Good presentations are essential to effective professional communication in the modern world.

A well-designed and executed presentation may facilitate the effective transmission of ideas and thoughts.  Content that is delivered effectively helps in the accomplishment of goals and important outcomes.

Compiling and delivering presentations effectively is an essential soft skill for most executives nowadays.  This may result in several advantages for both the presenter and the audience.

The 4 components listed below should be included into every efficient presentation-making process.

1. Plan
2. Prepare
3. Practice
4. Present

The first 3 components, i.e. Plan, Prepare, and Practice are interconnected and overlap throughout the procedure.  The 'Present' element stands alone and is only feasible after the completion of the first 3 parts.

The first 3 pieces may be organized either in parallel or sequential fashion.  The sequential method comprises completing one job before going on to the next, and so on.  A parallel method involves working on many projects simultaneously, completing what can be completed at once.

Both strategies are equally effective so long as they reflect the following characteristics of the creators:

• Style
• Experience
• Background
• Partialities

Let us go a bit more into the specifics of the 4 presentational aspects.

Planning

Planning a presentation requires in-depth consideration of its essential components in advance.  Planning requires consideration to the following 7 dimensions:

1. Objectives
2. Audience
3. Content
4. Organization
5. Visuals
6. Setting
7. Delivery

Planning systematically using the 7 dimensions allows for the detection of gaps in the created concepts.

Planning also aids in providing structure to the presentation, allowing the audience to simply follow along and stay involved.

Planning in advance facilitates practicing the presentation, which in turn improves confidence; a confident presenter can persuade the audience much more effectively.

Preparing

Using an excellent slide structure is the most essential part of the Preparation phase.  Well-designed slides aid in engaging the audience and reinforcing crucial points.

The Consulting Presentation Framework, a slide framework used by every top-tier management consulting company and also utilized by FlevyPro, employs a layout in which each slide consists of 3 major elements:

• Headline
• Body
• Bumper

Practicing

Even if a presentation has previously been given elsewhere, it is still a good idea to practice it.  Changes in environment and audience, as well as the passage of time between presentations, raises fresh difficulties.

Moreover, 2 facets of practice must be addressed:

Rehearse—this is the act of practicing what you want to accomplish.

Prehearse—this refers to preparation and practicing for potential tasks.

Presenting

Successful presentations need not just quality material and a well-designed slide deck, but also a good way of conveying them.  Everything about how a message is conveyed may impact how the audience perceives it, including body language, voice tone, tempo, and the usage of graphics.

Interested in learning more about 4 Ps of Effective Presentations?  You can download an editable PowerPoint presentation on 4 Ps of Effective Presentations here on the Flevy documents marketplace.

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Exceptional Performance in the workplace is governed by two crucial factors: Individuals actions and their effects.

Superior Human Performance, according to the Handbook of Human Performance Technology, is founded on Behaviors and their outcomes.  Typically, our activities have consequences for other individuals, information, objects, and "systems" (e.g., workflows, processes, practices, etc.).

Keith Stanovich devised the GAP-ACT Model, a cognitive-behavioral therapy paradigm, to analyze human thinking patterns, arousals, and Behaviors.  The notion investigates the relationship between Human Behavior and Performance.  The model emphasizes that humans govern their perceptions of specific environmental variables by their Behaviors.

GAP-ACT is a combination of the GAP and ACT frameworks. According to the GAP Model, a problem with Performance is a disparity between actual and desired conditions or situations.  The "G" in GAP represents "Intended Goals." The letter "P" represents the "Perceived Actual Condition." The contact point between "G" and "P" (the black dot) represents the variance between the two conditions.  The letter "A" corresponds to individuals’ "Actions."

Similarly, the ACT Model includes the letter "T," which represents the "Targeted Variables" that we want to change or control and for which we establish objectives. The letter "A" represents "Actions or Activities," while the letter "C" represents "other puzzling conditions or circumstances."

The GAP-ACT Model considers individuals to be "living control systems." As living control systems, we have objectives that describe the desired circumstances of certain variables surrounding or connected to us, and we form opinions about these variables based on our perceptions of them. Our views determine our "Actual Conditions."

To control a variable in a state it is not presently in, it is necessary to align our perception of this variable with our intended or ideal condition for it. Yet other elements, such as the environment and the actions of people, influence our conduct.  The bulk of the time, our control is weak and easily disrupted by difficult circumstances.  Depending on how they impact us, the behaviors and attitudes of others may either increase or decrease their effectiveness.  Our actions may impede the attempts of others to govern public opinion.

Individuals must control and take responsibility for their own Behaviors and Performance, according to the GAP-ACT Model. Yet, managers are liable for the performance of others. The objective of management in the GAP-ACT Model is to direct organizational energy into productive areas.

Managers are accountable for establishing objectives, allocating resources, choosing priorities, evaluating progress, and guiding the actions of others.

Managers often disagree with or come into conflict with their direct reports while attempting to influence the Behavior of others and its consequences on the desired objectives. Managers may concentrate on the 4 key "Avenues of Influence" of the GAP-ACT Model to favorably affect team Performance by influencing the Behaviors and perceptions of individuals.

1. Influencing Goals
2. Influencing Perceptions
3. Influencing Actions
4. Influencing Circumstances

These Avenues of Influence promote Problem-solving and rational Decision-making.

Let's investigate some of these Avenues of Influence in further detail.

Influencing Goals

The first Avenue of Influence focuses on the support of management in making employees aware of the organization's objectives and defining attainable and quantifiable Performance goals.

The communication of management's expectations is inadequate to motivate staff to reach their objectives. This makes the team members think that management has a comprehensive understanding of the desired outcomes. Yet in the majority of businesses today, workers choose and set their own objectives.

Managers should support individual performers in setting Specific, Measurable, Achievable, Realistic, and Time-Bound (SMART) objectives in this situation.  In addition, they must eliminate any barriers that might impede team members from setting SMART objectives.

Influencing Perceptions

The succeeding Area of Influence focuses on influencing the perspectives of employees in an effort to boost Performance.

Interested in learning more about the other Avenues of Influence of the GAP-ACT Model? You can download an editable PowerPoint presentation on GAP-ACT Model here on the Flevy documents marketplace.

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There is a common structure or pattern to problematic circumstances.  Most problems consist of three primary components:

• The Problem State
• The Solution State
• The Solution Path

The Problem State refers to "what is," the Solved State refers to "what should be," and the Solution Path refers to the Transformation necessary to close the gap between the two states.  The Solution Path is a way of shifting from the Problem State to the Solution State through particular activities when faced with a problem.

Change Management poses a number of intrinsic problems. To address a problem, the Leadership should identify the behaviors that must be eliminated as well as those that must be embraced, and then seek realistic solutions.  These solutions demand a collection of adjustments with a distinct plan of action to alter Behaviors of people.

While attempting to solve an issue, it is essential to examine it from two vantage points:

• Content: The content viewpoint of problem resolution examines the nature, scope, and characteristics of the problem.  It might be behavioral, business-related, performance-related, or manufacturing-related, depending on the nature of the problem.
• Process: The process viewpoint examines how a problem is handled and resolved.

In domains such as Artificial Intelligence, Organizational Design, Digital Transformation, and Performance Management, the technique of tackling a problem from both the content and process viewpoints has widespread acceptance.

The majority of challenges encountered by companies are either change-related or Behavioral Problems.

Lewin's Force Field Analysis may be used as a diagnostic technique to address these problems.  According to Lewin's Force Field Analysis, the Problem State (present state) results from the interaction of two opposing but equal forces.  One of these forces is a Driving Force, which pushes toward a new or desired condition and away from the existing one.  The other is a Resisting Force that opposes and restrains the Driving Force.  These forces preserve equilibrium by balancing each other out.

The Force Field Analysis assists in comprehending why some individuals embrace change while others oppose it.  If the Driving Factors are greater, the change will be more appealing to individuals.  Yet, if the Resisting Forces are stronger, they are able to retain the status quo.

