The Process Conundrum - Aditya Yadav


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The Process Conundrum - Aditya Yadav

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The Process Conundrum - Aditya Yadav

  1. 1. “Running an Agile Fortune 500 Company” Aditya Yadav, *
  2. 2. * *A Typical Global Company *Fortune 500/1000 *200 Divisions *40 Countries *25000 Employees
  3. 3. @ Acme Inc. *
  4. 4. * *Original Question “Our Organization is Confused at Best… we have Process People who push Processes everywhere they can… and we have people who Hate Processes… it’s a War Zone!!! …what should we do?” *The Correct Question - “Lets look at a framework to understand both and then and only then take the decisions”
  5. 5. And The Philosophy Behind The Answer *
  6. 6. * *The Process Guys will push process in everything they do and everything the organization attempts to do and force everyone else to do things their (The Process) way. *And then there are “Others…” who will get rid of Any and All Processes… because they say it hinders their work… *So Who is Right??? *Processes are usually more akin to Manufacturing, Standardization, Repeatability approaches… *And the absence of them is frankly quite the opposite… and very common in Knowledge Work…
  7. 7. * *What do you reward or focus on? The Means or The End? *The Answer: If the End is uncertain focus on The Means… If the Means are extremely Reliable and the End is almost certain focus on the End… Certainity Risk Reward 1High Low Outcome 2Low High Process
  8. 8. * * Process driven companies harp about Process Excellence and such things, so naturally they reward employees and divisions in terms of Process compliance and efficiency * The other companies don’t follow too much processes and setup rewards based on Success or Outcomes… * The Solution * The process companies follow processes because they have (or design for) relatively assured outcomes hence they shouldn’t correlate their rewards with Processes but rather Outcomes * The other firms have no assurance of Results/Outcomes and hence they are wrong in rewarding based on the Outcomes or Success (with exceptions) They should actually be rewarding everyone based on what ingredients they put in towards the Outcome and not the Outcome itself. i.e. reward The Process (or Collaboration/Culture etc. etc.) * Here in lied the Conundrum!
  9. 9. * * You should only Maximize Processes (& Mass Standardization) when the Outcome is (or can be made) Repeatable * When the Outcome is not inherently Repeatable then you should actually Minimize Processes * This brings us to the Second part of the Conundrum… exemplified in the table above What To Do? What To Reward? Repeatable Outcome Maximise Processes Reward The Outcome Non-Repeatable Outcome Minimize Processes Reward The Process
  10. 10. * * Sales (Extremely Uncertain) * Don’t reward Deals reward the Sales Process, Values, Principles and Practices * Marketing (Extremely Uncertain) * Don’t ask for ROI reward the Purpose, Process & Effort * R&D (Extremely Uncertain) * If Inventions/Innovations deliver Value reward based on Value * Or else reward the Process and the Effort that went into it *** Am I weird??? No! contrary to what people believe… this will actually lead to emergence of Super Optimal Results. * The Solution * Process Companies shouldn’t reward Process Compliance but rather Results * Non-Process Companies shouldn’t focus exclusively on Results but reward the Process
  11. 11. * Aditya!!!