Harmon’s process-strategy matrix
Harmon’s process-strategy matrix helps identify an appropriate approach to a business process by considering its strategic importance and its complexity and dynamism. Strategically important, complex processes generally require careful improvement and strong internal capability. Less important processes may be candidates for outsourcing, while stable, relatively simple processes may be suitable for automation. The classification starts a reasoned assessment rather than replacing analysis of costs, risks, capabilities and dependencies.
Worked example
A company regards personalised product design as strategically important and complex, so invests in improving it internally. Routine expense processing is less strategically distinctive and is assessed for automation or outsourcing, subject to security, service and control requirements.
Common mistake
Do not confuse this framework with a manufacturing product–process matrix based on production volume and customisation. Nor does a quadrant make outsourcing automatically safe.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | SBL | Direct | September 2026–June 2027 |