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Posts Tagged ‘enterprise transformation’

“Process change has become embedded in individual functions and business units, and they have seen the benefits to their bottom lines. So they come to IT because they want to know what other parts of the company have done. We’ve gone from being the engineers of new processes to being the movers of innovation across the company.” ~  Lee Scott, former CEO of WalMart
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“Much more remains to be done to help companies turn Sustainability goals into action,” said Georg Kell, Executive Director of the UN Global Compact. “CEOs clearly see the need to instill Sustainability at all levels and roles within organizations, and this unprecedented level of data and analysis will enable us to help them on their journey to truly embedded long-term Sustainability.”

Business Transformation, when designed as an Opportunity, is the alignment of Business Strategies, Objectives and Requirements that orchestrate your enterprise resources (i.e., Customers, Operations, Financial, IT, Suppliers, etc.). The desired change is directed by unique Roadmaps and is measured by metrics for Growth, Performance and Savings.

Business Transformation can be defined as the “combination of strategic, process, organizational change, and technology development focused around one clear vision, resulting in a significant change in the organization and substantial financial benefits[1].” This has been the theme in previous chapters and now we need to link the value of transformation into actions and milestones.

Corporations, whether small, medium or larger sized, are always faced with refinement and improvement of complex business systems and strategic processes. Often these key structures are intertwined, so Transformation must be controlled and managed.
Transformation is controlling business change in order to reposition your organization by exploiting potential increases in Growth, Performance or Savings. In today’s environment, success can be derived from applied best-in-class solutions.

Successful transformation can be implemented incrementally, based on a project’s focus such as efficiency, productivity, profitability or a selected combination. In the beginning, select the “low lying fruit” that is easy to complete, build team confidence and can quickly apply the new tools and training for your entire organization.

Management of risk and its mitigation are key to any successful project. In a low reward scenario, a single project that is positioned to take advantage of technology could also be applied in order to streamline processes and provide efficiencies with little downside risks. At the operating or department level, productivity gains and financial rewards can be gained through streamlined processes and/or technology. In another scenario, co-transformations between departments can produce a synergistic effect, and again the efficiency increases rewards. Last and most significant is the strategic scenario of transformation that would encompass the whole organization providing systematic rewards and results.

This is an excerpt of my new book “Building a Bridge to Benefits”. Publication date is scheduled for November 2013 and is planned to be available on Amazon. More to come …
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Jarvis Business Solutions, LLC
Contact Information
Email: Ralph.Jarvis@JarvisBusinessSolutions.com
Blog: http://horizons.JarvisBusinessSolutions.com
Web site: http://www.JarvisBusinessSolutions.com
LinkedIn: http://www.linkedin.com/in/corporatesocialresponsibility/

Lead Smart, Endless Opportunities when Sustainability is driven by Lean Six Sigma
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Footnotes
[1] Goonan, Brian, “Business Transformation: Doing it Right, Part I,” CIO Magazine, 9 February 2005

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Your leadership provides the vision for the future and encourages employee-led changes to improve procedures, processes and effective innovation for now and the future. Leading your people by empowering them with skills and knowledge is a critical success factor for sustainable transformation.   ~ Ralph Jarvis
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Like any other form of transformation, Sustainability must be embraced by ALL stakeholders. Having years of Business, Government and IT Transformation experience, I have seen organizations present change as an elective – in that scenario, it is always a disaster in the making. Executives must be engaged. Middle management must be engaged.  All employees must be engaged and empowered. But all of this will only work if there is a clear Vision – for Sustainability is more like a cause.

Stakeholders need to clearly understand their role and impact on the company when they do not “own” their new responsibilities. Transformation is serious business and should be executed that way. This article is a good example of NOT thinking through the true business case for Sustainability …

FastCompany article:  3 Hidden Killers Of Sustainability Programs

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Jarvis Business Solutions, LLC
Contact Information
Email: Ralph.Jarvis@JarvisBusinessSolutions.com
Blog: http://horizons.JarvisBusinessSolutions.com
Web site: http://www.JarvisBusinessSolutions.com
LinkedIn: http://www.linkedin.com/in/corporatesocialresponsibility/

Lead Smart, Endless Opportunities when Sustainability is driven by Lean Six Sigma
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Organizations evolve and change with their business environment, much like living organisms do with nature. The business owner should always be aware of that change, understand its impact, and be proactive in managing change to improve performance and extract tangible benefits for his company. Most companies are not fully optimized and retain inefficiencies in day-to-day operations of doing business. Combining Sustainability and Lean Six Sigma in a synergistic approach to promote sustainable practices, reduce your corporate imprint on the environment, improve efficiency and performance, and promote brand differentiation in your marketplace. From one focused initiative, crossover benefits would almost assuredly provide significant Tangible Benefits by understanding how to retain your improvements that are measured by your bottom line. This is easier to achieve if change is planned, well managed, and aligned to the goals of the organization. Organizations often go through growth stages. Here are a couple of scenarios for change: Unknown Future for the Enterprise, Actions and Decisions without recognizing Outsourcing consequences, and Future Sustainability & Quality Enterprise Growth

Copyright by Jarvis Business Solutions - Organizatinal Evolution

No Vision | No Change Control | Unknown Future for the Enterprise

Many corporations are faced with a dilemma. In many cases, the founder of a company may not recognize the need for an organizational vision as business changes. Leadership often tolerates inefficiencies, especially when “fire drills” are often case. Often, leadership they understand the history, inception and evolution of the organization since its founding, to may not have a clear understanding regarding its next steps.