Behavior Issues may often be divided into two categories:

• Problems of Omission - These issues arise when people fail to accomplish or convey what is expected of them. For instance, by omitting to provide vital information or by not keeping a commitment.
• Problems of Commission - These issues arise when persons do something they are not permitted to do. Such an irresponsible conduct may hurt individuals, the organization's reputation, or both. For example, falsehood, fraud, or engaging in unlawful or unethical behavior.

Both the Problems of Omission and Commission present undesirable outcomes.  Omission may result in lost opportunities, broken relationships, and a loss of trust.  Problems of Commission, however, result in legal battles, penalties, injury to others, or reputational loss.

There is no one approach to addressing these behavioral Problems.  Based on the kind of behavior Problem, Change Managers should use the most effective tactics for a specific situation.

For instance, increasing the factors that motivate individuals to perform particular actions, decreasing the factors that cause them to resist the directive, reducing the factors that support existing behaviors, and increasing the forces that could potentially constrain them are some of the strategies that managers use to address these issues.

Interested in learning more about the drivers and consequences of Behaviors and how to change them? You can download an editable PowerPoint presentation on Problem of Change & Behavioral Change here on the Flevy documents marketplace.

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Content, motivated, and inspired employees are essential to the success of a business. Leaders and human resource professionals find it challenging to appreciate human psychology and the factors that drive people to achieve their objectives. Here, the data and outcomes created by the different Theories of Motivation become relevant.

According to research, only a tiny number of employees are driven and invested in their respective companies. This increases the importance of understanding the Theories of Motivation. It has been shown that employees who are engaged and pleased are much more productive and perform better than those who are not.

Despite the fact that each person is unique, there is no conventional method for encouraging people. Motivational Theories are evaluation techniques that help managers comprehend what drives a particular people. Managers that invest time in getting to know their people, understanding their personalities, and evaluating their behaviors are more likely to build exceptional teams and cultures, achieve objectives, and make significant contributions to the organization.

Psychologists and Human Resource Management (HRM) experts have produced several Theories on Motivation. Six of these are very essential and broadly acknowledged across industries and organizations:

1. Equity Theory
2. Two-Factor Theory
3. Hierarchy of Needs Theory
4. Three Needs Theory
5. Objective Setting Theory
6. Expectation Theory

Immediate supervisors and line managers are responsible for determining which Motivation Theory works best for each team member. Let's examine some of these notions in further detail.

Equity Theory

According to John Adams' Equity Theory, people' judgments of workplace justice are greatly influenced by the viewpoints and conditions of their colleagues. Their emotions, interactions, and behaviors are affected by their impressions of how they are treated in comparison to others at the firm. Individuals are often more driven when they believe they are being treated honestly. Similarly, individuals feel demotivated when they suffer discrimination or discover that others are obtaining a greater reward-to-effort ratio.

According to this theory, managers play an important role in motivating their staff by ensuring uniform fairness and resolving instances of unfairness promptly.

Two-Factor Theory

Frederick Herzberg established the Two-Factor Theory on the basis of a number of empirical experiments. He recognized the main factors that motivate or dissatisfy workers. Herzberg examined the influence of 14 independent factors on employee job satisfaction or discontentment. He categorized these components into two primary groups: hygiene factors (or dissatisfiers) and motivation factors (or satisfiers).

Hygiene considerations (dissatisfiers) are external to work and tend to reduce job dissatisfaction by addressing the need to avoid conflict or issues. For example, salary, laws and standards, administration, interactions with supervisors and colleagues, working conditions, and the quality of the supervisor.

Motivation Factors (satisfiers) are crucial and intrinsic to job satisfaction, since they fulfill people's growth and self-actualization objectives. Examples include labor, responsibility, performance, and achievement, as well as opportunities for advancement, recognition, personal growth, and job status.

According to the notion, managers who want to motivate their teams must differentiate between employee contentment and demotivation and use work rotations and reassignment to boost job satisfaction.

Hierarchy of Needs Theory

According to Maslow's Hierarchy of Needs Theory, people may be motivated by satisfying their five fundamental needs. The five levels, shown as hierarchical strata inside a pyramid, are physiological (food, shelter, clothing), safety (employment, health), social (friendship), esteem (recognition, liberty), and self-actualization (personal growth). The lowest four levels are known as "Deficiency Needs," while the highest level is known as "Growth or Being Needs."

Interested in learning more about the other theories of Motivation? You can download an editable PowerPoint presentation on 6 Theories of Motivation here on the Flevy documents marketplace.

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Stakeholders are vital to the operations and growth of a business. Stakeholders are all individuals and organizations whose interests are influenced by an organization's initiatives and activities.

The stakeholders ensure that the organization's efforts and products are flawless. In return, the organization strives to satisfy the stakeholders. Each party receives something in exchange for their contributions.

Major stakeholder groups pertinent to the vast majority of enterprises may be categorized into 4 types:

• Clientele – all constituents serviced by the organization
• Employees – the persons who serve the organization and consider themselves its representatives.
• Suppliers – Third-party businesses, subcontractors, and partners who provide the necessary raw materials, equipment, technology, and supplies for the production of products and services.
• Stewards – the company's directors, senior managers, and board members who are accountable for developing the brand and achieving sustainable progress.

In order to analyze the performance of different stakeholders, it is vital to measure their key contributions and inducements. Exactly this is the purpose of a Stakeholder Scorecard. The Stakeholder Scorecard is a record of all major business stakeholders, their contributions, and the compensation they get in return. The Stakeholder Scorecard prioritizes stakeholder satisfaction and utilizes this to boost productivity, performance, and achievement of company objectives.

In contrast to the Balanced Scorecard, the Stakeholder Scorecard provides a stakeholder-centric approach to measuring organizational performance by evaluating the extent to which an organization strives to meet the needs of its stakeholders, encourages them to take ownership of it, and invites them to contribute to its growth.

A Stakeholder Scorecard can be created using these five methodical steps:

1. Distinguish the categories of stakeholders.
2. Document each stakeholder’s contributions and inducements
3. Prioritize the contributions and inducements.
4. Determine measures for assessing the contributions and inducements.
5. Implement the metrics

Let's investigate some of these steps in further depth.

Step 1: Distinguish the categories of Stakeholders.

Developing a Stakeholder Scorecard begins with identifying the key stakeholder groups. Key stakeholder groups consist of suppliers, customers serviced, personnel, and senior management. Members of society, regulatory bodies, creditors, and investors may also comprise this group. This should be displayed as a list of names and organizations in black and white.

Step 2:  Document Each Stakeholder's Contributions and Inducements.

This step entails creating a columnar list of each stakeholder group's contributions and incentives. Examples of employee contributions include the effective completion of assigned duties, the continual enhancement of performance, and/or dependability. The offered inducements may consist of pay, rewards, steady income, etc.

Step 3:  Prioritize the Contributions and Inducements.

After identifying contributions and inducements, the following step is to rank and prioritize the most significant contributions and inducements. When assessing contributions and inducements, consideration must be given to both the organization and its stakeholders.

Documenting the stakeholders, their contributions, and inducements helps determine the influence of inducements on persuading stakeholders to put out their best effort.

Interested in learning more about the other steps of the Stakeholder Scorecard process? You can download an editable PowerPoint presentation on Stakeholder Scorecard here on the Flevy documents marketplace.

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Organizational Analysis is necessary for enhanced Productivity and revenue improvement.

Organizational Analysis may be conducted methodically using the Organizational Elements Model. It is a potent method for analyzing a firm’s existing state, comprehending the capabilities of its rivals, and identifying challenges.

The Organizational Elements Model provides a way to examine an organization holistically. The model makes it possible to assess an organization's structure, processes, culture, competencies, knowledge and insights, workforce, and systems in order to uncover its core issues and critical success elements.

The Organizational Elements Model has originated from the 7S Model developed by McKinsey. It assists businesses in identifying their areas of strength and weakness and developing strategies to more effectively achieve their strategic goals.

