Companies often know where they want to go when it comes to Strategy Development. Companies want to be more agile, quicker to react, and more effective. They want to deliver great customer experience, take advantage of new technologies to cut costs, improve quality and transparency, and build value.
Yet, while most companies are trying to get better, the results tend to fall short. One-off initiatives in separate units do not deliver big enterprise-wide impact. Improvement methods that were adopted almost invariably yield disappointing results.
Senior leaders have a crucial role to take in making things happen. Business Transformation cannot be a siloed effort. A Next-generation Operating Model is essential to break through organizational inertia and trigger step-change improvements.
Understanding the Next-gen Operating Model
Companies need to commit to a Next-gen Operating Model if they want to build value and provide compelling customer experiences at a lower cost.
- Integrated, Organization-wide Operational Improvement Program. This approach is focused on Customer Journeys and distinctive customer experience. The Integrated, Organization-wide Operational Improvement Program is a holistic approach towards how operations can contribute to delivering distinctive customer experience. It cuts across organizational siloes in both customer-facing and end-to-end processes. This approach is a preferred organizing principle. Having multiple independent initiatives within separate organizational groups can deliver incremental gains. However, the overall impact can be underwhelming.
- Holistic Customer Journey. This is an approach that makes use of multiple capabilities instead of individual capabilities to achieve greater impact.
The holistic Customer Journey is achieved when the 5 core capabilities are utilized.
Discovering the 5 Core Capabilities
There are 5 core capabilities essential in unlocking the most value in the shortest possible time. Two of the 5 capabilities are Digitization and Advanced Analytics.
Digitization is the process of using tools and technology to improve journeys. It has the capacity to transform customer-facing journeys by creating the potential for self-service. It has the power to reshape time-consuming transactional and manual tasks that are part of internal journeys more so when multiple systems are involved.
Another core capability worth knowing is Advanced Analytics. This is the autonomous processing of data using sophisticated tools to discover insights and make recommendations. It provides intelligence to improve decision making and enhance journeys when nonlinear thinking is required. This is very useful in claims triage, fraud management, and pricing.
There are 3 other core capabilities that are essentially important in these days of Digital Transformation. These are Intelligent Process Automation, Business Process Outsourcing, and Lean Process Design.
Intelligent Process Automation is an emerging set of new technologies that combine fundamental process redesign with process automation and machine learning. It can replace human effort in processes that involve aggregating data from multiple systems taking a piece of information from a written document and entering it as standardized data input.
Business Process Outsourcing works best for processes that are manual. It uses resources outside the main business to complete specific tasks or functions. Back-office processing of documents and correspondence is an example of BPO.
The Lean process Design is one capability that helps companies streamline processes, eliminate waste, and foster a culture of Continuous Improvement. It is considered a versatile methodology as it can be applied in multiple processes.
Organizations can use these capabilities to achieve the greatest impact. The maximum effect, however, can be achieved when specific implementation guiding principles are followed.
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Lean Management plays a significant role in putting in place processes, capabilities, and tools to improve how businesses operate. But, the Digital Age has increased both the opportunities for businesses who know how to react and the difficulty of getting it right.
Tasks performed by humans are now more complex be it accessing information in multiple formats from multiple sources or responding to changing market and customer dynamics at an ever-increasing speed. As an increasing number of tasks become automated or taken over by cognitive-intelligence capabilities, companies need to learn from lean management. Like a sprinter who needs all her muscles to be finely tuned and working in concert to reach top speeds, fast-moving institutions must have a system to continually synchronize strategies, activities, performance, and health.
Many organizations understand the need to change how they work and have embarked on numerous initiatives, yet few have been able to get beyond isolated success cases or marginal benefits. Most companies recognize the need for a Next-gen Operating Model to drive their business forward their Digital Transformation initiatives. But, how they develop it makes a big difference.
The Next-gen Operating Model
There are 4 core pillars of a Next-gen Operating Model. Putting these in place will ensure its successful implementation.
- Autonomous, Cross-functional Teams. The first pillar is focused on empowering the team to own products, services, or journeys. Having autonomous, cross-functional teams, organizations can become nimble in building skills across their teams. They make anchor hires for key roles, set up rotational and train the trainer programs, and commit to ongoing capability building and training for key roles.