The typical “fork in the road” provides management with three alternatives: do nothing, elect to transform through outsourcing, or most effectively, efficient transformation that includes sustainability and quality. In this scenario, although management is aware – it does nothing. By ignoring unseen costs and tolerates inefficiencies, this leadership fosters bureaucracy that leads to eventual organizational stagnation. Here is why:

  1.  Inception & Evolution: This is the period when an idea is transformed into business. It may be a very small organization of one person or expanded to include larger groups to meet the business needs. An organization could vary from “vague” to a clear hierarchy with a “command and control” structure. Oftentimes, organizational evolution develops in the decentralized model.
  2.  Congeal Phase: This phase is the “critical mass” of the organizational when issues become recognized. There may be a serious decline in sales. Competition, new technologies, a failure to meet the customer needs and expectations, a history of poor product development and introduction or poor marketing may all be contributory factors in reduced sales and be the catalyst for the business owner to change the approach to the business organization.
  3.  Bureaucratization: The autocratic control of an owner may at times only be changed through the realization that bureaucracy is undesirable and can be a barrier. The policies, procedures and practices of the business may be restrictive and hinder growth, communication or efficiency. The term “bureaucratization” evolves from growing hierarchy and functional differentiation.
  4.  Differentiation Phase: Promoting products and services that are unique and possess intrinsic values for your Customers are significant in attracting “niche” markets.
  5.  Stagnation: A business owner may not realize that in order to optimize business value, changes in the way the business is run will be necessary. The delegation of responsibilities, training of staff and implementation of strategic plans may be areas that are not internalized, nor control change. This organizational model, similar to Taylor’s philosophy and methodology, renders work force pathways as limited and erects obstacles for improvement.
  6. Litmus Test: Will this organizational evolution address your business needs to meet your competitive environment? Does it provide a process to eliminate waste and variation? Does it provide an alternative for improvement and performance?

No Vision | No Change Control | Actions and Decisions without recognizing Outsourcing consequences

Still, other management styles focus on expenses, only. This is a very shortsighted approach that can have substantial consequences and even jeopardize the survivability of the company. Beginning in the early 1990s, many corporations selected that option solely based on cost savings.  Often times those “savings” evaporated, in context of poor service,  poorly educated support staff, service provider’s  unrealistic service expectations, cultural and language differences that also hindered business and organizational needs. For the past 5-10 years, those poorly thought out decisions have have been reversed and aligned to marketplace needs.

Sustainability & Quality Vision | Continuous Improvement | Future Sustainability & Quality Enterprise

If your Leadership style is based on facts and broadly views all costs in your organization landscape, then focusing on how to deliver products and services in an efficient manner will reap short-term gains and lay the foundation for long-term efficiencies. Here are some potential changes in behavior:

  1.  Inception & Evolution: This is the period when an idea is transformed into business.
  2.  Congeal Phase: This phase is the “critical mass” of the organizational when issues become recognized. .
  3.  External & Internal Transformation: External leadership who bring new methodologies and enterprise planning to the business can visualize end-to-end organizational improvements, from Suppliers to Customers,  provide strategies that sensitive to the environment, enrich brand image, engage with the business community and reap tangible benefits.
  4.  Differentiation Phase: Promoting products and services that are unique and possess intrinsic values for your Customers are significant in attracting “niche” markets.
  5.  Innovation: Innovation is assembled from creativity, ideas, strategies, processes, and most important the right human elements and a spirit of entrepreneurship. Innovation can be applied to your existing business environment to increase customer satisfaction, increase profitability, decrease waste and become more in tune with the marketplace.
  6. Integration: After Transformation initiatives are executed and implemented, a leader recognizes that seamlessness may not be apparent in the controlled change. So, integration links groups in organizations, based on your new business paradigm and avoiding relapses to “old ways”, to apply their new knowledge in the “new” system with support to its stakeholders and the vision.
  7.  Sustainability & Quality: Transformation is modeled with foundations for better leadership, based on these two lessons: The leanest will be more competitive [Lean Six Sigma]. The leanest will be better stewards and create a better chance of making the future a success [Sustainability]. All resources are finite, but the journey to pursue excellence is based on optimizing profitability: Sustainability + Quality + Continuous Improvement = Optimizing Profitability
  8.  Litmus Test: Will transformation create opportunities for increased performance, reduced costs, provide for growth of brand and attract quality employees? The results indicate it will provide your organization with those opportunities and establish a Continuous Improvement process to refine and meet your future competitive landscape.

Opt For Managed Change
Competitive advantages come from Continuous Improvement. It begins with a study of the market landscape, urgent application of lessons learned, improved quality and innovation of Products and Services to gain market leadership and customer allegiance. We facilitate that shedding process to help your organization transform by investigating quality, scrutinizing costs and providing expertise in performance areas. Lean Six Sigma provides tools to integrate and improve a vast array of elements and corporate resources to align with your company’s efforts and direction. Here are a few areas:

  1.  Sustainability strategies
  2.  Corporate Social Responsibilities
  3.  Customer engagement
  4.  Employee engagement
  5.  Change management
  6.  Strategic planning
  7.  Operational efficiency
  8.  Operational redesign
  9.  Outsourcing
  10.  Strengths development
  11.  Innovation
  12.  Management evaluation tools
  13.  Leadership development
  14.  Supplier relationships and alignment

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