Processes: Doing more harm than good?

Organisations that are completely process-dependent are consumed by illusions of productivity

One would think that with the rise of technology, productivity would increase too. However, as Robert Solow, Nobel laureate in economics pointed out, “You can see the computer age everywhere but in the productivity statistics.” If one looks deeply, one can see overwhelming processes trying to drive technology and derail productivity at many levels. So, it can be safe to say that maybe, most organisations should take a close look at the processes they have in place; processes designed to make the organisation run more efficiently and effectively, but might be far from doing so.

Let’s face it-we cannot really ignore the importance of processes in organisation. As small enterprises grow, the need to have the right processes in place increases, mainly to encourage efficiency within the organisation. Procedures, interface structures, decision approvals and reports ensure that the organisation runs like a well-oiled machine. However, when these processes remain static in their archaic model and do not change with the organisation, the technology and the people within it grow, then productivity levels hit a plateau causing the proverbial ‘productivity paradox’. So it is important to ask, “How much process is too much?”

In order to cater to today’s complex business environment, most organisations look at establishing processes to establish quantifiable accountability, standardise tasks and make the overall functioning easy and efficient to competently manage business requirements. Having smart processes in place ensures business predictability, continuity and the added advantage of having valuable data insights that enable companies to ramp up easily when needed by leveraging central knowledge repository.

However, processes become painful when they, instead of enabling employees to execute their tasks effectively, act as deterrents. If employees have to spend hours securing permissions for executing tasks, attend unnecessary meetings, or complete redundant processes, then there’s a problem at hand. Instead of actual work, the employees then become slaves to everything marked ‘urgent’ and work that can be completed in time comfortably is a last minute scramble.

In other words, having processes that impede rather than enable employees stand in the way of organisational productivity. Here are some of the ways on how processes can kill productivity:

• Responsibility without authority–empowering people and still expecting them to get several approvals and sign-offs signal lack of trust and don’t help in getting anything done
• Process comes before people–standardisation is essential for business. However, it must not be forgotten that people, not processes, make and run a company. Processes cannot solve problems, people can.
• Counterproductive meetings–Yes meetings are important but not for every small reason. In fact, meetings are rated as one of the top productivity killers at work.
• Redundant processes can limit vision, which, in turn, does not help organisations grow
• A completely process-dependent management can lack perspective and openness, which negatively impacts innovation and productivity

Where do organisations go wrong with processes? When organisations confuse process with culture, the business begins to suffer. Processes like Six Sigma, ITIL, Lean and DMAIC have been very successful in increasing organisational productivity. However, the background, priority and premise for that process application have to be correct. The classic example of process overkill is perhaps 3M where the Six Sigma process was implemented in 2001. This process, instead of aiding innovation, came in its way, caused friction among staff, compromised growth and made the company less creative. While 3M still uses Six Sigma, it is mainly implemented in their manufacturing operations while the free-thinking researchers are spared. This small change increased dwindling productivity of the company from 21 percent back to the former 30 percent.

Having relevant processes are essential for the smooth operation of any organisation. But when process takes over innovation and productivity, the management needs to evaluate their approach. Often processes do not work because they are not a part of a continuous improvement plan. Organisations today have to promote an environment where processes can be changed when redundant, automated when necessary and utilised to understand resource utilisation. In fact, technology can be the right answer to evaluate process efficiency. With the help of the right technology solution, organisations can identify productivity gaps that arise because of the wrong processes.  Technology also offers the right solution to effort mismanagement, work distribution, time lags and information management.

It is interesting to note that processes cannot be, and should not be used as a magic pill to make organisations function to their optimum and achieve impossible results. When organisations become completely process-dependent and are consumed by illusions of productivity, innovation takes a back seat since it is perceived as being disruptive to daily activities. Organisations, thus, will be more successful in generating productivity by applying processes that identify areas and opportunities for improvement and eventually raise the bar of the work output.

- By Shirish Deodhar, CEO & Co-Founder, Sapience Analytics

The thoughts and opinions shared here are of the author.