Business Processes in an Organization: Modeling and Managing Business Fundamentals

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Andrey Nedoluzhko

Managing Partner of Experts2biz

Expert in the design of business architecture and IT systems

Business Processes Consultant for Real Estate Development and Management

This article will focus on a systematic approach to using tools in projects for building an organization's management system.

Main ideas of the article

An organization's management system is an intangible product, so it is difficult to evaluate and formulate requirements for it. Requirements will constantly change as the system is built and developed. Therefore, projects for creating such systems should be iterative in nature. Key factors for the success of the project: design of the organization's management system using specialized software, the correct organization of the process and the distribution of project roles.

The fact is that, on the one hand, specialized software for business modeling is a tool that is extremely useful for a wide range of organizations: both for private business (from small to large) and for government agencies, therefore it has been quite popular lately. On the other hand, buyers of such systems often underestimate the complexity of the projects for which this product is purchased. As a result, a situation often arises when the system was purchased, "played around" and abandoned, but the tasks for which the product was purchased were never completed.


Before discussing systemic approaches to building an organization's management system, it is necessary to decide on the questions "What is an organization's management system?" and "Why do we need an organization's management system at all?"

First, you need to figure out why "the organization's management system". I argue as follows: an organization is any artificial entity that employs more than one person who must organize teamwork in a way to achieve a goal. Accordingly, the term "organization" means a collective image that summarizes such concepts as "business", "company", "enterprise", "institution", "group of companies", "corporation"

Now let's answer the question, what is an organization's management system. Unfortunately, there is a common situation when, when the term "organization management system" is mentioned, business owners and executives associate with an information system such as ERP or other software product.

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From this article you will learn:

In order to optimize business processes, improve quality and increase operational efficiency, enterprises use different methods. One of these methods is business process modeling, which allows you to understand and analyze the activities of the enterprise. The business processes of the company can be composed according to different aspects and levels of management. In this article, we will describe how the development of business processes and their implementation are carried out.

Why do you need modeling and optimization of business processes

World practice shows that only companies that continuously improve their potential become successful. This, of course, is impossible without constant improvement of internal processes.

Modeling and regulation of business processes can improve the management system in an organization. That is, the creation of business processes is an important and useful task. Thanks to them, the system becomes transparent to the management and quickly adapts to constantly changing environmental conditions.

Optimization of business processes makes it possible to improve the interaction of the company's departments, to clearly distribute responsibility between officials, and to determine the procedure for reporting personnel to the management. The model should reflect the features of the system of performance indicators, the achieved results of the enterprise as a whole and its individual business processes, and how the results of the company's activities should be considered and decisions should be made to eliminate deficiencies and achieve goals.

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Basic approaches to working with business processes

As a rule, management tasks do not appear from scratch - they are the result of certain deficiencies that prevent the organization from moving forward. For example, if decisions are made very slowly, staff work irresponsibly, then failures arise in the activities of the company, income decreases, competitive properties deteriorate, and development is slowed down. Even business closure is not excluded. The management sooner or later realizes that it cannot continue this way. The logical question that it asks itself is: “How should it be? And where to start positive changes? "

This is what an amorphous enterprise management scheme looks like:

Often, even at the level of intuition, it is clear: in order to eliminate the shortcomings, it is necessary to put in order all internal processes - to carry out educational work with the staff, to motivate them to achieve goals. It is impossible to imagine all the activities of the enterprise at once, and therefore it must be described somehow, relying on certain rules. That is, shortcomings in work should be eliminated systematically. First of all, it is necessary to formalize the company's activities: to develop simple and easy-to-use documents that establish which business processes of activity and in what order should proceed, and appoint those responsible for them.

A thorough and in-depth study of management issues takes a lot of time and a lot of effort. It is possible that there will even be a need for additional training.

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