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8818272056?profile=RESIZE_400xFuturistic, technology-driven business models are weakening the conventional advantages of Economies of Scale.  Large corporations, founded on Scale, nevertheless have areas that they can exploit if they reposition rapidly.

For the best part of over a century, Economies of Scale—Cost Advantages that businesses achieve owing to their scale of operation—fashioned the corporation into a perfect engine of business.  The economic concept of Economies of Scale was first floated in the Adam Smith era where the idea of obtaining larger production returns through the use of division of labor was introduced.

A technological rush, distinct in history, was observed near the beginning of the 20th century.  These new technologies were accompanied by scale i.e., bulk production and access to huge markets.  The Economies of Scale guided business success—the strong inverse relationship connecting fixed costs and output grew into a basis of Competitive Advantage.

Back then, investments in scale was the most sensible proposition.  Not only did it lower fixed costs but also created a formidable barrier for competitors, denying them entry in the market.  Every type of business spent the 20th century in the quest for scale.

The advent of game-changing new technologies such as mobile devices, social media, and cloud computing, augmented by Artificial Intelligence (AI), is whirling Economies of Scale into Economies of Unscale.

Specifically, rise of Software as a Service (SaaS) and emergence of Product to Platform Transformations—coupled with AI’s ability to customize—overthrows bulk production and mass marketing as a basis of Competitive Advantage.  These progressions have battered the powerful inverse correlation between fixed costs and output that delineated Economies of Scale.

Today, minor, unscaled businesses, leveraging Platform Scaling Strategies while renting SaaS, can hunt in niche markets, effectively contesting big companies that are strained by decades of investment in scale, i.e., in large-scale production, distribution, and marketing.

The triumphant companies in the current tech rush—enabled by Platforms and SaaS—are the ones led by Customer-centric Design, providing each customer precisely what they want, that too while making a profit, and not companies offering everyone uniform products.

Large corporations can remain relevant in this era of niche marketing by taking leverage of their existing infrastructure through astute modifications in their use.  They can deploy 3 key tactics to accomplish this:

  1. Product to Platform Transformation
  2. Absolute Product Focus
  3. Dynamic Rebundling

Let us delve a little deeper into the details of the 3 tactics for leveraging Economies of Unscale.

Product to Platform Transformation

Dynamic corporations have expended decades building scale which is extremely specialized for their industry.  Efficient factories, distribution channels, retail outlets, supply chains, marketing expertise, and global partnerships have been painstakingly developed.  It is time for these corporations to take a decision on whether it is more viable to rent out this capability to other companies or not.

An example of such an approach is that of P&G’s Connect + Develop program that has been running for more than a decade.  

Absolute Product Focus

As corporations become bigger, emphasis on control becomes more pronounced—processes, regulations, stock prices, and a variety of non-core issues take precedence over great product offering.  Niche market focus blurs and attempts are made to make a product that may appeal to the masses in an effort to create Economies of Scale.

In this age of Unscale, the product/customer-focused competitor preys on such weakness.  Large corporations can mitigate the repercussion of such weakness by organizing as a network of small businesses focusing on core function while outsourcing non-core functions.  Each business, completely dedicated to creating a product perfect for its part of the market.

Apple Inc. contracts out manufacturing to Chinese companies while keeping the R&D and innovation—its core function—in the U.S. 

Dynamic Rebundling

Successful companies in this day and age of Unscale are the ones that make every customer feel like a market of one.  A corporation—a compendium of products—can match this by initially understanding its customer, then bundling its products as per each customer’s needs.

A great example is The Honest Co., which in 2012, began selling specialized line of diapers and wipes by subscription.  First year, the company raked in $10 million in revenue by supplying a niche customer, a niche product, dissimilar to mass-market brands.  By 2016 it was making sales exceeding $300 million.

Interested in learning more about the 3 tactics for leveraging Economies of Unscale and how corporations have, in their own way, taken advantage?  You can download an editable PowerPoint on Economies of Unscale here on the Flevy documents marketplace.

