Vertically/functionally managed organizations often lead to local optimization, as managers and their teams focus on doing their own jobs. Cycle times and cost increase by:

• Fostering 'us-versus-them' approach to issues.
• Leaving unmanaged gaps between departments.
• Localized improvements that hurt others.
• Losing sight of customer-partner relationships.

Alignment of management horizontally, to match process flow results in reduced layers, improved communication, and reduced waste.

Redesigning management structure is not a trivial task. Huge blocks of senior management's time and attention are required. Large amounts of time need to be invested up front in training and education, truly understanding the process and communicating with employees.

Many managers grossly underestimate the time involved. Poorly planned improvements, actually make performance worse, wasting precious time on improvements that don't matter, taking people's time away from real priorities.

Successful process management demands priority setting, organization, discipline, and a systematic approach.

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