The model may have the follow uses:

• The model's components serve as a list of organizational aspects to be studied for improvement.
• The model aids in evaluating the environment and identifying the external factors that influence the firm, including as competitors, legislation, technology, and customers.
• The model is used to monitor and assess the performance of various organizational components — such as functional units, teams, and people — to ensure that they can achieve their objectives.
• The framework assists companies in pinpointing areas in need of improvement and developing strategies to implement necessary changes.
• The model assists in determining how resources should be allocated to different departments, teams, and individuals in order to maximize productivity and efficiency.
• The model functions as a consolidating structure to organize notes, maintain a repository of data, and develop essential conclusions.
• The method may be used to discover and enhance the talents and skills of employees.
• The components of the model are discussion starters for internal team members and organizational stakeholders.

Focusing on the 7 key components of the Organizational Elements Model is required for a company to be successful. The components consist of:

1. People
2. Structure
3. Systems
4. Processes
5. Culture
6. Technology
7. Strategy

Let’s delve deeper into the first 3 components of the model.

Component 1: People

People are the most important component of the Organizational Elements Model. The success or failure of an organization is dependent on its people, the talents they use to fulfill tasks, and their values and viewpoints. People are responsible for establishing connections with the model's other components, formulating strategies, developing organizational structures, and implementing processes and systems in order to achieve the desired outcomes. Moreover, individuals are the source of inspiration, originality, and leadership. They create and execute a company's technology infrastructure.

Component 2: Structure

Understanding and evaluating an organization is dependent on the structural element of the Organizational Element Model. This component outlines an organization's structure, which includes its hierarchical levels, units, and divisions, as well as their coordination. People establish organizational structures for doing business, carrying out projects, and producing creative solutions and technology. Organizational structures provide appropriate management of its resources, responsibilities, approvals, relationships, performance, decisions, and information flow.

Component 3: Processes

Processes facilitate effective mobility of resources, supplies, information, and client value propositions. Components of processes include the acquisition of resources, the employment of personnel, the application of rules and regulations, and the creation of desired outputs. The processes element identifies the inefficiencies, wastes, redundancies, chances for improvement, and strengths of an organization. Effectively designed and implemented processes ensure that a firm performs efficiently, fulfills customer demands, and remains profitable.

Interested in learning more about the other components of the Organizational Elements Model? You can download an editable PowerPoint presentation on Organizational Elements Model here on the Flevy documents marketplace.

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Cost Transformation is a challenge that a firm must confront several times during its lifetime.  Effective and lasting Cost Transformation affords organizations the chance to alter their whole direction.  It may result in the sale of existing enterprises, even if they are successful, in the event that they do not align with the Strategy or the company's most distinctive capabilities.

Of late, Activist Shareholders are increasingly driving such Transformations.

Activist shareholders are investors in a corporation (often hedge funds) who want radical changes to the way organizations do business.  Activist investors often envisage that management teams will quite significantly decrease expenses within a very short time frame.

Analysis of data shows that activist shareholders have generated double-digit returns for investors, when other investment funds generated single-digit returns.  Investors now seek activist funds in their portfolios with growing frequency.

Organizations can prepare for these funds by foreseeing the changes demanded by activist shareholders and implementing a proactive approach to reducing enterprise costs.

Organizations may benefit from activist investors approach in times of intense cost reduction pressure, such as in a recession.

Although unorthodox, the activist investor approach to Cost Transformation may be modified to assist firms maneuver through times of uncertainty.  Companies may demonstrate foresight by proactively adopting control of their cost base and creating stronger and productive organization.

The following 10 principles for Cost Transformation were developed by PwC's experts to assist corporations in executing the activist role themselves.

1. Transform sizably and quickly.
2. Reduce headcount first.
3. Rationalize what to retain, not what to eliminate.
4. Create atmosphere of possibilities not dread.
5. Stir the executive levels determinedly.
6. Review in entirety, even the protected interests.
7. Form an adjacent setup for Change Management.
8. Question the manner of conducting business.
9. Review end-to-end processes.
10. Exhibit instant successes.

Initial 5 principles reflect the tough objectives of activist shareholders.  Following 5 concentrate on strategic cost reduction and streamlining, which are the core ideas around which every program should be constructed.

Let's go a little more into a few of the principles.

1. Transform Sizably and Quickly

The past method of cutting expenses, for instance by 10% over a 5-year period, is no longer acceptable to activist shareholders.  They want a substantial decrease over a very short period of time, such as 20% or more in 24 months, with 50% of the decrease occurring in the initial 12 to 18 months.

It has been demonstrated that rapidly and substantially transforming expenses provides substantial leverage.  A study of 29 cost-cutting initiatives revealed that organizations that cut costs sizably and quickly were able to generate 33% greater cost savings in practically a 1/3rd of the time.

2. Reduce Headcount First

Traditional model of cost reduction recommends removing superfluous work before lowering headcount.  This requires a considerable amount of time, for several reasons.  The new strategy prioritizes headcount reduction above process and system modifications.

Lowering headcount creates a gap, which the remaining staff must fill so as to keep their portion of the firm operational.  By stepping up, the remaining employees are compelled to select and manage tasks, resulting in more effective and efficient operations.

3. Rationalize What to Retain, Not What to Eliminate

Entire spending is investment.  Each expense is a choice, not in terms of what to cut from the budget, but where to invest.  Expenses must be rethought from the ground up; each expenditure must be seen as potentially eliminable.  Correct decisions are those that diminish the gap between Strategy and Execution.

Interested in learning more about 10 Rules for Cost Reorganization?  You can download an editable PowerPoint presentation on 10 principles for Cost Transformation here on the Flevy documents marketplace.

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Editor's Note: If you are interested in becoming an expert on Change Management, take a look at Flevy's Change Management 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.

Nearly every establishment must undergo dramatic transformation at some point in its existence in order to survive and stay relevant in a business environment that is always changing and developing.

Change Management, also known as Organizational Change or Organizational Change Management, is the implementation of new organizational policies, procedures, or structures in an establishment.

Organizational Change Management is the practice of keeping Change under control in order to attain the intended corporate goals.  Change Management is often required as a result of changes in the corporate environment, such as fluctuations in market demand, the introduction of new technology, adjustments in leadership or management, variations in client preferences, and modifications in government legislation.

Managing Change is essential because it helps businesses adjust to changing circumstances.  Thus, it allows businesses to stay competitive and responsive to the needs of their consumers, key stakeholders, and the market environment in general.

Many professionals have offered their Change Management Strategies during this time.  These methodologies differ depending on their basic assumptions and selection criteria.

Change Management Strategies may be classified into 4 broad categories:

1. Empirical-Rational.
2. Normative-Re educative.
3. Power-Coercive.
4. Environmental-Adaptive.

The first 3 of these 4 Change Strategies are condensed versions of typical Change Management Methodologies derived from the work of Kenneth Benne and Robert Chin.  Fred Nickols is the originator of the 4th Change Strategy, often known as Environmental-Adaptive.

Let's go a little more into the specifics of these strategies.

Empirical-Rational

The presumption behind this strategy is that individuals are rational beings who will look out for their own interests when presented to them.  Effective Change, according to this strategy, depends on the efficient dissemination of knowledge and the provision of incentives.

Normative-Reeducative

The presumption behind this strategy is that humans are social beings who adhere to societal norms and ideals.  Successful Transformation, according to this approach, depends on defining and deciphering current norms and beliefs and forming commitments to them.

Power-Coercive

This Change Strategy presupposes that individuals are essentially compliant and will generally comply with requests or may be coerced into doing so.  According to this approach, effective Change is founded on the use of authority and sanctions.

Environmental-Adaptive

The presumption behind this strategy is that while individuals dislike loss and disruption, they adapt to changing circumstances.  The strategy for Change entails constructing a new organization and gradually relocating personnel from the old to the new.

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"The only constant in life is change." – Heraclitus

Such is true for life, as it is for business.  The entire ecosystem our organization operates in—our customers, competitors, suppliers, partners, the company itself, etc.—is constantly changing and evolving.  Change can be driven by emerging technology, regulation, leadership change, crisis, changing consumer behavior, new business entrants, M&A activity, organizational restructuring, and so forth.