Want to Achieve Excellence in Strategy Development?

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

“Strategy without Tactics is the slowest route to victory.  Tactics without Strategy is the noise before defeat.” – Sun Tzu

For effective Strategy Development and Strategic Planning, we must master both Strategy and Tactics.  Our frameworks cover all phases of Strategy, from Strategy Design and Formulation to Strategy Deployment and Execution; as well as all levels of Strategy, from Corporate Strategy to Business Strategy to “Tactical” Strategy.  Many of these methodologies are authored by global strategy consulting firms and have been successfully implemented at their Fortune 100 client organizations.

These frameworks include Porter’s Five Forces, BCG Growth-Share Matrix, Greiner’s Growth Model, Capabilities-driven Strategy (CDS), Business Model Innovation (BMI), Value Chain Analysis (VCA), Endgame Niche Strategies, Value Patterns, Integrated Strategy Model for Value Creation, Scenario Planning, to name a few.

Learn about our Strategy Development Best Practice Frameworks here.

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“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

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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“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 - Good Listening skillsHumans instinctively want to share their experiences.  The more experienced a person, the fuller they are with ideas.

Many people view Listening Skills to be of lesser consequence than articulation and focus on learning how they can present their own views more effectively.

Good listening—the keen and orderly pursuit of probing and challenging the information collected from others to enhance its quality and quantity—is key to developing a knowledge-base that creates new insights and ideas.

Listening is unquestionably the most efficient route to making informed judgments, particularly judgments that leaders have to make.  That is why the Soft Skill of Good Listening is considered a building block of Leadership Development.

Good listening can lead to a longer and fruitful relationship at work and elsewhere.  Exceptional Client Management and Team Management, especially, and a host of other situations demand Good Listening skills.  Respecting the speaker, even if there is disagreement and reacting in the moment without expectation is part and parcel of Good Listening Skills.  The speaker should feel respected and understood after having a conversation with a Good Listener.

People possessing Good Listening ability assume a somewhat passive speaking role in the conversation yet actively participate in the conversation using body language and follow-up questions.  They display 3 Critical Behaviors that make them what they are—Great Listeners:

Demonstrate Respect

Making the speaker feel that what they are saying is important.  This feeling gets reciprocated quickly.

Remain Quiet

One cannot really listen while busy talking.  Remaining quiet enables understanding of the actual point the other person is making.

Challenge Assumptions

Good Listeners seek the underlying assumption in the conversation and challenge it.  This generates new ideas and opens up paths untrodden.

Let us look a little more deeply into some of the key characteristics of the 3 Critical Behaviors of Good Listeners.

Demonstrate Respect

People displaying a Problem Solving Mindset solicit input from all levels and demonstrate respect in this manner.  They always make the speakers feel that they have something exclusive to contribute and assume that the conversation partner has the proficiency to develop worthy solutions.

Remain Quiet

In a good conversation, the conversation partner speaks 80% of the time and the Ideal Listener speaks 20% of the time.  A Good Listener poses questions in most of the 20% time.  By remaining quiet the listener’s objective is to extract the prime motivation or thought behind the conversation.  Patience and practice are needed to cultivate the habit of weighing in at the correct moment.

Challenge Assumptions

A Good Listener challenges long-held and valued assumptions in order to make gains from conversations.  Ambiguity is embraced and a quest to uncover what both conversation partners can gain from the conversation is enlivened.

From the above 3 Critical Behaviors, we can synthesize the following 13 actions that a Good Listener should make while in an active conversation:

  1. Be fully present.
  2. Do not listen to respond.
  3. React in the moment.
  4. Do not have an agenda.
  5. Do not jump to give advice.
  6. Never interrupt.
  7. Ask follow-up questions.
  8. Listen as much as (or more than) speaking.
  9. Demonstrate listening.
  10. Be patient.
  11. Listen to learn.
  12. Be interested in what the speaker is interested in.
  13. Summarize what has been heard.

