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