Principle 5 - System approach to management

Identifying, understanding and managing interrelated processes as a system contributes to the organization's effectiveness and efficiency in achieving its objectives.

Processes are the fundamental building blocks of all organizations, and both process understanding and process improvement form the lifeblood of total quality organizations. Processes transform inputs, which can include actions, methods and operations, into outputs. They are the steps by which we add value, and it should be the aim of customer focused, total quality organizations, for these outputs to satisfy or exceed the needs and expectations of their customers.

Everything we do is a process, whether it is documented or not, and in each area or function of an  organization there are many processes taking place. These processes interact with other processes throughout an organization, as outputs from one process form the inputs to another. As shown in the diagram below, each process is therefore part of a larger process and organizations large and small can be seen as complex networks of interconnecting processes, the highest level being the organization itself.

Whereas the outputs of an organization go to its “external customers", the outputs of internal processes of the organization go to “internal customers”. If the needs and expectations of each internal and external customer are consistently met or exceeded, then it can be said that it is “total quality”.

Benefits:

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  Integration and alignment of the processes that will best achieve the desired results.


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  Ability to focus effort on the key processes.


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  Providing confidence to interested parties as to the consistency, effectiveness and efficiency of the organization.

Application:

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  Structuring a system to achieve the organization's objectives in the most effective and efficient way.


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  Understanding the interdependence between the processes of the system.


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  Structured approaches that harmonize and integrate processes.


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  Providing a better understanding of the roles and responsibilities necessary for achieving common objectives and thereby reducing cross-functional barriers.


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  Understanding organizational capabilities and establishing resource constraints prior to action.


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  Targeting and defining how specific activities within a system should operate.


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  Continually improving the system through measurement and evaluation.