business transformation - Blog - Global Risk Community2024-03-28T15:52:39Zhttps://globalriskcommunity.com/profiles/blogs/feed/tag/business+transformationAssessing Digital Maturityhttps://globalriskcommunity.com/profiles/blogs/assessing-digital-maturity2022-07-13T07:50:00.000Z2022-07-13T07:50:00.000ZMark Bridgeshttps://globalriskcommunity.com/members/MarkBridges<div><p><span style="font-size:12pt;"> Editor's Note:<em> If you are interested in becoming an expert on Digital Transformation, take a look at Flevy's </em><a href="https://flevy.com/browse/stream/digital-transformation"><strong><em>Digital Transformation Frameworks</em></strong><em> offering here</em></a><em>. 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. </em><a href="https://flevy.com/browse/stream/digital-transformation"><em>Full details here.</em></a></span></p>
<p><span style="font-size:12pt;"><a href="{{#staticFileLink}}10649054096,original{{/staticFileLink}}"><img class="align-right" src="{{#staticFileLink}}10649054096,RESIZE_400x{{/staticFileLink}}" alt="10649054096?profile=RESIZE_400x" width="289" height="192" /></a> </span></p>
<p><span style="font-size:12pt;"><a href="https://flevy.com/business-toolkit/digital-transformation-strategy">Digital Transformation is now essential for the survival of all organizations, especially businesses.</a></span></p>
<p><span style="font-size:12pt;">Adapting organizations to increasingly digital market environments and leveraging digital technologies to improve operations are essential goals for virtually every modern business.</span></p>
<p><span style="font-size:12pt;">Digital Transformation is typically more challenging than any Change or <a href="https://flevy.com/business-toolkit/business-transformation">Transformation program a business may undertake.</a> The majority of organizations struggle to implement the fundamental changes required for Digital Maturity.</span></p>
<p><span style="font-size:12pt;">The majority of organizations on the Digital Maturity bandwagon find it difficult to achieve Digital Maturity—the process by which organizations methodically prepare to continuously adapt to ongoing digital change.</span></p>
<p><span style="font-size:12pt;">The 7-stage Digital Maturity Model can be used to determine an organization's Digital Maturity. To reach Digital Maturity, the company should be in either phase 6 (Transform) or phase 7 (Improve) of the model, as seen on the following slide. These 2 phases encompass the "Run" phase of Digital Transformation and Maturity.</span></p>
<p><span style="font-size:12pt;"><img src="https://flevy.com/blog/wp-content/uploads/2022/07/Slide-Deck-image-Digital-Maturity-Primer.png" alt="Slide-Deck-image-Digital-Maturity-Primer.png" width="730" height="412" /></span></p>
<p><span style="font-size:12pt;">Each phase can be distinguished by its technology and KPI-based objectives. By the time a business reaches Digital Maturity, it employs very advanced technologies, many of which involve <a href="https://flevy.com/business-toolkit/artificial-intelligence">Artificial Intelligence</a>, <a href="https://flevy.com/business-toolkit/data-analytics">Data Analytics</a>, and <a href="https://flevy.com/business-toolkit/robotic-process-automation">Robotic Process Automation</a>.</span></p>
<p><span style="font-size:12pt;">Achieving Digital Maturity is an ongoing process. It is a time-consuming procedure that can increase an organization's prospects of survival and advancement.</span></p>
<p><span style="font-size:12pt;"><a href="https://flevy.com/business-toolkit/change-management-cm">A limited number of organizations appear to be implementing the fundamental Changes</a> their CEOs deem essential to achieving these objectives.</span></p>
<p><span style="font-size:12pt;">A survey of 3,500 corporate executives, managers, and analysts from firms throughout the world was conducted; 15 key informant interviews with executives and thought leaders were also done as part of this study.</span></p>
<p><span style="font-size:12pt;">The MIT Sloan Management Review and Deloitte research conducted the study to identify Digitally Maturing organizations by asking company executives questions that reflected various aspects of Digital Maturity.</span></p>
<ul>
<li><span style="font-size:12pt;">Leaders were tasked with visualizing the ideal organization and rating their own organization accordingly.</span></li>
<li><span style="font-size:12pt;">Leaders were asked the “importance of making business digital and how their companies were progressing towards that ideal”.</span></li>
<li><span style="font-size:12pt;">Participants were also asked about how their organizations utilize technology to do business in fundamentally different ways.</span></li>
