Process Map Definition
We have seen that a fundamental element of entrepreneurial execution is process management. In particular, startups should clearly define key processes and key activities needed to deliver the value proposition to customer segments. This again relates to the Business Model Canvas. For an entrepreneur, the definition and design of business processes and activities could be considered as a technical skill required for the development and execution of the venture. However, what it is important at the beginning is an understanding of the key processes required to run the company. As these processes become understood, it becomes likely that the entrepreneur will require the recruitment workers with specific skills in order to manage and execute those processes. The task of defining a business process map could be carried out utilizing different frameworks already published in the literature. Kaplan & Norton’s well-known model is one option, as is the taxonomy of business processes developed by Diaz, Lorenzo and Solís.
Kaplan & Norton suggests that any company will have four types of generic processes
- Operations management processes: processes that produce and deliver products and services.
- Customer management processes: processes that enhance customer value.
- Innovation processes: processes that create new products and services
- Regulatory and social processes: processes that improve communities and the environment.
Four Types of Processes in the Balanced Scorecard by Kaplan & Norton
Source: Strategy Maps. Kaplan & Norton. Harvard Business School Press. 2004.
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