The uncertain times, coupled with the COVID-19 pandemic, have spur leaders to reflect on what kind of organization, culture, and operating model they need to put in place. This is to avoid returning to previous patterns of behavior and instead, be able to embrace the next normal. In this rapidly changing environment, people in organizations [...]
The uncertain times, coupled with the COVID-19 pandemic, have spur leaders to reflect on what kind of organization, culture, and operating model they need to put in place. This is to avoid returning to previous patterns of behavior and instead, be able to embrace the next normal.
In this rapidly changing environment, people in organizations need to respond with urgency, without senior executives and traditional governance slowing things down. Waiting to decide, or even waiting for approval, is the worst thing to happen. Today, some level of coordination across teams and activities is crucial for the organization’s response to be effective.
Getting Ready for Business Resilience
Business Resilience is a management approach that integrates many disciplines into a single set of integrated processes. It is an enterprise-wide term that encompasses Crisis Management and Business Continuity.
Business Resilience enables organizations to face a wide range of risks—risks that can cause long-term harm, from a financial penalty to reputational damage. This is further emphasized with the global economy greatly affected by COVID-19, a pandemic that has overturned business and rattled the entire global business environment.
Addressing the COVID-19 pandemic
Leaders across industries cannot treat the Coronavirus pandemic like any other event. COVID-19 is unlike any other event. No single executive has the answer. In this rapidly changing environment, organizations need to respond with urgency. There are several initiatives that can be undertaken and integrated in Strategy Development. One of these initiatives is to build Team Resilience through the creation of a Network of Teams.
A Network of Teams is a cohesive and adaptable network of teams that are united by a common purpose. It is empowered to operate outside of the current hierarchy and bureaucratic structures of the organization.
The 4-phase Approach to Creating a Network of Teams
The Network of Teams needs to be created in phases for it to be effectively cohesive and adaptable.
Phase 1: Central Team with Response Teams. Phase 1 begins with a Central Team launching a few primary response teams very quickly. There are several key considerations that must be underscored in Phase 1.
Organizations must create teams that will tackle current strategic priorities and key challenges facing the organization. The model that is to be built must be flexible and capable of shifting when mistakes happen. The network must be created to learn, using the information to update actions and strategies. It must spur experimentation, innovation, and learning which is done simultaneously among many teams. There must be spontaneous learning in the face of challenges and opportunities at the individual, team, and network-wide levels.
Team leaders must be creative problem solvers with critical thinking skills, resilient, and battle-tested. Having teams that can respond to the dynamic demands of the external environment is one of the strengths of the network approach.
Phase 2: Hub and Spoke Model. The Hub and Spoke Model emerges when additional teams are launched to address rapidly evolving priorities and new challenges.
After the initial set of teams are created, leaders must shift toward ensuring that multidirectional communication takes place. There should be steady coordination with the central team hub in a daily stand-up meeting. Central Hub must make sure that support teams are using first-order problem-solving principles.
Leaders must take the role of catalyst and coach. The primary goal is to empower teams and support them at the same time, without micromanaging.
The next phase is Phase 3: Hub and Spoke with Subteams and Phase 4: the Network of Teams. The Hub and Spoke Model evolves into a Network of Teams when peripheral teams start connecting and collaborating directly with another.
With the Network of Teams, all self-organizations are turbocharged ready to face any disruptions the business has to encounter.
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COVID-19 is shaping a “New Normal”—a Low Touch Economy that requires a strategic response. The world is changing. Forced isolation and social distancing restrictions have been put into place with the advent of the COVID-19 health crisis. This is not expected to end soon but is expected to have a lasting effect on the world. [...]
The world is changing. Forced isolation and social distancing restrictions have been put into place with the advent of the COVID-19 health crisis. This is not expected to end soon but is expected to have a lasting effect on the world. In fact, a new generation of consumer behaviors is already being shaped.
The new world will not be better off or worse. It will be different. During this period of influx, some businesses will thrive in this change and reach accelerated success, while others will struggle to find their footing in all of the chaos. The Low Touch Economy is here.
The New Normal
The post-COVID-19 era will have an economy shaped by new habits and regulations based on reduced close contact interaction, tighter travel, and hygiene restrictions. While managing the current health crisis is the first priority, companies must start adapting its strategic response to the mid and long-term ripple effects of COVID-19.
