When organizations start, naturally, it is people who matter most. It is people who conduct business, execute transactions and help in business growth. People who are associated with the initial growth phase of the organization usually occupy important positions, control operations and matter most when it comes to decision making and commercial success of the organization.
However, when the organization goes to higher levels, progressively, "processes" need to replace people involvement in transaction handling, for smooth conduct of business. Otherwise, people could some times become a bottleneck or their leaving could pose risk for business continuity. Organizations should recognize the importance of processes in their growth strategy and risk mitigation plans.
In this context, they need to focus on
Well defined processes, reflecting actual activities and practices
Well supported digitization which will minimize manual interventions, and enable efficient execution of transactions in an error free environment
Processes to be elaborate, to cover physical and information flow, descriptions, internal controls, compliances, record keeping requirement, and people responsible
Well integrated intra and inter functional processes, with defined data ownership rules
File Management Systems covering storage and retrieval of data and documents, with data integrity, security, long term utility and ease of retrieval as objectives
Meaningful MIS to help top management in driving performance and operating management in efficiencies and effectiveness, instead of depending on people to know what is happening in the organization.
This is by no means undermining the importance of people.
Could you review, whether your organization is overly people dependent, or has taken measures to mitigate associated risks, through focused process development?
For more articles from me please visit www.operationstomoney.com and to know about my book “Translating Operations into Money – Cases in Business Management”.
Thank you for your attention.
Tulasi S Sastri
FCA., CISA
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