How-to... Draft / Organizational Model

The ultimate aim of all Strategers tools is to establish an Organizational Model for the company.

„The Organizational Model of the company is the foundation on which the process structure of the company is built.“

The Draft tool is the place where we draft the valid Organizational Model of the company.


Process structure

The Process Structure of the company can be complex. That is why it is useful to classify processes as follows:

  • Type: Processes are initially distinguished based on their type, which can be categorized as either Core Processes or Support Processes. This classification helps differentiate between the fundamental activities directly related to the organization's core objectives and those that provide support to the core processes.
  • Group: Within each type, arbitrary groups can be established to organize further and streamline the multitude of processes. Grouping helps navigate through a large number of processes more easily.
  • Process: Finally, here are the processes. Each process is assigned a specific type and group. This comprehensive categorization provides a structured framework for identifying and managing individual processes within the organization.

The processes have their own structure, which is broken down into individual tasks. The basic unit of the process is a task.

  • Process: A process is composed of sequences.
  • Sequence: A sequence is a collection of TaskPacks.
  • TaskPack: A TaskPack is a container that encapsulates multiple tasks.
  • Tasks: Tasks are the work activities performed in the process. They represent the specific steps or actions required to achieve the desired outcomes.
Process Structure Diagram:

Process Structure Diagram


By breaking down processes into tasks and organizing them hierarchically, businesses can gain a clearer understanding of their operations and optimize their workflow effectively.


Process types

In both manufacturing and service industries, processes can be classified into three distinct categories:


1. Core processes

Core processes encompass the core activities of a company that directly and visibly contribute to the creation, delivery, and billing of products and services to customers.

A crucial aspect of identifying a core process is its customer-centric orientation and its role in progressively incorporating value into the final product or service. It is essential to note that the term "Increments of products and services in the process" plays a significant role in this context.

When utilizing the Organizational Model, only core processes are considered, which simplifies the overall work.


2. Support processes

Support processes do not directly add value to the end product or service. Instead, they provide assistance and value to the core processes, enabling them to deliver value to customers effectively.

While the Organizational Model does not explicitly include support processes, it does not imply that these processes are disregarded within the Workanizer's organizational infrastructure.


3. Managerial processes

The entirety of the Workanizers platform represents pre-established managerial processes. Consequently, managerial processes are not incorporated into the Organizational Model of the company, as the platform already encompasses managerial functions.


Note

  • The Workanizers platform operates as a system for process management.
  • The Organizational Model specifically focuses on Core processes, resulting in a streamlined and simplified workflow.

Groups

In order to manage a large number of processes effectively, the use of groups within process types is a helpful approach.



Hub concept

The Hub concept is a specific method of grouping Core processes. While not mandatory for building a functional organization, it provides a valuable template for organizing processes. In the Hub concept, Core processes are divided into three distinct groups:

  1. Production Processes
  2. Hub Processes
  3. Customer Processes

By using processes within the Hub zone, communication inside a company can be simplified without sacrificing the level of information exchange found in more complex networks.

 This illustration symbolically shows the communication between 6 participants where everyone communicates with everyone directly. 
The same amount of communication is achieved using processes within the Hub zone, but significantly simplified.


Groups and processes in the Hub concept

Below is a list of predefined groups and their associated processes, which can be adapted and customized according to the specific needs of a business:

Click to see a larger version
Production
processes
Hub
processes
Customer
processes

1. Manufacturing production 1. Product and service planning 1. Promotions
2. Service production 2. Demand and sales planning 2. Sales and delivery
3. Procurement and/or
production planning
3. After-sales
4. Hub coordination
5. Promotional planning

Production Processes:

Production processes primarily encompass activities related to the actual production of goods or services. Then, activities around the procurement of goods for further sale or materials for production. Additionally, processes associated with storage, transport, maintenance, and other production-related aspects can also be included within this category.



Hub Processes:

Product and service planning

This includes processes related to customer need research, assortment planning, and the identification of new commercial products or the internal development of new products and services.

Demand and sales planning

Demand and sales planning involves collecting sales information from all sales channels, including competitor sales data. It encompasses analyzing the effectiveness of promotional activities, researching customer demand trends, developing product and service plans, setting internal goals, considering external economic and social factors, and incorporating them into demand forecasting and sales planning.

Procurement and/or production planning

These processes are derived from the results of demand and sales planning. They are coordinated with the capabilities of production processes, taking into account technological possibilities, available material and human resources, and the state of the supplier's market. The aim is to create procurement and/or production plans accordingly.

Hub coordination

Hub coordination processes optimize the flow of activities and information between production processes and customer processes. The goal is to enhance efficiency by minimizing resource utilization, improving speed, and eliminating miscommunication during handovers.

Promotional planning

Promotional planning involves designing promotional activities and external communication strategies across all sales channels within the company. These processes may also include the production of promotional content and materials.


Customer Processes:

Promotions

These processes involve executing promotional plans to attract and engage customers.

Sales and delivery

Sales and delivery processes encompass various sales activities across different channels (e.g., wholesale, retail, online sales, direct sales, and tender-based sales). They also involve logistics management, warehousing, transportation organization, unloading, and related activities.

After-sales

After-sales processes encompass a wide range of activities such as customer support, training, assembly assistance, conducting customer satisfaction surveys, handling complaints, managing loyalty programs, referral programs, engaging in social networking, and more. The focus is on ensuring customer satisfaction and maintaining long-term relationships.



Creation of the Organizational Model

To create the Organizational Model using the Hub concept, follow these steps:

  1. Consider the Business Model: Understand the nature of your business and its unique requirements.
  2. Consider the goals: Identify the objectives and targets of your organization.
  3. Create a list of Core processes using the Hub grouping template: Utilize the predefined groups of Production processes, Hub processes, and Customer processes to categorize and organize your core activities.

The Organizational Model of the company is developed by specifying all the Core processes within Hub concept groups.

Example of Ice Glee LLC Organizational Model

In Ice Glee, they have a combined business model and have adapted the Hub concept to their needs.

Production
processes
Hub
processes
Customer
processes
Procurement and storage of production materials Offer planning Promotional activities
Production and storage of finished goods Sales planning B2B sales and distribution (mixtures)
Procurement of goods for resale in cafes Procurement and
production planning
After-sales (mixtures)
Preparation of food and drinks for serving in the cafes Hub coordination Serving in cafes
Maintenance of cafes Promotional planning

NOTE:

It's important to note that the Core processes listed here are not sectors, departments, or other organizational units within the company. The Core processes do not conform to such divisions. They represent the essential activities required to fulfill the company's objectives.