Moore’s Law, Data explosion, the internet of things, software dependence, cloud computing, so much has changed, is changing, and will change that the industry can barely keep up. Yet many companies are following the same business many companies are following the same business models they’ve had for years, even decades.
When it comes to business transformation, there are three critical issues to get right.
The first is funding the journey. It’s important to pull the right short term levers in order to sustain the transformation and fund new growth engines. The second is winning in the midterm. CEO and their leadership teams must describe an inspirational, engaging, fundamentally different value proposition that leads to mid-term revenue and earnings growth. And the third is developing the right team, urgency, organization and culture. It’s essential to prepare the organization to execute and sustain and transformation.
KANBAN INFOSYSTEM can help business successfully navigate these issues. We focus on five elements of enterprise wide transformation.
KANBAN INFOSYSTEM extensive toolset allows for rapid diagnostic audits, such as strategy and profitability audits. A strategy audit can highlight gaps in the value proposition and business model.
By analyzing a company’s market – segment attractiveness and competitive position, the strategy audit can identify key market trends, likely impacts on business model, and potential areas of sustainable differentiation. A profitability audit is designed to highlight a company a company’s financial, operational and organizational opportunities. The audit applies key profitability measures to determine whether the company is meeting market requirements.
Using building blocks that were defined in the diagnostic phase, companies can create a turnaround plan that will build an organization capable of supporting the new strategy. That includes people, structure and process. It’s important at this stage to prioritize the elements of the road map and consider variations of the plan.
Companies can implement the plan using tools that can be applied throughout the organization. Specific areas ripe for change might include productivity, pricing, data and analytics, sales force effectiveness, innovation, and digital. For example customer experience maps could prove valuable for sales and marketing. Other tools might be more applicable for a company’s operating model, organization or culture.
Many organizations try to create value and achieve competitive advantage by layering on more procedures, structures and scorecards. But in facts these methods lead business to spend more time managing work and less time focusing on value-producing activities. Smart simplicity improves performance by managing complexity and improves agility. It ensures that transformation is successful over the long term by designing the right behaviours to support the organization’s strategic goals and make change stick.
There are risks involved in managing a turnaround. It’s important to approach the effort as a series of individual projects that can be executed independently. That will make it easier to evaluate initiatives and recommend stopping, accelerating or combining existing efforts. Actively managing the risk allow you to maintain a forward looking perspective of might go wrong. It’s also vital to pay full attention to the human element. Create a clear picture of what the change is, why it’s needed and how people will be impacted.