9920145277?profile=RESIZE_400xEarly 2000s saw a change of mind regarding the Globalization of commerce by members of the political and economic arenas.  This change of mind was instigated by myths perpetuated against commerce Globalization because of the dichotomy that appeared between existing Operating Models of companies and needs of the emerging markets.

These perceived trade-offs that were myths included ideas like choosing between centrally-controlled Operating Model and local responsiveness model.

Proponents of the central model had the view that intellectual power and Innovation capability had to be centralized, all products and services brought in line everywhere, foregoing catering to diverse needs and demands of customers in every emerging market.

The converse view was that in order to have locally applicable distribution systems, proactive Supply Chains, and reduced costs of emerging-market management, it was necessary to devolve the company and operation as a loose federation.

This trade-off incompatibility was addressed by the Hub Strategy where, in place of a single center, companies set up principal office “hubs” in as many of the 20 gateway countries of the world as required—a global corporate structure with no headquarters.

These 20 gateway countries represent 70% of the world population and generate 80% of the world income.  The gateway countries include Australia, Canada, France, Germany, Italy, Japan, the Netherlands, Spain, the United Kingdom, and the United States from the developed economies.  Rest of the 10 are emerging markets of Brazil, China, India, Indonesia, Mexico, Russia, South Africa, South Korea, Thailand, and Turkey.

This new Business Model covers both the recognized advantages of developed markets and the possibilities of emerging economies.  A model that handles decentralization, centralization, existing practices, and possible disruptions not as trade-offs, but as complements.

It is, however, important to understand that for the model to have its full impact, 3 core pillars have to be integrated and pursued simultaneously.  The 3 Pillars of Globalization are:

  1. Customization
  2. Unity
  3. Arbitrage

Only business leadership that has taught itself and its teams to be very careful about where to customize, how to develop capabilities, and what to arbitrage are the ones reaping benefits from this model.

Let us delve a little deeper into the details of the 3-pillar Business Model.

Customization

Variation in needs, wants, and cultures of consumers makes it impossible to customize centrally.  Providing products and services in a locally competitive manner is therefore central to become a global enterprise.

Customization entails fulfilling the requirements and wants of varied consumers, in areas such as product or service features, affordability, and cultural alignment.  Hub Strategy provides the leverage to fulfill this demand by enabling companies to customize only in the 20 gateway countries.

Unity

Unity entails worldwide alignment of the company with, a unified central purpose, a body of exclusive first-rate knowledge, and capabilities that differentiate the company from all others.

Core purpose must be understood in the same manner by all functions of the company, in every geographical location.

Arbitrage

Arbitrage is a methodical initiative that consists of increasing effectiveness and Cost Reduction by discovering materials, manufacturing methods, logistics practices, funds sourcing, or infrastructure that are less expensive.

Interested in learning more about the 3 Pillars of Globalization and its Case examples?  You can download an editable PowerPoint on 3 Pillars of Globalization here on the Flevy documents marketplace.

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– Roderick Cameron, Founding Partner at SGFE Ltd

brain3Business Transformation initiatives are typically undertaken to solve a pressing issue, bring about improved performance, or to serve customers better.  A critical element of the success of such initiatives entails transforming the existing behaviors of the employees across the organization.  However, this isn’t a straightforward task.

Attitudes and practices get reinforced in people by following established routines day in and day out.  Such practices become a part of an Organizational Culture over time.  Ingrained organizational behaviors and practices aren’t considered burdening until the organization’s performance starts declining considerably over time.  That’s when the leaders start thinking about changing these beliefs and habitual actions.

Psychology and Neuroscience can help enterprises change the deeply embedded attitudes and practices of people and replace those with new beliefs and practices.  Leading organizations are using psychology and brain research to induce successful change.  Specifically, they focus on the right priorities to enable Organizational and Behavioral Change and take the following 6 steps—or 6 Rs of Behavioral Change:

  1. Recognize
  2. Relabel
  3. Reflect
  4. Refocus
  5. Respond
  6. Revalue

Let’s dive deeper into the first 3 steps critical to render behavioral change.

