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A standardized process is one which represents a single way of
doing an activity, in which all employees do the activity the
same way all of the time, across multiple strategic business
units. The advantages of standardization are lower process overhead,
less complicated information systems, and more transparency among
business units.
In addition, a standardized process can be extended to represent
a consistent way of doing things that can span organizational
boundaries. Examples include processing paperwork for a new employee
or performing payroll processing for a company.
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The important point
behind a standardized process is that it should run as efficiently
as possible and is often a good candidate for being outsourced
in cases where it is performed in much the same way across different
organizations and it adds no unique or differentiating business
value for the organization.
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