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8812893896?profile=RESIZE_400xThe phenomenal success of tech innovators using Platforms has spurred a desire in companies, from a greater variety of sectors and markets, to gain advantage of Product to Platform Transformation.

This Transformation is based on the need to model businesses on a Customer-Centric Design approach.  The need has arisen because the concept of Economies of Scale has become archaic and has been taken over by Economies of Unscale.  Each customer is now being offered customized products and solutions.

The phenomenal success, by the trailblazing tech innovators, was achieved partly by deploying Platform Scaling that enabled Business Transformation and monopolization of the market.  Though, this monopolization and questionable use of the Platform, especially data generated therefrom, saw attempts to regulate these tech companies—making the decision to scale a complex one.  Understanding the intricacies of Platform Scaling is thus critical to the development and deployment of any Platform Strategy.

When considering Platform Scaling Strategy, there are 2 key aspects that are of utmost significance:

Regulatory Complexity

Regulatory Complexity means present level of legal and regulatory impediments that govern Platform entry and operation in a sector. 

Regulatory Risk

Regulatory Risk refers to the probability of an upsurge in Legal and Regulatory Costs and Complexity in the future.

Some equitable and measurable metrics for calculating Regulatory Risks do exist but generally it is extremely challenging to predict policy outcomes or even ascribe odds to various outcomes.

A straightforward approach for Platform owners and operators to understand and evaluate the prospective combinations of Regulatory Complexity and Risk is to create a 2×2 matrix of high vs. low for the 2 factors.

Regulatory Complexity and Risk are turning out to be the determining factors in the strategic decision between Fast and Slow Scaling.

Fast Scaling, which has also been referred to as Blitzscaling, requires choosing speed over efficiency.  Fast Scaling has the strategic objective of growing briskly, experimenting swiftly to tweak product-market fit, and taking advantage of robust network effects to achieve and maintain a leading market share.

Fast Scaling is required to activate 3 interconnected positive feedback loops:

  1. Network Loop
  2. Data Loop
  3. Capital Loop.

Slow Scaling is the most sensible strategy in areas with both High Regulatory Complexity and High Regulatory Risk.  Slow Scaling does not disregard the quest for network effects, which are a requirement for success of platform businesses, but it gives preference to analysis, constant growth, and risk curtailment instead of speed.

Platform businesses functioning in High-Risk, High Complexity situations may evade pitfalls by employing 4 key components of Slow-Scaling strategy:

  1. Analysis of the Macro Environment
  2. Careful Risk Management
  3. Investment in Stakeholder Trust
  4. Incremental Geographic Expansion.

Let us now delve a little deeper into the various permutations of Regulatory Complexity and Risk, quadrant-wise, in the matrix.

QUADRANT 1

Regulatory Risk              Regulatory Complexity

Low                                        Low

Compliance costs are comparatively low in such situations and there are no serious deliberations among regulators and policy makers concerning restrictions on business models or operations.

The Strategy in this case is to Scale Fast.

QUADRANT 2

Regulatory Risk             Regulatory Complexity

Low                                        High

Sectors in such scenarios are highly regulated e.g., financial services sector.  Significant workforce is employed in governance, risk management, and compliance activities.  Entering such markets necessitates careful consideration of Regulatory Complexity.

The strategy in such scenarios is to Scale Fast.

QUADRANT 3

Regulatory Risk             Regulatory Complexity

High                                       Low

Operations are generally in a Regulatory void—i.e., no established and powerful regulatory authority, tight net of rules, or strict barriers to entry.  There is a great degree of ambiguity regarding how regulators may react.  Environment in such markets makes it difficult for businesses to mature discrete policy scenarios, allocate probabilities, and make strong assumptions on timing.

Strategy is to Scale Fast in such environments.

QUADRANT 4

Regulatory Risk             Regulatory Complexity

High                                       High

There is high Regulatory Complexity, such as unclear approach by various regulators in the various markets.  There are strong chances of sudden change in regulator and policy maker’s approach due to a particular incident.  Precipitous increase in entire sector’s Regulatory Risk triggered by events is highly likely.

The most sensible strategy in such cases is to Scale Slow.

Interested in learning more about the permutations of these 2 Scaling Strategies, areas of strategic focus, and the 4 components of Slow Scaling Strategy?  You can download an editable PowerPoint on Platform Scaling Strategy here on the Flevy documents marketplace.

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– Roderick Cameron, Founding Partner at SGFE Ltd

Ladder1Marketing, these days, is shifting towards developing great ideas and creating customer experiences that consumers discuss further in their circle.  The focus of the marketing effort is on building a brand image.  To supplement this organizations need to develop a culture that lives the brand.

Top brands have been built by communicating their message to the most loyal customers who then shout it out to their friends and a chain starts making the brand a known name.  Leading brands, today, strive to win a place in the minds of their consumers.

Building a brand necessitates a robust Marketing approach.  Prioritizing the main benefits of a product that an organization wants to concentrate on is a critical decision to build a brand.  The Consumer Benefits Ladder (CBL) is one such method that informs the leaders on how to position their customer benefits in their Marketing campaign.  These benefits should be those that are offered to the customers, and are not that the organization gets.  The benefits transferred to the customers bring positive outcomes for the organization as well.