Step 1 – Recognize

The first step involves the leadership reflecting on the behaviors that are required to be transformed.  Leaders are responsible for articulating the future vision of an organization, prioritizing and implementing initiatives to achieve the vision, and take measures to tackle disruption caused by technology and rivals.  Self-Reflection on undesired behaviors by role models (including senior leaders) is essential to make other people ponder over their behaviors.

Leadership behaviors inform the workforce about the Transformation required, assist in championing the agenda, and make these behaviors resonate across the board.  Individuals, in turn, should contemplate on the alignment of their behaviors with their personal / organizational goals, think of new improved ways of doing things, and dump convenient yet unproductive behaviors.

Step 2 – Relabel

The 2nd step of the 6 Rs to Organizational Change necessitates categorizing and naming the flawed or unfit behaviors.  Neuroscience research has revealed that by naming behaviors and understanding that thoughts are merely ideas, persons with Obsessive Compulsive Disorder can disregard useless thoughts and behaviors that trigger them to wash their hands again and again.

Relabeling thoughts allows individuals to stop reflecting on useless thoughts.  Likewise, in an organizational setting leadership needs to evaluate which shared thoughts don’t work well, categorize them, and communicate the reasons for their unsuitability across the organization.

Step 3 – Reflect

In this step, senior management replaces outdated beliefs and behaviors and outlines the vision or desired objectives and behaviors.  The outlined desired objectives and behaviors need to be explicit, translated into daily actions, and attractive to the people.  This may warrant training of people to reflect on the desired expectations and behaviors collectively.  Effective communication of benefits of altered objectives and behaviors assists in subsiding the unrest associated with change in people and relaxing their mind and thoughts.  This must include informing people that uncertainties are part of business and that they should keep their focus on organizational values and what matters most during change.  Reflection creates a sense of ownership among employees that is otherwise difficult to be achieved by any cascaded top-to-bottom directives.

Interested in learning more about the other steps or Rs critical to engender Change ?  You can download an editable PowerPoint on 6 Rs to Behavioral Change here on the Flevy documents marketplace.

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– Roderick Cameron, Founding Partner at SGFE Ltd

Editor’s Note:  If you are interested in becoming an expert on Supply Chain Management (SCM), take a look at Flevy’s Supply Chain Management (SCM) Frameworks offering here.  This is a curated collection of best practice frameworks based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts.  By learning and applying these concepts, you can stay ahead of the curve. Full details here.

9885558865?profile=RESIZE_400xThe conventional Business Model for Manufacturing is in the process of Transformation.  Centralized production has given way to dispersed manufacturing that is customized.  Conventional operating practice at large-scale manufacturers is to keep the high-cost R&D distinct from the low-cost production.  Digital Fabrication is changing this operating practice.

More and more Digital Fabrication Tools are being developed and used every day which is laying the foundation for Digital Transformation revolution.  These tools are being used to develop customized end-products by small-scale manufacturers and in some cases single-person manufacturing concerns.  Digital Fabrication tools may be 1 of the following 2 types:

  1. Programmable Subtractive Tools—designed to carve shapes from raw materials. Examples of such tools include laser cutters, CNC routers and milling machines, plasma or water jet cutters.
  2. Additive Rapid Manufacturing Tools—which are predominantly computer-operated 3-D printers that chiefly construct objects layer by layer but may also be designed to use laser or electron beams.

The impact of the community of individuals dealing in Digital Fabrication tools in disrupting the conventional manufacturing model, is more than the tools themselves.  The community is, essentially, a self-established, worldwide Supply Chain, involving quite a few interconnected setups, user clusters, cybershopping sites, and social media environments.

The creators have fashioned open-source collaborations that leverage dropping costs of Digital Fabrication and current social media connectedness.  Distributed manufacturing networks allow customers to post job requests that can be taken up directly by fabricators.

In the fabricator-culture, individuals are supposed to make their plans and specifications public, usually under an open-source license, which permits anyone to replicate, adapt, and learn from the designs; always giving credit to the creators and common access to ideas.  Collaborators share information mutually, assist each other in progressing, and nothing is owned or controlled centrally.  Accessible repositories allow creators to trade plans and instructions, align production, and sell their designs and fabricated articles straight to the society.

