Formal and Informal Processes

Some processes start out as informal, and then the organization decides to formalize them.

Processes can vary in their degree for formality.  Here's an example of an informal process: Your contact at a company that is a long-time customer asks you for a discount if the company purchases double the normal amount of your product.  There is no rule saying you can't provide such a discount, nor is there an established way to give the discount.  So you give the discount.  You have just created an informal process.  Your company hasn't documented this process as a set of steps that must be performed under certain conditions.  For now at least, the discount program exists only in your head.

Here's an example of a formal process:  You manage a call center that resolves customer concerns over the phone and through the Internet.  You and your team have established a rigorous set of procedures for answering customers' questions and solving their problems.  Your team has documented these procedures, and all new employees are required to study them before staffing the call center's phones.   Thus, the process for handling customer concerns is highly formalized. 

Some processes start out as informal, and then the organization decides to formalize them.  For instance, suppose you created an informal process by asking current employees to suggest job candidates for an open position.  The process proves highly successful, enabling you to identify and recruit a new hire who then excels on the job.  As a result of this success, your company decides to make this practice a formal part of its recruitment efforts.  It even sets up a bonus program to reward employees who recommend candidates who are hired.

ACTION POINT:  Are the informal processes that can be improved if they were formalized?