The prime focus of the Consumer Benefits Ladder is to identify the key benefits of a product.  The framework classifies consumer benefits into 4 broad types—symbolized by the rungs of a ladder:

RUNG 1 – Product Availability

RUNG 2 – Product Features

RUNG 3 – Functional Benefits

RUNG 4 – Emotional Benefits

The Consumer Benefits Ladder functions on the principle of developing insights incrementally to build Brand Loyalty in customers.  The concept of the Consumer Benefits Ladder originates from the “Laddering interview” technique used in Psychology and Marketing Research.

Let’s dive deeper into the individual rungs of the CBL.

RUNG 1 – Product Availability

The initial rung of the Consumer Benefits Ladder ensures the availability of the product in the target market.  This step of the Consumer Benefits Ladder focuses on making people understand what the product is and how they can get it.  It is a straightforward yet effective approach to Brand Building where leading organizations employing this strategy:

  • Focus on product availability.
  • Add some tone and humor in the delivery of their marketing campaigns alongside their simple product availability-centric strategy.
  • Emphasize on price as a huge driver for its customer base and value creation.
  • Consistently execute their strategy and strive to win their customer loyalty and repeat business.
  • Do not side-step to ascend higher on the Consumer Benefits ladder.

RUNG 2 – Product Features

The second rung of the CBL identifies the physical characteristics of a product, its unique offerings, and describes what it does.  Most organizations tend to focus on benefits instead of plain product features.  However, product feature strategy is quite effective when:

  • The customers are aware of their exact requirements and they do not want organizations translating their product features into benefits.
  • The product features are quite evident.

The Product Strategy based on product features entails clearly listing all the features, brand assets, and competitive advantages that a product offers.  For instance, it outlines the material it is prepared of, its weight, and color.

RUNG 3 – Functional Benefits

The 3rd step of the CBL Framework identifies the promise you make to the customers and the value (rational benefits) that the customers get from the brand.  A focus on the functional benefits of the Consumer Benefits Ladder necessitates careful deliberation of the brand features, screening them from the consumers’ point of view, and their utility for the consumer.

Interested in learning more about the key steps and rungs of the Consumer Benefits Ladder?  You can download an editable PowerPoint presentation on Consumer Benefits Ladder here on the Flevy documents marketplace.

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You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro LibraryFlevyPro is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:

“My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.”

– Bill Branson, Founder at Strategic Business Architects

“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.”

– David Coloma, Consulting Area Manager at Cynertia Consulting

“As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor the material for specific purposes helped us to make presentations, knowledge sharing, and toolkit development, which formed part of the overall program collateral. While FlevyPro contains resource material that any consultancy, project or delivery firm must have, it is an essential part of a small firm or independent consultant’s toolbox.”

– Michael Duff, Managing Director at Change Strategy (UK)

 

8662133692?profile=RESIZE_400xA significant number of Mergers remain unsuccessful, because companies do not employ a thorough and disciplined approach to realizing Post-Merger Integration Synergies.  In reasons for failure, we hear remarks like:

  • Targets were set several months earlier by the top management without consulting the line managers, or taking ground realities into consideration.
  • Assumption base for setting targets was untested.
  • Targets were met but the timeframe for achieving them made them ineffective—in terms of diminished returns, shareholder disappointment, or depressed share value.
  • Desired Synergies were achieved but at a very high cost or fairly weakened morale.

A disciplined and rational approach to pursuing Merger Synergies is key to successful Post-Merger Integration (PMI).  Companies that authenticate and set pragmatic yet ambitious Post-Merger Integration Synergy targets do the following to exceed targets and achieve substantial share price premium and a significant Competitive Advantage:

  • Advise Integration Leaders on how to aim high.
  • Give managers—responsible for achieving targets—a say in target-setting process.
  • Create detailed plans with built-in accountabilities.
  • Pursue their targets aggressively.

Successful PMI Synergies—be it in Cost OptimizationStrategic Sourcing, Greater Revenues or any other Cost or Revenue realm—have the common characteristic of leaders pursuing synergies with speed, rigor, discipline, and pragmatism with lots of analysis, planning, preparation, and fine-tuning before the close.

Success can be ensured time and again if the 6 Strategies for Post-Merger Integration Synergies are followed to the letter:

  1. Link Due Diligence (DD) and Post-Merger Integration (PMI)
  2. Leverage Clean Teams
  3. Establish Stretch Targets
  4. Rapidly Iterate to Targets
  5. Pursue Both Revenue and Cost Synergies
  6. Institute Performance Management

Implementation of the 6 Synergy Strategies involves adopting High-Engagement and Rapid Iteration approach which yields effective Stretch Target Validation and High Level of Line Accountability.

Let us delve a little deeper into 2 of these PMI Synergy Strategies.