Identifying what a Bad Listener looks like helps avoid such behavior and consequentially move us on the path to becoming a Good Listener.  Bad listeners may be categorized into the following 6 types:

  1. The Opinionator
  2. The Grouch
  3. The Preambler
  4. The Perseverator
  5. The Answer Man
  6. The Pretender

The same person can display these behaviors at different times and under different circumstances.  Perfecting listening skills means learning what prevents us from seeking and hearing the information we need.

Interested in learning more about the critical behaviors and actions of Good Listeners, and 6 Types of Bad Listeners?  You can download an editable PowerPoint on Soft Skills: Good Listening 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 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

8760904287?profile=RESIZE_400xThe concept of Return on Investment (ROI) was formed as part of the concept of Value Creation.  The origins of ROI were in the Manufacturing sector, where it’s simple to measure time and output.  Next, to adopt the concept was the Banking industry where intense competition necessitated Innovation Management and with that the need to calculate ROI.  ROI calculation is now a common feature in every industry and business function.

Employee Training is part and parcel of workforce development.  It necessitates spending a lot of effort and resources.  Deliberating if the Training Program is going to be worth all the costs is a valid concern.

Return on Training Investment (ROTI) is the comparison between financial benefits obtained from a training program and the total cost of running that training program.  The objective of ROTI analysis is to see whether the benefits outweigh the costs i.e., to establish if the investment was worthwhile.

ROTI calculation and analysis is significant when:

  • Investment in a training program is viewed as a substantial outlay.
  • Attainment of explicit strategic or operational objectives is associated with the training program.
  • Financial benefits and their amount from the training program is ambiguous.

ROTI can be calculated dependably so long as:

  • Measurement data on changes in business performance, pertinent to training, is reliable or can be rationally estimated by those who matter.
  • Financial values can be assigned to the applicable performance measures.
  • Cost related to developing, delivering, and handling the training program can be classified.

ROTI calculation involves selecting performance measures, gathering data on those measures as well as data on costs—both direct and indirect—related to training, and lastly calculating the Return On Training Investments.

Key steps in the ROTI calculation are:

  1. Choose the performance measures to use.
  2. Gather data on changes.
  3. Gather data on costs.
  4. Calculate ROTI.

There are 3 types of calculations that are relevant in ROTI analysis.

  1. ROTI as a percentage
  2. Benefit to Cost Ratio (BCR)
  3. Payback Period

Let us delve a little deeper into the calculation methods.

1. ROTI as a percentage

This calculation shows Net Training Benefits as a percentage of Training Cost.  An outcome of 100% or more denotes that the Program has a Net Benefit after accounting for all the costs connected with running the program.

2. Benefit : Cost Ratio (BCR)

This ratio divides Total Training Benefits by Total Training Costs.  When BCR is greater than 1, the benefits exceed the costs and the program is judged a success.  When BCR is less than 1, the costs surpass the benefits and signify that enhancements or alterations are needed to warrant the continuation of the program.

3. Payback Period

This calculation exhibits the time in which the Training Investment will be paid back i.e., when the costs equal the benefits.  The calculation is usually done in terms of months.

Monthly Training Benefits are calculated by dividing Total Training Benefits over 12 months.

It is pertinent to note that although ROTI analysis is important in evaluating a training program, merely a ROTI calculation will not typically be adequate to make the business case for a Training Program or influence top management to act.  Sometimes we have to consider non-monetary benefits of training, such as a change in attitude.  When monetary and non-monetary benefits are combined, these supplement Performance Management resulting in benefits such as reduced absenteeism, lower turnover rates, and more promotions from within.

Interested in learning more about Return on Training Investment?  You can download an editable PowerPoint on Return On Training Investment (ROTI) here on the Flevy documents marketplace.

Want to Achieve Excellence in Human Resource Management (HRM)?