- Flexible, Modular Platform. The second pillar is focused o supporting a faster deployment of products and services. Having Flexible, Modular Platforms will enable technology teams to better collaborate with business leaders in assessing which systems need to move faster.
- Connected Management System. The third pillar focuses on driving a culture of continuous improvement that cemented on customer needs. A Connected Management System will ensure that Management systems are evolving to create feedback mechanisms with and between various operations and teams.
- Agile, Customer-centric Culture. The fourth pillar is focused on speed and execution over perfection. Having an Agile, Customer-centric Culture is critical to success. It leads the change from the top and builds new ways of working across organizational boundaries. When functions and teams collaborate, effective time to market to reduced as well as operational risk.
The path to building up the Next-gen Operating Model follows well-defined approaches to guide organizations. These approaches will be every organization’s guide to operating model transformation during the first 12 months.
Following the 4 Critical Approaches to Operating Model Transformation
The 4 critical Approaches to Operating Model Transformation works well when there is a broad and top-down organizational mandate for change. Before anything else, organizations must make sure that the change mandate is in place so that the entire organization is aligned with the proposed change.
One of the 4 Critical Approaches is the Innovation Lab. The Innovation Lab is a dedicated unit set up to be entirely separate from the historical culture, decision-making bureaucracy, and technical infrastructure of the main business. It hatches new business models in an informal setting. It is best used when there is a need to move very quickly in response to market pressures.
Mastering these various approaches will enable organizations to better go through the Operating Model Transformation in the most effective way to achieve Operational Excellence.
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A company can have a team of skilled, talented, and educated professionals where each team member has relevant training and experience, a good attitude, and a solid work ethic. Members of the team get along well with each other. When you put all these together, you get to achieve results. The team gets to deliver high-quality projects on time and to spec.
However, the problem is the pieces do not always fall into place.
One teammate promises to deliver and then doesn’t. Deadlines are forgotten, meetings are being missed, and important communications being misplaced. We even lose track of our to-dos. As a result, when one person fumbles, the whole team scrambles. This leads to failed projects, frustrated teammates, and financial losses.
A total of 1,160 professionals were interviewed on how individual performance can affect team productivity within the organization. Ninety-four percent of those interviewed revealed that at least one teammate frequently misses deadlines, 85% said that at least one teammate appears busy but fails to complete tasks on time, and 91% said that at least one teammate spends too much time on unimportant tasks. Significantly, the study showed that 9 out of 10 professionals interviewed revealed that when one team commits any of these blunders, the team and organization suffer.
People come to the workplace with various skill sets and backgrounds. They know how to navigate the application, develop programs, oversee communications, manage resources, devise strategies, or lead people. Yet, only a few are well versed in workflow management or even had formal training on it. Yet, nobody gets a degree in Workplace Productivity.
Expertise vs. Effectiveness
Results of a McKinsey Research showed that knowledge and skills cannot make up for low poor productivity practices that can affect morale and results. Expertise is how people work. Effectiveness is what they can do. There is a key difference between the two.
Expertise can refer to people who have good intentions and rich technical backgrounds while effectiveness is the inability to manage workload. Based on the research, as a person’s roles and responsibilities increase, productivity begins to fall. To thrive in a world of endless tasks and inputs, it is essential that key productivity practices are developed.
Mastering Key Productivity Practices
In how work is done, even small fumbles have a huge impact. With key Workplace Productivity practices, organizations can move to be smart and strategic.
Taking on each of the productivity practices can deliver a great impact on organizations.
- End with Next Steps. Undertaking this first productivity practice can result in projects moving forward seamlessly. This can also reduce the need for future meetings.
- Capture Commitments. When commitments are captured, team members are more apt to get work done on time and foster trust. A sense of care is communicated to teammates resulting in increased confidence.
- Dedicate Time to Each Work Mode. Critical projects and tasks are completed when time is allocated to each work mode. Team members become more effective if time is demarcated.
- Saying “No” When Needed is the fourth productivity practice. This will foster a culture where teammates seek real solutions, rather than agree to every request out of a sense of obligation. This behavior will spur focus and engagement. In an organization, it is okay to say “No.” A YES mentality will backfire the minute men have too much on their plate.
