Due to the features of modern business, the traditional approach to project management may not fulfill its task and will contribute to a decrease of efficiency by separating activities in individual departments.
The classic “vertical” model involves dividing the company into independent departments that perform their duties in isolation from other units, which is not a common practice nowadays. Focusing on a narrow, precisely defined task has its advantages and allows you to achieve a significant degree of specialization, but it also results in a risk of creating the so-called silo effect. Individual departments focus only on performing their duties and are not interested in the broader business perspective and what happens later with their product. This makes it difficult to handle documents, and also limits the flow of data between departments.
Process management is the entirety of activities related to the planning and execution of a given sequence of activities within the company. Just like the name suggests, this management model doesn’t use a massive “vertical” structure - for example, an entire department - but focuses on supporting a process that engages the various cells of the company in a “horizontal” form. For example, preparing a product in a traditional model is equal with the transfer of a specific set of tasks to the marketing, design, production and sales departments in turn. When it comes to the silo effect, it takes place without “horizontal” exchange of information regarding the requirements and needs related to individual stages of work. In case of process management, teams are separated from all departments, which constantly cooperate with each other to create the best product.
The key aspects of this management model are the control of goals, effectiveness, resources and cooperation between departments. Collaboration between all the teams helps to work out the product to its best and determine the best course of action during production. Due to the constant exchange of information, process management positively influences the improvement of the company’s performance and at the same time, reduces friction between departments. Even a micro company can benefit from such an approach to production, as the efficient operation of a small company mainly depends on interpersonal relationships. In larger organizations, the process approach facilitates human resource management, and also allows a better budget control in the company.
Number of paragraphs: 7 • Number of sentences: 18 • Number of words: 398
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