What Is a Business Process? A Complete Guide to Process Management

Processes—or business processes—are by definition a series of activities designed to achieve a specific goal or outcome. But what does this really mean, and how can organizations use processes to drive real improvement?

The Foundation: Mission, Vision, and Process Maps

Every organization exists to fulfill a mission—solving a problem, producing goods, or providing services. This mission is articulated through a vision statement describing long-term aspirations. To ensure alignment between daily activities and this vision, organizations use process maps.

A process map outlines the activities needed to fulfill the mission. These activities are described by what the organization does—"producing cars," "developing software," or "delivering healthcare." The power of processes lies in describing how an organization functions as a cohesive unit to create customer value.

When departments work in silos, suboptimal performance is inevitable. Processes provide a holistic view, ensuring efficient and effective operations across the entire organization.

Three Types of Business Processes

1. Core Processes

Core processes are crucial for achieving the organization's mission. In a car company, these might include "producing cars," "developing cars," and "selling cars." These processes deliver direct customer value and meet customer needs.

2. Management Processes

Management processes align and coordinate core processes strategically. Examples include planning, monitoring, and follow-up. Without these, the organization operates as a disjointed set of activities rather than a unified entity.

3. Supporting Processes

Supporting processes provide the infrastructure for core processes to function. HR processes like recruiting are essential for maintaining the workforce. Without effective supporting processes, core processes—and customer value—cannot be realized.

Structure of a Business Process

Each process in a process map breaks down into a series of activities:

• Input: A need for value initiates the process
• Activity: The input is refined through specific activities
• Output: Each activity produces an output serving as input for the next
• Outcome: The process continues until the initial need is fulfilled

A good rule: each process should have clearly defined activities and outputs. If two activities follow without a clear output, the process model needs refinement.

Decision Points in Processes

Processes may include decision points representing different pathways. In a "building cars" process, a decision point might determine whether to produce an SUV, family car, or truck—leading to different production methods while remaining part of the same overarching process.

Business Process Modeling

Creating and refining processes—business process modeling—is most effective through workshops including individuals with responsibilities and those with deep operational knowledge. A facilitator guides discussions and documents outcomes.

A common mistake: making processes too narrow, missing important value-creating activities. Should pre-boarding and onboarding be part of recruiting, or separate processes? Each organization must decide based on unique needs.

For Whom Are Processes Designed?

Processes are primarily designed to allocate resources and manage the organization at a strategic level—not to dictate how individuals do their work. Management uses processes to define areas of responsibility and ensure adequate resourcing.

Most organizations blend functional and process-oriented structures (matrix organizations). While this can reduce sub-optimization, challenges remain. Implementing a fully process-oriented organization is complex—but the benefits are substantial.

From Processes to Routines

Processes guide organizational management; routines provide specific instructions for employees. Routines should be detailed enough for a new hire to understand their responsibilities while aligning with overarching processes.

For example, a recruiting process might have different routines for hiring white-collar versus blue-collar workers. These routines include who is responsible for each activity, ensuring clarity and consistency organization-wide.

Processes and Digital Transformation

Processes are crucial in digital transformation, helping generate accurate requirements for new systems. By adhering to up-to-date processes, organizations ensure digital initiatives align with strategic goals—not just industry trends.

This alignment ensures digitalization adds true value and supports organizational objectives rather than creating expensive tools that don't fit how people actually work.