The quality movement, which gained much momentum in the mid-1980s, ushered in many positive advancements in process improvement. Now, organizations have to step up with more change — integrated improvement. Management accountants should be leading the way
Every organization, whether it is large, medium or small, public or private, profit-driven or not-for-profit all have one thing in common — their operation requires processes. The ability of an enterprise to improve and integrate their processes as well as link these integrated processes to the organization’s strategy are critical aspects of process-based management. In addition, extending this ability to its value chain partners’ processes will provide the necessary competitive advantage for sustainable success in the 21st century. This ability to take a system view of the organization, beyond functional efficiencies, is referred to as process-based management (PBM).
The process view — a good start
The quality movement, which gained momentum in the mid-1980s, led to positive advancements in process improvement. A number of methods and tools were employed to enhance an organization’s quality through improved processes. A few examples include: Total Quality Management (TQM), Business Process Re-engineering (BPR), Activity-Based Management (ABM), Lean Manufacturing, International Standards Organization (ISO) certification and Six Sigma.
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