Organizations will always have top performers as well as average performers. What is important is the ability of organizations to develop their people into top performers. Having a good mastery of the key productivity practices can boost productivity to a high level despite multiple roles and responsibilities. This is also essential in Leadership Development.
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Business Process Reengineering (BPR) is a practice of rethinking and redesigning the way work is done to better support an organization’s mission and reduce costs. In all too many companies, reengineering has been not only a great success but also a great failure. After months, even years, of a careful redesign, these companies achieve dramatic improvements in individual processes only to watch overall results decline.
The promise of reengineering is not empty. It can actually deliver revolutionary process improvements, and major reengineering efforts are being conducted around the world. It can even lead organizations to achieve a successful Business Transformation.
Yet, companies cannot convey these results to the bottom line.
The Strategy that is BPR
Business Process Reengineering (BPR) is a Business Management strategy focused on the analysis and design of workflows and business processes within an organization. Often, companies direct Process Reengineering initiative on 2 key areas of business. One is in the use of modern technology to enhance data dissemination and the decision- making process. The second key area is the alteration of functional organizations to form functional teams.
As a strategy, Business Process Reengineering can greatly impact on the organization. It can help organizations fundamentally rethink how work must be done to improve customer service, cut operational costs, and become world-class competitors. It can help companies radically restructure their organizations by focusing on the ground-up design of their business process. BPR, as a strategy, can direct organizations to achieve Operational Excellence.
In the process, there are 2 dimensions that are critical in translating these short-term narrow-focus process improvements into long-term profits.
Understanding the 2 Dimensions of BPR
- Breadth. Breadth is a dimension of BPR that focuses on the range of activity types within a process. It includes the identification of activities includes in the process being redesigned that are critical for value creation in the overall business unit. Breadth can reduce overall business unit costs and can even reveal unexpected opportunities for a redesign.
- Depth. This is the dimension of BPR that focuses on the abstraction levels of process logic within a process. It refers to how many and how much of the depth levers change as a result of reengineering. Depth provides the most dramatic process cost reduction and avoids the classic reengineering pitfall of focusing on fixing the status quo.
Having a good understanding of the 2 Dimensions of BPR will open a range of opportunities for organizations to achieve innovative performance and enhancements.
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The use of the Internet and other online tools have turned consumers to be more empowered and are now shopping differently. Customers are becoming more demanding and accustomed to getting what they want.
With greater access to reviews and online rating, customers are better equipped to switch to new products and services. Consumers now want to buy products and services when, where, and however they like. They expect companies to interact with them seamlessly, in an easy, integrated fashion with very little friction across channels.
As customer expectation continues to evolve–accelerated by the amplifying forces of interconnectivity and technology–markets are becoming increasingly fragmented with demand for greater product variety, more price points, and numerous purchasing and distribution channels.
Companies should be able to adapt to these increasingly disparate demands quickly and at scale. Staying close to the Customer Experience across an increasingly diverse customer base changing over time is no longer a matter of choice. It is a business imperative and a matter of corporate survival.
The Age of the Customer now calls for companies to be a Customer-centric Organization. Successful ones have discovered that driving customer-centricity depends, first and foremost, on building a Customer-centric Culture.
The Case for Customer-centricity
In the Age of the Customer, business as usual is not enough. Customers expect companies to interact with them seamlessly. Customers want companies to anticipate their needs and technology must have lowered barriers to entry to allow unorthodox competitors to disrupt markets.
The Age of the Customer has made it imperative for companies to have a customer-centric culture. A Customer-centric Culture can empower and control employee behavior. It is a culture that prioritizes the common understanding, sense of purpose, emotional commitment, and resilience. It is a culture where leaders and employees understand the company’s brand promise. Finally, and most importantly, a customer-centric culture is a culture that is committed to delivering exceptional customer experience.
Companies with a Customer-centric Design must integrate, within its core, primary and secondary cultural attributes essential to complete its customer-centric culture framework.
