Process-based management is a management approach that views a business as a collection of processes, managed to achieve a desired result. Processes are managed and improved by the organisation for the purpose of achieving its vision, mission and core values. A clear correlation between processes and vision supports the company in planning strategies, structuring business and using sufficient resources to achieve long-term success. As a result, the organisation obtains strengths and competitiveness among other companies.
First, the vision is an aspirational purpose what the organisation would like to achieve in the long run. For instance, mission is different from a vision in that mission is a something to be achieved whereas a vision is something to be aimed for achievement.
Core values are principles that help companies to determine whether their actions and decisions are right or wrong. Values are essential to making decisions and sustaining the company's long-term success.
Advantages
- Documenting a process provides a clear guideline of how organisation improves their processes and performances over time.
- Process based management measures the full set of activities in one business. For instance, it focuses on internal processes such as customer satisfaction, quality of product and security as well as financial results including revenues, profits, costs, and budget.
- Understanding of the correlations between business processes avoids taking wrong decisions. It reduces costs, time and resources wasting on unnecessary things.
- Analysing the processes, an organisation will be able to predict sources of hazard and choose right decisions.