Considered holistically, Digital Fabrication and information sharing is ushering in a broadening of the manufacturing environment.

Big manufacturers will have to undergo Business Transformation by adopting open-source innovation, adaptable production, and knowledge-intensive production lines in order to move towards Digital Manufacturing.  Large-scale manufacturers desirous of taking advantage of the Digital Fabrication Transformation will find the following 5 principles indispensable in transforming their operating practices:

  1. Cultivate Digital Capabilities.
  2. Establish a Hybrid Product Line.
  3. Embrace Open Innovation.
  4. Develop New Fabrication Materials.
  5. Prepare for Misuse and Infringement.

Digital Fabrication’s effect on manufacturing has been similar to that of the internet on information-centric solutions and services or like video content platforms’ effect on television networks. 

Let us delve a little deeper into some of the principles. 

Cultivate Digital Capabilities

Investing in technology that enables the business to make part of the product portfolio using printable composites, in a back room, will give it a Competitive Advantage.

Gaining Digital Fabrication skills and experience now will set the launch pad for leveraging when the time is right. 

Establish a Hybrid Product Line

Start a product line that is mixed—with corresponding mass-production and individual-production articles.  New feature substitution, alteration in production line, or restarting production of old products can easily be achieved with Digital Fabrication tools, at a profit.

Certain commonly used products that are consumed in large quantities are better off produced on large scale.

Embrace Open Innovation

Offset reverse engineering and modification culture being driven by the ease of Digital Fabrication with Open Innovation.

Interested in learning more about Digital Fabrication Transformation?  You can download an editable PowerPoint on Digital Fabrication Transformation here on the Flevy documents marketplace.

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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.

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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.”

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“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

neuroscience change 2Business Transformation initiatives are typically undertaken to solve a pressing issue, bring about improved performance, or to serve customers better.  A critical element of the success of such initiatives entails transforming the existing behaviors of the employees across the organization.  However, this isn’t a straightforward task.

Attitudes and practices get reinforced in people by following established routines day in and day out.  Such practices become a part of an Organizational Culture over time.  These ingrained behaviors and practices aren’t considered burdening until the organization’s performance keeps declining considerably over time.  That’s when the leaders think about changing these beliefs and habitual actions.

Psychology and Neuroscience can help enterprises change the deeply embedded attitudes and practices of people and replace those with new beliefs and practices.  Leading organizations are using psychology and brain research to induce successful Organizational Transformation.

The practices that these organizations employ to engender Transformation are based on the following 6 core Principles of Neuroscience:

  1. The brain is hardwired to hold on to habits, making it difficult to change them.
  2. Connections in the brain—even deeply embedded thoughts—are quite flexible to transform.
  3. Concentrating on new ways of thinking can overhaul individuals thinking habits.
  4. Don’t tell people what is wrong, just focus on drawing their attention to the positives.
  5. Encourage the ability to reject negative cerebral impulses.
  6. The competence to focus attention has to be created bit by bit.

Let’s dive deeper into these first 3 principles of Neuroscience.

Principle 1 – The brain is hardwired to hold on to habits, making it difficult to change them.

Our thinking patterns are stored in circuits by brain parts—including the habit center (basal ganglia), amygdala (emotion center), and hypothalamus (which manages hunger, thirst etc.).  These brain parts, especially the basal ganglia, process info unconsciously and the activity feels rewarding to the individual.  This activity makes stronger neuronal connections with other areas and gets the activity reinforced.

For the desired behaviors and practices to get embedded, the organization need to make stronger connections with the entire workforce’s’ basal ganglia to enable deep rooted neuronal circuits.  The practices ingrained this way are difficult to remove.

Principle 2 – Connections in the brain—even deeply embedded thoughts—are quite flexible to transform.

