Budgeting, Forecasting and Planning In Uncertain Times

10

THE PLANNING AND MONITORING PROCESS

So far, we have specified the content of the different framework models to plan and monitor performance. However, it is the management processes that hold them together. In this chapter, we will look at how to define and configure those processes so they act as a single continuous event.

DEFINING PROCESSES

Components of a Process

As mentioned in the Introduction, we live in a complex world. The everyday products we use, even the seemingly simple ones, are complex to the extent that no one person would be able to make them. Take the case of making a watch; this was only possible through the co-ordinated effort of multiple people with different skills all working together to agreed standards and to achieve a common aim.

The only way to manage complexity, be it creating a physical object such as a watch or organising a management challenge such as winning an Olympic medal, is to break the subject down into manageable pieces. Being manageable means that the individual tasks can be carried out in a repeatable and accurate way, and typically by people who only need to be skilled in the part they are required to perform.

The mechanism by which these tasks are organised and conducted is known as a process. For a process to fulfil its function, it needs to have the following:

• A clearly defined end purpose. Processes exist for reasons that are often simple to define, although they may be difficult to achieve. The purpose of watch-building is to produce ...