Thus, the understanding of, dealing with, and mastery of the Change Management process is one of the most critical capabilities for our organization to develop.  Excellence in Change Management should be viewed as a source of Competitive Advantage.

Learn about our Change Management Best Practice Frameworks here.

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In prosperous economic times, organizations enjoy a cordial and relaxed environment. The confidence range for error tolerance is rather big. There is no imminent need to change corporate procedures or business models due to external factors. Prior to making decisions, people like to take the time to carefully study and examine significant facts and situations.

Good times are characterized by:

• A proactive and logically tranquil setting.
• Executives of all ranks considering the larger picture. Both short-term and long-term considerations are carefully weighed while making decisions.
• New projects are picked organically rather than being pushed by consultants, and the pace and extent of Transformation are under control.
• Both centralized and decentralized authorities are responsible for making crucial choices.
• Office politics that is under control.
• The satisfaction of all organizational stakeholders' demands.
• Executives' performance is assessed using financial, functional, and behavioral criteria.

In contrast, organizations lack prospering and tolerant economic conditions amid unpredictable times. The finance unit is short on cash, investment prospects are gloomy, and cost cutting becomes a norm. In the vast majority of businesses, the error tolerance level is minimal or nonexistent. 

Uncertain times are characterized by:

• Extremely quick and widespread Business Transformation that is led by external consultants.
• An essential need to simplify procedures or business models.
• An environment defined by failures, catastrophes, reactivity, and crisis.
• An ongoing feeling of urgency that leads to erratic performance in high-pressure situations. These irresponsible actions have serious consequences.
• Lack of time and interest to evaluate data and possible consequences carefully before making decisions.
• Without examining the wider picture, leaders choose short-term, riskier actions across the board.
• Implementation of a borrowed Change Management Strategy for which the organization's stakeholders provide inadequate support.
• A hostile disposition against the open exchange of opposing viewpoints.
• A lack of importance placed on the operational and social attitude aspects of Performance.
• A centralized method for making crucial choices.
• Politics in the workplace that is ruthless and intolerance for blunders leading to firing.
• An attitude of meeting the needs of certain stakeholders in order to seem competent.
• Evaluating the success of executives based simply on their financial performance.

Managing Change during economic downturns and natural disasters is not an easy feat. These challenging conditions result in sloppy planning, misinterpreted actions, costly mistakes, catastrophes, bankruptcies, and even closures.

These difficult economic times need careful deliberation of the following 19 Change Management Strategies in order to emerge from crises stronger than before.

1. Pay attention to avert unintended consequences.
2. Steer clear of inattention and a false sense of preparedness.
3. Act with caution and conviction.
4. Plan for both the short term and long term.
5. Employ a befitting Change Management approach.
6. Seek advice.
7. Model the structure of your organization and envisage required changes.
8. Comprehend all the dimensions of Performance.
9. Utilize a combination of Change Management Strategies.
10. Keep people informed and listen to their ideas.
11. Research what works and connect with others.
12. Gather support from your people.
13. Don’t start off with attrition.
14. Revisit priorities and assign resources accordingly.
15. Manage Behavioral Change.
16. Connect with your people.
17. Improve your political and people management skills.
18. Focus on all stakeholders.
19. Promote differing views.

Let’s dive a bit deeper into these tactics.

Tactic 1. Pay Attention to Avert Unintended Consequences

The behavior and actions of executives are dictated by the scenarios produced during Scenario Planning sessions. Nonetheless, individuals are often astonished by unexpected consequences they did not foresee. These unanticipated results are disastrous and must be avoided at all costs during economic downturns.

Interested in learning more about the other tactics of managing change? You can download an editable PowerPoint presentation on Change Management Tactics in Uncertain Times here on the Flevy documents marketplace.

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Unforeseen crises, such as economic depressions, natural disasters, and black swan events (such as the present COVID-19 pandemic), have immense repercussions. Crises are capable of immobilizing institutions and economies. These circumstances are not common for the great majority of businesses. There are safety dangers everywhere. People's movement is restricted, business activities are slowed, and cash flow decreases.

In this age of unpredictability, customers' requirements fluctuate rapidly, prompting innovative business practices. For instance:

• Reducing costs and developing systems and tools to accommodate large numbers of employees commencing remote work as a consequence of movement control during pandemics and similar catastrophes become priority concerns.
• Financial Forecasting, scenario prediction, conclusion drawing, and reporting have become challenging, varied, and unpredictable.
• Many companies must revise their whole Business Models.
• Cost-reduction initiatives are regular.
• There are massive layoffs and even business closures.
• Certain firms are mandated to provide online goods purchasing and fulfillment services.
• Others must enhance their offering of the virtual Customer Experience
• In such uncertain circumstances, online collaboration tools like as Teams, Zoom, Google Meet, and Microsoft Office 365 become the norm.

In such uncertain times, the majority of businesses become cash-strapped, and many are compelled to use drastic Cost Cutting measures. To emerge from the recession stronger than before, businesses must comply with the following conditions:

• Planning Coherence via Scenario Analysis.
• Forecasting projected financial flow.
• Developing a holistic, long-term view of the organization.
• Making prudent investments.
• Developing special abilities.

Financial planners often give estimates based on historical trends, past performance, and market fluctuations. In times of unpredictability, management should emphasize Cost Management and use effective Forecasting methodologies.

Three fundamental steps are required for a thorough Forecasting Strategy that can successfully manage stakeholders' expectations:

1. Select a flexible forecasting tool suite with the right level of scope and detail.
2. Share, corroborate, and evaluate your assumptions.
3. Outline the impact of decisions

Each step of the technique involves three questions:

• Does our collection of forecasting tools address the presented issues?
• Do our fundamental assumptions take into account new realities and opportunities?
• What occurs when we pull the available levers?

Let's delve deeper into the first two phases of this Forecasting approach.

Step 1. Select a flexible forecasting tool suite with the right level of scope and detail.

Utilizing a flexible forecasting tool to generate forecasts that account for both positive (upside) and unfavorable (downside) outcomes is the first step in the process.

• Estimating the impact of fixed and variable expenditures, in addition to any imminent sales and operational planning issues coming from the uncertain situation.
• Visualizing budgeting options, including discretionary, required, and contractual expenditures.
• Communicating a coherent story at the required frequency, such as weekly or monthly financial projections.

Step 2. Share, corroborate, and evaluate your assumptions. 

The subsequent step is to develop plausible theories. Planners are required to identify, analyze, and assess current and dynamic forecasting assumptions and drivers.

• Examine the consequences of the crisis on comparable businesses throughout the world, as well as their reactions.
• Compare the base case's assumptions to the most current financial statements, allocations, and expenditure reports.

Interested in learning more about the steps of the approach to Financial Forecasting?  You can download an editable PowerPoint presentation on Forecasting Uncertainty here on the Flevy documents marketplace.

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Editor's Note: If you are interested in becoming an expert on Organizational Design (OD), take a look at Flevy's Organizational Design (OD) 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.

Organizational Development has evolved together with human society development.  At least 5 main organizational systems have been recognized through anthropological research throughout human history.

This phenomenon has been explained in various ways by various specialists.  In 2014, Frederic Laloux began examining developing firms that distinguished themselves from established organizations in their management style.  Laloux analyzed a vast number of companies before focusing on 10.  The selected companies were the most innovative in terms of developing business practices and structures.

He named the distinct stages of management evolution utilizing Ken Wilbur's method of using colors to describe the non-linear development of human civilizations.

The colors Red, Amber, Orange, Green, and Teal have been used to represent the 5 stages of organizational development that correspond to the growth of human civilization.

Let's go a bit more into some details of the 5 sorts of organizations.

Red

The 1^st stage of organizational growth is defined by the leader's consistent use of authority to maintain harmony among the foot troops.  The organization's emphasis is particularly reactive and quick.  This form of management thrives in chaotic environments.

In this style of organization, the Division of Labor and Command Authority were significant developments.

Humans during this stage of development have a tendency to regard the world as a hostile environment where only the formidable or those they protect get their needs satisfied.