Businesses, to survive, must learn how to effectively respond to COVID-19 that is marked with plenty of ups and downs and economic uncertainty. There will be fundamental shifts that are here to stay and there will be industries that will be turned upside down. Until there is a vaccine or herd immunity, the base case scenario will be continuous up and down of disruptions for the coming 2 years. Strategy Development now calls for business to make the right strategic approach.
The 3-phase Approach to Strategic Planning
During turbulent times, businesses must have the agility to switch from defense to offense. Taking the 3-phase approach to Strategic Planning will prepare organizations for the Low Touch Economy.
Phase 1: Protect
The first phase is focused on acting now to protect and run the business today. It is basically responding to the crisis and protecting the business. The primary objective of Phase 1 is to ensure the continuity and stability of the business despite the ongoing crisis.
This is best undertaken when employees and customers are grappling with one basic emotion and that is fear. The organization is faced with a declining revenue with prospects of liquidity freeze. Unfortunately, time horizons at this phase also remain uncertain.
When these scenarios are happening, the organization must strive to undertake strategies that will both protect the business, as well as ensure its continuity and stability. One strategy that must be undertaken is to put the safety of employees and customers first. With the advent of COVID-19, this is considered the most urgent thing to do and the most important. Once this has been taken care of, senior leaders can set up a war room where they can tackle immediate challenges.
The war room discussions must shift from just being reactive to being proactive when it comes to crisis management. At this point, model scenarios that are developed must be more aggressive than any of the team can think of. It has to be aggressive in the sense that it is capable of protecting the business from the disruption that COVID-19 is greatly inflicting on the organization.
At this time, during this phase, this is the best time too to invest in Innovation Management and R&D. While others are stalling, the most innovative companies spend more on R&D during the recession. The other 2 phases are Recover and Grow. Phase 2, Recover is focused on accelerating through the recovery and Phase 3, Grow is focused on achieving growth in the Low Touch Economy.
In what phase is your organization now? Are you Protecting? Recovering? or Growing?
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Supply Chain Resiliency is the capability of the Supply Chain to be prepared for unexpected risk events. It is the Supply Chain’s ability to respond and recover quickly to potential disruptions. It can return to its original situation or grow by moving to a new, more desirable state in order to increase customer service, market [...]
Supply Chain Resiliency is the capability of the Supply Chain to be prepared for unexpected risk events. It is the Supply Chain’s ability to respond and recover quickly to potential disruptions. It can return to its original situation or grow by moving to a new, more desirable state in order to increase customer service, market share, and financial performance.
Resilience is currently an increasing concern in the Supply Chain caused by globalization. The Supply Chain is globally being subject to diverse types of disturbances. The largest disruption so far in the global Supply Chain in modern history was the earthquake and tsunami in Japan in March 2011. With the rising level of logistical complexity, the resiliency of the Supply Chain has not kept pace. These disturbances need to be handled in the right way, compelling the use of tools and approaches that can support resilient Supply Chain decisions.
With the onset of the COVID-19 pandemic, resiliency in the Supply Chain is further emphasized.
Understanding Supply Chain Resilience
The risk of Supply Chain disruption is increasing. A recent study by Aon Risk Solutions showed that the percentage of global companies reporting a loss of income due to a Supply Chain disruption increased from 28% in 2011 to 42% in 2013. The MIT Scale Network Study further showed that many large companies are unable to create contingency rules and procedures for operations during a complex, high-risk event.
According to the MIT study, approximately 60% of surveyed managers either do not actively work on Supply Chain risk management or do not consider their company’s risk management practice effective. Managers have been found to be lacking in a framework that will guide them in the deployment of risk management practices. In fact, it has been noted that there is little understanding of risks resulting in a lack of knowledge of what kind of framework fits a particular Supply Chain dynamics.
For Supply Chain Management to keep up with the increasing level of logistical complexity, there is a need to reconfigure the Supply Chain.
The 5-phase Approach to Supply Chain Resilience
In 2005, Cisco had difficulty coping when Hurricane Katrina struck. The Supply Chain performance level was not maintained to cope with the sudden surge in orders for new equipment to replace damaged telecommunication infrastructure. The Cisco teams cannot locate all products in the Supply Chain or understand the financial impact of emergency sales. However, in 2011, that was a turning point for Cisco. Cisco had deployed a very solid Supply Chain resiliency program that addressed the impact of external vulnerabilities and the aftereffects it caused to the Supply Chain.
Cisco has succeeded by executing a 5-phase approach to Supply Chain Resiliency.
In reconfiguring its Supply Chain to make it more resilient, Cisco first identified its strategic objectives.