People with obsessive compulsive disorder keep deliberating on their impulse to wash hands to ensure cleanliness.  This fortifies brain circuits in the basal ganglia, which takes over their behaviors.  However, Neuroscience reveals that even the most well-established notions can be altered.  This can be done by making the individuals aware of what they are thinking and where their focus is in a given moment.

Training and directing people to think about their thoughts can make them conscious of their undesired behaviors, disengages brain areas notable for causing distraction, and adopt new behaviors.

Principle 3 Concentrating on new ways of thinking can overhaul individuals thinking habits.

The 3rd principle highlights that persistent focus on unfamiliar, desired thoughts and objectives activates the habit center of the brain, which turns these desired thoughts into habits.  The mechanism according to Neuroscience is such that basal ganglia’s caudate nucleus region processes…

Interested in learning more about the other principles of Behavioral Transformation?  You can download an editable PowerPoint on 6 Core Principles of Neuroscience here on the Flevy documents marketplace.

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You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro 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

org culture 1Employee behaviors are critical for the success of Business Transformation endeavors.  However, transforming the ingrained behaviors and mindsets of the workforce isn’t straightforward, and when tackled cause the enterprise’s emotional state to go down.

Leaders need to identify the components of Culture that are in line with their Corporate Strategy.  They have to ascertain and harness the positive elements of culture that can drive the desired Transformation and suppress those that obstruct it.

For the desired Organizational Culture to sustain, leaders should work on gaining acceptance of the transformed behaviors.  Leaders who do not give culture its due importance risk ruining their strategic endeavors, as they lack the commitment required from the employees to achieve success.

The real question is why senior leaders fail to use the positive elements of Organizational Culture constructively in the first place.  The answer is simple; there are 4 common yet wrong assumptions—or myths—regarding culture change that are deeply established in most businesses that are anything but facts.  Paying heed to—and acting on—these 4 myths results in grave consequences:

  1. Culture is the root cause of all our failures
  2. Changing our Organizational Culture is beyond us, forget about it
  3. Let Human Resources deal with Organizational Culture
  4. Culture is the responsibility of top management

When senior executives devise a strategy to transform the deeply entrenched organizational culture—by putting in place new policies, practices, reward structures, and performance management systems—there is strong resistance that outplays the strategy.

This is primarily due to employees’ reservations and uncertainties regarding the impact of these changes on their work, colleagues, atmosphere, routines, family, and their enterprise’s reputation.  Transforming the Organizational Culture using the individual’s actions and conduct necessitates seeking assistance from 7 guiding principles:

  1. Be Practical
  2. Reinforce New Behaviors
  3. Seek Out Role Models
  4. Identify Cultural Carriers
  5. Leverage Existing Culture
  6. Be a Role Model
  7. Explain Impact of New Behavior

Application of these guiding principles facilitates in transpiring successful culture change.  Let’s dive deeper into a few of these guiding principles.

Be Practical

The first guiding principle to changing the culture involves starting rationally and pragmatically.  It is not feasible to strive to change every behavior at once.  Leaders need to concentrate on the behaviors most critical for the organization.   The ones that reverberate with the existing company culture and have a key role in improving the organizational performance.  This entails ascertaining groups of employees whose behaviors should be transformed immediately.  A clear demonstration of the requisite changes goes a long way in reinforcing the desired behaviors and culture in the organization.

Reinforce New Behaviors

The 2nd principle to changing culture involves emphasizing new behaviors.  The desired behaviors should be reinforced using formal and informal mechanisms.  Formal reinforcement mechanisms include metrics, processes, appraisals, salary reviews, training, and incentives to reward new behaviors.  These formal mechanisms allow people to practice new behaviors repetitively, until they begin to realize their value.  Informal reinforcement mechanisms include support networks and associations to nurture sensitivity and devotion needed to cope with uncertainties.

Seek out Role Models

Organizational Culture Transformation necessitates distinguishing role models to demonstrate the desired behaviors.  Culture change begins when change practitioners act by modeling the new behaviors.  These change practitioners are pride builders for an organization.  The examples set by these practitioners assist in inculcating pride in others about embracing the desired behaviors.  This action is referred to as “positive deviance” or constructive non-conformity.  These pride builders in turn identify and develop more exemplars.

