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Posts Tagged ‘optimizing quality’

“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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“Pollution is nothing but the resources we are not harvesting. We allow them to disperse because we’ve been ignorant of their value.”  ~  Richard Buckminster Fuller (US engineer and architect)
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As a methodology that pursued to improve an enterprise, Sustainability has been available for about two decades. Its savings come from reducing wastes, conserving energy and water; while ensuring compliance. On the other hand, Quality has been applied and institutionalized in corporations around the globe for over a century. Its savings come from removing waste of time, eliminating defects, identifying where the issues are, and fixing it one time to eliminate “fire fighting”. Why wouldn’t any executive want to consider Sustainability with Qaulity as the spine for expanding that functionality? A survey from the UN Global Compact and Accenture found what contemporary CEOs are thinking:
•    96% of CEOs believe that Sustainability issues should be fully integrated into the strategy and operations of a company.
•    93% of CEOs believe that Sustainability issues will be critical to the future success of their business.
•    91% of CEOs report that their company will employ new technologies to address Sustainability issues over the next five years.
•    88% of CEOs believe that they should be integrating through their supply chain.
•    86% of CEOs believe see “accurate valuation by investors of Sustainability in long-term investments” as important to reaching the tipping point in Sustainability[1].

From a Sustainability viewpoint, your organization must recognize how it may be detrimental to the environment and society, but more importantly how those behaviors and practices are costly to your enterprise. The acknowledgement of this waste may be surprising. That means looking at a variety of Sustainability considerations (waste, carbon footprint, water, energy, etc.) that are present in your organization and aware to those living in the community.

Now, let us look at the Quality perspective (e.g., Lean and Six Sigma). These methodologies remove other wastes from your organization and compliments your efforts with eliminating Sustainability wastes. In a business context, it is removing other unwanted wastes, unwanted logistics, improving Customer relations, etc. and often times compliment certifications, whether ongoing or planned.

It also ensures that changes are not adrift, but secured and retain gains already identified. Peter Drucker is remembered by this famous quote; “You can only manage what you can measure.” By measuring refinements changes, by your projects that are effectively implemented, your true gains will hit your bottom line. Remember this simple equation for each project:

Optimizing Profitability = Sustainable Development + Quality +Continuous Improvement + Secured Gains

The results address current CEOs beliefs, as well as, uncovering new opportunities that had not been anticipated. Strategies will be better integrated, establish a common understanding of how Sustainability and Qaulity will be critical to their success in the future, leverage new technology, integrate methodologies into supply chain processes, and favorably impact the financial investment image of your corporation. As Drucker also said; “What’s measured improves.”

Sustainability indicators have proliferated globally. More than 3,500 organizations in more than 60 countries, for example, use the Global Reporting Initiative’s (GRI) voluntary Sustainability standards report on their environmental, social, and governance (ESG) performance. Sustainability and related certification standards have met important needs. They have heightened corporations’ awareness of their impact on society and triggered meaningful improvements in social and environmental performance.[2]

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 …
_____________________________________________________________________
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
_____________________________________________________________________

Footnotes
[1] A New Era of Sustainability, UN Global Compact – Accenture CEO Study 2010
[2] Porter, Michael E.; Hills, Greg; Pfitzer, Marc; Patscheke, Sonja and Hawkins, Elizabeth; Measuring Shared Value
How to Unlock Value by Linking Social and Business Results; June 2011, p. 9

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