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

The purpose of Human Resources (HR) is to ensure our organization achieves success through our people.  Without the right people in place—at all levels of the organization—we will never be able to execute our Strategy effectively.

This begs the question: Does your organization view HR as a support function or a strategic one?  Research shows leading organizations leverage HR as a strategic function, one that both supports and drives the organization’s Strategy.  In fact, having strong HRM capabilities is a source of Competitive Advantage.

This has never been more true than right now in the Digital Age, as organizations must compete for specialized talent to drive forward their Digital Transformation Strategies.  Beyond just hiring and selection, HR also plays the critical role in retaining talent—by keeping people engaged, motivated, and happy.

Learn about our Human Resource Management (HRM) Best Practice Frameworks here.

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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

8756961262?profile=RESIZE_400xStudies on Team Motivation and Building Effective Teams stem from the research carried out in Psychology and Sociology.  Wilhelm Wundt (1832-1920), the Founder of Modern Psychology, is credited with conducting the 1st research on the subject.

The Social Psychologist Kurt Lewin (1890-1947) is credited with introducing the term “Group Dynamics.” The term defined the constructive and destructive forces within Groups of people.  Lewin pioneered the Group Dynamics Research Center at the Massachusetts Institute of Technology, first of its kind dedicated to the study of Group Dynamics and how it could be applied to real-world and social issues.

The latter half of the 20th century saw attention shifted more towards studying how Group Performance could be improved in the workplace to foster an Organizational Culture of cohesiveness, and Tuckman’s study proved significant in this regard.

Bruce Tuckman’s Model on Group Development became one of the most influential studies on the subject.  Originally conducted in 1965, the Model was further improved by Tuckman and his colleague in 1977.

Tuckman’s assertion was that each of the phases of the model is indispensable and unavoidable for the team to grow, face up to challenges, tackle problems, find solutions, plan strategically, and deliver results.  Tuckman’s model has become the foundation for following models and commonly used by management consultants for Team Management and Client Management.  For the model to be applicable in the work place, it is vital to comprehend the process at each stage and its concepts.

Tuckman’s Group Development Model comprises the following 5 stages:

  1. Forming
  2. Storming
  3. Norming
  4. Performing
  5. Adjourning

The 5th stage of Group Development called “Adjourning” was added in 1977, by Tuckman and his colleague Mary Ann Jensen.

 

Let us examine some of the stages of Tuckman’s model for Group Development in a little more detail. 

Forming

The key dynamic of the first stage is Orientation.  This is the stage where people are brought together in a Group.  How quickly the group’s transition to the 2nd stage takes place depends on the clarity and complexity of the goal and members’ previous experience of working in groups.  Some of the key characteristics of this stage include:

  • An upbeat outlook of group members about what is to be accomplished.
  • Anxiousness on part of members about what the other team members will be like.

Managers of the group at this stage have to be directly and intimately involved.  Clear guidelines and structure by the manager are necessary to ensure that the team builds strong relationships. 

Storming

The key dynamic of this stage is Power Struggle.  At this 2nd stage team members feel more at ease voicing and questioning opinions, and that is when internal conflict flares up.  Channeling this conflict in a positive direction will make for a cohesive team.  Some of the key characteristics of this stage are:

  • Perception formation about other team members’ abilities.
  • Alliance formation among team members and discussions regarding the goal and the approach to achieve it.

The group leader has to show a Problem Solving Mindset at this stage, swiftly channel conflict between teams in order to avoid demoralization.  Among many other actions at this stage, the leader also has to guide the team in decision-making and proffering explanations on how decisions transpired.

Norming

The key dynamic of the 3rd stage of team development is Cooperation.  The members concentrate on settling differences to make way for clear definition of organizational mission and objectives.  Manager’s role within the team transforms from that of leader to that of a team member.