The Corporate Culture Framework: Its Primary and Secondary Cultural Attributes
In a customer-centric Corporate Culture framework, the primary cultural attributes are critical in building a customer-centric culture. It also has 4 Secondary Cultural Attributes to complete that transformation.
The 4 Primary Cultural Attributes
- Collective Focus
This is a shared vision articulated on what it means to deliver great customer service. Significant resources are devoted to communicating the customer value and all employees understand their role in delivering value.
- External Orientation
External Orientation is having a full understanding of the company through the customer’s eyes. Outside-in perspectives are taken, seeing themselves as customers see them.
- Change and Innovation
In Organizational Change and Innovation, the corporate value system is in place that values failing fast and learning quickly. The notion that mistakes are learning opportunities is embedded in the organization.
- Shared Beliefs
Shared Beliefs is an attribute where employees share a common ideology and commitment to core values. The company strongly encourage strong service mentality and the desire to help others.
The 4 Secondary Cultural Attributes
- Risk and Governance
In Risk Management and Governance, the company must have a strong collective focus and shared beliefs about the boundaries of acceptable risk and appropriate behavior.
A Customer-centric Culture with this secondary attribute has the resilience to bounce back when things don’t go as planned.
Commitment is the third secondary attribute where employees show dedication to the customer-centric ethos.
Inclusion, the fourth secondary attribute, is one attribute that reinforces values diversity, authenticity, and uniqueness.
Inculcating these attributes has become imperative to achieve a successful transformation towards a Customer-centric Culture. Strategy Development now requires organizations to master the necessary practices to instill these attributes and the essential reinforcement to ensure that it is sustained.
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Today’s customers are better informed, better connected, and more demanding than ever before. CEOs are now concerned about Customer Loyalty and they recognize that mastery of the customer agenda is essential. In fact, global leaders of successful businesses recognize that creating a customer-centric, digitally-transformed business is a top priority.
In this age of digital disruption, how can organizations engage customers, increase Customer Loyalty, and achieve profitable growth? What is most appropriate when it comes to Customer-centric design?
Almost every market is experiencing a fundamental change. Consumer expectations have shifted and digital technologies are making the biggest impact on businesses large and small since the start of the information age. Ultimately, businesses need to navigate the challenges of digital disruption and find new ways to create economic value and drive growth.
The challenge today is what it takes for organizations to be a Customer-centric Organization.
Unraveling the 6 Core Capabilities of a Customer-centric Organization
A Customer-centric Organization must have 6 Core Capabilities to compete in the Digital Age. In this global time, customer-centricity ceases to be a differentiator. It has become a matter of survival.
The first 2 Core Capabilities are Customer-directed. These are Customer Strategy and Customer Experience (CX).
- Customer Strategy. The first core capability, Customer Strategy is focused on addressing changing customer needs and behavior. It involves the development of a clear view of customer behavior and intentions using data and analytics. Customer Strategy can be applied in several ways. It can be used to refine and develop a proposition or even inform major investments in new media content.
- Customer Experience (CX). Customer Experience (CX) is that core capability that generates a significant competitive advantage – a double revenue growth against industry counterparts. It is being able to respond to customer needs balanced with understanding the values customers bring to the enterprise. The world’s most advanced customer businesses often undertake customer journey mapping and experience design which are critical to executing customer-centric change.
The second 2 Core Capabilities focus on front office capability and across the enterprise value chain. These are Sales & Service Transformation and Connected Enterprise.
- Sales & Service Transformation. As the third core capability, Sales & Service Transformation is essential to becoming a customer-responsive business. This is a newly digitized and fully integrated front office capability that can attract, engage, acquire, and continually engage with customers. With the modernization and transformation of front office functions, Marketing, Sales, and Service teams get to have better ideas on how to work together more effectively. This leads to a full end-to-end Business Transformation. A core concept to Service Transformation is the development of Service 4.0 capabilities.
- Connected Enterprise. Focused on delivering differentiated Customer Experiences, Connected Enterprise is an architecture of fundamental capabilities that work across the Enterprise Value Chain, from back office operations through customer-facing interactions. The application of Connected Enterprises has led to companies experiencing an increase in annual revenue and a positive return on investment.