Interested in learning more about the other guiding principles of culture change?  You can download an editable PowerPoint on 7 Guiding Principles of Culture Change here on the Flevy documents marketplace.

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You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro 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.”

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“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

9833684489?profile=RESIZE_400xSite Selection is the practice of choosing a new facility location. It involves measuring the needs of a new project against the merits of potential locations. The practice became popular during the 20th century, as operations of many organizations expanded to new geographies on a national and international scale.

Selection of sites has been known to have taken place due to factors such as:

  • Best required skills being available in a particular city.
  • Setting up in an off-the-trail location because all operations will be managed remotely.
  • Following the trend to set up offices and facilities in a particular city because every company is doing so.
  • Factory facilities of the company being close-by.
  • Top boss living in the vicinity.
  • Person tasked with choosing the site liking the area for a particular feature such as restaurants and the like.

Making such significant long-term choices based on haphazard and indifferent reasons is a blunder.  The consequences of the mistake are exacerbated when such sites are being selected in emerging markets.

Site selection, in particular, for R&D, Design, and Engineering, warrants a more serious approach than is given to it.  Employing a formalized selection method aids in eliminating sentiment in the concluding decision.  The orderly selection procedure is also valuable in conveying the ultimate decision to all involved.  Selection criteria and their priority should be agreed to in advance for removal of any partiality from the Site Selection process.

Site Selection, especially when being done in emerging markets, has to be conducted while considering at least 5 factors—or the 5 Cs of Site Selection.  Companies ought to identify which among the 5 factors they deem significant and prioritize the factors accordingly:

  1. Cost
  2. Capacity
  3. Capability
  4. Communications
  5. Culture

Selecting a site in light of the set priority order, the company has to take into consideration the characteristics of the site in the present time as well as in 3 to 5 years.

Let us delve a little deeper into some of the factors.

Cost

Ideally, Cost Reduction should not be the only factor influencing site selection decisions.  If Cost factor is predominant in the decision, then the local standard of living and the changes there to, have to be taken into consideration.  Costs in setting up a site include items such as:

  • Buying or leasing land.
  • Office equipment costs.
  • Communication infrastructure and operations costs.
  • IT infrastructure costs.
  • Employee Training costs.

Companies basing their decisions exclusively on Cost factor rather than what suits their requirements end up paying more than estimated.

Capability

Capability is the ability of the site under consideration to provide the necessary infrastructure, resources, and the work/ operational environment required by the company.  Capability includes existence of exclusive skills and expertise that a company explicitly needs.

Also advantageous to capability are nearby R&D, design, testing, and prototyping centers setup by foreign and local companies. 

Capacity

Capacity refers to the abundance of qualified skill available on the site under consideration.  Capacity comes into play when the company needs rapid scaling up of its operations. 

Although the 5 Cs are of extreme significance, there is an additional factor that cannot be ignored—the Customer.  Recent advances in technology and communication have further empowered the Customer.  The result is that more organizations are seeking to focus on Customer-centric Design.

Interested in learning more about 5 Cs of Site Selection?  You can download an editable PowerPoint on 5 Cs of Site Selection 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

Editor’s Note:  If you are interested in becoming an expert on Human Resource Management (HRM), take a look at Flevy’s Human Resource Management (HRM) Frameworks offering here.  This is a curated collection of best practice frameworks based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts.  By learning and applying these concepts, you can stay ahead of the curve.  Full details here.

 

9797614053?profile=RESIZE_400xDisruptive technology is re-shaping the present-day work environment.  Technological advances are making long-standing job roles superfluous.

Digital Disruption being faced by many companies is exacerbating the gap between what employers want their employees to be able to do and what they can actually do.  This skills gap needs to be bridged rapidly but with due consideration to the course taken to fill it.

A change in job roles with the help of Upskilling has become necessary in light of the evolving Disruption.  Upskilling comprises of acquisition of new and pertinent competencies, made necessary because of the current or emerging work environment.  Upskilling adds to the skills the employee already possesses.  It is a key component to robust Talent Management and can be a source of Competitive Advantage.

