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Process Governance

Everybody who runs a company in Thailand knows this problem: How to know if people in the organization work efficiently?

Process Improvement or Process Re-Engineering is frequently taught at Thailand MBA schools. Using a structured approach consultants go through your processes in order to eliminate waste, i.e. eliminate everything that doesn’t create value to your organization. The typical result of such Process Re-engineering projects are large documents that describe how people should work together. Unfortunately these documents only represent working steps in the ideal world, a world that is usually far away from the reality of today’s organizations.

Everybody who runs a company in Thailand knows this problem: How to know if people in the organization work efficiently?

Process Improvement or Process Re-Engineering is frequently taught at Thailand MBA schools. Using a structured approach consultants go through your processes in order to eliminate waste, i.e. eliminate everything that doesn’t create value to your organization. The typical result of such Process Re-engineering projects are large documents that describe how people should work together. Unfortunately these documents only represent working steps in the ideal world, a world that is usually far away from the reality of today’s organizations.

In the real world, even if your people are perfectly trained on the newly optimized processes, people will face a lot of situations where they decide to ignore the documented process. As a result, the wisely designed processes are not doing what they are supposed to do and: Your business wastes valuable resources.

So, how can a CEO know that the organization works as they are supposed to work? The answer is “Process Governance”!

Similar like Corporate Governance, Process Governance deals with the question how to monitor key aspects of the Process in order to ensure that we don’t experience unnecessary inefficiencies and can act on issues very quickly.

As obvious the approach seems to be, I am sometimes surprised how many of my clients only have very rudimentary practices for Process Governance. This is what you need to do:

  • Walk-through your processes and identify the key pain points, i.e. the steps that are usually a root source of problems or appear to be a bottleneck for through-out of work
  • Understand what data you have available that can help you measuring the performance at this process step
  • Define a few KPI’s for these process steps
  • Summarize all KPI’s in one KPI via a scorecard model and put this overall process KPI into the performance criteria for your employees for bonus payments
  • Arrange regular meetings where Process Owners review the KPI’s, discuss efficiency issues and agree on actions for continuous improvement

Clients in Thailand for whom we implemented the organization, processes and reports for process governance were often amazed about the new transparency that they got about the status of their organization efficiency. Suddenly they understood their bottlenecks and were able to focus their people on really important actions.

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