How do I define the term Process?

A process is a structured sequence of activities that turns defined inputs into a result (output) while creating value for customers or the organization. Processes have a clear beginning, a clear end, and repeatable steps.

Why does this matter?

A shared understanding of what a process is forms the prerequisite for any analysis and optimization. Only by clearly delineating and defining processes can you measure, compare, and purposefully improve them.

What does this look like in practice?

Order-to-cash is a process: it starts with the order, ends with payment received, and in between sit credit check, picking, shipping and invoicing. Every single order runs through it as its own instance — with its own start time, its own participants and its own outcome.

Not to be confused with

Not to be confused with a project, which happens once and has a defined end, whereas a process repeats. Nor with a function or department, which describes who does something; a process describes the order in which things happen — usually across several departments.