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TURNING OPERATIONAL KNOWLEDGE & COMPLIANCE INTO A COMPETITIVE EDGE

We systemize tacit knowledge into explicit knowledge

Blog Enabling Operational Excellence

What Makes Business Smart?

Written by Ronald G. Ross on . Posted in Business Processes, Knowledge Economy

I am certainly interested in what makes processes smart. But I’m a lot more interested in what makes business smart. My observations:
                                • A process lets you interact with customers, but doesn’t guarantee those interactions are the best possible.
                                • A process crosses silos and boundaries of place and time, but doesn’t ensure you communicate across those silos and boundaries.
                                • A process produces things, but doesn’t ensure you produce the right things.
                                • A process pays the bills, but doesn’t find you new money.
                                • A process lets you play the game, but doesn’t determine whether you will win.
                                • A process lets you act, but doesn’t guarantee you will learn from it.
Here are things I know are directly involved in making your business smart. All of them affect processes, but none of them are processes:
    • Business rules
    • Core business concepts
    • Operational business decisions
    • Strategy
    • Policy monitors (KPIs)
So as you start hearing analysts say that smart processes are the next big thing, take it with a grain of salt. Be very clear about three things:
    1. The target should be smart business – not smart processes per se.
    2. Smart automation won’t go very far unless you specify the right things.
    3. The things you need to specify are knowledge things, not process things.
(I suppose I could add there are no silver bullets, but I’m pretty sure you already know that.)

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Ronald G. Ross

Ron Ross, Principal and Co-Founder of Business Rules Solutions, LLC, is internationally acknowledged as the “father of business rules.” Recognizing early on the importance of independently managed business rules for business operations and architecture, he has pioneered innovative techniques and standards since the mid-1980s. He wrote the industry’s first book on business rules in 1994.