An examination is made of the problems organizations face in moving from a functionally based structure to one that is business process-based. The drivers that demand change are noted, such as the need for simultaneous improvement of customer focus, responsiveness and lead time and cost reductions. Based on research, 10 detailed principles for managing business processes are presented and discussed. It is cautioned that success in managing by process is not guaranteed and requires experimentation, but it is claimed that large payoffs can be achieved over time.