<li><span style="font-size:12pt;">In answer to a question from participants asking what their firms could do differently to increase their Digital Maturity, the most prevalent obstacles and errors were highlighted.</span></li>
<li><span style="font-size:12pt;">Investigating the proportion of small-scale digital experimentation and enterprise-wide digital projects yielded intriguing data.</span></li>
<li><span style="font-size:12pt;">In the research study, the importance of organizational structure in achieving Digital Maturity was also discussed.</span></li>
<li><span style="font-size:12pt;">The significance of cultural transformation was also explored, with an emphasis on teamwork and risk aversion.</span></li>
</ul>
<p><span style="font-size:12pt;">Leaders were tasked with visualizing an ideal company transformed by Digital Technologies and capabilities that optimize processes, link people throughout the firm, and promote new value-generating Business Models.</span></p>
<p><span style="font-size:12pt;">The respondents were then asked to rank their own organization on a scale from 1 to 10. These interviews with key informants produced the following 3 groups:</span></p>
<ul>
<li><span style="font-size:12pt;">Organizations in the <strong>Early</strong> level of Digital Maturity received a score between 1 and 3.</span></li>
<li><span style="font-size:12pt;">Digitally <strong>Developing</strong> firms were assigned a score between 4 and 6.</span></li>
<li><span style="font-size:12pt;">Digitally <strong>Maturing</strong> enterprises were rated between 7 and 10.</span></li>
</ul>
<p><span style="font-size:12pt;">The first and most important issue of the MIT Sloan Management Review and Deloitte investigation was, "How genuinely are firms attempting to become Digitally Mature?"</span><span style="font-size:12pt;"> </span></p>
<p><span style="font-size:12pt;">Interested in learning more about organizations with Digital Maturity? You can download <a href="https://flevy.com/browse/flevypro/digital-maturity-primer-6267">an editable PowerPoint on <strong>Digital Maturity Primer</strong> here</a><u> </u>on the <a href="https://flevy.com/browse">Flevy documents marketplace</a>.</span><span style="font-size:12pt;"> </span></p>
<p><span style="font-size:12pt;"><strong>Want to Achieve Excellence in Digital Transformation?</strong></span></p>
<p><span style="font-size:12pt;">Gain the knowledge and develop the expertise to become an expert in Digital Transformation. Our frameworks are based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. <a href="https://flevy.com/browse/stream/digital-transformation">Click here for full details.</a></span></p>
<p><span style="font-size:12pt;">Digital Transformation is being embraced by organizations of all sizes across most industries. In the Digital Age today, technology creates new opportunities and fundamentally transforms businesses in all aspects—operations, business models, strategies. It not only enables the business, but also drives its growth and can be a source of Competitive Advantage.</span></p>
<p><span style="font-size:12pt;">For many industries, COVID-19 has accelerated the timeline for Digital Transformation Programs by multiple years. Digital Transformation has become a necessity. Now, to survive in the Low Touch Economy—characterized by social distancing and a minimization of in-person activities—organizations must go digital. This includes offering digital solutions for both employees (e.g., Remote Work, Virtual Teams, Enterprise Cloud, etc.) and customers (e.g., E-commerce, Social Media, Mobile Apps, etc.).</span><span style="font-size:12pt;"> </span></p>
<p><span style="font-size:12pt;"><strong>Do You Find Value in This Framework?</strong></span></p>
<p><span style="font-size:12pt;">You can download in-depth presentations on this and hundreds of similar business frameworks from the <a href="https://flevy.com/pro/library">FlevyPro Library</a>. <a href="https://flevy.com/pro">FlevyPro</a> is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:</span></p>
<p><span style="font-size:12pt;"><em>“My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.”</em></span></p>
<p><span style="font-size:12pt;"><em>– Bill Branson, Founder at Strategic Business Architects</em></span></p>
<p><span style="font-size:12pt;"><em>“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.”</em></span></p>
<p><span style="font-size:12pt;"><em>– David Coloma, Consulting Area Manager at Cynertia Consulting</em></span></p>
<p><span style="font-size:12pt;"><em>“FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight – it’s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.”</em></span></p>
