3.2. II: The Process Level

The next set of critical variables affecting an organization's performance is at what we call the Process Level. If we were to put our organization "body" under a special x-ray, we would see both the skeleton of Level I and the musculature of the cross-functional processes that make up Level II (see Figure 3.2).

Figure 3.2. The Process Level of Performance.

When we look beyond the functional boundaries that make up the organization chart, we can see the work flow—how the work gets done. We contend that organizations produce their outputs through myriad cross-functional work processes, such as the new-product design process, the merchandising process, the production process, the sales process, the distribution process, and the billing process (to name a very few).

An organization is only as good as its processes. To manage the Performance Variables at the Process Level, one must ensure that processes are installed to meet customer needs, that those processes work effectively and efficiently, and that the process goals and measures are driven by the customers' and the organization's requirements.