Glossary

Many terms and definitions relating to business processes and management systems are confusing, not least some of those contained in some of the well-known international standards such as ISO9000/9001.  We have set out below our definitions and some further explanations, which we believe are more suited to most managers' view of business life.

(Business) Management System  (strictly speaking, a “Management and Operational System”):  "The structure, processes and resources needed to establish the Organisation’s policies and objectives and to achieve those objectives."

[Note:  A system is more than the sum of its parts. The interactions amongst the parts are part of the system, and a system has attributes which do not belong to individual parts]

Management System Description:  "A (printed or electronic) description of the Organisation’s (Business) Management System."

[Note:  a “Management System Description” is NOT a “Management System”]

Task:  "A discrete activity or piece of work. The smallest essential part of a job."

(Business) Process:  "A set of related tasks triggered by an event and intended to achieve an objective."

[Note: It normally uses resources and is subject to influences]

There are perhaps five general types of business process:
• Mechanistic (as in a production line)
• Transactional (in response to a generic event such as receiving a customer enquiry)
• Developmental (where you choose to initiate action to create an outcome which is different / better than the last time you did it, such as business planning)
• Special (as in “the peace process” in Northern Ireland)
• Ongoing (as in implementing a policy, or developing a “learning organisation”).

They range from the most rigorously defined and controlled on the one hand to those subject to the greatest individual interpretation and choice.

Their objectives can be to minimise variation (and increase profit, minimise cost) at one extreme through satisfying variable customer demand, “adding value” and making a positive contribution to society, to dealing with a unique situation where change is essential.

Process Owner:  "An individual or role accountable for the successful performance of a process."

Process Management:  "The planning, direction and control of process performance."

[Note: this requires management (and therefore an understanding) of the key elements of a process (see above)]

Project:  "A process with a start and end date.  An instance of a process."

[OK, some projects may be a bit more involved than that, but the principles are very similar]

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Policy:  "The intentions and principles which provide a framework and guidance for what the Organisation wants to achieve and how it will operate."

Product:  "Goods or services produced or provided by the Organisation for the benefit of another organisation or person, often for payment."

[Note:  A product is the “output” of the Organisation, and its processes are “the means by which the output is created”]

Output (from a process):  "The (intended) “deliverable” generated by the activities that constitute the process, and in many cases defined by its objective(s)."

Outcome:  "Any result of an instance of a process or task" (including, but not limited to, Product).

[Note: could include environmental impact, learning, enhanced or damaged reputation]

Customer:  "An organisation or person that receives a product from the Organisation."

Stakeholder:  "An organisation, group or person which has a beneficial interest in the successful performance of the Organisation."

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If you have any comments or suggestions, please e-mail: contact@mandos.co.uk

See Peter Fraser's personal pages for an "alternative" view of some of the essential concepts of process management - and some more light-hearted topics (some of them in Doric)...