Having a robust Upskilling Strategy in place is the first step towards a successful Upskilling effort.  Upskilling Strategy can create new roles for existing employees leveraging their experience.

However, the brass tacks of an effective program to bridge the talent gap are the following 7 tactics to Upskilling which can help employers Upskill their workforce:

  1. Learning and Development
  2. Job Rotation
  3. Job Enlargement
  4. Job Enrichment
  5. Peer Coaching
  6. Peer Mentoring
  7. Hire External Experts/Specialists

Contingent on the organization’s requirements, based on a skills gap analysis, one or more tactics in combination may be needed to fill the skills gap.

Let us look at some of the tactics in a little more detail.

Learning and Development (L&D)

L&D programs are a common approach to Upskilling and foundational to becoming a true Learning Organization.  These programs are dependent on a number of factors.  One of the key factors is L&D Strategy, which can be developed based on a number of models.  Depending on the model chosen, L&D Strategy development will generally go through the following 4 phases:

  • Training Needs Analysis
  • Learning objective stipulation
  • Training material and approach design
  • Monitoring and Evaluation

Methods chosen for Upskilling will naturally vary for every organization due to the variation in L&D strategy and program, for e.g., online courses, online courses along with live lectures, peer coaching with an Upskill track on Learning Management System.

Job Rotation

Job Rotation is another first-rate technique to Upskill.  New skills, knowledge, and competencies can be learnt by moving employees between jobs.  Employees learn skills, knowledge, competencies of a specific job other than their own.

Purpose of Job Rotation can be preparing backups for a job, exposing future managers to all types of jobs, exposing HR employees to other jobs for better understanding.  Job Rotations are generally at the same level and are temporary in nature.

Job Enlargement

Job Enlargement comprises of adding more activities within the same level to a current role.  It expands the ambit of a job by spreading the breadth of duties and responsibilities usually within the same level.

Purpose of Job Enlargement is to encourage employees to expand their skill set by intensifying their performances and exposure.  Job Enlargement imparts diverse skills to employees and aids their career growth.  Added job responsibilities necessitate training and assist in gaining further experience.

Interested in learning more about the 7 Tactics to Upskilling?  You can download an editable PowerPoint on 7 Tactics to Upskilling here on the Flevy documents marketplace.

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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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“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.”

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– 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

Editor’s Note:  If you are interested in becoming an expert on Strategy Development, take a look at Flevy’s Strategy Development Frameworks offering here.  This is a curated collection of best practice frameworks based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts.  By learning and applying these concepts, you can stay ahead of the curve.  Full details here.

9786713076?profile=RESIZE_400xWhat makes companies great in their industries is sustained above-average Growth.

Conventional approach to Organic Growth has business leaders extending their existing product lines and brands, as well as entering new geographic regions.  This conventional Growth Strategy at some point in time starts failing to provide the results required to hold market leadership positions.

Focus-driven Growth is an approach that provides results regardless of the economic environment.  The approach demands that the leadership team keep a methodical approach that covers the entirety of the business cycle i.e., from Strategic Planning and Strategic Vision to Strategy Execution and Performance Management.

Outwardly mature businesses can be reinvigorated by making a small number of—but larger—bets and by concentrating unremittingly on implementing a straightforward but forceful vision.

This approach has been successfully tested and has proven its mettle in at least 3 well-known companies, on 3 continents, over a span of 10 years.

Focus-driven Growth demands that the organization progress sequentially through a set of 7 steps.

  1. Discovery—Through a Discovery process, determine what works and what does not for the organization.
  2. Strategy—Through the Strategy step, group and prioritize what works for the organization.
  3. Vision—By outlining a Vision statement, line up organizational efforts behind an unmistakably comprehended goal.
  4. People—Through this step, place the right people in all functions and give them their required resources.
  5. Execution—Through Execution, elucidate who does what and transfer decision making closer to customers and consumers.
  6. Organization—Through the Organization process, manage the Growth initiative by establishing communities and networks throughout the organization.
  7. Metrics—Through this step, keep a track of Growth with objective yet uncomplicated scorecards.