The third 2 Core Capabilities are Data & Analytics and Digital Transformation — your company’s response to a highly demanding digital market.
- Data & Analytics. The fourth core capability is Data & Analytics. This core capability is focused on creating actionable insights that drive profitable growth. With the use of Data & Analytics, it can uncover patterns of customer behavior, relevant social media influencers, and channel preferences. It is useful in personalizing propositions, channels, marketing communication, and the experiences offered to customers.
- Digital Transformation. The sixth core capability, this is the core capability that can power new ways to engage customers, optimize operations, and transform products. Digital Transformation is delivering the right customer and digital technology. With the advent of virtual reality, augmented reality headsets, the Internet of Things, AI, and cognitive computing, it has changed the way customer-centric companies engage customers. Digital Transformation is not an overnight event. This is a series of incremental steps, each delivering a concrete business advantage.
Developing the 6 Core Capabilities is no easy task. It can be pretty challenging. Companies need to have a good handle of its key challenges and the right approaches to mastering the 6 Core Capabilities. When this is achieved, the high road to global competitiveness is achieved.
Interested in gaining more understanding of these 6 core Capabilities of a Customer-centric Organization? You can learn more and download an editable PowerPoint about the 6 Core Capabilities of a Customer-centric Organization here on the Flevy documents marketplace. There is a series of 3 presentations – Part I, Part II, and Part III that discusses all 6 Core Capabilities.
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The Data Analytics Revolution is here. It is transforming how companies organize, operate, manage talent, and create value. In fact, advanced data analytics is now a quintessential business matter. It is important for CEOs and top executives to be able to clearly articulate its purpose and translate it into action. Yet, this is not so.
CEOs and top executives are finding it difficult to articulate the clarity of purpose and act on it. It must not just stay in an Analytics department but must be embedded throughout the organization where the insights will be used. Leaders with strong intuition do not just become better equipped to kick the tires on their analytics efforts. Leadership Development now calls for leaders to be capable of addressing many critical top management challenges. It now requires employing a range of tools, employing the right personnel, applying hard metrics, and asking hard questions.
Data Analytics is a means to an end. It is a discriminating tool for identifying and implementing a value-driving answer. It can unleash insights that could be the very core of your organization’s approach to improving performance. This, however, cannot be achieved if there is no clarity in the purpose of your data.
Data Analytics Revolution: Are We Ready?
The Data Analytics Revolution is transforming how companies organize, operate, manage talents, and create value. But are we ready for this? A number of companies are reaping major rewards from Data Analytics. But this is far from the norm. More CEOs and top executives are avoiding getting dragged into the esoteric weeds.
Data Analytics have complex methodologies and there is a sheer scale of data sets. Machine Learning is becoming increasingly more important. For us to be ready in the onset of Data Analytics Revolutions, we need to be capable of addressing many critical and complimentary top management challenges. We need to be able to ground even the highest analytical aspirations in traditional business principles and deploy a range of tools and people.
To be properly equipped on the proper use of Data Analytics, we just need to develop a mindset for Purpose-driven Analytics anchored on 4 guiding principles.
The 4 Guiding Principles of Purpose-driven Analytics
- Ask Clear and Correct Questions. The first principle focuses on generating impact the soonest. Hence, precise questions are asked based on the company’s best-informed priorities. Here, clarity is essential.
- Identify Small Changes for Big Impact. The second principle focuses on generating gains even on small improvements. There is a need to identify small points of difference to amplify and exploit because the smallest edge can make the biggest difference.
- Leverage Soft Data. The third principle focuses on getting quality insights and generating sharper conclusions. It is at this point wherein the use of softer inputs such as industry forecasts, predictions from product experts, and social media commentary are given more emphasis. Soft data is essential when trying to connect the dots between more exact inputs.
- Connect Separate Data Sets. The fourth principle focuses on capturing the untapped value. This principle emphasizes the need to combine sources of information to make sharper insights. When different data sets are examined, the greater is the probability that problems can easily be fixed.
From Learning to Doing: Connecting the Dots
It is not enough that organizations learn about Purpose-driven Analytics. One also needs to be able to put these into effective use. Companies undergoing Digital Transformation must take a multi-faceted approach to analyze data to minimize overwhelming complexity. There are 4 guiding principles for Purpose-driven Analytics implementation. Using these principles will facilitate the effective use of analytics and transform outputs into action.
