Designing an efficient process catalogue is crucial to the success of any organisation, from startups to large enterprises. Process catalogues, which detail a business’s core and supporting processes, are the foundation for smooth operations, clear accountability, and performance optimisation.
Two main types of catalogues are typically considered: a flat process catalogue, where all processes are listed at the same hierarchical level, and a multi-level process catalogue, often structured into four tiers—strategic, operational, tactical, and supporting processes. Alternatively, the multi-level could simply be hierarchical.
We will now compare the advantages and disadvantages of each approach across different organisational sizes—startups, medium-sized organisations, and large enterprises—and provide insight into which type works best under specific conditions. Finally, we highlight how a professional consultancy can guide organisations in selecting and implementing the most appropriate process catalogue.
Flat process catalogue: advantages and disadvantages
A flat process catalogue lists all processes on the same level without differentiating between strategic, operational, or support functions. This approach is often straightforward to manage, especially in smaller organisations.
Startups (up to 50 staff)
Advantages:
- Startups typically benefit from a flat process catalogue due to the ease of setup and management. It offers simplicity, allowing key players to focus on execution rather than intricate process documentation.
- With fewer hierarchical layers and overlapping responsibilities, startups can make quick decisions and respond promptly to market changes.
Disadvantages:
- As startups grow, a flat catalogue may lack the depth required to handle increasing complexity. Managing all processes at a single level can lead to confusion over roles, duplication of work, and reduced efficiency.
- Without differentiated processes, teams may struggle to prioritise tasks, leading to operational inefficiencies as the business expands.
Medium-sized organisations (500 staff)
Advantages:
- For medium-sized companies, a flat process catalogue can maintain visibility across departments, fostering collaboration and ensuring teams are aligned on key operational goals.
- A flat structure avoids the complexity of multi-tier systems, which may not be necessary if the company has limited product lines or services.
Disadvantages:
- As the organisation grows, having all processes at the same level makes it harder to differentiate between strategic and operational functions. This can lead to confusion over who is responsible for what, particularly when cross-departmental coordination is required.
- A flat process catalogue may inhibit the organisation’s ability to scale efficiently. Maintaining a single-level catalogue becomes cumbersome as the number of processes increases, reducing responsiveness to new challenges and opportunities.
Large Organisations (3000+ staff)
Advantages:
- Large organisations might use a flat catalogue for its simplicity only in specific isolated projects or smaller business units, especially when dealing with straightforward, repetitive tasks.
Disadvantages:
- Large organisations deal with highly complex and interconnected processes across multiple departments and regions. A flat process catalogue cannot provide the level of granularity required to manage these complexities. This approach often results in inefficiency, with bottlenecks arising from a lack of process differentiation.
Advantages and disadvantages of a multi-level process catalogue
A multi-level process catalogue organises processes into distinct layers, typically comprising:
- Strategic (Tier 1)
- Operational (Tier 2)
- Tactical (Tier 3)
- Supporting processes (Tier 4)
This structure provides a more sophisticated framework for managing processes. Alternatively, the multi-level could be hierarchical in nature.
Startups (up to 50 staff)
Advantages:
- For startups with strong growth ambitions, adopting a multi-level catalogue early on can clarify which processes are critical to scaling the business.
- Implementing a multi-level structure from the outset creates a foundation for long-term growth, allowing the startup to scale without overhauling its process structure later.
Disadvantages:
- For most startups, the complexity of a multi-tier structure outweighs the benefits. With small teams and a dynamic environment, an intricate process hierarchy can slow decision-making and hamper agility.
Medium-sized organisations (500 staff)
Advantages:
- A multi-level process catalogue allows medium-sized organisations to differentiate between strategic, operational, and tactical processes, making assigning accountability and managing growth easier. This structure provides clarity on which processes are core to driving the business forward.
- As organisations grow, having a multi-level system enables scalability. Processes can be added or modified at different levels without disrupting operational flow.
Disadvantages:
- Implementing a multi-level process catalogue requires greater oversight and management. The complexity can sometimes create silos if not adequately integrated across departments.
Large Organisations (3000+ staff)
Advantages:
- A multi-level process catalogue is critical in large organisations. It allows for distinct process governance, where strategic processes (Tier 1) guide the organisation’s long-term direction, while operational and tactical processes ensure efficient day-to-day operations. Alternatively, the multi-level nature of the process catalogue may be hierarchical.
- A four-tier structure is ideally suited for large enterprises with multiple business units, regional operations, and diverse service offerings. It provides the necessary granularity to manage these intricacies while ensuring alignment with overall corporate strategy.
Disadvantages:
- The complexity of a multi-level structure necessitates strong governance mechanisms to ensure that processes at each level are aligned and well-integrated across departments. If not managed well, it can lead to bureaucracy and slow decision-making.
Tailored operating model design
Choosing between a flat and multi-level process catalogue depends on an organisation’s size, complexity, and growth objectives. Startups benefit from the simplicity of a flat process catalogue, but as businesses grow, transitioning to a multi-level catalogue becomes crucial for managing increased complexity and scale.
As a consultancy specialising in operating model design and implementation, we help organisations identify the most appropriate process structure for their needs. We provide expert guidance in designing scalable and resilient operating models that align with your growth strategy. Whether you’re a startup looking to build a process foundation, a medium-sized organisation preparing for expansion, or a large enterprise managing complex global operations, we offer tailored solutions that ensure operational efficiency and long-term success. Let’s help you create a suitable process structure to power your growth.