Interested in learning more about Tuckman’s 5-Stage Group Development Model?  You can download an editable PowerPoint on Tuckman’s 5 Stages of Group Development 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 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

Stock Image 2 - Business Transfromation CSFsBusiness Transformations have become a necessity in the fast-changing technological and competitive business environment.  Transformation is characterized by significant and risk-laden Restructuring of a company, with the objective of accomplishing Operational Excellence and changing its future course.

Business Transformation is a priority for many top executives but it is usually a reaction to challenging circumstances rather than being a preemptive measure.

Business Transformation is prompted by a combination of 2 situations:

  • Need to address inherent problems causing organizational drag—these problems may be internal and/or external.
  • Aspiration by the top management and other senior stakeholders to seize the occasion of addressing these problems, in ways that deeply alter the Business Model of the organization including Value Creation.

Business Transformation entails not just making incremental changes but fundamentally changing all or some of the following:

  • Organizational Structure
  • Core Product or Service Portfolio
  • Systems
  • Processes
  • People—the way employees work
  • Technology

Undertaking such arduous effort requires approaching the task in a structured way.  Research shows that quite a few of such undertakings are based on anecdotal beliefs instead of being based on empirical data.

Countering this trend, the Boston Consulting Group conducted an empirical study of financial and non-financial data-set comprising 300 U.S. public companies.  The data spanned a period of 12 years from 2004 to 2016.  Selection was based on the following criteria:

  • Companies that had a $10 billion or more market capitalization between 2004 and 2016.
  • Of these, companies with an annualized deterioration in Total Share-holder Return (TSR) of 10% or more relative to their industry average (2 years running or more) were identified.

Based on extensive analysis—that included use of methodologies like trained proprietary algorithms, prediction models, and Multivariate Regression Analysis—a pattern pertaining to Business Transformation emerged.  The pattern depicted the following themes:

  1. Frequency of Failure
  2. Impact of Digital Disruption
  3. Impact of Downturn
  4. Competitive Volatility

The study also suggested the following 5 evidence-based Critical Success Factors (CSFs) for achieving Transformation Success.

  1. Cost Management (drives short-term success)
  2. Revenue Growth (drives long-term success)
  3. Long-term Strategy and R&D Investment
  4. New, External Leadership
  5. Holistic Transformation Programs

Let us examine in a bit more detail some of the CSFs.

Cost Management

In order to launch the Transformation effort on the correct footing, Cost Management is key, in the short term especially.  Predictably, empirical analysis suggests that the leading driver for organizations recovering from severe TSR deterioration is a determined Cost-cutting effort during the 1st year of Turnaround.  By year 3, Cost Reduction is accountable for the major share of TSR growth as companies divert their portfolios and make available funding for growth investments.

Revenue Growth

Merely short-term operational improvements do not augur well for a sustainable Transformation.  There has to be a long-term Growth Strategy put in place.  For this to happen, leaders have to challenge the foundations of the company’s Business Model.

Research divulges that Revenue Growth progressively becomes the driver for TSR recovery after year 1 in all the successful Transformation efforts.  Revenue Growth overshadows, by far, all the initial drivers for TSR recovery by year 5 of all successful Turnaround efforts.

Long-term Strategy and R&D Investment

Turbulent competitive environments, particularly, require long-term Strategic Planning and investment in Research and Development for fruitful Business Transformations.  Empirical research and analysis demonstrates:

  • A 4.8% difference between Transforming companies showing above-average long-term strategic direction compared to companies with a below-average orientation.
  • More pronounced findings in transforming companies operating in turbulent competitive environments—long-term orientation linked with a TSR increase of 7%.
  • Companies with above-average R&D investments had upwards of 5.1% TSR impact in contrast to those with below-average spending.

These CSFs strengthen the odds of success in Business Transformation individually.  When used together, most of them produce an impact that is larger than the totality of their individual parts.

Interested in learning more about the 5 Critical Success Factors for Successful Business Transformation?  You can download an editable PowerPoint on 5 Critical Success Factors for Successful Business Transformation 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

8721604279?profile=RESIZE_400xProblem Solving is a fundamental life skill indispensable for survival of an individual.  It is honed in every person to varying degrees.  It is especially a useful skill to embody Leadership Development.

