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Henk Verbeke
Tartu, March 2012
BASIC UNDERSTANDING OF THE CONCEPT FORENTREPRENEURSHIP AND ENTREPRENEURSHIP EDUCATION
1 – How it all went so nicely2 – The roaring sixties3 – Teaching Process Management
CLASSIQUE BELGE SOVIETIQUE AMERICAN
ARABE
VATICAN
BRITANNIQUE
NATIONS UNIES
CLASSIQUE BELGE SOVIETIQUESOVIETIQUE AMERICAN
ARABE
VATICAN
BRITANNIQUE
NATIONS UNIES
Borrowed from the Juran website, years ago
There was bureaucracy
0 500 1000 1500 2000
So we kept teaching it.
As the Han-emperors did, Charlemagne did, Napoleon did, Kaizer Wilhelm did, and my old professor did.
We lived in a stable environment.
There were changes but they came at low speed.
1000 1500 2000
Line
2000
Process Management
Line-staffMatrix
Ah, we sure rocked the boat, didn’t we!
1940 1950 1960 1970 1980 1990 2000
Halogen lamp,Laser
‘60
Valium,Nondairy creamer
‘61
Audio cassette, Fiber-tip pen,Spaceswar (first computer game),Silicone breast implants, LED
‘62
Video disk‘63
Acrylic paint,Pemanent-press fabric,BASIC programming language
‘64
Astroturf,Soft contact lenses,Compact disc, Kevlar,NutraSweet
‘65
Electronic fuel injection (in cars)
‘66
Handheld calculator‘67
Computer mouse,Computer with integrated circuits,RAM
‘68
Arpanet (first internet),Artificial heart, ATM,Bar-code scanner,Battery operated smoke alarm
‘69
THE ROARING SIXTIES (an avalanche of new products)
1940 1950 1960 1970 1980 1990 2000
THE ROARING SIXTIES (political & social turmoil)
Prague
Escalation ofthe Viet-Nam War Civil Rights Movement
Cuba crisis
Anti-War Movement
Columbia Univ. Occupation
Gagarin
Shepard
Berlin Wall
Studentriots
1940 1950 1960 1970 1980 1990 2000
THE ROARING SIXTIES (subculture & provocation)
Andy Warhol(the Factory)
Bob Dylan & Joan Baez
Rolling Stones
JimiHendrix
Experimental jazz
1940 1950 1960 1970 1980 1990 2000
THE ROARING SIXTIES (summary)
Increased family budgets
Increased production
Frequent shifts inbuyers’ demand
An overwhelming numberof new inventions
Changed production
Political turmoil A revolting new generation
The need for a new organisation model
Democratised organisations
staff
dep dep dep
What we had:Simplicity
What we got:the Matrix
to keep new things going
What we expected:Projects
to get new things going
staff
LA = Line authority SA = Staff authority FA = Functional authority
LA
SA
FA
LA
SA
LA-1
LA-2
LA-1
LA-2
LA-1 Focussed on traditional people-management
LA-2 Content-oriented.
And they paid the price!
When the task environment becomes dynamic rather than stable (…)standardised response rules are inadequate (…).It (the organisation) must determine when and how to act, and its cuesmust be taken from the task environment.
Thompson, J.D (1967) Organizations in action, page 72. McGraw-Hill
The model we select is strongly depending on the technologywe employ.
Thompson distinguished three types of technology:
Long linkedMediating Intensive
Step by stepParallel activitiesStrongly interdependent activities
Thompson, J.D (1967) Organizations in action, McGraw-Hill
All steps taken in a nice, predefined sequence.A bureaucrats dream.
Perfect for a line model andline staff model
Specialists are getting directly involved.A process model would be preferred.
Central admin
Personal (savings) accounts
Loans
Mortgages
Example: a very simple bank
Reception
Example: Emergency Ward
ARRIVAL EXITProlonged stay
EXIT
EXIT
Central Desk
Administration
Laboratory
Supervising Specialists
X-Ray
Only a process model will do
an involuntary case-study
Consultants keep each other busy in lengthy discussions aboutProcess Management.
ISO certification requires that entrepreneurs adoptProcess Management, but nobody told them how.
The IT-Boys & Girls have hijacked Process Management.
We see governmental institutions struggle to modernise,thus adopting the Matrix-model (!)
Especially LinkedIn-groups on process managementoffer a wide range of discussions between consultants.
We see entrepreneurs ‘describe’ processes only for those activitiesthat are important to the certificates in question. Unknowingly theycreate hybrid organisations.Many SME’s are tempted to buy expensive software to get ‘up-to-date’.An extreme waste of money requiring the help of expensive expertsto get things going again.
A very disappointing experience. As if they never heard about it’s lackof results, combined with extreme costs due to constant meetings.Meetings that are necessary to keep everyone informed and conflicts within limits.
Can/should thisbe improved?
What are we doing?
Who are doing it?
At what sequence?
What triggers?
What deliverables?
Can/should thisbe avoided?
What can go wrong?
What are theconsequences?
What are the causes?
What likelihood?
Can/should thisbe improved?
What control works best?
Additional controlsrequired?
Cots and benefitsof controls?
ProcessAnalysis
Allocation ofControls
RiskIdentification
Process
Activity
Action
People
Environm
entA
ssetsR
eputation
Amountof
Mischief
Frequency:...1e Avoidance2e Out sourcing3e Hardware4e Competence5e Regulations
Traditional
People management
Span of control
Regulations/procedures
In a stable environmentProcess Management
Value chain
Risk identification
Quick response
In a turbulent environment
Long linked technology Mediating technology Intensive technology
Effectiveness & efficiency
The development of a relevant body of knowledge.
The teaching of tomorrow's managers and equip them with relevantknowledge & skills regarding Process Management.
Supporting today’s managers by offering additional courses
And please: without all those automation stories. Process Management is a way of looking at your organisation. Automation is just a tool that can come later.
And please: without all those automation stories. Process Management is a way of looking at your organisation. Automation is just a tool that can come later.
Evidence to support this can for instance be found inSTRATEGY, Process, Content, Context (De Wit & Meyer) in Section 2: Strategy Process
Process Management could be incorporated in ‘Business Strategies’
Process Management has a strong focus on the Value Chain.
A thorough risk identification/assessment is an important elementof Process Management. The results can be integrated in analyses like PESTLE, Porter’s etc. thus providing valuable information for theSWOT analysis.
The choice for a management model is a strategic choice par excellence.
This also goes for Process Management