Phase 1: Identify Strategic Objectives. The first phase is focused on identifying competitive priorities for particular product categories. It matches priorities with Supply Chain capabilities.
Through Strategic Planning, Cisco was able to build its competitive advantage which depended on its ability to match global opportunities to outsource production with global market opportunities. This is known as the Cisco Lean Model.
Phase 2: Mapping Supply Chain Vulnerabilities. This focused on understanding the company’s vulnerabilities. Supply Chains are vulnerable on many fronts—political upheavals, regulatory compliance mandates, increasing economic uncertainty, natural disasters, etc. Being aware of the vulnerabilities will enable the organization to come up with the appropriate design to achieve Supply Chain Resiliency.
In undertaking the second phase, Cisco focused on supporting a responsible global Supply Chain characterized by product differentiation, high value, and high margins. Mitigation measures were also implemented to make a resilient Supply Chain.
With the 5-phase approach, Cisco was able to achieve a resilient Supply Chain capable of effectively managing disruptions. It has also prepared them in addressing risk management warning signs and deploying the appropriate reactive tools to every kind of significantly disruptive event.
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For Post-merger Integration (PMI) to be successful, it is critical that we have clearly defined, appropriate, and comprehensive roles and responsibilities. Post-merger Integration is a highly complex process. It requires swift action as well as running the core business activities simultaneously. There is no one-size-fits-all approach to a successful PMI Process. However, careful planning focusing [...]
For Post-merger Integration (PMI) to be successful, it is critical that we have clearly defined, appropriate, and comprehensive roles and responsibilities.
Post-merger Integration is a highly complex process. It requires swift action as well as running the core business activities simultaneously. There is no one-size-fits-all approach to a successful PMI Process. However, careful planning focusing on the strategic objectives of the deal and the identification and capturing of synergies will help maximize deal value.
While it may be a highly complex project, a successful PMI may be achieved and greater deal value can be expected. Right from Day One of PMI, it is already important that the Buyer and Target have the right people in place. The success of the integration project depends on leadership, project management capabilities, and selection of the right personnel to the work in teams/streams.
Roles & Responsibilities in PMI: Why the Need for Emphasis
So, what are the requisite PMI roles and responsibilities? Clearly defined roles and responsibilities are a fundamental factor that can make a big difference between gaining deal success or failure.
The Integration owner, together with the Integration Steering Group plays a critical role in defining the integration path of the organization. In Leadership Development, their role in the First 100 Days is a fundamental factor in achieving success or failure.
- Integration Owner. The Integration Owner is a member of the Buyer’s management team. He/she is basically the owner of the integration phase. It is the responsibility of the Integration Owner to oversee the integration phase, as well as the transaction/purchase phase.
- Integration Steering Group. The Integration Steering Group is the governing body of the integration phase. The specific role of the Integration Steering Group is to supervise the work of the Integration Project Manager and the Integration Team.
- Integration Manager. The Integration Manager is the Project Manager. He/she is the one in charge of the day-to-day management of the integration. If the Integration Manager has little or no project management experience then active hands-on support is required from the M&A Project owner.
- Integration Team/Stream. The Integration Team/Stream consists of an Integration Manager and its members. Streams are areas of the organization split into district parts but which are aligned to the overall strategy. Integration streams are often decided after the first appointment of the Integration Manager. Each stream is often headed by the Integration Stream Manager.
The Critical Role of the Integration Stream Manager
The Integration Stream Managers are selected from among the Buyer’s managers. They play a vital role as they are responsible for the development and implementation of detailed plans.
The Integration Stream Managers act as the team builder and introduce the team members to each other. They ensure that the team members have all the information and tools needed for the task. They clarify goals, targets, timetables, reporting, and other important matters relative to the integration. As Integration Stream Managers, they are expected to ensure that everyone in the team understands the goals the same way and is committed to making it happen.
In certain circumstances, it is possible that the Integration Stream Manager may also be Target’s manager. This happens when Target’s manager has specialized knowledge or attributes necessary for the integration.
Undertaking the Post-merger Integration Process the right way can maximize deal value. On the other hand, it can result in the greatest potential loss of value when not done right. Being able to select the right people is the key.
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Business dashboards are important tools to measure key performance indicators and data pertaining to an organization or certain procedure. Just as a vehicle dashboard is powerful performance management tool in summarizing a performance of a multitude of processes, a business dashboard summarizes the performance or impact of a host of functions, teams, and activities; and [...]
