If your group’s core processes are to support its strategy, they must also align with the unit’s structure (the way people and work are organized). We can compare this relationship to the human body. Our anatomy—skeleton, musculature, skin, and other components—is the structural foundation for the body’s normal functions. Our physiology—circulation, respiration, digestion, and so forth—is the set of systems that enable the various parts of the body to work together. In organizations as in human bodies, both the structure and the processes must be sound and reinforce one another.
To evaluate the efficiency and effectiveness of each core process, you should examine four aspects:
- Productivity. Does the process efficiently transform knowledge, materials, and labor into value?
- Timeliness. Does the process deliver the desired value in a timely manner?
- Reliability. Is the process sufficiently reliable, or does it break down too often?
- Quality. Does the process deliver value in a way that consistently meets required quality standards?
When systems and structure jibe, both elements reinforce each other and the strategy. For example, a customer service organization structured around specific customer segments also shares information across teams and responds effectively to issues that affect all customer groups.
When systems and structure are at odds—such as when different teams compete for the same set of customers, using different sales processes—they hamstring one another and subvert the group’s strategy.