Problem Solving skill can be taught and learnt.

MIT defines Problem Solving as:

The process of identifying a problem, developing possible solution paths, and taking the appropriate course of action.

Problem Solving is a process that can be approached using various strategies but each Strategy usually follows the same theme, consisting of:

  • Identifying the Root Cause of the Problem.
  • Logically Analyzing all the Details of the Problem.
  • Formulating a Solution.
  • Effectively Communicating and taking Action.

Problem Solving Strategies consist of steps that help identify the Problem and choose the best solution.  There are 2 basic types of Strategies:

  1. Algorithmic Strategies – customary step-by-step instructions to solving Problems. For example, in algebra: multiply and divide before adding or subtracting.
  2. Heuristic Strategies – general guides used to identify possible solutions.  An example would be IDEAL—Identify Problem, Define Context, Explore Strategies, Act on solution, and Learn.

A certain Mindset is required to be developed for becoming a great Problem Solver.  There are 6 traits experts have identified that shape the Mindset of a great Problem Solver.  A great Problem Solver will always:

  1. Be Constantly Curious.
  2. Be an Imperfectionist.
  3. Adopt a Dragonfly-eye View.
  4. Pursue Occurrent Behavior.
  5. Leverage Collective Intelligence.
  6. Practice Show and Tell.

Problem Solving Mindset is valuable for any person especially professionals, particularly an entrepreneur, manager, or someone in the leadership role in an organization.  A team of skillful problem solvers can become a notable source of Competitive Advantage for an organization.

Let us delve a little deeper into some of the Mindsets that make great Problem Solvers.

Be Constantly Curious

Innate human partialities frequently blind us to a range of solutions too early in the Problem Solving Process.  Superior and increasingly creative solutions arise from being Curious about the wide-ranging possible answers.  Very young children embody this trait.  They are resolute in figuring things out hence their never-ending and high-energy inquisitiveness.

Improved results are generated by accepting uncertainty, constantly asking questions like why is this solution better, or why not the other one?

Be an Imperfectionist

Absolute knowledge is virtually non-existent, especially for Complex Business and Societal Problems.  Accepting that our knowledge is Imperfect can bring about more effective Problem Solving.  Constant revision based on new evidence is key to good Problem Solving.  This is possible when we begin by confronting solutions that imply certainty.  And, this brings out tacit assumptions about probabilities and makes it easier to assess alternatives.

Most Problem Solving involves a great deal of trial and error.  We form hypotheses, dive into data for validation, and either refine our premise or discard it.

Adopt a Dragonfly-eye view

The purpose is to gaze beyond the usual arrangement into which our pattern-recognizing brains want to gather perceptions.  This facilitates identification of obscured opportunities and threats.

A good example of this is the approach experts took to tackle a major public health threat.  They framed the Problem in larger social context—taking the Dragonfly-eye view—garnering wider support and success.  Confronted with a complex social map and a ballooning infection rate, the Problem was tackled by widening its definition.  The frame was shifted from a traditional epidemiological transmission model at known hotspots to one where, another affliction of a particular sub-set of the impacted population was targeted because it was more relatable.  The major public health threat was made into a sub-set of the larger issue.  The solution was implemented in 600 communities and was eventually ascribed with preventing more than 600,000 infections.

Interested in learning more about Problem Solving Mindsets? You can download an editable PowerPoint on Problem Solving Mindsets 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 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

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.

Want to Achieve Excellence in Post-merger Integration (PMI)?

Gain the knowledge and develop the expertise to become an expert in Post-merger Integration (PMI).  Our frameworks are based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts.  Click here for full details.

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

Stock Image 2 Digital Facilitation MethodsThe global COVID-19 pandemic has forced organizations to rapidly adopt virtual work environments, making it the new norm in the Digital Transformation process.  Digital Collaboration Platforms have been pivotal in the current scenario and have forever changed the work environment to include Virtual Work and Digital Facilitation.

