In a previous article “Integrated Business Management in the Process Age”, I discussed the dawn off the process age which follows on the Information age. In that article I stated that an organisation’s maturity in the Process Age can be plotted against its ability to utilise and manage the five basic capabilities for high performance: People, Guidance, Processes, Information and Resources.
The Process and Information capabilities were discussed in subsequent articles. I want to delve deeper into the concept of Guidance, which is the foundation of the organisation, and encapsulates the motivation and the business rules of an organisation. It is derived from the vision, mission, strategy, goals and objectives, and influenced by internal and external influences. It guides, constrains, controls and ensures fairness for all in the organisation. The Guidance also determines what services the organisation will provide to achieve its vision. Guidance enforces compliance through its application as governance.
Although process thinking – with all its nuances of outside-in, inside-out and continual improvement – will set organisations apart from each other, it is how the organisation manages its business rules that will offer sustainability through the different phases of the organisation’s transformation. The guidance of the organisation (as stated and enforced in its business rules) is the one capability that will ensure that all the efforts of the organisation are geared towards the improved state.
Business rules have these basic uses:
1. To control: specifies boundaries and parameters for constraint and compliance.
2. To guide: specifies the best behaviour for accomplishing work and the most effective decision in certain scenarios.
3. To measure: specifies the controls that are required to show compliance to a standard or to reach a level of maturity.
4. To decide: different business rules in alternative scenarios will support the decision on the best scenario. Decisions must never be documented in the absence of business rules as they are the terms and facts that support the decision.
The Process and Information capabilities were discussed in subsequent articles. I want to delve deeper into the concept of Guidance, which is the foundation of the organisation, and encapsulates the motivation and the business rules of an organisation. It is derived from the vision, mission, strategy, goals and objectives, and influenced by internal and external influences. It guides, constrains, controls and ensures fairness for all in the organisation. The Guidance also determines what services the organisation will provide to achieve its vision. Guidance enforces compliance through its application as governance.
Although process thinking – with all its nuances of outside-in, inside-out and continual improvement – will set organisations apart from each other, it is how the organisation manages its business rules that will offer sustainability through the different phases of the organisation’s transformation. The guidance of the organisation (as stated and enforced in its business rules) is the one capability that will ensure that all the efforts of the organisation are geared towards the improved state.
Business rules have these basic uses:
1. To control: specifies boundaries and parameters for constraint and compliance.
2. To guide: specifies the best behaviour for accomplishing work and the most effective decision in certain scenarios.
3. To measure: specifies the controls that are required to show compliance to a standard or to reach a level of maturity.
4. To decide: different business rules in alternative scenarios will support the decision on the best scenario. Decisions must never be documented in the absence of business rules as they are the terms and facts that support the decision.
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