When taken collectively in the right order, these steps embody a formidable prescription for generating profitable Growth.

Let us delve a little deeper into some of the steps.

Discovery

Every organization has segments of Growth areas.  This step entails discovering those areas for further processing.  Leadership of the organization should gather in a series of workshops and identify which areas of the business are performing far better than the others.  Identified segments become the focus areas of Growth because it is easier to refine and enlarge the successful areas rather than remedy what is not working.

Strategy

Focus areas discovered in the 1st step need to be grouped and prioritized in order to delineate the focused bets that the company ought to make.  Focus areas may be categories, brands, geographies, platforms, that are doing well.

A single page preliminary strategy roadmap giving priority for each area results from the above process.

Vision

Outcomes of Step 2 have to be summarized into a forceful yet uncomplicated Vision which serves to align efforts behind a clearly grasped goal.

Interested in learning more about Focus-driven Growth?  You can download an editable PowerPoint on Focus-driven Growth here on the Flevy documents marketplace.

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“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.

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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.”

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“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

OrgD2Research by PwC indicates that leading companies are in a near perpetual state of Reorganization.  This upsurge in Organizational Design initiatives is owing to the accelerating pace of strategic change caused by disruption of industries, changing competitor landscape, customer behaviors, and distribution channels.

Companies opt to commence efforts to restructure their organization in the hopes of enhancing efficiency, perpetuating growth, and surviving in future.  Some shift their Business Models, few alter their focus from products to customer-centric; whereas others adopt new behaviors, systems, or IT architecture.  However, merely a quarter of the Organizational Design initiatives succeed in achieving their anticipated objectives.

The reason for this high failure rate is simple.  Reorganization is not about changing a company’s organogram.  It’s a methodical processes that necessitates transforming / streamlining the decision-making process, mindsets, talent pipeline, reward structures, reporting lines, and the way responsibilities are assigned.

There is no cookie-cutter approach to Reorganization that can work across all organizations.  However, research and management best practices reveal 10 principles that are critical for developing an effective Organizational Design, applicable to any enterprise:

  1. Don’t get caught in past Reorganization initiatives
  2. Consider Organizational Design elements
  3. Transform Organization Chart in the end
  4. Don’t overlook top talent
  5. Converge attention towards controllable factors
  6. Encourage responsibility
  7. Use best practices with care
  8. Harmonize organizational hierarchy with Strategic Objectives
  9. Give due emphasis to intangible elements of organization
  10. Make efficient use of company culture and practices

Let’s dive deeper into these guiding principles.

1. Don’t Get Caught in Past Reorganization Initiatives

Leaders at most organizations tend to keep discussing and focusing on the old reorganization initiatives.  This takes away much of their time and energy which should rather be spent on making the current Organizational Design a success.

Organization Design should be created on the basis of an enterprise’s sense of purpose, strategy, core competencies, products, competitive advantage, and experience offered to customers and employees.  Senior leaders need to be able to see the broader perspective, set clear organizational objectives, and steer the workforce to achieve their personal as well as organizational objectives.

2. Consider Organizational Design Elements

Reorganization is a complex undertaking, but a structured approach to Organizational Design assists in identifying and prioritizing key priorities.  Organizational Design has 8 fundamental elements that are important for all organizations, Business Models, sectors, or regions.  These elements can be categorized into 4 pairs.  Each of these 4 pairs constitute a formal (tangible) and an informal (intangible) element:

  • Decisions team up with Norms (the way people act).
  • Motivators (the way people are influenced to work) pair with Commitments (what affects people’s thoughts about work).
  • Information (the way data is processed) pairs with Mindsets (how people process knowledge and meaning).
  • Structure (reporting lines) pairs off with Networks (how people collaborate).

Leaders should select fewer, prioritized Organizational Design elements to work on that have the most impact on their organizations.