Digital Collaboration Platforms provide a combination of activities in one place, making meetings almost trouble-free.  These platforms take leverage of tools to help perform activities, such as:

  • Create agendas and conduct pre-engagement communication
  • Documentation and note-taking
  • File storage and documents sharing (videos, images)
  • Administer surveys / polls
  • Chat with facilitator-specific features (anonymize, voting, hide comments)
  • Conduct assignments and exams
  • Booking system and timer
  • Post-engagement discussions and follow-up tasks

However, Digital Facilitation has its own set of challenges, principles, and methods that are to be managed for the future work environment to run smoothly.  Digital Facilitation Methods vary from simple to very complex and there is an abundance of them.  The following 3 methods are quite popular in facilitating asynchronous and synchronous Digital Collaboration:

  1. Double Diamond
  2. Open Space
  3. Sociocracy 3.0

Let us examine the 3 Digital Facilitation Methods more deeply.

Double Diamond

It is a structured method to Digital Facilitation that is useful in problem solving and idea generation.  The method tackles challenges in 4 key phases—Discover, Define, Develop, and Deliver.  The Double Diamond method employs the divergent thinking first—to open up the participants to share as much as possible without limiting ideas.  The method then utilizes convergent thinking to focus on narrowing down the problems, finding potential solutions to the problem, and implementing the most viable solution(s).

Potential solutions and ideas can be prioritized and filtered using Digital Collaboration Platforms’ features, i.e., polls, likes, or assigning scores.  All project phases can be documented on the go, in a single Digital Facilitation workspace and the same workspace can be used to continue the delivery phase.

Open Space

The Open Space Digital Facilitation method is designed for self-organization, inclusivity, and emergent agendas.  The method focuses on finding important elements through discussions facilitated by Digital Collaboration Platforms in order to improve further.  The Open Space method is governed by the “Law of Two Feet,” which states that if at any time you find yourself in a situation where you are neither learning nor contributing, use your two feet and go somewhere else where you can.

In this method, a collaboration session starts without an agenda, but the process is designed to ensure that the issues that are most important to the people involved will surface and become part of the agenda.  This is done by inviting participants to propose topics as chat comments utilizing Digital Facilitation Platforms.  Other participants ‘like’ a comment (topic) to show their interest or prioritize by using voting or polling features.  The facilitator then organizes the topics by likes or votes and decide how many topics will be covered in a given session.  A loose agenda is then created and host of each topic is assigned.  Booking feature of the Digital Facilitation Platforms can be utilized for choosing which topic participants will start with.  A separate page within a Digital Facilitation Platform workspace can be dedicated to each topic, to document everything and add instructions, videos, or any other files.  Video conferencing tool of the Platform can be used side-by-side.

Sociocracy 3.0

This Digital Facilitation method goes a step further in problem-solving than other approaches.  As the name suggest, Sociocracy 3.0 method puts everyone really behind an idea and necessitates consent of all the participants for it to work.

Interested in learning more about Sociocracy 3.0 and the other Digital Facilitation Methods and Digital Collaboration tools?  You can download an editable PowerPoint on Digital Facilitation Methods 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 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

8591481276?profile=RESIZE_400xCut-throat competition in industries has driven companies to find ways to reduce costs while increasing efficiency.  To accomplish this, most companies have skillfully endeavored to streamline Sales, Operations Planning, Forecasting, Inventory Management, and Logistics.

One area that has still not grabbed industry’s attention is out-bound Supply Chain Management–from packaging to final delivery.  Companies generally neglect Supply Chain simply because they do not consider it their core competency.

Significant Cost Reduction in the Supply Chain can be achieved by focusing on 2 main cost categories:

  1. Warehousing Costs
  2. Transportation Costs

Warehousing and Transportation represent a significant portion of the total Logistics costs.  Implementing improvement programs, without any significant capital investments, can enable 20-50% cost saving in Warehousing, 40% in Transportation costs, flexibility, and better service.