Amber

The 2^nd stage of organizational growth is characterized by precise responsibilities inside a hierarchical pyramid.  In such a systems, command and control flow from top to bottom.  In this form of management, future events are a repeat of the past.  Formal roles, i.e., stable and scalable hierarchies, and stable and reproducible procedures, are significant developments of this stage.  Examples are that of institutions such as the Catholic Church and the Military.

Orange

At the 3^rd stage of organizational development, the objective of management is to overcome competitors while achieving growth and profit.  Management By Objectives (M.B.O.) characterizes the management style;  what has to be done is controlled, but how it is to be completed is left up to the doer.  Modern examples include global corporations and charter schools.

Green

At this stage, the focus is on culture and capability to improve employee motivation.  Stakeholders replace shareholders as the primary operating motive.  Postmodernism introduced the Green phase, which stresses cooperation over competitiveness and strives for Equality, Solidarity, and Tolerance.

Teal

In this phase in the development of management, self-management has replaced the hierarchical pyramid.  Organizations are seen as living entities that strive to realize their full potential.

Interested in learning more about 5 Stages of Management Evolution, particularly about Teal Management?  You can download an editable PowerPoint presentation on 5 Stages of Management Evolution here on the Flevy documents marketplace.

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Organizational Design (AKA Organizational Re-design) involves the creation of roles, processes, and structures to ensure that the organization's goals can be realized.  Organizational Design span across various levels of the organization. It includes:

1. The overall organizational "architecture" (e.g. decentralized vs. centralized model).
2. The design of business areas and business units within a larger organization.
3. The design of departments and other sub-units within a business unit.
4. The design of individual roles.

In the current Digital Age, there is an accelerating pace of strategic change driven by the disruption of industries.  As a result, to remain competitive, Organizational Design efforts are becoming more frequent and pervasive—with the majority of organizations having experienced redesign within the past 3 years.  This has only been exacerbated by COVID-19.

Frustratingly, only less than a quarter of these Organizational Design efforts are successful.  Most organizations lack the best practice know-how to guide them through these Transformations effectively.

Learn about our Organizational Design (OD) Best Practice Frameworks here.

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Editor's Note: If you are interested in becoming an expert on Innovation Management, take a look at Flevy's Innovation Management 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.

When new technology and rivals cause disruption in industry markets, many long-standing firms have to expend great effort to survive.  One of the possible causes of disruption is insufficient readiness to produce new products and services during unpredictable times.

Some firms form partnerships in order to mitigate disruptions.  Productive collaborations need the proper people, procedures, and organizational support—a whole ecosystem.

Developing a suitable Innovation Ecosystem is essential for ensuring success and identifying and managing causes of conflict.

Conventional Innovation Management is incapable of meeting present requirements.  Dual Innovation has evolved into a need for organizations in today's industries to withstand the fierce competition.

Dual Innovation refers to expanding existing Business Models in new ways while simultaneously developing entirely new Business Models.  For such ambidexterity, firms need to have an Innovation Management Model that assists them in innovating more efficaciously and sustainably.

The contemporary technique of Dual Innovation is based on 3 Innovation Fields and two strategic Action Directions.

The 2 strategic Action Directions are:

1. Adapt—Modification of existing fundamental business or Operating Models.
2. Scale—The intensification of validated, far-reaching, or even disruptive Innovation concepts in order to cause large business effect.

The 3 Innovation Fields have been christened "Playing Fields," and each has its own conditions:

1. Playing Field 1—Optimize the Core.
2. Playing Field 2—Reshape the Core.
3. Playing Field 3—Create the New.

The 3 Innovation Playing Fields are a consequence of the connection and influence of Innovation on the core business.  The proximity of the Playing Fields to the core business, which is the basis for their distinctiveness, relates to:

• Business Model.
• Technological capabilities, and
• Implicitly, to time scale.

Other elements that contribute to the uniqueness of each Playing Field include accounting, metrics, methodologies, and tools, as well as organizational and individual requirements.  For any Playing Field to be effective, it takes devoted leadership and administration.

The 3 Innovation Playing Fields are distinct in the following ways:

1. Playing Field 1—Optimize the Core—involves a Centralized Ecosystem Strategy with clear and distinct problems/solutions, partnering with linkups to the prevalent Business Model, a focus on ensuring value, and a stable industry.
2. Playing Field 2—Reshape the Core—is contingent on a mixed Ecosystem Strategy, i.e., implementing both Centralized and/or Adaptive methods concurrently or sequentially.
3. Playing Field 3—Create the New—is based on the Adaptive Ecosystem Strategy, the principal requirements for which are partners with diverse competencies, an emphasis on value development, and flexibility vis-a-vis relatedness to industry.

The 2 Innovation streams - Playing Fields 1 and 3 - supply Playing Field 2. (Reshape the Core).

Innovation activities across all 3 Playing Fields need the selection of the optimal partner Ecosystem for success. 

Adaptive Ecosystems are suitable for sectors in flux where there is a great deal of uncertainty and the general circumstances are not yet determined.  Centralized Ecosystems are efficient in mature sectors and stable environments.

Adopting the most suitable partner Ecosystem is accomplished by relating the unique objectives and motivations of the Playing Fields to the characteristics of the 2 Ecosystem types.  Such integration yields the following 3 models for managing dual innovation ecosystems:

• Model 1—where both Business Unit Focus and Corporate Focus result in an unified Ecosystem.
• Model 2—where Corporate Focus is only necessary since the ecosystem is centralized.
• Model 3—When a Business Unit-specific emphasis is required for the Exploration of new concepts.

Interested in learning more about Dual Innovation Ecosystem Strategy?  You can download an editable PowerPoint presentation on Dual Innovation Ecosystem Strategy here on the Flevy documents marketplace.

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To be competitive and sustain growth, we need to constantly develop new products, services, processes, technologies, and business models.  In other words, we need to constantly innovate.

Ironically, the more we grow, the harder it becomes to innovate. Large organizations tend to be far better executors than they are innovators.  To effectively manage the Innovation process, we need to master both the art and science of Innovation.  Only then can we leverage Innovation as a Competitive Advantage, instead of viewing Innovation as a potential disruptive threat.

Learn about our Innovation Management Best Practice Frameworks here.

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Editor's Note: If you are interested in becoming an expert on Organizational Design (OD), take a look at Flevy's Organizational Design (OD) 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.

Organizational Development has evolved together with human society development.  Anthropological investigations have identified at least 5 distinct organizational structures throughout human history.

This phenomenon has been explained in various ways by various specialists.  In 2014, Frederic Laloux began examining upcoming enterprises that were distinguishing themselves from established corporations in their management style.

Laloux adapted philosopher Ken Wilbur's concept of using colors to illustrate the non-linear development of human civilizations for the purpose of naming the successive phases of management evolution.

Red, amber, orange, green, and teal have been used to indicate the 5 major organizational development phases that correlate to the evolution of human civilization.

The primary objective in developing the idea of Teal Management was to capitalize on complementary staff skills by consolidating and integrating their knowledge at all levels.

The color Teal is used to categorize companies that reject hierarchical and organizational structures and embrace contemporary social and employment trends.  Teal Organizations are autonomous and seen as living entities with a focus on reaching their full potential.

Frederic Laloux determined that the Teal Management organizational paradigm rested on 3 fundamental pillars:

1. Self-Management
2. Evolutionary Purpose
3. Wholeness

Leaders give heed to the knowledge of other, deeper aspects of themselves, fostering an ethic of shared trust and assumed prosperity.

Let's go a little further into the specifics of the 3 essential pillars.

Self-Management

Teal organizations are not hierarchical like Traditional Organizations.  They use decentralization, which suggests order and direction.  With a system based on peer interactions, even large-scale organizations are able to operate effectively.

It is typical for workers to have decision-making responsibilities, since employers have trust in their individual and collective knowledge. Structures and procedures are put in place so that workers have more autonomy in their respective domains and are responsible for collaborating with others.

Wholeness

Teal Organizations provide an environment where workers are free to express themselves entirely.  Such an environment increases employee commitment, a sense of belonging, initiative, and creativity, therefore maximizing their potential.