3. Transform Organization Chart in the End

Most leaders consider Organization Structure to be the most critical element to Business Transformation.  In reality, there are other key organizational elements that need to be tackled first to improve effectiveness.  Revisiting the organogram does not have much effect on the way business is done—or to improve it.  Structure depicts reporting lines and changing it can reduce costs temporary.  Changing structure alone—without transforming other organizational elements—allows the redundant reporting lines to reappear and put the organization back to its earlier state of affairs.  Instead of changing the organogram, core organizational issues should be prioritized and confronted first.  Structure will adjust accordingly once the issues resolve.

4. Don’t Overlook Top Talent

Top talent often go unnoticed when it comes to Reorganization.  The skills and traits of the senior leadership has a profound impact on Organizational Design.  Mapping of technical capabilities and leadership abilities of top leadership is an important step to Reorganization.

Interested in learning more about the guiding principles critical for Organizational Design?”  “You can download an editable PowerPoint on 10 Principles of Organizational Design here on the Flevy documents marketplace.

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You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro 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

9738510277?profile=RESIZE_400xEmployees with the right skills make or break an enterprise, create brand impression, represent the company’s culture and values.

Disruptive technology is changing the contemporary work environment.  Employees in traditional roles are now feeling insecure and disengaged.  This dissonance threatens to take away the Competitive Advantage of companies.

Employee Engagement has emerged as one of the significant pillars on which the Competitive Advantage, Productivity, and Growth of an organization rests.

Disruptive technology and the resulting Digital Economy have uprooted many of the so-called traditional jobs.  Artificial Intelligence (AI) making diagnosis on medical tests is an example.  Does this mean that the doctors will lose their jobs?  The answer is no.  Doctors will have to train to gain new skills to work with AI.

Many other fields are, likewise, seeing work of employees being taken over by machines.  Does that mean employees will lose jobs?  Yes and no.  There is an urgent need for managements to upgrade employee roles and skills as well as take other steps that make an AI-enabled Workforce.

Upskilling Strategy can create new roles for existing employees leveraging their experience and help engage employees in an otherwise adverse work environment.

Upskilling comprises of acquisition of new and pertinent competencies, made necessary because of the current or emerging work environment.  Upskilling adds to the skills the employee already possesses.  Contemporary examples of Upskilling may be provision of Digital skills, Analytical skills, or Organizational Transformation skills to the employees.

Contrastingly, Reskilling means teaching totally new skills to employees.  Reskilling often mandates sending employees back to college or trade school to obtain a degree or certificate in a new field.

Expanding comprehension regarding how to effectively design and implement Upskilling projects may possibly determine society’s Knowledge Assets.  The following 6-phase approach to Upskilling Strategy summarizes the key actions required to ensure effective design and implementation of Upskilling initiatives:

  1. Determine the circumstances and define the project.
  2. Create a skills plan.
  3. Evaluate and guide each employee.
  4. Pair jobs and skills and involve workers.
  5. Pick out trainings and trainers.
  6. Manage the project and examine output.

Let us explore some of the phases of the Upskilling Strategy a bit more.

Determine the Circumstances and Define the Project

Each circumstance is exclusive.  For determining what is involved in making an Upskilling Strategy for that particular situation; coordination, decisions, and actions on a number of levels at the same time is essential.

All Upskilling initiatives, whether originated by the local government or a result of a situation faced by a single enterprise, have some shared elements.

Create a Skills Plan

The skills plan should center priorities on the categories of jobs being impacted by the disrupting technologies, personnel extremely at risk, companies that stand to gain the greatest.

Devising a skills plan helps determine jobs that will be affected by new technologies, savings realized because of automation, categories of new skills that will be required, time span for these changes to take place.

Determining above factors helps design the training initiative that focuses on specific strategic training goals.

Evaluate and Guide Each Employee

Change always conjures fears in employees and takes them out of their comfort zones.  A well-thought-out assessment program that incorporates individual counselling and guidance can go a long way towards pacifying employee fears and assisting them move to an improved situation.

Interested in learning more about pitfalls and benefits of Upskilling, costs and ROI of Upskilling initiatives, details of the 6 phases of Upskilling Strategy?  You can download an editable PowerPoint on Upskilling Strategy 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