Business dashboards are important tools to measure key performance indicators and data pertaining to an organization or certain procedure. Just as a vehicle dashboard is powerful performance management tool in summarizing a performance of a multitude of processes, a business dashboard summarizes the performance or impact of a host of functions, teams, and activities; and assists in strategic planning and decision making.
Business dashboards simplify sharing and analysis of large data, and help users visualize complex performance data in simple yet visually aesthetic manner. Dashboards aid in simplifying complex processes into smaller more manageable information pieces for the organizational leadership to focus on everyday operations. They keep everyone on the same wavelength and prioritize display of facts based on their importance and potential impact. The information on a well-designed dashboard is clear, presentable to enhance meaning, readily accessible, and dynamic. A carefully-planned dashboard allows the leadership to identify and answer business challenges in real-time, develop plan of action based on insights, and inculcate innovation.
Proficient and capable dashboard designers and firms have taken the art of visualization of valuable indicators and insights through dashboards to the next level. They have devised specific guiding principles, dos and don’ts, and time-tested development routines to accomplish this. These guiding principles comprise 10 best practices, which can be segregated into 3 major implementation categories:
- Analyze your audience
- Contemplate display options
- Prompt application loading time
- Exploit eye-scanning patterns
- Restrict number of views & colors
- Let viewers filter data
- Ensure proper formatting
- Use Tooltips to reinforce story
- Eliminate redundancy
- Review the dashboard carefully
Let’s discuss the first 5 best practices for now.
Analyze your audience
A careful analysis and understanding of the business dashboard’s intended audience is the first important principle to consider before commencing the development of such a dashboard. For instance, a busy salesperson in need of quickly going through indicators, whereas senior management needing a deep-down review of quarterly sales results. This gives the developers a thorough idea of what the audience wants from a dashboard, what data they will visualize utilizing this, and let them know the audience’s technical capabilities in terms of data analysis, theme, issue, and business understanding.
Contemplate display options
The second principle to follow in designing a business dashboard is to research your users’ device and display preferences beforehand. Building a dashboard with desktop display options in mind when your audience prefers to use phones to view it could be a disaster. The designers should set the size of the dashboard properly—allowing the users to view it on a range of devices, by building in automatic sizing option for the dashboard to adopt to the dimensions of the browser window.
Prompt application loading time
Your audience and viewers are busy people who hate long waits. Therefore a stunningly designed dashboard would not get the right traction if it takes too much time to load. The dashboard author should facilitate prompt dashboard loading by deciding which filters to add in the dashboard and which ones to exclude. For instance, although filtering is useful in restricting the amount of data analyzed, it effects query performance. Some filters are quite slower than others as they load all of the data for a dimension instead of just what you want to keep. Knowing the Order of Operations is also beneficial in reducing the load times.
Exploit eye-scanning patterns
The dashboard authors should have a deep sense of the main purpose of the dashboard in mind when develop such a tool. They need to be aware of individuals’ eye tracking patterns—typically when most people look at a screen or content, they start scanning the upper left hand corner of the screen first by intuition—and make the best use of the screen space to display the most important content at the right place.
Restrict number of views & colors
The designers often get over enthusiastic during their application designs and try to stuff the dashboard with multiple relevant views. This is detrimental for the bigger picture. They must include not more than 2 to 3 views per dashboard and create more dashboards in case the scope creeps beyond the 2-3 views range. It is also crucial to ensure the content to be clearly visible to the viewer and to use colors correctly to facilitate analysis instead of cramming too many colors in the visuals, which creates a graphical overload for the viewers, slacken analysis (or may even prevent users to analyze data), and even blur the graphics.
Let viewers filter data
Allowing users to filter the data is another best practice to keep in mind while designing business dashboards. This added interactivity encourages data assessment and permits the users to have their most important view act as a filter for the other views in the dashboard. This helps in conducting side-by-side analysis, promotes involvement, and retains users’ interest.
Interested in learning more about the other best practices to aid in designing a robust business dashboard and knowing the most common mistakes to avoid in this process? You can download an editable PowerPoint on Business Dashboard Design here on the Flevy documents marketplace.
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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 [...]
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.
Interested in gaining more understanding of the Next-gen Operating Model within the context of Digital Transformation? You can learn more and download an editable PowerPoint about Digital Transformation: Next-gen Operating Model here on the Flevy documents marketplace.
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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 [...]
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.
Interested in gaining more understanding of Workplace Productivity practices? You can learn more and download an editable PowerPoint of our Workplace Productivity Primer here on the Flevy documents marketplace.
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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 [...]
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 [...]
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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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. [...]
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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