Organizing Around Process Is Not Practical

Organizing Around Process Is Not Practical

A process organization structure merely creates a different kind of white space . . . between processes. Furthermore, it may require additional people, obstruct sharing of learning and resources, and erect career path barriers. In most process-based organizations, functions remain as “centers of excellence.”

How does an organization establish effective vertical and horizontal structures? In our experience, the key is measurement. Establishing customer-focused, process-driven measures is the first step. In a process-driven environment, each functional manager is still responsible for achieving results, allocating resources, and developing policies and procedures.

Line managers have as much authority as in any traditional organization. There is no tug-of-war between two bosses, as in many matrix-managed organizations...