Businesses have unstructured processes are everywhere. These are the ad-hoc, human processes that make the business run and consist of gathering information, collaborating and negotiating with others, and making decisions—fundamentally human activities. From an IT perspective, most of these processes are run using email and documents which allows the work to get done, but relying only on email and documents has fundamental drawbacks – email overload, a lack of visibility and a lack of control and accountability. These processes are not just in the periphery of the business – but run the gamut from strategic planning to compliance tracking to audits.
CIO’s of organizations that ignore these unstructured processes will face additional expensive. For example, an overlooked email causing a
missed government regulation deadline that leads to fines and sanctions; an inefficient investigation of a customer fraud report causing unneeded additional expense and an unhappy customer; incomplete incident and accident management which stymies institutional learning and doesn’t prevent incident recurrence; disorganized cross organizational projects that cause missed deadlines and lost revenues; and mishandled communication causes crucial parts to be delivered to the wrong facility.
Even companies with a process focus tend to ignore unstructured processes and instead focus their IT efforts on the larger, structured processes – like Customer Relationship Management (CRM), Enterprise Resource Planning (ERP) and Business Process Management (BPM). Focusing IT effort and investment on structured processes is not bad, but it may be missing the point. Analysts estimate that 60-80 percent of the processes that make a business run happen under the radar and are managed via documents and email. Each of these examples are caused by mismanaged unstructured processes. Of course, before you do anything about them you need to know they exist. The following are five ways to help CIO’s discover
1. Regulatory and Compliance processes – People intensive processes which are kicked off as a result of an external regulatory body. These
processes tend to be ad-hoc and changing, but since they entail some type of penalty if not followed, they require the ability to be tracked
and monitored for risk management. Compliance processes are examples of unstructured processes that fall into this
2. Exceptions and Escalation processes – People intensive processes resulting from the need to handle an exception to an existing
structured process, or an escalation needed to solve an issue outside the scope of the normal systems. They tend to involve a wide variety of different people, depending on the exact nature of the problem. For example, fraud escalation is kicked off by the normal fraud detection systems and requires that more human investigation be done to resolve the issue. One interesting side effect of these unstructured processes is that they can be used “early warning systems” of changes in the business and customer environment.
3. Decision Implementation processes – Once decisions have been taken, they should kick off a set of processes to implement those decisions. How many times has your company made decisions that dissipate and never get implemented since there was no way to track and monitor the progress made? An example is the minutes of a board of directors meeting – the executable decisions kick off a set of unstructured processes to implement those decisions.
4. Audit processes – Internal audits of different organizational activities and adherence to guidelines where negotiation is involved
before findings are published. Tracking and monitoring these negotiations can ensure that the audit process stays on track and on target. Once the findings are accepted and published, there is the need to track the processes that were kicked off to address the findings.
5. Complex Project Management processes – Managing a project is all about managing and coordinating the people involved. Gantt charts and
project plans aren’t enough, since they don’t track the actual interactions between the people involved in the project. Once the work gets kicked off, there is the need to be able to track, control and coordinate the people processes involved in the actual execution of project.
A framework for managing unstructured processes for getting the work done exists, but judgment and experience is used to adjust the process
flow and outcome. They handle the “outside the box”, issues and innovation. They have no predefined set of rules that can describe the people and expertise needed to complete the process, and people outside the department or even the organization may take part in the process.
They are what make your business unique and valuable – and why ignoring them is not an option. What kind of effort has your organization made to discovering processes that exist under the radar?