Supply Chain Cost Reduction in Transportation and Warehousing has vast potential, not only in terms of costs, but also Process Improvement using Lean Six Sigma (LSS) techniques.

The approach to Supply Chain Cost Reduction in Warehousing encompasses 3 phases:

  1. Set the Baseline
  2. Determine the Gap
  3. Implement Lean Six Sigma (LSS)

Meticulous and persistent application of Lean Management and Six Sigma techniques is at the core of reshaping Warehousing Operations and eradicating sources of waste, variability, and inflexibility.  This article is an overview of the 6 building blocks used in Implementing Lean Six Sigma (LSS)—the 3rd phase of the approach to Supply Chain Cost Reduction in Warehousing:

  1. Business Processes
  2. People
  3. Performance Management
  4. Third Party Interactions
  5. Layout
  6. Ownership

Let us dive a little deeper into some of the building blocks.

Business Processes

Business Processes present a huge opportunity for improvement by eliminating redundancies and sources of waste in Warehouse operations (e.g., unnecessary motion or double-handling in Manufacturing).  Each source of waste represents extra costs and inflexibility that can be reduced or eliminated.

 Business Process Improvement can help reduce:

  • Handling steps
  • Motion
  • Transportation
  • Space requirements
  • Effort
  • Time spent

People

This building block of Implementing Lean Six Sigma aims at avoiding overstaffing of full-time employees and at the same time maintaining a well-trained, efficient workforce.

Streamlining this building block leverages the following benefits to organizations:

  • Refined Recruitment process reduces Employee Turnover.
  • Facilities can more closely match on-site staffing to demand by reducing notice periods.
  • Efficiency can be raised by about 15% through regular training.
  • Overstaffing of full-time employees can be avoided.
  • Productivity can be improved by 5-10% by focusing on appropriate facets of Performance during training.

Performance Management

This building block aims at using existing Performance Management levers to improve Employee Performance through morale boosting and awareness exercises.  A laser-focus on the performance element helps the leadership achieve the following benefits: 

  • Constant reminders and display of current performance give employees a sense of competition and drive.
  • Quick daily discussions highlight the significance of good performance and helps employees focus on essential aspects of their work.
  • Productivity is improved up to 20% by linking pay to performance.
  • Real-time feedback supports pay-related performance.
  • Measuring and rewarding the “softer” elements has long-term benefits.
  • Recognizing employee of the month can increase staff satisfaction.

Given the existing industry cost and performance demands, wasteful or unpredictable Warehouse operations lose more than money.  This can do rapid and permanent harm to a company’s reputation with customers since distribution is the logistical interface with the customer.

Improving Warehouse Operations is a significant area not only for Cost Reduction, but also a source of refining Customer Value Proposition.

Interested in learning more about Supply Chain Cost Reduction in Warehousing and Lean Six Sigma?  You can download an editable PowerPoint on Supply Chain Cost Reduction: Warehousing here on the Flevy documents marketplace.

Want to Achieve Excellence in Supply Chain Management (SCM)?

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

Supply Chain Management (SCM) is the design, planning, execution, control, and monitoring of Supply Chain activities.  It also captures the management of the flow of goods and services.

In February of 2020, COVID-19 disrupted—and in many cases halted—global Supply Chains, revealing just how fragile they have become.  By April, many countries experienced declines of over 40% in domestic and international trade.

COVID-19 has likewise changed how Supply Chain Executives approach and think about SCM.  In the pre-COVID-19 era of globalization, the objective was to be Lean and Cost-effective. In the post-COVID-19 world, companies must now focus on making their Supply Chains Resilient, Agile, and Smart.  Additional trends include Digitization, Sustainability, and Manufacturing Reshoring.

Learn about our Supply Chain Management (SCM) 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