Link Due Diligence (DD) and Post-Merger Integration (PMI)

Linking DD to PMI ensures realistic estimates on part of the DD team thus avoiding formulation of broad-brushed and imprecise Synergies.  Linking also guarantees greater amount of ownership and accountability at the same time enabling more compelling Stretch Targets.  Linking of DD to PMI is necessary because:

  • Under pressure to complete the M&A, Due Diligence teams frame assumptions with little knowledge of the levers influencing Synergies or the challenges involved in achieving them.
  • Due Diligence teams typically project more value in Cost Reduction and enhanced Revenues based on erroneous assumptions—without taking into account either the Operating Model (of the former entities and the freshly created one) or the difference / overlap in Customer Base.

Successful Mergers ensure a harmonized hand-off from Due Diligence teams to Integration Planning teams by ensuring the following:

  • Placing members of the Mergers and Acquisition team on the Post-Merger Integration (PMI) team to produce a greater degree of ownership and continuity.
  • Involving Business Unit Heads in target setting at the Due Diligence stage and ensuring ownership and accountability.
  • Linking of Due Diligence and PMI to enable setting of more profound Stretch Targets.
  • Analyzing and detailing drivers of saving at a high-level for creating Synergy Targets and Ranges which make later improvements possible based on subsequent information. These targets and ranges enable evaluation of potential gains from new company’s Operating Model. 

Leverage Clean Teams

Clean team is an independent group that is tasked with the collection and analysis of sensitive company data—pre-closure—with the guidance of management.  Clean team may comprise of third-party members or employees who can be reassigned out of business in case of deal failure eradicating the risk of compromising confidential information.  Clean team is formed by legal contract based on protocols agreed to by both company’s legal departments.  Clean teams help by:

  • Accelerating PMI planning.
  • Enabling the acquiring company to have a clearer picture of the target company without violating anti-trust regulation or confidentiality agreements.
  • Assessing risks and enabling companies to achieve Synergies faster.
  • Keeping sensitive information of both sides safe—pre-closure—yet embark on planning and preparation even before close in order to save precious time and keep customer confidence high.
  • Aiding companies accomplish 3 core integration activities before closing—compiling wide-range baseline data, vetting Synergy targets, and preparing options for key decisions.
  • Empowering companies to avoid / diminish confusion caused by overlap in client assignments and sales people.
  • Assisting provision of clear information to customers regarding products and services thus avoiding drop in sales.

Interested in learning more about the 6 Strategies for Post-Merger Integration Synergies?  You can download an editable PowerPoint on Post-Merger Integration (PMI): 6 Strategies for Synergies here on the Flevy documents marketplace.

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M&A is an extremely common strategy for growth.  M&A transactions always look great on paper.  This is why the buyer typically pays a 10-35% premium over the of the target company’s market value.

However, when it comes time for the Post-merger Integration (PMI), are we really able to capture the expected value?  Studies show only 20% of organizations capture projected revenue synergies and only 40% capture cost synergies.  Not to mention, the PMI process is typically very painful, drawn out, and politically charged, often resulting in the loss of key personnel.

Learn about our Post-merger Integration (PMI) Best Practice Frameworks here.

Do You Find Value in This Framework?

You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro Library.  FlevyPro is trusted and utilized by 1000s of management consultants and corporate executives.  Here’s what some have to say:

“My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market.  They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions.  I strongly recommend FlevyPro to any consultant serious about success.”

– Bill Branson, Founder at Strategic Business Architects

“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power.  For us, it is an invaluable resource to increase our impact and value.”

– David Coloma, Consulting Area Manager at Cynertia Consulting

“FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients.  In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight – it’s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.”

– Roderick Cameron, Founding Partner at SGFE Ltd

Logistics3Technological advancement has come a long way.  Artificial Intelligence is taking charge of a number of repetitive logistics tasks.  Organizations are benefiting from Automation in streamlining their cumbersome processes and cutting down delivery times.

Automation is profoundly affecting the way Logistics are handled.  It is disrupting the entire Logistics Supply Chain, not just the warehousing, picking, and sorting functions.  The impact of Automation on roads, rails, and ports is immense.  Ports are increasingly embracing Automation, but they haven’t yet started getting the return on their investments.

In Logistics, ocean and air shipment has potential for Automation—which is certainly under way—but its effect on enhancing throughput is yet to be seen.  Logistics operations are being transformed at quite a pace with new models, concepts, and offerings evolving rapidly.  With the current pace of technology evolution, experts believe Logistics operations would be done autonomously in the not too-distant future.

The COVID-19 pandemic has disrupted businesses and industries alike significantly.  Businesses are trying to grapple with the ambiguities the situation has presented to them.  Automation is being viewed by many Logistics companies to be the only option to prepare for and survive in the future.

Logistics companies are exploring ways to automate their businesses mainly due to 3 trends that are shaping their industry.  These 3 trends include:

  1. Shortage of Labor
  2. Proliferation of E-commerce
  3. Advancements in Automation

Let’s talk about these trends in a bit detail.

Shortage of Labor

Labor markets are stiffening globally with lowest unemployment rates and high wages.  Online retailers everywhere have a huge demand for skilled workers.  This demand rise steeply in the holiday season.  A sizable workforce is engaged in Supply Chain related jobs—about 4 million only in the US as packers, handlers, and supervisors in warehouses.  This translates to $100 billion in payroll costs.  Automation will definitely reduce this cost head.  However, it will have implications for the workforce.

