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Organizing to manage processes
It is not a good idea to structure the whole organization according to processes. Processes are used to overcome the ‘silo effect’ of departments, not to create silos. However, there are a number of processes that will need a dedicated organization structure to support and manage it. For example, it will be very difficult for Financial Management to be successful without a dedicated Finance department – even if that department consists of a small number of staff. In process -based organizations people are organized into groups or departments that perform or manage a specific process. This is similar to the activity -based structure, except that its departments focus on end-to-end sets of activities rather than on one individual type of activity. It should be noted that this type of organization structure should only be used if IT Operations Management is responsible for more than just IT Operations. In some organizations, for example, IT Operations is responsible for defining SLAs and negotiating UCs. In addition, processes specifically exist to link the activities of different groups to achieve a specific outcome. Using processes as the basis to create departments can defeat the purpose of having processes in the first place. Process-based departments are really only effective when they are able to coordinate the execution of the process through the entire organization. This means that process-based departments should only be considered if IT Operations Management is to play the role of Process Owner for a specific process. Examples of process-based groups or departments include:
The advantages of this type of organizational structure include the following.
The disadvantages of this type of organizational structure include the following.
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