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The Strong Process Organization

As business leaders in the Wal-Mart economy, we have to grasp an important distinction - the difference between what I call strong-process organizations (SPOs) and weak-process organizations (WPOs). Over the years I have observed that most organizations fall into one of these two camps. On the surface, the executives at both often believe they are SPOs. They profess to having well-defined processes and the latest hardware and software to make them run at world-class speed. Only the real SPOs, however, deliver world-class results--because they run with the repetitive behaviors, good training, consistent reinforcement, and accountability that sustain success.

Strong-process organizations have strong process discipline to ensure that their processes are adhered to throughout the organization. Changes to the processes are disseminated through the process design itself. Because the organization supports employees so well, average people can achieve above-average results.

By contrast, most companies are weak-process organizations. Their executives fail to realize superior results because managers launch ad hoc processes, usually related to "the way we've always done it." Employees have little discipline in following the official processes anyway, and managers regularly call "audibles" to patch up snafus. Perhaps most telling, WPOs require talented "stars" planted around the organization in key positions to muscle results over the goal line.

Well-defined processes, supported by technology, are central--without them, your company is, by definition, a WPO. What really sets Wal-Mart and other strong-process organizations apart are the choices their executives make when it comes to four key managerial factors: exerting the proper leadership, implementing clear governance practices, applying the right discipline, and championing the right attitudes. Only then do they create the environment for performance that typifies the strong-process organization.

[ BACK TO CHART ] The Leadership Difference
Strong-Process Organization	Weak-Process Organization
Leaders are embedded throughout the business	Leaders are distant from the front lines
Leaders work themselves out of a job	Leaders entrench themselves for job security
Promotions are results-based	Promotions are tenure-based
Communications are frequent and comprehensive	Communications are sporadic and disconnected

[ BACK TO CHART ] The Governance Difference
Strong-Process Organization	Weak-Process Organization
Goals are clearly defined and stable	Goals are vaguely defined and/or constantly shifting
Guardrails guide local and global decision-making	Parameters and responsibility for decision-making are unclear
Processes are embedded in company	Processes are embedded in people
There is a process for changing processes	Gatekeepers protect the status quo and control critical resources

[ BACK TO CHART ] The Discipline Difference
Strong-Process Organization	Weak-Process Organization
Performance measures are focused and consistent	Performance measures are scattered and inconsistent
Results are valued	Effort is valued
There is a bias for information and knowledge	Company drowns in data without useful information
Accountability is high; consequences (positive and negative) are imposed	Accountability is low; consequences are meted out erratically

[ BACK TO CHART ] The Attitude Difference
Strong-Process Organization	Weak-Process Organization
Bias is for action	Meetings are acceptable substitutes for action
Employees toe the line on processes and procedures	Managers frequently call audibles
The right people are in the right seats on the bus	Company retains and rewards "But People"
Complexity is absorbed upstream to make processes close to the customer simple	Complexity is pushed downstream toward the customer

[ BACK TO CHART ] The Performance Difference
Strong-Process Organization	Weak-Process Organization
Average people achieve above-average results	Stars are required around the organization to muscle results
Leaders successfully transfer across functions	Leaders cannot successfully transfer across functions
Processes scale up and down well	Processes do not scale up and down well
Leaders are "dispensable"	Leaders cannot leave without significant impact on the company
SPO leaders may not be successful in WPO companies	Stars can be successful in other WPOs

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