Proliferation of E-commerce

Another trend that is affecting the Logistics industry immensely is the explosive growth of E-commerce retailers.  The sales of e-tailers are growing at a consistent pace every year.  With this trend, the range of products has grown considerably, benefiting the logistics businesses.  Logistic companies are making significant profit from this large volume of online shipment orders—saving about $12 to $20 on a sale of $100.

Interested in learning more about the trends that are shaping the Logistics operations?  You can download an editable PowerPoint presentation on 3 Trends Driving Logistics Automation here on the Flevy documents marketplace.

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You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro LibraryFlevyPro is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:

“My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.”

– Bill Branson, Founder at Strategic Business Architects

“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.”

– David Coloma, Consulting Area Manager at Cynertia Consulting

“As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor the material for specific purposes helped us to make presentations, knowledge sharing, and toolkit development, which formed part of the overall program collateral. While FlevyPro contains resource material that any consultancy, project or delivery firm must have, it is an essential part of a small firm or independent consultant’s toolbox.”

– Michael Duff, Managing Director at Change Strategy (UK)

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SCM2Shortage of labor, intensified demand from e-tailers (online retailers), and technological disruption is forcing organizations in the Logistics and Warehousing industry to embrace technology, particularly Automation.

An investment in automating the picking, packing, sorting, storing, and shipping items can yield high returns for organizations.  Warehouses that will sort out the dynamics of e-commerce, select the ideal technology to implement, and eliminate uncertainties in their supplier contracts will outpace others.

Automation is facilitating the Warehousing operations predominantly by:

  • Assisting the movement of goods.
  • Improving the handling of goods.

In these two categories, there are 10 technologies that are fast disrupting the Supply Chain function and creating a breakthrough for warehouses.  These include:

  1. Multi-shuttle System
  2. Optical Recognition
  3. Conveyor Connection
  4. Warehouse Management Systems
  5. Smart Storage
  6. 3D Printing
  7. Swarm AGV Robots
  8. Analytics & Algorithms
  9. Smart Glasses
  10. Picking Robots

Let’s discuss a few of these disruptive technologies in detail.

Multi-shuttle System

Multi-shuttle systems (MSS) are employed to store and retrieve goods automatically—using automated storage and retrieval system (AS/RS).  This system is able to transport goods 3 dimensionally (on pallets), and is instrumental in enhancing the throughput, flexibility and efficiency levels.

MSS consists of 3 modules, coordinated by a software module: a Shuttle car powered by power caps for 24-hour operations and moved by powerful motors, high-performance vertical lifts, and a special carrier to move the shuttle car to the exact location.  Communication in the multilevel systems’ carrier and shuttles is managed by radio links, whereas the movement is controlled by an integrated control system.

Multilevel Shuttle Storage System is ideal for cold storage, buffer storage, dispatching warehouses, commissioning warehouses, supply and distribution centers, and factories.

MSS offers a number of benefits, e.g.:

  • High item storage and retrieval velocity.
  • Optimum use of building space.
  • High storage density.
  • Ability to be retrofitted in existing warehouses.

Optical Recognition

Optical Recognition and Sensor technology expedites processes and increases productivity.  This technology is at the foundation of IoT, smart cities, automobiles and laser-guided vehicles, smartphones, wearable technologies, drones, barcode readers, and more.

Optical Recognition devices use a light source to read characters and barcodes.  They then convert these characters into digital data.  Optical Recognition devices scan items.  At times, this scanning is done on 6 axes.  The character recognition software then relates this image to the shapes of individual characters.

Optical recognition devices today use sensors to detect and respond to a specified input—light, sound, motion, pressure, temperature.  Once an input is received, a sensor either produces a resulting output—in the form of a light or alarm—or forward the information received to a network for processing.

Optical recognition sensors facilitate in:

  • Accelerating and improving processes, inspecting parts for error checking, and quality monitoring.
  • Delivering real-time data to make better decisions.
  • Handling repetitive and hazardous tasks and making workplaces safer
  • Freeing up people to manage more complex endeavors.
  • Slashing energy wastage and creating connected, smart factories.

Conveyor Connection

Connected Conveyor Systems are useful in transporting heavy or bulky materials.  These systems allow quick and efficient transport of a variety of materials (e.g. totes, cartons) in different warehouse configurations.  Advanced conveyor systems and connections perform various material handling requirements including accumulation, transportation, diverting, merging, and sorting products.

Interested in learning more about the other technologies reshaping the warehousing operations?  You can download an editable PowerPoint presentation on Warehouse Automation: 10 Technologies here on the Flevy documents marketplace.

Do You Find Value in This Framework?

You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro LibraryFlevyPro is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:

“My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.”

– Bill Branson, Founder at Strategic Business Architects

“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.”

– David Coloma, Consulting Area Manager at Cynertia Consulting

“As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor the material for specific purposes helped us to make presentations, knowledge sharing, and toolkit development, which formed part of the overall program collateral. While FlevyPro contains resource material that any consultancy, project or delivery firm must have, it is an essential part of a small firm or independent consultant’s toolbox.”