Evolutionary Purpose

Teal Organizations are always changing and striving to advance.  All workers engage in a process of introspection, exploration, and discovery in an effort to develop.

Even while none of the Teal Organizations analyzed have yet reached the size of Orange or Green Organizations, their performance indicates that a new era in Organizational Management is emerging.

Due to the inherent orientation towards power, each successive phase of organizational growth is more developed and effective than the previous one.

Teal Organizations offer 3 major benefits over other types of organizations:

1. Human Factor 
2. Integrated View of Success
3. Learning

According to research, there are just 2 basic requirements for an organization to become a Teal Organization:

1. Executive Leadership 
2. Ownership

Interested in learning more about Teal Management, its primary advantages, and essential stipulations?  You can download an editable PowerPoint presentation on Teal Management here on the Flevy documents marketplace.

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Organizational Design (AKA Organizational Re-design) involves the creation of roles, processes, and structures to ensure that the organization's goals can be realized.  Organizational Design span across various levels of the organization.  It includes:

1. The overall organizational "architecture" (e.g. decentralized vs. centralized model).
2. The design of business areas and business units within a larger organization.
3. The design of departments and other sub-units within a business unit.
4. The design of individual roles.

In the current Digital Age, there is an accelerating pace of strategic change driven by the disruption of industries.  As a result, to remain competitive, Organizational Design efforts are becoming more frequent and pervasive—with the majority of organizations having experienced redesign within the past 3 years. This has only been exacerbated by COVID-19.

Frustratingly, only less than a quarter of these Organizational Design efforts are successful.  Most organizations lack the best practice know-how to guide them through these Transformations effectively.

Learn about our Organizational Design (OD) Best Practice Frameworks here.

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A business is sustainable if it continues to grow. However, it is hard for any business owner to estimate the firm's growth in a year or during a certain time period. Likewise, it is challenging for leaders to imagine the following scenarios:

• How much growth does their company require?
• Should sales growth or margin expansion take precedence? How can the two be reconciled?
• How can true growth be achieved?

Sustainable growth necessitates a Capabilities-driven Strategy (CDS) as opposed to conventional market-driven strategies, which are centered on what customers want.

The Capabilities-driven Growth Strategy involves capitalizing on the company's current strengths via all viable channels, including existing or adjacent markets, organic channels (Marketing or Innovation), and inorganic methods (Mergers & Acquisitions).

The Capabilities-driven Strategy facilitates development by integrating all approaches in an agile way, as long as they align with the organization's present competences and Competitive Advantages. Prior to execution, a coherent Capabilities-driven Growth Strategy requires the formulation of three major criteria:

• The product or service offerings of the business
• A set of skills that competitors cannot replicate
• A value proposition that aligns with what customers want

Organizations must be able to put their ideas into a strong position and have a Business Model that can provide long-term revenue and profitability.

To compete in new business categories, organizations must have a distinct value-generation strategy and the requisite resources. Once a firm has established a position of competitive strength, i.e., a Capabilities-driven Strategy and the means to exploit it, senior management should develop a path to achieve profitable long-term development by integrating the following four Growth Strategy approaches:

1. In-market Opportunities
2. Near-market Opportunities
3. Disruptive Opportunities
4. Capability Development

The relationship between these four techniques is crucial to success, while being often disregarded. It contributes to the formation of a continuous improvement cycle.

Let's go further into the first two of these Capabilities-driven Growth Strategy techniques.

In-market Opportunities

The first strategy to Growth Strategy entails maximizing the current market's potential. Sometimes, leaders ignore potential prospects for growth in established markets. Opportunities in other industry and worldwide markets entice them. Before contemplating other businesses and expanding into new areas, it is advisable to analyze present markets with a fresh perspective and uncover new sources of revenue. Identifying the magnitude of these hidden opportunities in existing markets needs three crucial steps:

• Identify gaps between customer wants and current products/services on the market, and then fill those gaps with new or upgraded solutions.
• Identify the features, benefits, and channels of communication that will convince customers to switch to the new offerings.
• Construct, improve, reorganize, or refocus your organization's specific skills in order to bridge the gap and encourage customers to move.

For example, fast-food restaurants may improve their market's growth potential by selling quality coffee, desserts, and drinks in addition to their normal breakfast and lunch fare. This is additional revenue that coffee shops, juice bars, and other similar businesses would ordinarily earn by expanding their menus, offering meals, and enticing customers to shift to them.

Near-Market Opportunities

When contemplating expansion, firms often investigate local markets first. Although these surrounding markets are enticing, they are constructed by other companies using procedures that are tough to imitate. Therefore, extending your expertise into other fields should be undertaken with utmost care.

Before expanding into adjacent markets or other sectors, businesses must do a full analysis of their competencies and suitability in these areas, including cost reduction, operational strengths, IT infrastructure and systems, supply chain, and consumer data. They should evaluate which markets they can serve with their unique skills, discover new customers for their existing goods, or develop new offerings based on their capabilities.

Interested in learning more about the other approaches to Growth Strategy?  You can download an editable PowerPoint presentation on Capabilities-driven Growth Strategy here on the Flevy documents marketplace.

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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.

A "megatrend" is a large-scale pattern or movement with significant, long-lasting effects on business and society.

Examining Megatrends to comprehend global complexities dates back to ancient mythology.  Before 1982, megatrend was not a recognized phrase; John Naisbitt coined the term in his 1982 book of the same name.  Experts like the Tofflers, Naisbitt, and Drucker have attempted to understand change in large-scale patterns in modern times.

In 2013, PwC initiated a study project on Megatrends and their implications for businesses and government leaders.  The objectives of PwC's 2013 research were to comprehend society's intrinsic curiosity about external influences, to deepen and extend the ensuing dialogue, and to transform the total understanding of Megatrends into a framework that businesses might use to seek opportunities and minimize risks.

This research on Megatrends aided PwC in developing a framework comprised of the following 5 key components:

• Demographic and Social Change
• Shifts in Global Economic Power
• Rapid Urbanization
• Climate Change and Resource Scarcity
• Technological Breakthroughs 

The Megatrends Framework may benefit any corporate or public sector leader in gaining a clearer understanding of multidimensional external transformations and in developing a well-organized, pragmatic, and proactive strategy for addressing these changes.

Let's delve a bit more into the 5 historical recurrences that continue to impact nearly every aspect of the world's economic and social structure.

Demographic and Social Change

The 1st trend is a combination of increased life expectancy, declining birthrates in various parts of the world, and unprecedented levels of human migration, together with a gradual rise in the position of women and more ethnic and socioeconomic variety in many nations.

Shifts in Global Economic Power

Rapid wealth accumulation in emerging economies relative to developed ones has mostly resulted in significant shifts in consumption habits and a rebalancing of international relations.

Rapid Urbanization

Migration and births have contributed to the rapid urbanization of the world's cities, which has had profound consequences on quality of life and culture, notably in terms of land use, infrastructure, traffic, and employment.

Climate Change and Resource Scarcity

Increasing demands for food, water, and energy on a globe with limited resources and much less space for carbon dioxide and a huge variety of other effluents.

Technological Breakthroughs

Changes in business and daily life as a result of the creation and implementation of the most recent digitally enabled innovations in fields such as Cloud Computing, the Internet of Things, Nanotechnology, Fabrication (including 3D Printing), and Biotechnology.

All of the stated Megatrends have already occurred to some degree, and there is a subtle connection between them.

It is not a question of the Megatrends coinciding, but rather of them clashing, resulting in disturbing or revolutionary upheavals that ripple across nearly every business on the planet.  The collision of Megatrends will occur in some form, but the specifics are often unknown.

It is impossible to predict the precise interaction between 2 Megatrends.  However, it is certain that the collisions will push everyone beyond a certain point, to a world that will be considerably different from the present.

Interested in learning more about Megatrends Framework?  You can download an editable PowerPoint presentation on Megatrends Framework 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.

Learn about our Strategy Development Best Practice Frameworks here.

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 Historically, the post of Chief Financial Officer (CFO) has functioned as a steward of financial expertise, moral integrity, and shareholder value, selecting criteria to analyze organizational development and ensuring value.

