The Journey Matters: Why Processes Triumph Over People in Ensuring Success

In the dynamic and competitive landscape of modern businesses, there is an ongoing debate about what is more critical for success: the people or the processes. While having talented individuals is undeniably valuable, it’s the processes that often decide the outcome. Good processes can elevate an average team to achieve remarkable results, while poor processes can cripple even the most talented individuals.

The Importance of Processes: A Personal Anecdote

Years ago, while working as a Banking consultant at the Trade Bank of Iraq, I was tasked to streamline loan the bank’s treasury operations. The treasury was managed by a team of experienced and knowledgeable individuals. Despite this, the treasury deals and operations faced many issues due to outdated and inefficient processes. Only after I revamped the treasury operation procedures, introducing clear steps and accountability, we saw a dramatic improvement. The same team, now guided by robust processes, achieved more efficient transactions, prompt matching, and revenue recognition leading to increased profitability.

The Assembly Line Revolution

One of the most iconic examples of the power of processes over people is the assembly line introduced by Henry Ford. Before the advent of the assembly line, car manufacturing was a slow and labour-intensive process. Skilled craftsmen need to build cars from scratch, making the process both time-consuming and expensive.

Ford’s innovation of the assembly line in 1913 transformed the automotive industry. By breaking down the car manufacturing process into simple, repetitive tasks, Ford ensured that even unskilled workers contributed to building a car. This not only sped up production but also reduced costs, making cars affordable for the average American. The key takeaway here is that a well-designed process can harness the potential of any workforce, regardless of their skill levels.

The Tech Industry’s Lean Method

In the tech industry, the Lean method is a testament to the supremacy of processes. Companies like Toyota and, later, software giants like Intel and Google adopted Lean principles to enhance efficiency and reduce waste. The focus of Lean is on continuous improvement and delivering value to customers through streamlined processes.

Consider the example of a software development team. A group of brilliant developers without a structured development process produces exceptional code, but the lack of coordination and consistency can lead to delays, bugs, and customer dissatisfaction. Conversely, a team adhering to Agile methodologies—a process framework that emphasizes iterative development, collaboration, and customer feedback—can deliver high-quality software more reliably and swiftly. The process, in this case, is the backbone that ensures the team’s success.

Learning from Failures: The NASA Challenger Disaster

The tragic Challenger space shuttle disaster in 1986 underscores the critical importance of processes. NASA had some of the brightest minds working on the project, but the disaster occurred due to a failure in communication and process adherence. The infamous O-ring failure, a small yet crucial component, was flagged by engineers as a risk. However, the lack of a robust process for addressing and escalating these concerns led to a catastrophic failure.

This incident highlights that even the most talented individuals can’t compensate for deficiencies in processes. It serves as a stark reminder that clear, well-defined processes are essential for mitigating risks and ensuring the success of complex projects.

Conclusion: Processes as the Pillar of Success

In conclusion, while talented individuals are undoubtedly valuable, it is the processes that give the framework for success. Good processes ensure consistency, reduce errors, and turn on continuous improvement. They transform the potential of a team into tangible results, regardless of individual capabilities.

As I reflect on my career in banking and the various projects I have been part of, the importance of robust processes stands out. Whether it was streamlining treasury operations at the Trade Bank of Iraq or witnessing the efficiency of assembly lines in the automotive industry, the lesson is clear: the journey, defined by processes, is what ultimately leads to success. So, investing in and prioritizing processes is crucial for any organization aiming for long-term success.