– Michael Duff, Managing Director at Change Strategy (UK)

virtual work corp culture 2Just as in a co-located setting, a remote work environment warrants a defined culture.  Culture in a co-located setting is distinctly evident.  It is imparted and communicated through collaboration between colleagues, their behaviors, and the actions that are incentivized—or those that are considered inappropriate—at the organization.

However, defining, creating, and sustaining an Organizational Culture in a virtual environment is a bit complicated.  It needs careful deliberation.  Leadership can make good use of the 12 guiding principles to inspire a robust Virtual Workplace Culture.  These guiding principles can be segregated into 2 categories:

General Culture Principles

There are 7 principles under this category:

  1. There are no unwritten rules
  2. Reinforce values
  3. Don’t take Culture for granted
  4. Embrace gratitude and transparency
  5. Institute structure around Culture
  6. Welcome changes to Culture
  7. Leverage disruption to improve Culture

Mental Health Related Principles

Virtual Work can lead to various ailments, including burnout, if it is accomplished without abiding by healthy lifestyle, best practices, and guidelines.  The mental health category entails 5 guiding principles:

  1. Don’t encourage long work hours
  2. Document processes around mental health
  3. Recognize mental health struggles
  4. Prevent burnout, isolation, and anxiety
  5. Encourage a healthy virtual lifestyle

Let’s dive deeper into 4 of these guiding principles.

1. There are no unwritten rules

The first principle to foster a Remote Culture necessitates documented policies and systems.  Careful documentation assists in prohibiting decline of a remote enterprise and culture.  The first instance to document should be the company values including teamwork, productivity, clarity, diverseness, and inclusivity.

2. Reinforce values

The actions that are encouraged and rewarded by the company become organizational values.  For instance, in virtual settings, hiring, promoting, and developing people play a huge role in encouraging and underlining the importance of values.  The values dear to an organization are displayed through role modeling of required behaviors by the leadership.  They are manifested by the people the organization hires and let go off.  Organizational values are also evident by the yardsticks used to gauge qualification for increments, rewards, promotions, and performance management.

3. Embrace gratitude and transparency

Without clear-cut information sharing and appreciation, employees may begin to feel cynical and unenthusiastic.  This can eat away at the organization culture.  Leaders should be careful with 360 performance evaluation and feedback.  Negative feedback should be delivered in a positive manner to instill hope and determination to do better.  There is also a need to take drastic measures if there is a general sense of lack of appreciation and transparency prevalent among employees.

4. Don’t take Culture for granted

Culture is easily emphasized in a co-located setting, collaborating with colleagues day after day.  However, underscoring the significance of culture in a virtual environment demands cautious deliberation.  Various core elements of culture are often present, but are masked in our daily activities and habits.  These elements are manifested by “how we do things in our organization.”  These common habits are the hallmark of belonging to a culture.

In remote settings, leaders need to highlight the elements of culture that are evident in such settings and their importance, since these practices are a bit hard to observe in virtual teams.  Leadership should mark boundaries of culture clearly and define what is disrespectful or unacceptable in their organizational culture.

Interested in learning more about the other guiding principles of Virtual Work Culture?  You can download an editable PowerPoint presentation on Virtual Work: Corporate Culture here on the Flevy documents marketplace.

Do You Find Value in This Framework?

You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro LibraryFlevyPro is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:

“My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.”

– Bill Branson, Founder at Strategic Business Architects

“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.”

– David Coloma, Consulting Area Manager at Cynertia Consulting

“As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor the material for specific purposes helped us to make presentations, knowledge sharing, and toolkit development, which formed part of the overall program collateral. While FlevyPro contains resource material that any consultancy, project or delivery firm must have, it is an essential part of a small firm or independent consultant’s toolbox.”

– Michael Duff, Managing Director at Change Strategy (UK)

Stock image 2 - Reengagement after RestructuringRestructuring is a turbulent process that shakes the foundations of the organization.  The goal of Operational Excellence cannot be realized merely by the surgical removal of human resource during Redeployment after Restructuring.

Keeping focus on moving the organization forward with vitality means boosting the sagging morale of the employees who survive this storm.  It is the attention to the surviving employees that is going to kick-start the Revitalization process and usher in a new Organizational Culture.

Employee Engagement is an absolutely vital aspect of the revitalized organization.  Re-engagement of the remaining employees after Redeployment is important because:

  • It is a given that engagement levels will be abysmally low.
  • Motivation to work is not the top priority for most after Restructuring chaos.
  • Insecurity is high and employees may be thinking about leaving the organizations on the first opportunity they get.
  • The Revitalization of the organization depends on how the survivors are handled.

To handle such state of affairs, management must do the following:

  • Develop a concrete plan for Re-engagement during the Organizational Design.
  • Allocate appropriate time, effort, and budget for boosting motivation levels.
  • Implement Re-engagement plans that address the diverse Motivational Drivers.
  • Communicate consistently on an organizational level as well as individual level to reassure employees regarding their future.
  • Train line managers on how to handle surviving team members.
  • Push line managers to spend time with individual employees to learn:
    • How team members have handled the Redeployment process.
    • How employees sense the challenges moving forward.
    • What primarily motivates them as individuals.
  • Use motivational assessment methods and integrate the survivors into existing development discussions to align them with organizational processes.

