WHITE PAPER 9308 || PAGE 1 || 800 .535.1559

Core Competencies, Key Process, and Product Service Lines A White Paper from AchieveIt

3 Key Business Core Business Processes of Cereal Company XYZ Processes: 1. Purchasing 2. Processing A business process is a collection Raw Ingredients Ingredients of interrelated tasks that solve a 1.1 Order Pooling 2.1 Raw materials inventory particular issue. There are three 1.2 Ingredient Pick Up 2.2 Plant Scheduling 1.3 Hauler Payroll 2.3 Production types of business processes: 1.4 Producer Payroll 2.4 Finished Goods Inventory

1. processes are those processes that govern the operation of a 5. 3. Packaging . Typical management 5.1 Set sales goals for internal marketing team 3.1 Purchase packaging processes include 5.2 Develop marketing materials and materials for each 3.2 Plant Scheduling . individual cereal product 3.3 Packing materials 5.3 with third party inventory PR firm to purchase ad 3.4 Packaged product 2. Operational processes space in print, television, inventory are those processes that radio constitute the core business and create the primary value 4. Distribution stream. In a manufacturing 4.1 Contract Maintenance , typical 4.2 Sales Order operational processes are 4.3 Packaged inventory purchasing, manufacturing, onto trucks marketing, and sales. In a 4.4 Order fulfilment 4.5 Invoicing healthcare organization, typical operational processes include elements of the patient care process and components includes the mapping of marketing, and distribution. of the revenue cycle. processes and sub-processes Regardless of the number of down to the task level. cereals offered by the company, 3. Support processes or the variety of target markets, are those processes that Business processes are not the the core business processes support the core operational same as product or service lines. remain unchanged. For example, processes. Examples include However, business processes if the company elects to pull , , and will cut across the many product out of the children’s cereal information . or service lines an organization market, the business processes A business process can be offers. For instance, typical stay the same. Likewise, if decomposed into several business processes for a cereal the company then decides to sub-processes, which have company are the purchasing of enter the health food cereal their own attributes, but also raw ingredients, the processing market, the business processes contribute to the goal of the of those ingredients to make remain relatively unchanged. super-process. The analysis of the cereal product, packaging, Key Business Processes are those business processes typically

www.achieveit.com Execute Smarter. Faster. Better. WHITE PAPER 9308 || PAGE 2 || 800 .535.1559

management and operational ability to compete is severely Similarly, healthcare processes that can cripple an hampered. To differentiate further also follow these same principles organization if the processes do between key business processes of business processes and service not function well. If any of the and service lines: while the failure lines. A hospital can expand or key processes fail, the company’s of a key business process could contract its service lines: opening bring a company to its knees, the a children’s hospital, spinning failure of a product or service line off its primary care physician is unlikely to do so. If the cereal network, closing its rehab hospital, Business processes have the company’s health food offering or launching a trauma program. following characteristics: fails, the company will continue to While the service lines can • Definability: It must have push ahead in other markets, even change, the business processes clearly defined boundaries, if it takes a loss in one product line that support the service lines inputs, and outputs. segment. However, if the cereal do not. The business processes company’s distribution process required of a cardiovascular • Order: It must consist of fails, it will negatively affect all service line are identical to the activities which are ordered of the company’s products, not business processes required according to their position in just the health food cereal. to support an orthopedic time and space. service line. If the hospital elects to close its orthopedics • Customer: There must be Processes and program, the same business a recipient of the process processes are still required for outcomes. Service Lines: the cardiovascular service line.

• Value adding: The Most service lines do not have transformation that takes Product or service lines are a way clearly defined boundaries. place within the process of organizing the company to For instance, some patients must add value to the support the strategic plan. The enter through an ambulatory recipient, either upstream or cereal company has 10 different environment, others through downstream. offerings (four children’s cereal, outpatient services, while others four adult cereals, and two enter through inpatient services. • Embeddedness: A process organic cereals) which means the In addition, there are a myriad of cannot exist in itself; it company could elect to organize beginning and ending boundaries must be embedded in an around 10 different product lines – for each service line, and the . one for each cereal. Alternatively, service lines themselves do not the organization could structure consist of ordered activities. • Cross-functionality: A itself around three product lines: process regularly can span children’s cereals, adult cereals, several functions, although and organic cereals. How it is this is not a requirement. structured is largely dependent on organizational vision and strategy.

Develop and Track Your Strategic Plans With AchieveIt! AchieveIt is changing the game by using a new • Create robust dashboards to display technology to organize business’ operational individuals progress against your and strategic initiatives. With AchieveIt’s most important business metrics. web-based software you receive the ability to: • View robust reports that tell you • Build hierarchical plans for all of who is executing to their highest your business initiatives—strategic, ability, and who is not. operational, and . As you read above, creating a relevant • Assign individual users their daily, and effective strategic plan is difficult, monthly, and quarterly tactics and must but with AchieveIt software developing www.achieveituniversity.com dos, and track their progress over time. sound strategy and managing execution has never been easier. www.achieveit.com Execute Smarter. Faster. Better.