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In the era of the Fourth Industrial Revolution, we are approaching the age of automation. Together with this is the impending penetration of digital technology into the labor force which can threaten to destabilize crucial aspects of how employees work by. This can undermine the stability companies depend on to be agile.
With the coming transformation, executives can resolidify their companies by developing a robust Digital Transformation Strategy. There is just a need for executives to adjust their leadership behavior, embrace digital workforce platforms, and deepen their engagement with digitally enabled workers.
Facing the Current Digital Landscape
Workforce Digitization and the powerful economics of automation require a sweeping rethinking of organization structures, influence, and control. According to a recent study made by McKinsey Global Institute, most industries have yet to fully digitize their workforce as these are lagging behind the leading digitized sectors. Digital Transformation is just not happening in most industries. Organizations have to realize that in Workforce Digitization, automation can devastate established assumptions on stability.
The hallmark of an agile age is the ability to be stable and dynamic. The McKinsey research further showed that the workers’ roles and the processes that support them are the bedrock aspects of stability. These are the first and fourth most important factors that differentiate agile companies from the rest.
However, with the onset of automation, the workforce is destabilized. Jobs are disaggregated into component tasks and companies are forced to reassemble remaining tasks into something that makes a new kind of sense. On the other hand, job destabilization can have a dual-faceted impact. Organizations can either become more agile, healthy, and high performing or it can collapse into internal dysfunction.
The direction organizations will go will depend on how it can utilize Digital Workforce Platforms.
The Workforce Platform: Leading Organizations to Stability
Proper use of Workforce Platforms can help leaders restabilize the workforce and reconceive organizational structures to achieve stability. It has 4 core benefits of achieving stability.
- Collaboration. Workforce Platforms can be effective staffing coordinators with a multiplex of roles. It can maximize the visibility and mobility of the best people within the organization.
- Retention. It can bring science to talent management through the scientific process of retention. Workforce Platforms can help employees grow and develop as their career progresses.
- Succession Planning. Workforce Platforms are effective in increasing employees’ engagement in their work through Succession Planning. Through Success Planning, organizations are ensured that strategic capabilities, institutional knowledge, and leadership skills are retained within the organization.
- Decision Making. A vital core benefit, it can create conditions where employees feel valued by their organization and are happy in their environment. This is crucial as it can create conditions where employees feel energized and empowered.
Workforce Platforms are effective in leading organizations towards achieving agility. It moves companies to go beyond a one-size-fits-all approach to human resource and talent management.
Maximizing the Benefits of Workforce Platforms.
Benefits gained from Workforce Platforms can further be maximized. This can be achieved when there are appropriate support processes in place. There should be dynamic scheduling and appropriate leadership decisions. Our leaders are our organization’s architect. Being able to make the right leadership decisions can lead organizations to successfully maneuver their transformation in this age of automation. At this stage, Leadership Development plays a vital role.
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Management processes–everything from how a company manages risk to how it gets supplies for factories to how it manages and develops people–are some of the primary ways that global companies impose order and consistency on a diverse set of global operations. Companies believe that processes can help share knowledge across divisions and regions to achieve operational excellence. Likewise, seamless delivery and service processes can be central to meeting customer expectations.
In a world where the pace of competition is increasing faster than ever, best-in-class processes can create competitive advantages when it comes to innovation and risk management. However, researches have shown that companies are particularly poor at managing processes. Often there are just too many processes. Worst, executives often do not know where to begin; a Leadership Development dilemma.
The Pitfalls of Organizations
Global organizations are particularly poor at managing processes. Processes are considered one of the 3 weakest aspects of organizations and strengthening them is crucial.
Based on a McKinsey survey of executives, executives do not know what their processes are. Inasmuch as there are just too many processes, these processes do not reflect new customer needs. In fact, there exists a resistance to change that can be damaging to an organization.
Organizations have to understand that processes can go wrong on a global scale and it can bring in a lot of challenges to an organization.
The 3 Core Challenges to Global Organizations
Organizations are faced with 3 core challenges when dealing with processes and transforming them to a global scale.