Poor management of the Employee Re-engagement process is bound to have repercussions, such as:

  • Absenteeism
  • Low productivity levels.
  • Substandard customer service quality levels resulting in tarnished image of the organization.
  • Dwindling employees’ commitment to the organizations.
  • Increased risk of switch overs.

Active Employee Re-engagement ensures that the employees are:

  • Clear on the next steps.
  • Clear about their new roles.
  • Can effectively deliver against the new roles.
  • Keen to work in the evolving scenario.

Redeployment in the Restructuring process affects all employees regardless of whether they stay or leave.

Employees typically showcase 4 types of reactions during this transition:

  1. Departure Grief
  2. Survivor Relief
  3. Survivor Irritation
  4. Departure Happiness

Typically, the organizational focus is more on the employees who are leaving, assuming that those who get to stay are happy employees.  This may not be the case.  Care must be taken to address the motivational drivers of all employees in this transitory process.

Let us examine the Employee State, their Motivational Drivers, and appropriate Actions to take during Restructuring, a little more deeply.

Departure Grief

The motivational drivers that induce the state of “departure grief” in employees include:

  • Loss of earnings and benefits such as pension plan and health insurance can be stressful.
  • Loss of daily routine can be upsetting and takes some time to cope with.
  • Forced shift in lifestyle upsets not only the person but the family too which may take a psychological toll.
  • Feeling of rejection crops up as a result of being let go, lowering self-esteem.
  • Loss of financial empowerment puts the person, especially the head of the household, in a vulnerable position.

To help employees cope with Departure Grief, the organizational leadership should take some key actions, such as:

  • Help the ex-employees through counselling sessions.
  • Guide the employees in preparing job applications and CVs.
  • Assist the ex-employees get placed in alternative jobs.
  • Guide the ex-employees in putting the compensated amount to good use.

Interested in learning more about Re-engagement after Restructuring?  You can download an editable PowerPoint on Re-engagement after Restructuring here on the Flevy documents marketplace.

Want to Achieve Excellence in Business Transformation?

Gain the knowledge and develop the expertise to become an expert in Business Transformation. Our frameworks are based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. Click here for full details.

“If you don’t transform your company, you’re stuck.” – Ursula Burns, Chairperson and CEO of VEON; former Chairperson and CEO of Xerox

Business Transformation is the process of fundamentally changing the systems, processes, people, and technology across an entire organization, business unit, or corporate function with the intention of achieving significant improvements in Revenue Growth, Cost Reduction, and/or Customer Satisfaction.

Transformation is pervasive across industries, particularly during times of disruption, as we are witnessing now as a result of COVID-19. However, despite how common these large scale efforts are, research shows that about 75% of these initiatives fail.

Leverage our frameworks to increase your chances of a successful Transformation by following best practices and avoiding failure-causing “Transformation Traps.”

Learn about our Business Transformation Best Practice Frameworks here.

Do You Find Value in This Framework?

You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro LibraryFlevyPro is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:

“My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.”

– Bill Branson, Founder at Strategic Business Architects

“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.”

– David Coloma, Consulting Area Manager at Cynertia Consulting

“FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight – it’s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.”

– Roderick Cameron, Founding Partner at SGFE Ltd

Stock image 2 - Redep assessment process & methodsOrganizations that have survived over time have had to reinvent themselves over and over with the changes in the environment.  These Business Transformations almost always include Cost Reduction that tend to lean towards Headcount Reduction.  Headcount Reduction is typically achieved using 2 approaches:

  1. Downsizing
  2. Restructuring

Downsizing keeps the fundamentals of the roles same with only fewer people performing those roles.  Whereas, Restructuring creates new roles, as well as modify existing roles, requiring a new mix of skills or altogether new resources to perform them.

Restructuring presents a more challenging task in that a new mix of skills has to be identified for each role, an Assessment Process has to be set up to assess existing employees against new competencies, and Redeployment after Restructuring (or new recruitment) done.

The important question in both scenarios is:  Who should we eliminate and who should stay?

The question can be answered by devising and using key criteria to evaluate and then choose the most relevant assessment method.

Assessment of employees is key in both Downsizing as well as Restructuring.  The Assessment Process has to be vigorous enough to identify the right employees to keep and lay off.  A broader assessment process ensures coverage of more aspects of a new role which in turn makes the assessment process fairer.  Measures, in this regard, may include:

  • Covering a broad range of competencies in the interview process rather than concentrating on a few specific competencies.
  • Using a mix of relevant performance data from the last role as well as some elements of future-oriented assessment, such as role plays or OPQs.
  • Taking input from Line managers.

Linkage of the entire assessment process to the requirements of the job is the crucial part of this phase.

As with any assessment system, the content and design will be settled through consideration of various factors, some practical like cost, logistics and some more about safeguarding the output like instrument validity.  When taking into account assessment tools for incorporation in the process it is beneficial to examine them against following criteria:

  • Coverage of range
  • Accuracy
  • Relevance
  • Freedom from bias
  • Acceptability
  • Practicality

The tools, based on the above criteria, help in various assessment methods that gather information on different aspects pertaining to the elements of the new roles.  The most widely used Assessment methods include:

  1. Existing Performance Management Data
  2. Line Manager Performance Ratings
  3. Competency Based / Behavioral Interviews
  4. Personality Measures (OPQ) Linked to Competencies
  5. Simulation Exercises
  6. Pertinent Employee Data

Let us examine the methods in a little more detail.

