Rectifying Yesterday Versus Creating Tomorrow: Leadership Challenges in Balancing a Portfolio of Processes

Abstract

We are at a critical juncture now. We are dissatisfied with the tried-and-tested strategy of vertical integration and the corresponding functional organization and are experimenting with newer models of strategy and alternative forms of organization. We are moving away from a predominant focus on information technology and systems as a source of competitive advantage towards recognizing information technology-enabled processes as key building blocks for the new organizational logic. This paper focuses on the leadership and management challenges in leveraging information technology functionality to design a process-centered organization to drive the creation and deployment of capabilities to compete effectively in the 21^st century marketplace. Specifically, I assert that much of the current process redesign efforts have been directed at rectification of past weaknesses—inherent in the business design adopted to leverage the potential of the industrial revolution. This could improve bottom-line profits but cannot create top-line growth. Management attention should be directed at processes— especially those involving external partners and alliances in the extended business network-that are building blocks of the critical capabilities of future success. For this purpose, I develop a portfolio of processes and discuss specific actions for managing the different types of processes. Effectively designing and balancing a portfolio of processes that create distinctive organizational capabilities to deliver superior customer value is a key requirement for success in the 21^st century.