What is meant by Process Hierarchy?
The hierarchy of a process relates to the various levels found in the value chain. Beside one or more main processes related to a specific subject, there are normally also various subprocesses that need to be executed. As an example, procuring suitable hardware for a new employee can be documented as an independent subprocess.
In which scenarios are hierarchies in processes relevant?
Hierarchies ensure a structured and transparent documentation of processes. Every employee can easily see who is at what point in the process and what their tasks were. It also makes sense to have a process hierarchy when you want to execute a process cost calculation. It helps you to limit the level of detail required to meet certain goals. When external service costs need to be calculated its most likely enough if you only take the main processes into account.