53 22