How,Break,Down,Functional,Thin business, insurance How to Break Down Functional Thinking Within Your Organizati

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We've all been in situations where a division orfunctional group within an organization points fingers at otherdivisions when a process failure occurs. Or part of a team that hadlittle idea of how their function fits into other functions within theorganization. This article discusses an issue that affects almost everyorganization, and that's breaking down functional or departmentalizedthinking and creating streams of information that flow across multiplefunctional or departmental boundaries.Most organizations usedepartments and business units in order to differentiate the variousfunctions and services which drive their business. For example,personnel related matters are managed in HR departments, payroll ishandled in accounting departments and computer and systems relatedincidents are resolved in IT departments, and so on. In addition mostbusiness intelligence systems are built to support decision making inthose specific functional areas rather than being built around coreprocesses that span the enterprise and govern how a business operates.For instance, marketing collects only the information it needs to putproducts and services before the public eye. Sales departments payattention to leads, and conversions, and customer buying patterns. Andcustomer service tracks only those customers who call in with questionsand complaints, and how the issue was resolved.In reality,business processes are streams of activity that flow across functionalboundaries, and not contained within a single department. As a resultbusiness processes are often fragmented across "functional silos". Asilo in this case is a division or management system that is notintegrated with the operations of other, related divisions ormanagement systems.The problem with organizations that aretrapped in this siloed mentality is employees rarely study how theirfunction contributes to the larger business process in which theirfunction supports. As a result, these organizations have limitedknowledge on their processes and often do not properly identify theircore processes. This is a major pain point in many performancemanagement initiatives, because most major processes require supportfrom multiple functional support groups. In order to break down thesesilos, each functional group and individual must understand how theirprimary process fits into the core function of their business.Inorder to successfully measure the performance and efficiency of thesemajor processes, we must first understand which groups are responsiblefor handling these processes and what their responsibilities are.Second, we must understand the handoffs of responsibility, that is,when and how the process gets transferred from one group to the next.Thirdly, we must develop requirements for each responsibility withinthe process. And if we're really serious about eliminating functionalthinking within our organizations, we must cross-train employees sothat they fully understand the entire processes, which they support.Forexample, when a purchase request comes in, an approval committee orgovernance team must approve or reject that request within 24 hours.Then the purchasing department must place the order within 24 hours.Then, the warehouse must send the order within 24 hours. Once weunderstand this, we can say that the purchasing order process, ifapproved, will be completed within 72 hours. If the purchase is notsent within 72 hours, we now understand where the bottleneck occurred.Ultimately, if this happens on multiple occasions, the responsiblegroup will have to revisit their sub-processes.Success breakingdown functional thinking depends largely on how well the performancemanagement team involves functional support group management and keyteam members, and how well these sub-processes are identified. Breakingdown functional thinking is critical for organizational growth. Theimportant aspect is developing the proper communication channelsthroughout the entire organization so that when dependencies and crossfunctional processes are identified, points of contacts will beestablished and each group will be responsible for ensuring that theirstaff understand their contribution to larger, multi-functionalprocesses and organization goals. Article Tags: Down Functional Thinking, Functional Thinking Within, Breaking Down Functional, Break Down, Down Functional, Functional Thinking, Thinking Within, Breaking Down