Existing Performance Management Data

There are various benefits of using this employee assessment method, such as:

  • No additional data gathering is required since the data is already in place.
  • Such existing data can be obtained speedily and effortlessly.
  • Existing performance data is perceived as pertinent.

There are some drawbacks associated with the existing Performance Management data method that executives should be mindful of:

  • The data is often inconsistent and may vary in quality.
  • Does not provide clear distinction between people.
  • Does not reflect behavior therefore difficult to base decisions on.
  • Usefulness depends on extent of overlap with the new role.

Such data although convenient and easy to obtain, has to be augmented from other sources—and through other assessment methods—for a complete picture to base the employee selection decision on.

Interested in learning more about Redeployment Assessment Process & Methods?  You can download an editable PowerPoint on Restructuring: Redeployment Assessment Process & Methods here on the Flevy documents marketplace.

Want to Achieve Excellence in Business Transformation?

Gain the knowledge and develop the expertise to become an expert in Business Transformation. Our frameworks are based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. Click here for full details.

“If you don’t transform your company, you’re stuck.” – Ursula Burns, Chairperson and CEO of VEON; former Chairperson and CEO of Xerox

Business Transformation is the process of fundamentally changing the systems, processes, people, and technology across an entire organization, business unit, or corporate function with the intention of achieving significant improvements in Revenue Growth, Cost Reduction, and/or Customer Satisfaction.

Transformation is pervasive across industries, particularly during times of disruption, as we are witnessing now as a result of COVID-19. However, despite how common these large scale efforts are, research shows that about 75% of these initiatives fail.

Leverage our frameworks to increase your chances of a successful Transformation by following best practices and avoiding failure-causing “Transformation Traps.”

Learn about our Business Transformation Best Practice Frameworks here.

Do You Find Value in This Framework?

You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro Library.  FlevyPro is trusted and utilized by 1000s of management consultants and corporate executives.  Here’s what some have to say:

“My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.”

– Bill Branson, Founder at Strategic Business Architects

“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.”

– David Coloma, Consulting Area Manager at Cynertia Consulting

“FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight – it’s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.”

– Roderick Cameron, Founding Partner at SGFE Ltd

Virtual Work 2COVID-19 has forced organizations to adapt to the new norm of Remote Work.  Many people consider telecommuting as the future of work.  Employers who allow Remote Work have seen enhanced employee morale, output, and efficiency.

However, Remote Work setting is far from business as usual.  Management needs to understand and manage the intricate differences between in-office and remote teams.  To make Remote Work successful and to manage remote teams, leadership needs to follow 5 guiding principles:

  • Assemble a group of people— skilled in Remote Work setting—to supervise and support other employees to work remotely, assess any challenges, and create workable solutions in real time.
  • Develop and share (across the organization) a comprehensive reference guide—e.g., a repository, manual, or a web page—documenting exhaustive information on process changes. This will keep all stakeholders informed and prevent any uncertainties.
  • Communicate with the employees transparently and frequently, foster informal communication, and provide easily accessible video conference facilities for people to adjust to and incorporate change.
  • Keep the number of tools to handle documentation and communication to a minimum.
  • Manage the Remote Workforce by establishing candid, ongoing communication channels, trust, and shared objectives. Transition from an in-office setup to a remote environment takes time.

Likewise, remote employees need to follow certain guiding principles to undertake their responsibilities effectively and deliver on their tasks efficiently.

  • Establish a dedicated workspace.
  • Make their families understand the significance of their work—that they perform from their virtual offices—and respect their work hours.
  • Set alarms to remind when to take a break or end work, so as to work in a healthy routine. Use breaks to recharge your brain or to do errands.
  • Communicate informally with your team.
  • Try out unconventional workdays and routines that work best for you.
  • Adopt this transition

Conventional on-site work settings have clearly defined processes, team structures, interactions, and Organizational Culture, which are lacking in most virtual environments.  The transition from on-site work to work-from-anywhere demands concrete steps to make it viable.  It is critical to adopt Virtual Work mindset and best practices since every organization today, in one way or another, is a virtual company—e.g., global operations, sites and offices across different locations.

This necessitates dedicated efforts to nurture and promote a virtual-work focus and Culture, rather than managing Remote Work with a traditional mindset.  Organizations need to incorporate these 5 best practices to make the transition from conventional to work-from-anywhere environment smoother.

  1. Document everything
  2. Have more structured meetings
  3. Align values with expectations
  4. Create ergonomic home offices
  5. Adopt a self-learning mentality

Let’s delve deeper into these best practices.