- A Plethora of Processes. When there are a plethora of processes, there are just too many processes and too little value. This happens when executives are unable to differentiate between processes that are essential to creating global value and those that are inessential but offer benefits if these are consistent. Executives also fail to differentiate between processes that are crucial to customers or those that create value and those that do not. A plethora of processes is also created when the operation is in various locations or as a result of M&A activity.
- Overstandardization. How do you know that overstandardization exists? It is when processes are so rigid that they are slow to respond to new growth. As a result, there is a dramatic decrease in local responsiveness. This core challenge often arises because there is just too much concern about maximizing control and reducing risk.
- Resistance to Change. This is the third core challenge faced when change is introduced and there is resistance. Resistance to change often occurs when there is difficulty in changing customer-facing processes until the organization is faced with customer backlash. Executives often fail to understand customers’ preference for standard global service. The thinking is often directed towards country-specific variations which are not often what customers like.
Overcoming the 3 core challenges can be done. Organizations just need to take on a 3-phase approach that will ensure that all global processes are enabling performance. These are Prioritize, Optimize, and Implement. A 3-phase approach is an effective tool towards approaching Global Process Optimization in a strategic manner where value is maximized at minimal cost and complexity.
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“All you need is your own imagination
So use it that’s what it’s for (that’s what it’s for)
Go inside, for your finest inspiration
Your dreams will open the door (open up the door)” Madonna
Madonna is a perfect example of reinvention. A very versatile actress, Madonna has the ability to adapt to new trends; someone that can send a lesson to companies struggling with their own digital revolution.
In this digital age, change is rewarded while being static is being punished. Companies must be open to Digital Transformation; a radical reinvention to find new, significant, and sustainable sources of revenue. Incremental adjustments or building something new outside of the core business can provide real benefits and, in many cases, are a crucial first step for a digital transformation. But if these initiatives do not lead to more profound changes to the core business and avoid the real work of re-architecting how the business makes money, the benefits can be fleeting and too insignificant to avert a steady march to oblivion.
Discovering Digital Reinvention
Reinvention is a rethinking of the business itself. Based on a Digital Quotient Research, reinvention requires significant commitment. First, the investment must be aligned closely with strategy at a sufficient scale. And second, digital leaders must have a high threshold for risk and must be willing to make bold decisions.
Digital Reinvention is not a throw-it-all-out approach. If you look at Apple when it moved from a computer manufacturer to music and lifestyle brand, it has reinvented itself while continuing to build computers. Likewise, this is the case with John Deere. John Deere is the brand name of Deere & Company that manufactures agricultural, construction, forestry machinery, and others. It continued to sell tractors and farm equipment while reinventing itself into a creator of online services for farmers.
Digital Reinvention is an innovative approach to laying the foundation for future growth while continually pushing improvement targets. Digital Reinvention is Business Transformation in action.
Approaching Digital Reinvention
Digital Reinvention will put new demands on leadership. Hence, an organization must have a strategic approach to Digital Reinvention: The 4Ds of Digital Reinvention.
- Discover. The primary goal of Discover is to develop a tight business case for change based on facts. Organizations must discover what your digital vision is based on where the value is. This will shape your digital ambition, strategy, and business case.
- Design. Designing, creating, and prototyping breakthrough experiences is the main focus of Design. It is reinventing and developing new capabilities and breakthrough Customer Journeys.
- Deliver. This is the third phase where organizations need to gather speed and scale necessary for reinvention. Its primary focus is to deliver and develop a network of partners who can rapidly scale your ambition. There is a need to activate an ecosystem to rapidly deliver at scale.
- De-risk. The 4th D, it is focused on structuring the change program, resources, and commercial model to reduce operational and financial risk. It is essential for senior leaders to focus on structural and organizational issues that can hamper the organization’s ability to manage cyber risk.
Having a good handle of the 4Ds of Digital Reinvention will prepare leaders towards Digital Transformation and new challenges. It will be able to come up with the right answers to key questions that will arise in preparation for Digital Reinvention. Coming up with the proper answers to these crucial questions can guide companies to reinvent themselves ad stay in the game.
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