Knowing the process

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Universal Process Classification Scheme

The Universal Process Classification Scheme provides a framework of 13 core business processes and more than 140 sub-processes that help your company achieve peak performance.
Produce & deliver products & services

Operating processes

5 3
Design products & services

1
Understand markets & customers

2
Develop vision & strategy

4
Market & sell

7 6
Produce & deliver for serviceoriented organizations Invoice & service customers

Management processes

8 9 10 11 12 13

Develop & manage human resources

Manage information resources & technology

Manage financial & physical resources

Best practices describe the steps leading companies take to achieve peak performance. Looking to those businesses that perform a process best for insights enables the kind of breakthrough improvement that allows you to leap ahead of the competition, instead of merely keeping pace. By focusing on top performers with proven results, the Global Best Practices knowledge base offers the richest source of insight. Understanding those insights requires a different point of view what we call a process view. To facilitate this idea exchange, Arthur Andersen and the founding members of the International Benchmarking Clearinghouse came together to create the Universal Process Classification Scheme. It defines key processes that every business performs, and serves as the framework for navigating the content and tools in our knowledge base.

Execute environmental, health & safety management program Manage external relationships

Manage improvement & change

1.0 Understand markets & customers

1.1 Determine customer needs & wants Capture & assess customer feedback Predict customer purchasing behavior 1.2 Measure customer satisfaction Monitor satisfaction with products & services Monitor satisfaction with problem resolution Monitor satisfaction with communication 1.3 Monitor changes in market or customer expectations Determine deficiency of products & services Identify innovations that meet customer wants & needs Monitor competitive offerings

4.2 Sell products & services Sell to customers through a field sales force Sell to customers through retail operations Sell to customers through the Internet Sell to customers through direct marketing Manage wholesalers, retailers, & distributors 4.3 Manage customer orders

5.0 Produce & deliver products & services

5.1 Plan for & acquire necessary resources Select & manage suppliers Purchase capital goods Purchase materials & supplies Manage service contracts 5.2 Convert resources or inputs into products Develop production process Schedule production Move materials & resources Make & package product 5.3 Transport & deliver products Arrange product shipment Deliver & install products for customers Identify & meet customer service requirements 5.4 Manage production & delivery process Warehouse or store products Manage inventories Manage delivery process Assure product quality Schedule & perform maintenance Monitor environmental, health, & safety performance

Develop succession & career plans Manage international assignments Create & deploy teams 8.4 Develop & train employees 8.5 Motivate & retain employees Manage compensation Manage employee performance, reward, & recognition Ensure employee involvement Manage & administer benefits Develop work-life programs Diversify workforce 8.6 Manage labor-management relationships 8.7 Manage changes in employment status

11.0 Execute environmental, health, & safety management program (EHS)

11.1 Formulate EHS management strategy Provide corporate EHS program leadership Define EHS strategy Define EHS policy Include environmental concerns in sales & marketing strategies 11.2 Formalize environmental management system (EMS) Develop specific objectives & goals based on the environmental policy statement Define environmental management system Assign EMS accountabilities & responsibilities Perform EMS gap analysis Conduct EMS training Manage EMS information 11.3 Manage environmental program Identify & prioritize environmental aspects of processes & products Identify & manage environmental & business conflicts Define & manage environmental options in the supply chain Include environmental policies in product programs 11.4 Manage EHS costs & benefits Define EHS activities Quantify EHS costs & benefits Identify future EHS opportunities & risks Identify costs of life cycle alternatives Integrate environmental costs & benefits into business systems 11.5 Manage EHS remediation projects 11.6 Manage environmental insurance recovery program 11.7 Measure & report EHS performance

2.0 Develop vision & strategy

2.1 Monitor the external environment Analyze & understand competition Identify economic trends Identify political & regulatory issues Assess technology innovations Identify social & cultural changes 2.2 Define the business concept & strategy Select relevant markets Develop long-term vision Formulate business unit strategy 2.3 Design the organizational structure Manage international operations Outsource noncritical functions Franchise products & services Create shared services centers Manage strategic alliances Manage mergers & acquisitions 2.4 Develop & set organizational goals