Document everything

In office settings, people can run into other colleagues easily to ask queries or just to communicate with them.  This is at times disturbing and counterproductive.  Work-from-anywhere environment demands documenting every critical piece of information, creating guidelines and manuals, and implementing documentation best practices.   This facilitates in:

  • Creating a reliable, primary source of information for everyone to seek answers to their queries.
  • Building successful Virtual Work environment.
  • Clearly outlining organizational objectives.
  • Visualization and clarity of teams’ collective goals and performance results.
  • Orientation of new hires by providing answers to everything that comes to their minds.
  • Offering more inclusivity, as the information is not confined only to the ones present at the physical water cooler, but is available for the entire organization.
  • Precluding a sense of exclusion in the ones who are not part of a physical office.
  • Gathering more diverse ideas.

A handbook culture is even better than “water coolers”—as it saves time by eliminating the need to bother other teammates and ask questions from them.  It enables learning, finding answers or information more readily, and curtailing rework arising out of gathering and updating information over and over again.  Documenting everything instills a sense of ownership, courtesy, and concern for others in virtual teams.

Interested in learning more about the other best practices to transition from in-office to work-from-anywhere environment?  You can download an editable PowerPoint presentation on how to transition from In-Office to Virtual Work Setting here on the Flevy documents marketplace.

Do You Find Value in This Framework?

You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro LibraryFlevyPro is trusted and utilized by 1000s of management consultants and corporate executives.  Here’s what some have to say:

“My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.”

– Bill Branson, Founder at Strategic Business Architects

“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.”

– David Coloma, Consulting Area Manager at Cynertia Consulting

“As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor the material for specific purposes helped us to make presentations, knowledge sharing, and toolkit development, which formed part of the overall program collateral. While FlevyPro contains resource material that any consultancy, project or delivery firm must have, it is an essential part of a small firm or independent consultant’s toolbox.”

– Michael Duff, Managing Director at Change Strategy (UK)

“FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight – it’s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.”

– Roderick Cameron, Founding Partner at SGFE Ltd

“Several times a month, I browse FlevyPro for presentations relevant to the job challenge I have (I am a consultant). When the subject requires it, I explore further and buy from the Flevy Marketplace. On all occasions, I read them, analyze them. I take the most relevant and applicable ideas for my work; and, of course, all this translates to my and my clients’ benefits.”

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Behavior2Product managers, marketers, and designers are often confused as to what they should do to increase the chances of customers’ engagement and uptake of their offering.  Changing individuals’ behavior to enhance engagement, productivity, innovation, and happiness isn’t straightforward.

It takes a lot of effort, time, and resources to execute initiatives aimed at transforming behaviors and Organizational Culture.  However, most people aren’t interested in changing and like the status quo to prevail.  This is where Behavioral Economics can help to know how customers behave, interpret their decision-making methods, and create solutions targeting those behaviors.

Product designers and marketers aspiring to drive acceptance of their products can make use of the 3 Bs of Behavioral Change to change understand consumer behavior. The 3 Bs of Behavioral Change classify the 3 elements essential to change behaviors, i.e.:

  1. Behavior
  2. Barriers
  3. Benefits

Understanding and employing these 3 Bs helps the designers and product managers instill change, inspire design and strategy-related decisions, increase the acceptance of new products / features and product engagement levels, and build new behaviors in people.

Let’s discuss the first 2 elements in detail.

Behavior

People have an inherent tendency to maintain the status quo.  Behavioral change necessitates:

  • Identifying individuals’ existing attitudes.
  • Assessing and tackling psychological biases affecting individuals’ decisions.
  • Carefully tracking behaviors that need to be changed.
  • Ascertaining the most important desired behavior and exact action that is imperative to drive results.
  • Getting the buy-in from all stakeholders on the key behavior.
  • Deciding if the behavior should be permanent or transient.

Examples of key actions to change behaviors include spending 30 minutes thrice weekly doing cardio exercises and consuming salad at lunch daily to stay healthy.

Barriers

Understanding the barriers in behavior adoption assists in creating effective solutions to improve uptake of key behavior.  The second step to induce behavioral change is to reduce barriers in its adoption.

  • Every decision that a product user has to make, no matter how negligible, increases resistance in the likelihood of completing a specific behavior.
  • These actions and decisions an individual has to take in order to achieve the desired behavior create points of friction in embracing key behaviors.  For instance, people often find it difficult to decide when presented with complex choices. They tend to procrastinate or become a victim of decision paralysis.
  • Removing the points of friction and resistance from any key behavior necessitates documenting and streamlining all decisions. The path of least resistance leads to desired key behaviors.

Examples of barriers include the thought process involved in the decision to select where to have dinner.  This thought process is, in fact, a psychological barrier in actually going out and having dinner.  Likewise, the decision to walk or drive to a restaurant is a logistical barrier and a point of friction that warrants making a decision.

To eliminate these barriers, we can either remove barriers entirely or just simplify the decision.  For instance, elimination of a non-critical, open text field from a sign-up form—that probed the users about their business, which requires significant time to think and answer—can increase page-over-page conversion.  In case choices are helpful for the users and cannot be eliminated, then it is best to simplify the decision process by giving fewer options instead of many, or by suggesting “recommended option” to the users.

Interested in learning more about the details of the 3 Bs of Behavioral Change?  You can download an editable PowerPoint presentation on 3 Bs of Behavioral Change here on the Flevy documents marketplace.

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