LO1: Presented By:

IMPORTANCE OF BUSINESS PROCESSES IN Mohamed Majid (BSc, MA)

DELIVERING OUTCOMES BASED UPON Maldives Business School,
Malé, Maldives.
BUSINESS GOALS AND OBJECTIVES
 POINTS TO BE COVERED
Part A: Interrelationship between the different processes and functions of the
organization.
• Objectives
• Mission and Vision Statement
• Goals and Objectives.
• Organizational culture.
• Organizational functions.

Part B: Methodology to be used to map processes.

• Business Process.
• Structure of business process.
• Process Mapping.
OBJECTIVES
 OBJECTIVES

Short-term and
medium-term goals
that an organization
seeks to accomplish.
Play a large part in
developing
organizational
polices and
determining the
allocation of
organizational
Objectives resources.
TYPES OF OBJECTIVES

/ Vision
 MISSION

Mission
• “Describes the organization's basic function in society, in
terms of the products and services it produces for its
clients.” (Mintzberg)
 KEY FEATURE OF
MISSION STATEMENT

Written declaration Provide a ready reference

point

Helps guard against Presentation of clear

misinterpretations. image of the organization.
 HIGHLIGHTS

Identity of
persons for Nature of Ways of
whom firm’s competing.
organization business.
exists.

Principles of Commitment
business. to customers.
 EXAMPLES

Honorably service the needs of the Organize the world’s information

community by providing products and make it universally accessible
and services of superior quality at and useful.
a fair price to our customers.

To make a contribution to the We save people money so they

world by making tools for the mind can live better.
that advance humankind.
VISION STATEMENT
 VISION STATEMENT
The desired future
state of the
organization.
The aspiration of the
organization.
Refers to where the
organization intends
to be at some point in
the future.

Vision Statement
 EXAMPLES
Amazon
• To be earth’s most customer centric company; to
build a place where people can come to find
and discover anything they might want to buy
online
Pepsi Co.
• PepsiCo's responsibility is to continually improve
all aspects of the world in which we operate -
environment, social, economic - creating a better
tomorrow than today. Our vision is put into
action through programs and a focus on
environmental stewardship, activities to benefit
society, and a commitment to build shareholder
value by making PepsiCo a truly sustainable
company.
MISSION AND VISION

MISSION
• This is the DOING piece –
how you intend to act as
a servant leader. Your
mission statement
proclaims who you serve,
what you serve and how
VISION you do it every day.
• This is the DREAMING
piece – if everything goes
right, how will your
organization change the
world.
ORGANIZATIONAL OBJECTIVES
Strategic objectives
that outline the
expectations of the
organization

Relate to those factors

that determine an
organization’s success.

Explicit, quantifiable,
Organizational Objectives capable of being
achieved (SMART)
 MAJOR FOCUS AREAS

Profitability Market share Growth Cash-flow

Customer satisfaction Quality of the Industrial relations Added value

organization's products
 EXAMPLES
Growing Annual return on
earnings per investment from
share 15% 15% to 20%.
annually.

Increase annual Become leader in

dividends for new product
shareholders by introductions.
5%.
 EXAMPLE: MCCORMICK

Dispose of those parts of our businesses which cannot generate

adequate returns or do not fit with our business strategy.
Achiever a 20% return on equity.
Achieve net sales growth of 10% per year.
Maintain average earning per share growth of 15% per year.
Pay out 25% to 35% of net income in dividends.
 GOALS

Strategic objectives
that a company's
management
establishes to outline
expected outcomes
and guide employees'
efforts.
General guidelines
that explain what the
organization wants to
achieve.
Organizational Goals
 SIMILARITIES BETWEEN
GOALS AND OBJECTIVES
Both enable the overall
objectives of the Both provide clear
organization to be statements of what Both provide a focus for
broken down into clear action needs to be taken. all activity.
statements of what needs
to be done at each level.

Both provide a basis for

Both provide targets for Both facilitate the control evaluating how
both individual and of actual performance. successfully the plans are
group achievement. being implemented and
performed.
 DIFFERENCES BETWEEN
GOALS AND OBJECTIVES
GOALS OBJECTIVES

Similar to : Aim Similar to: purpose and targets

Broad Narrow

General Intentions Precise

Not measurable Measurable

Abstract Concrete

Long term Short term, medium term

E.g. SMART Objectives

CULTURE
ORGANIZATIONAL CULTURE

Organizational
Culture
• The collective self-image and
style of the organization; its
shared values and beliefs, norms
and symbols. (BPPlearning,2010)
 MAJOR CHARACTERISTICS

Sum total of the beliefs, Commonly held and

knowledge, attitudes of relatively stable beliefs, Organizational ideology.
mind and customs. attitudes and values.

Set of principles. Both internal and external

to the organization.
 COMPONENTS OF CULTURE
• Everyone have the • Shared beliefs or
same characteristics. ideas.
• Everyone have some • E.g. Apple: “Good
perception. enough is not enough.”
• Actions that are • Special events in which
repeated regularly to organization members
reinforce cultural norms celebrate the myths,
and values. heroes, and symbols of
• E.g. Signing in. their firm.
• Eg. Anniversaries

Basic Values Rituals Ceremonies

assumptions

• Ceremonial activities to • Accounts of past events • Self-similar stories that • Objects, actions, or
communicate specific that illustrate and are told and retold events that have special
ideas. transmit deeper cultural around a common meanings.
• Eg. Staff orientation. norms and values theme. • Eg, Logos.

Rites Stories Myths Symbols

 ORGANIZATIONAL
FUNCTIONS

MARKETING OPERATIONS FINANCE HUMAN

• Sales planning • Conversion of • Arrangement of RESOURCE
• Market research inputs into outputs financial • Recruitment and
• Demand creation • Planning resources. selection of right
productions • Managing persons.
according to continuous flow of • Retention and
demand money into the employee
business. development.
BUSINESS PROCESS
A PROCESS
 BUSINESS PROCESS

‘A set of related
activities that
collectively realize a
business goal'.
Focus: Oriented
towards processes,
customer’s and
outcome.

Business Process
A TYPICAL BUSINESS PROCESS
 COMPONENTS OF
A PROCESS

Management
Structures that Jobs that and Customer
A process view match these operate these measurement focused,
of the business. processes processes systems that continuous
direct and assess improvement
these processes
 CHARACTERISTICS
OF A BUSINESS PROCESS

Has a Goal Has Specific Inputs Has Specific Outputs Uses Resources

Has number of activities May affect more than Creates values of some
that are performed in one organizational Unit kind for the customer.
some order
 PROCESS
MAPPING
Used to help analyze and understand a
process and to aid its improvement or,
ultimately, its replacement.
Consist of:-
• What controls a process.
• What it produces.
• What areas it covers.
• Which elements make up the process.
Maps are similar to flow charts.
Process
Mapping Identify key stakeholders that will benefit from
the outputs of the unit's processes and key
activities.
 PROCESS MAPPING:
WORK FLOW METHOD
Symbols are used to
classify different
types of activity.
Most of these
derived from
information system
flowcharting.
Some basic and
common symbols
used are:
Work Flow Method
 EXAMPLES
Ali works for an island council. His job is to facilitate the
processing of ID card applications. Providing this service
efficiently is goal of the island administrations.

He follows the process map below: