Change from traditional to process-centered organization

What

Traditional manufacturing companies are organized around product lines. Each product line has its own customer service, sales, management, etc., with a clear chain of command, many time-consuming rules, and managers who administer them. As long as conditions remain the same (which they never seem to do) traditional organizations can be efficient.

Process-centered organizations (PCOs) are aligned around processes, i.e., collections of sequential tasks, such as finance, machining, or assembly. Teams are organized by process for all products. For example, finance teams work within the finance process. Leading each process is a process engineer and coach.

PCOs flatten the traditional hierarchy, discarding layers of management and titles in favor of process engineers, coaches and associates.

Why

Traditional structures are vulnerable to rapid change and increasingly become unattractive to a 21st century workforce. In its extreme form, the traditional hierarchy is authoritarian. When that happens people are afraid to offer suggestions for improvement. Innovation suffers when a company fails to engage the collective wisdom of its people. In the traditional structure each product line can be unaware of others, causing redundancies and inefficiencies.

By contrast, PCOs function at a higher developmental level. Individuals learn more about and understand themselves and other people better, resulting in effective communication. PCOs foster collective creativity because it encourages teams to make their own decisions. Process engineers and coaches are responsible for removing barriers preventing associates from doing their jobs well. Environments of care and autonomy foster long-term loyalty, pride, and gratitude. Customers, the company, and associates win.