9.0 Manage information resources & technology

9.1 Manage information resources Manage records & documents Leverage data & information Leverage organizational knowledge 9.2 Manage information technology Define & manage organization & strategy Acquire, develop, deploy, & support technology solutions Support users Manage technical environment Manage security Ensure continuity of systems

10.0 Manage financial & physical resources

10.1 Manage financial resources Develop budgets Manage capital planning Design capital structure Manage cash flow Manage financial risk 10.2 Process finance & accounting transactions Process accounts payable Process payroll Process accounts receivable, credit, & collections Close the books Manage travel expenses Implement a transfer pricing policy 10.3 Report information Provide external financial information Provide internal financial information 10.4 Conduct internal audits 10.5 Manage the tax function Ensure national tax compliance Ensure local tax compliance Ensure international tax compliance Manage tax controversies 10.6 Manage physical resources Manage fleet assets Manage fixed assets Manage facilities Manage physical risk 10.7 Manage integrity risk 10.8 Manage business continuity planning 10.9 Manage risk in emerging markets

6.0 Produce & deliver for serviceoriented organizations

6.1 Plan for & acquire necessary resources Select & manage suppliers Purchase materials & supplies Manage service contracts 6.2 Develop human resources skills Define skill requirements Identify & implement training Monitor & manage skill development 6.3 Deliver service to the customer Confirm specific service requirements for customers Identify & schedule resources to meet service requirements 6.4 Ensure quality of service

12.0 Manage external relationships

12.1 Communicate with shareholders 12.2 Manage government relations 12.3 Build lender relationships 12.4 Develop public relations program 12.5 Manage relations with board of directors 12.6 Develop community relations 12.7 Manage ethical issues

3.0 Design products & services

3.1 Develop new product or service concept & plans Translate customer needs & wants into products or services Plan & deploy cost & quality targets Target product life cycle & development timing Assess & integrate technology into products or services 3.2 Design, build, & evaluate prototype products or services Develop product or service specifications Conduct concurrent engineering Implement value engineering Implement design for environment program 3.3 Refine existing products or services Develop product or service enhancements Eliminate quality & reliability problems Eliminate outdated products or services 3.4 Test effectiveness of new or revised products or services 3.5 Prepare for production 3.6 Manage the product or service development process Implement project management 3.7 Manage intellectual property Apply for & manage patents Secure copyright & trademark protection Protect trade secrets

13.0 Manage improvement & change

13.1 Measure organizational performance Create measurement systems Measure product & service quality Measure costs Measure productivity 13.2 Conduct quality assessments Conduct quality assessments based on external criteria Conduct quality assessments based on internal criteria 13.3 Benchmark performance Develop benchmarking capabilities Conduct process benchmarking Conduct competitive benchmarking 13.4 Apply best practices Implement continuous process improvement Reengineer business processes & systems 13.5 Implement total quality management (TQM) Create commitment for TQM Design & implement TQM systems Manage TQM life cycle

7.0 Invoice & service customers

7.1 Bill the customer Develop, deliver, & maintain customer billing Respond to billing inquiries 7.2 Provide customer service Provide post-sales service Handle warranties & claims 7.3 Respond to customer inquiries Respond to information requests Manage customer complaints

4.0 Market & sell

4.1 Develop sales & marketing strategies Identify market segments Select channels of distribution Develop pricing strategy Develop advertising & promotion strategies Develop sales forecast Establish presence in emerging markets

8.0 Develop & manage human resources

8.1 Create & manage human resource strategy 8.2 Identify performance competencies Develop leadership competencies Expand finance competencies 8.3 Manage deployment of personnel Plan & forecast workforce requirements Recruit, select, & hire employees