Process approach to corporate governance
Administer processes “horizontally” is better than managing by function “vertically” because better results for the client.
In corporate governance systems are many and varied methodologies that have evolved over time, starting with the principles of scientific management proposed by Frederick W. Taylor and general management processes established by Henri Fayol in the early twentieth century.
Today, well into the twenty-first century, economic globalization has changed the way of seeing and doing business, seeking to stay ahead, and above all, prioritizing customer requirements when designing and implementing goods and services to satisfy their expectations.
The process approach is a management methodology that has gradually been gaining a place in management systems due to its effectiveness and its orientation towards customer satisfaction, both internal and external to an organization.
What is a process?
A process is a set of related activities that produce a result based on certain inputs or input elements, for example: If we take wheat flour, milk, butter, sugar and yeast in the right quantities, mix everything and then we put it cook for a specified period of time, will result in a pan, which can then decorate with cream, candy or chocolate to finally have a cake (or cake as they say in some countries of Hispanic or Latino).
For companies, the processes are similar, they take some materials and resources, which together with the right technology and the physical effort of staff, will be transformed into a product or service that is expected to meet the requirements of customers to meet their expectations.