Governance Models Best Practices
Governance Models Best Practices
Governance Models Best Practices
EDP
EDP wanted a common process management approach that would not only overcome internal
concerns but also create value throughout the organization. The leadership knew that clear
governance would establish and support business units through a set of internal controls as the
organization moved its culture toward a process orientation. Eventually, EDP created a sevenpart model (Figure 1) that contained change management, tools, process models, and elements
of strategic alignment.
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Figure 1
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resource for benchmarks and best practices
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2012 APQC. ALL RIGHTS RESERVED
EDPs criteria to identify key process are based on the impact on operations, the number of
resources required, the frequency of execution, and the criticality to operations.
3. Global Architecture and Main Participants
The third item in the governance model the establishment of roles for each level of process
management, wherever it is implemented within the organization. Figure 2 illustrates these
levels and roles.
Figure 2
4. Participants Responsibilities
Participant responsibilities are coordinated during a single planning cycle. Once the governance
model architecture was established, the roles and responsibilities for all participants were set.
5. Planning Cycle for Key Process Improvement
The planning cycle for key process improvement produces an improvement plan that includes
initiatives for each business unit. EDP has created guidelines on planning cycle execution,
business unit involvement, and cycle coordination and reporting.
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NGAS
Keeping processes consistently aligned in an organization as large and distributed as NGAS is a
significant challenge. NGAS operates four facilities and two corporate offices with more than
22,000 employees. To effectively manage the organization, it created three governance bodies
that align corporate strategy with actual work:
1. the affordability steering committee,
2. the process management control board, and
3. individual process management teams.
The NGAS affordability steering committee focuses on the strategic goal of affordability and
uses process excellence as a lever to meet that goal. The committee exists at the highest level of
NGAS. Its goals include:
The process management control board focuses on maximizing efficiencies and creating a
process-based, quality-focused enterprise. This group is responsible for:
Finally, individual process management teams act on the strategic vision and work through local
process improvement initiatives. Ultimately, these teams implement projects that result in topline growth and bottom-line performance.
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Individual process management teams and their governing committees take direction from a
site steering committee, which governs all process management activity and consists of local
executive leadership, line management, and non-management employees. In sites without a
strong local presence, the sector-level process management control board takes responsibility
for the local-level process improvement and implementation of strategic initiatives.
PCC
The PCCs governance is rather straightforward. The organizational chart consists of three layers
of management, with the director on top, division associate/assistant directors below that, and
operational section chiefs below them. Three kinds of groups drive organizational activities.
1. Functional sectionsare traditional organizational sections such as IT, quality, laboratory,
and production.
2. Matrix teamsdrive clinical trials, have representatives from every section, and are led by
pharmacist project directors and pharmaceutical project managers.
3. Interlocking committeesfocus on an organizational program such as quality improvement,
safety, or customer focus.
Section chiefs assign employees to projects, which are staffed with a matrix team (Figure 4)
consisting of a pharmacist project director, a pharmaceutical project manager, and at least one
representative from each of the organizations eight sections.
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Figure 4
Conclusion
Strong, clear governance can facilitate process management by clarifying who is accountable,
which roles various stakeholders will play, and how work will proceed. When organizations keep
these key elements in mind, process becomes easier to implement and manage, thus making it
more effective throughout the organization. Ultimately, the focus becomes organizational goals
and objectives and the best path for reaching them.
ABOUT APQC
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best practice business research. Working with more than 500 organizations worldwide in all
industries, APQC focuses on providing organizations with the information they need to work
smarter, faster, and with confidence. Every day we uncover the processes and practices that
push organizations from good to great. Visit us at www.apqc.org and learn how you can make
best practices your practices.
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Research provided by APQC, the international
resource for benchmarks and best practices
K03892
2012 APQC. ALL RIGHTS RESERVED