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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

1 2 3 4 7
Understand Develop vision Design Market Invoice &
markets & & strategy products & & sell
6 service
customers services customers
Produce & deliver
for service-
oriented
organizations

Management processes

Best practices describe the steps leading

8 Develop & manage human resources
9 Manage information resources & technology
10 Manage financial & physical resources
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.

11 Execute environmental, health & safety Understanding those insights requires a different point of
management program view – what we call a process view. To facilitate this idea
exchange, Arthur Andersen and the founding members of
12 Manage external relationships the International Benchmarking Clearinghouse came
together to create the Universal Process Classification
Scheme. It defines key processes that every business
13 Manage improvement & change performs, and serves as the framework for navigating the
content and tools in our knowledge base.
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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
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
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
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
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
6.0 Produce & deliver for service-
oriented 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
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
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
Develop succession & career plans 11.0 Execute environmental, health, &
Manage international assignments safety management program (EHS)
Create & deploy teams 11.1 Formulate EHS management strategy
8.4 Develop & train employees Provide corporate EHS program leadership
Define EHS strategy
8.5 Motivate & retain employees
Define EHS policy
Manage compensation
Manage employee performance, reward, & recognition Include environmental concerns in sales & marketing strategies
Ensure employee involvement 11.2 Formalize environmental management system (EMS)
Manage & administer benefits Develop specific objectives & goals based on the environmental
Develop work-life programs policy statement
Diversify workforce Define environmental management system
8.6 Manage labor-management relationships Assign EMS accountabilities & responsibilities
8.7 Manage changes in employment status Perform EMS gap analysis
Conduct EMS training
Manage EMS information
9.0 Manage information resources
& technology 11.3 Manage environmental program
Identify & prioritize environmental aspects of processes
9.1 Manage information resources
& products
Manage records & documents
Identify & manage environmental & business conflicts
Leverage data & information
Define & manage environmental options in the supply chain
Leverage organizational knowledge
Include environmental policies in product programs
9.2 Manage information technology
11.4 Manage EHS costs & benefits
Define & manage organization & strategy
Define EHS activities
Acquire, develop, deploy, & support technology solutions
Quantify EHS costs & benefits
Support users
Identify future EHS opportunities & risks
Manage technical environment
Identify costs of life cycle alternatives
Manage security
Integrate environmental costs & benefits into
Ensure continuity of systems
business systems
10.0 Manage financial & physical resources 11.5 Manage EHS remediation projects
11.6 Manage environmental insurance recovery program
10.1 Manage financial resources
Develop budgets 11.7 Measure & report EHS performance
Manage capital planning
Design capital structure 12.0 Manage external relationships
Manage cash flow 12.1 Communicate with shareholders
Manage financial risk 12.2 Manage government relations
10.2 Process finance & accounting transactions 12.3 Build lender relationships
Process accounts payable
12.4 Develop public relations program
Process payroll
Process accounts receivable, credit, & collections 12.5 Manage relations with board of directors
Close the books 12.6 Develop community relations
Manage travel expenses 12.7 Manage ethical issues
Implement a transfer pricing policy
10.3 Report information 13.0 Manage improvement & change
Provide external financial information 13.1 Measure organizational performance
Provide internal financial information Create measurement systems
10.4 Conduct internal audits Measure product & service quality
10.5 Manage the tax function Measure costs
Ensure national tax compliance Measure productivity
Ensure local tax compliance 13.2 Conduct quality assessments
Ensure international tax compliance Conduct quality assessments based on external criteria
Manage tax controversies Conduct quality assessments based on internal criteria
10.6 Manage physical resources 13.3 Benchmark performance
Manage fleet assets Develop benchmarking capabilities
Manage fixed assets Conduct process benchmarking
Manage facilities Conduct competitive benchmarking
Manage physical risk 13.4 Apply best practices
10.7 Manage integrity risk Implement continuous process improvement
10.8 Manage business continuity planning Reengineer business processes & systems
10.9 Manage risk in emerging markets 13.5 Implement total quality management (TQM)
Create commitment for TQM
Design & implement TQM systems
Manage TQM life cycle