Due to inflation, a greater number of rules, and more governance obligations, the CFO position is now present in practically every company. However, the final quarter of the 20th century was distinct. Prior to 1978, less than 10% of American corporations employed chief financial officers.

After the year 2000, the annual growth rate of CFOs in the United States was at least 80%. The post of finance unit head has been elevated to business partner, a long-term member of top management, and in certain companies, a board member.

The CFO role has recently seen a remarkable Transformation in virtually all sectors throughout the world. For a comprehensive understanding of these key developments, PWC conducted extensive research and interviewed professionals from a variety of enterprises and industries.

In addition to overseeing and managing the company's finances, research indicates that the modern CFO is essential for Strategic Planning and Value Creation. Particularly, the CFO must guarantee that the firm chooses and funds the right initiatives, with the allocation of financial resources based on the organization's unique capabilities. Today, the CFO must be an agent of change and a leader. These new responsibilities contribute to the development of a robust capabilities system by bringing the CFO closer to other departments, such as IT, Marketing, R&D, etc.

To ensure that the firm is heading in the right direction and that each initiative has a solid business case and fair expectations, the CFO of today must have a broader view. A candidate for the CFO position should possess the soft skills that are not taught in the classroom but may be developed with the proper mentors and in the appropriate environment.

PWC's research and CEO interviews indicate that in order to become Strategic CFOs, executives must exhibit the following five qualities:

1. Understanding the Holistic Value Chain
2. Insight into Business Drivers
3. A Keen Eye for Talent
4. Cultural Engagement & Change
5. Integrity & Interpersonal Skills

Let's delve deeper into the first two of these essential qualities.

1. Understanding the Holistic Value Chain

In addition to increasing performance, CFOs must commit time to assisting the leadership, acquiring a thorough understanding of the value chains, identifying critical areas, and developing strategic initiatives. The Strategic CFO promotes long-term planning, customer value, and the growth of exceptional capabilities. Because he or she has a comprehensive awareness of what other corporate functions do, he or she is in a better position to create deeper cross-functional collaboration and assist other business units in identifying efficiency, performance, and Customer Experience improvements.

The Strategic CFO ensures that the entire finance staff is conversant with the responsibilities performed by other units, understands the Business Models, and connects with customers frequently to gain the essential insights for prioritizing initiatives and enhancing their skills. This contributes to an increase in net income and shareholder value.

2. Insight into Business Drivers

Finding performance indicators for organizational value propositions and units is a critical component of the CFO's responsibilities. This is necessary for understanding market competition, prospective threats, and key business drivers. To aid in selecting the proper direction and achieving strategic objectives, the business drivers must be continuously enhanced.

The Strategic CFO creates suitable KPIs for success monitoring. In addition to the conventional financial KPIs, such as EBITDA or share price, these assessments should also include value creation and Strategic Decision-making indicators. She or he should construct relevant, dynamic, sector-specific measures, such as revenue-weighted resource allocation, market share relative to market potential, and market evaluations, which are routinely modified in reaction to the external environment.

Interested in learning more about the other Core Characteristics of a Successful CFO?  You can download an editable PowerPoint presentation on Strategic CFO here on the Flevy documents marketplace.

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 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.

Diversity refers to the representation of races, ethnicities, and other minority groups in an organization, or its composition.  Inclusion, on the other hand, refers to the degree to which inputs, presence, and perspectives of distinct groups of individuals are valued and their level of integration within a setup.

McKinsey's analysis of the firms it has analyzed since 2014 supports a compelling Business Case for both gender and ethnic/cultural diversity in executive teams.

Despite evidence of a strong rationale for D&I, the majority of businesses fail, in some form, to properly implement D&I.  This is irrespective of the type, be they Leaders, Fast Movers, Moderate Movers, Resting on Their Laurels, or Laggards.

Justification for Diversity is growing stronger and clearer, yet despite this, several organizations appear incapable of surmounting significant difficulties in their efforts to make steady and consistent growth.

Implementing a self-assured and structured approach to D&I and pursuing Inclusion with determination is the best way to overcome these barriers.

There are excellent performance opportunities for companies who are prepared to take the initiative and implement the necessary steps to achieve meaningful success on D&I.

Insights from study of Diversity leaders and profound understanding from research and practice on Diversity & Inclusion have helped to determine the successful measures and practices.

Effective D&I measures correspond to a 2-phase strategy comprising of 5 essential steps:

Phase 1: Systematic Business-led Approach to D&I

1. Guarantee representation of diverse talent.
2. Build up Leadership accountability and aptitude for D&I.
3. Facilitate fairness of opportunity.

 Phase 2: Bold Steps to Strengthen Inclusion

4. Foster openness and confront discrimination.
5. Nurture belonging.

Let's go a bit more into a few of the steps.

1. Representation of Diverse Talent

Leaders not only make a business-driven case for D&I reform, but also outline representation goals for themselves.  Particularly in executive, line-management, technical, and board positions, great emphasis is placed on recruiting a variety of diverse personnel.  In addition to addressing Leadership selection, these measures also address gaps in the organizational hierarchy.

2. Leadership Accountability and Aptitude for D&I

Diversity leaders put their key business executives and managers at the heart of the D&I initiative, which is essential for the formation of an Inclusive culture.  Crucial to the positioning of key executives are the organization's inclusive leadership and accountability skills.  Both competencies must reach middle management, where D&I is typically relegated when more critical business goals arise.  Leaders in Diversity must—and do—go beyond conventional, mechanical, bias training.

3. Fairness of Opportunity via Impartiality & Openness

Equality and fairness of opportunity are crucial factors that must be considered in order to develop Inclusion, hence retaining and expanding Diverse talent.  Diversity leaders ensure Opportunity Equality and Fairness with regards to Leadership attitudes, behavior, and skills.

This is ensured through the  neutrality of talent acquiring, selection, and retaining, process, particularly in the context of professional advancement and equitable compensation.

Interested in learning more about all the step for D&I Improvement and specific steps by types of D&I companies?  You can download an editable PowerPoint presentation on Diversity & Inclusion (D&I) Improvement 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.

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.

For additional best practices available on Flevy, have a look at our top 100 lists:

• Top 100 in Strategy & Transformation 
• Top 100 in Operational Excellence 
• Top 100 in Organization & Change 
• Top 100 Consulting Frameworks 
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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.

When Diversity & Inclusion (D&I) is viewed in a cursory manner, at the overall organizational level, it may seem that organizations have abundance of Diversity representation.  However, a closer look reveals Inclusion problems.

For example, there are several firms with female employees, but none or very few of them hold managerial positions.  In many other instances, firms will have a significant number of workers of color, yet they may all work in the same department.

It might be claimed that these organizations have Diversity but lack Inclusion.  Many businesses that have made significant efforts in the direction of Diversity continue to fall short when it comes to Inclusion.

Diversity refers to the representation of races, ethnicities, and other minority groups in an organization, or its composition.  Inclusion, on the other hand, refers to the degree to which the contributions, presence, and perspectives of distinct groups of individuals are valued and their level of integration into an environment.  Inherently, Inclusion is difficult to assess.

The rationality of concentrating on both Inclusion and Diversity is gaining more attention.

Despite this emphasis, the comprehensive dynamics and comparative relevance of the many aspects of Inclusion are not yet well understood.

Diverse settings may include several nationalities, ethnicities, genders, sexual orientations, and identities; yet, Inclusion requires the perspectives and input of all groups.

According to surveys and research, the experience of Inclusion in the workplace is of enormous importance to employees.  However, employees' experiences may not always align with their company's or their managers' apparent commitments to Inclusion.

Inclusion and workplace culture are inherently difficult to quantify, posing a significant challenge for top executives.

McKinsey analyzed employee reviews (made through 2017–2019) of the companies for which they worked.  They conducted extensive study on the following 3 Core Indicators of Inclusion:

1. Equality
2. Equality Openness
3. Belonging

McKinsey analyzed the sentiment—positive, negative, and neutral—of employee comments towards D&I, focusing on 10–30 companies in 3 categories, namely Financial services, Technology, and Healthcare.

