Processes may be outsourced, maturity cannot
Raju Oak, a Consultant, Researcher and Change Agent specialising in Business Process Management, joins the Process Excellence Network to discuss Business Processes and Complexity.
R Oak: I have been a consultant, researcher and change agent in the last 27 years of my career. I have been privileged to have witnessed the early days of IT in India, the opening up of the economy, the great migration of intellectual resources, the rise of international process outsourcing, the growing understanding of process maturity and Business Process Management through its many incarnations, seen through the eyes of very different
I have had the opportunity to work with the first few companies as they attempted and scaled CMMI level 5. This gives me a unique perspective on process that I use to inform my PhD research.
• Clarity: The definition of Process Excellence is at best ambiguous. It focuses at different times on different operational characteristics such as ‘no mistakes’ (quality), ‘minimising cost’ (efficiency), ‘maximising resource capability’ (effectiveness), ‘doing that bit more’ (flexibility), ‘reducing risk’ (transparency), ‘predictability’ (control) and ‘performance’ (throughput, responsiveness). It is driven at different times variously by internal departments, the front office, specific customer needs, regulatory events and owner aspirations. The focus tends to be fleeting and fragmentary so that local improvements can sometimes propagate undesirable changes in the global process picture.
2. The prevailing mindset in the organisation.
• that the organisation is a machine - tend to deny complexity, and label the consequences as flaws in someone’s competence;
• that complexity is a necessary characteristic of organisations - tend to suffer the consequences and accept domination;
• that the organisation is a self-managing organism - tend to ignore complexity as long as they can hoping it will somehow resolve itself;
• that the organisation is a constant flux and transformation process - try to control complexity, seeing it as a temporary state to be tamed or simplified;
• that the organisation is an information-processing brain which can think its way out of complexity - recognise complexity well but avoid it and find a way to survive without getting in its way;
• that the organisation is essentially a culture pick and choose opportunities - to build a bridge over complexity (and often charge you to cross it safely)
Addressing complexity involves three R’s: Recognition, Resourcing and Response:
• Recognition is key because complexity is different and invidious. It doesn’t come organised in neat packages that can be labelled and delegated for resolution.
• Resourcing is important because resources skilled at managing complicatedness, however large, are rarely appropriate for managing complexity.
• Response is important because complexity is more tractable to certain types of response whereas conventional responses tend to further increase complexity.
• That have behaviours determined by (often dynamic and recursive) relationships which can in turn depend on other relationships;
• That all tend to share resources;
• That are characterised by distributed ownership; and
• That pursue different (often conflicting) outcomes at the micro and the macro levels.
• Within industries - complex value chains (consider the payments industry), large programme management, administration of complex financial/legal structures, etc.
Successful initiatives dealing with complexity are characterised by:
• Clarity on outcomes;
• Emphasising understanding before transformation;
• Multiple parallel but co-ordinated actions in a divergence/convergence learning pattern;
• Focus on building capability in managing complexity rather than purely on complexity resolution
• Managing complexity requires a very different approach as compared to managing complicated processes;
• Less is often more when dealing with complexity;
• Stability and understanding must precede predictability and change when planning transformations involving complexity; and
• Understanding is continuous and dynamic. What one understood yesterday may not be relevant today.