Process Innovation and Corporate Agility Balancing Efficiency and Adaptability in a Knowledge-Centric World

Customer service, corporate agility, speed, and efficiency are central to business performance in the modern world. Underpinning each of these concepts is a subtly different emphasis in the notion of business process – i.e., how the firm is organized. This paper explores issues associated with finding the right balance between standardization and evolution – allowing the firm to achieve organizational longevity (one result of corporate agility), with a special emphasis on service orientation and business process outsourcing. It first discusses business process terminology and then examines the increasing importance of knowledge workers in generating value for the firm. Focusing on the innovation imperative, it addresses service orientation as one component of corporate agility before exploring why knowledge workers need to be able to exercise their judgment. We then delve into the potential implications for process architecture, organizational maturity, and related management practices. We investigate the situations where process evolution is acceptable (if not desirable), challenging some of the existing design philosophies while highlighting alternatives that support both flexibility and efficiency. Finally, we look into the capabilities of modern Business Process Management (BPM) suites to support these competing agendas.