Keywords linked with 2 indicators related to a systematic approach to D&I were used to investigate D&I-related literature reviews.  Diverse representation and Leadership accountability for D&I were the indicators.

Consequently, research was conducted on 3 Core Indicators of Inclusion: Equality, Openness, and Belonging.

Let's delve a little more into the specifics of the 3 Core Indicators.

Equality

Employees demand fairness and candor in recruiting, compensation, and advancement.  In addition, they desire impartial access to sponsorship possibilities, retention assistance, and other resources.

Companies across the 3 analyzed industries do poorly on this criterion, with Equality performing the worst of all aspects tested.

Unfavorable attitudes on Equality were exhibited in 63% to 80% of all industries.

Openness

Openness is an organizational culture that promotes employees to view one another with mutual respect and where bias, intimidation, discernment, and micro-aggressions are deliberately addressed.

According to employee feedback, the Openness of the workplace was also a key worry.

Respect and Trust were cited as 2 of the most important elements of the work environment in the majority of positive responses.  There was a tendency for negative opinions to cluster around Bullying and Micro-aggression.

Belonging

Firms that demonstrate persistent support for the overall comfort and contributions of diverse workers can foster a sense of Belonging.

There were 110 total references to Belonging, of which 32% were negative.  Bulk of the 68% of responses that were either neutral or favorable, leaned towards positive.

Interested in learning more about Core Indicators of Inclusion?  You can download an editable PowerPoint presentation on Core Indicators of Inclusion 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 truer 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.

Do You Find Value in This Framework?

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Different tactics are used by organizations to gain competitive advantage and outperform rivals. Positions, assets, and economies of scale have historically been used by top multinational companies with a wide range of product or service offerings as sources of competitive advantage.

Today's top business players pursue competitive advantage in a totally different way. Critical competencies are being used by market leaders today to outbid their competitors. They place more of an emphasis on developing distinctive, long-lasting qualities rather than relying on possibilities for quick growth. Their strategy entails developing a single, potent value proposition based on a small number of essential talents. Throughout the process, they are essentially transforming their entire businesses.

These industry leaders are referred to as "Supercompetitors" due to their unique abilities, dominance, and capacity to alter the character of their industry. Supercompetitors build unique competences to provide results that are pertinent to the business by utilizing the best configuration of processes, systems, insights, and resources across diverse units. Some Supercompetitors employ Mergers and Acquisitions to stay on top of the game.

Supercompetitors are aware that the success of these deals depends on a capabilities fit; their products or services should complement those of the acquired business. They sell off businesses where their abilities don't complement each other well or where a new partner wouldn't gain from them.

Supercompetitors fall into one of three major categories:

• Innovator—frequently releasing new offerings.
• Value Player—offering low-cost products.
• Aggregator—selling products developed by others.

Supercompetitors have the power to change the dynamics of the market. If other companies want to compete with Supercompetitors, they must rearrange their portfolios, analyze the market carefully, and focus on the value propositions in which they excel. Based on these four crucial considerations, a complete evaluation of a company's potential to become a Supercompetitor in a market should be made:

1. Analysis of the industry and its change potential
2. Analysis of upcoming Supercompetitors and their core competencies
3. Assessing the Future State
4. Devising a Strategic Plan

The evaluation enables the firms to comprehend where they and their competitors stand in the future race to become Supercompetitors.

Let's examine the key elements of the Supercompetitors evaluation in greater detail.

Industry Analysis

To determine whether a firm will be a Supercompetitor, a detailed assessment of the market must be performed. Leadership needs to identify the answers to a number of crucial questions in order to assess their industry and determine whether their business has the potential to become a Supercompetitor. For instance:

• Have your leaders remained consistent over the past 10 years? Are newcomers taking on leadership positions within the business?
• Are competitors focusing on unique value propositions, with just a small number of them successful overall?
• Do top businesses compete using the same tactics as the forerunners of old?
• Are multinational corporations breaking up into separate businesses?

Why Are competencies, rather than assets or product portfolios, the key to the success of the best businesses in a certain industry?

• Do leaders in the industry possess scalable capabilities? Is it feasible to scale without costs increasing?
• Do current capabilities contribute to the distinctiveness of products or services?

Supercompetition Analysis

The next phase in the evaluation process to identify which companies have the potential to become Supercompetitors is assessing the level of the competition. Leaders must be able to recognize potential Supercompetitors in their particular industries and discover more about the crucial abilities, talents, and structural characteristics that give them the upper hand. At least 3 to 5 Supercompetitors from the concerned industry should be picked in order to conduct a complete analysis.

Interested in learning more about the other critical elements of the Supercompetitors potential evaluation?  You can download an editable PowerPoint presentation on Supercompetitors here on the Flevy documents marketplace.

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The Internet of Things (IoT) combines complexity, Innovation, and accessibility. IoT technology offers businesses countless possibilities despite the industry's unpredictability. It consists of various network-based devices. Extending internet connectivity to objects other than typical devices is part of the Internet of Things. These technologically advanced devices have the potential to connect and communicate online. They are manageable and controllable from a distance.

Network connections including Bluetooth, Wi-Fi, and NFC are used by IoT devices (NFC). Webcams, printers, routers, Apple Watches, Fitbits, refrigerators, security systems, and speakers are a few examples of IoT devices (including Amazon Echo and Google Home).

To capture a sizable market share and succeed in their respective industries, businesses that provide IoT products and services frequently choose one of the three Strategic IoT Business Models. The strategic models include:

1. Enablers
2. Engagers
3. Enhancers

Let's get into more information about the IoT Strategic Models.

Enablers

The IoT infrastructure needed for Engagers to create and market specialized linked services is developed and maintained by Enablers, who include innovation-focused companies like Cisco, Google, HP, IBM, and Intel.

Endpoints, Hubs, and Network and Cloud services—such as infrastructure, hardware, devices, computers, database systems, or software platforms—are among the IoT value propositions of enablers. Such IoT gadgets have a vast and rapidly growing market. Some enablers, like those who solely support endpoints, concentrate on specific business streams and models.

For instance, Estimote creates tiny "beacons" that may be fastened to objects and transmit Bluetooth signals to mobile devices. These beacons are used by Engagers to gather information about the items that customers pick up and how long it takes them to complete a transaction in places like retail stores. Similar to this, Intel creates full IoT solutions that feature platforms and chips vital to the creation of IoT services.

Engagers

The Engagers offer cutting-edge services by utilizing the IoT stack. This strategic model is used by insurance providers, vehicle and appliance manufacturers, and retail business owners. Through the use of endpoints, hubs, platforms, and other service offerings, engagers link the IoT to the market. They create services both for individuals and for businesses.

Businesses that use this strategic model compete in marketplaces that are oriented on people, such as e-commerce, intelligent homes, connected cars, digital retail, intelligent manufacturing, hospitals, and futuristic cities. Consumers receive vital location-based data from Engagers in addition to browsing, movement, purchase, and conversation data that is collected.

In order to promote their Integrating Hubs, Apple and Google, two market-leading Engagers, make use of their current ability to engage customers and provide engaging customer experiences. Engagers build enduring relationships with their clientele in this way.

Consumers of washing machines were previously only had to provide the most basic information to foreign appliance manufacturers like Haier and Whirlpool in order to handle warranties and advertise new product offerings. The manufacturers of today's washing machines are given the ability to gather vital information about machine operation, including frequency, temperature gauge, detergent kind, and fabric type. Additionally, these washing machines provide individualized value-added services, data on machine health, needed repairs, water and energy efficiency, and discount deals.

Enhancers

The Enhancers Strategic Model provides enhanced, integrated, value-added IoT services by revamping and repackaging Engagers' solutions. The Enhancers collaborate with other organizations to develop and provide customized product and service offerings, or even create new Business Models that can replace existing ones.

Interested in learning more about the offerings that constitute the IoT Technology Stack?  You can download an editable PowerPoint presentation on Internet of Things (IoT) Strategic Models here on the Flevy documents marketplace.

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