<p><span style="font-size:12pt;"><em>– Roderick Cameron, Founding Partner at SGFE Ltd</em></span></p></div>Achieving Digital Maturityhttps://globalriskcommunity.com/profiles/blogs/achieving-digital-maturity2022-07-12T22:20:00.000Z2022-07-12T22:20:00.000ZMark Bridgeshttps://globalriskcommunity.com/members/MarkBridges<div><p><span style="font-size:12pt;">Editor's Note: <em>If you are interested in becoming an expert on Digital Transformation, take a look at Flevy's <a href="https://flevy.com/browse/stream/digital-transformation"><strong>Digital Transformation Frameworks</strong> offering here</a>. 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. <a href="https://flevy.com/browse/stream/digital-transformation">Full details here.</a></em> <a href="{{#staticFileLink}}10648288055,original{{/staticFileLink}}"><img class="align-right" src="{{#staticFileLink}}10648288055,RESIZE_400x{{/staticFileLink}}" alt="10648288055?profile=RESIZE_400x" width="200" /></a></span></p>
<p><span style="font-size:12pt;">Go digital or go home. In order to thrive in the Digital Age, <a href="https://flevy.com/business-toolkit/digital-transformation-strategy">companies must undertake Digital Transformation to not only support strategy and reach consumers</a>, but also <a href="https://flevy.com/business-toolkit/operational-excellence">modernize and attain excellence in their internal operations and procedures</a>. Digital Maturity is rapidly becoming a requirement.</span></p>
<p><span style="font-size:12pt;">However, majority of firms are incapable of <a href="https://flevy.com/browse/flevypro/digital-maturity-primer-6267">strategizing their move to Digital Maturity</a>. There are, however, businesses that are Digitally Mature or are rapidly evolving in this direction. Research into the strategies of such firms suggests that Digitally Mature organizations employ the 5 techniques listed below to achieve leadership in this competition:</span></p>
<ol>
<li><span style="font-size:12pt;"><strong>Digital Organization</strong></span></li>
<li><span style="font-size:12pt;"><strong>Digital Strategy</strong></span></li>
<li><span style="font-size:12pt;"><strong>Digital Experimentation</strong></span></li>
<li><span style="font-size:12pt;"><strong>Digital Talent</strong></span></li>
<li><span style="font-size:12pt;"><strong>Digital Management</strong></span></li>
</ol>
<p><span style="font-size:12pt;"><img src="https://flevy.com/blog/wp-content/uploads/2022/07/Slide-Deck-image-Digital-Maturity-Strategy.png" alt="Slide-Deck-image-Digital-Maturity-Strategy.png" width="732" height="413" /></span></p>
<p><span style="font-size:12pt;">These 5 key practices form the basis of Digital Maturity Strategy. Let us go a bit more into a few of these recommended practices. </span></p>
<h3><span style="font-size:12pt;"><strong>Digital Organization</strong></span></h3>
<p><span style="font-size:12pt;"><a href="https://flevy.com/business-toolkit/organizational-silos">Conventional Organizational Structures comprising of functional silos</a> are ineffective in markets that are dynamic and continually changing. The introduction of cross-functional team structures is <a href="https://flevy.com/business-toolkit/organizational-structure">a result of a novel approach to organizational structures</a>. Customary command and control systems based on functional silos impede the market agility required by present conditions.</span></p>
<p><span style="font-size:12pt;">A study survey characterized firms' Digital Maturity as Early-stage, Developing, and Mature. Nearly 60% of early-stage respondents viewed their firms' management structure and procedures as a hindrance to engaging in Digital business successfully. In Digitally Maturing organizations, on the other hand, 80% of respondents stated that their executives possessed the necessary knowledge and skills to lead the organization's Digital Strategy. </span></p>
<h3><span style="font-size:12pt;"><strong>Digital Strategy</strong></span></h3>
<p><span style="font-size:12pt;">Effective Digital Strategies are not limited to the application of technology to become more digital; rather, they are designed to find possibilities with the biggest commercial effect.</span></p>
<p><span style="font-size:12pt;">Consistently, research demonstrates that <a href="https://flevy.com/business-toolkit/strategy-development">strategy is the most potent differentiator</a> for Digitally Maturing firms. Digital Strategies outline how the firm conducts business in light of the market shifts brought about by new Digital technology.</span></p>
<p><span style="font-size:12pt;">In a poll, 40% of the respondents stated that Digital Strategy and Innovation needed development in order for their organization to raise its level of Digital Maturity. Digitally Mature organizations (80% of them) had or were expected to have a well-defined and cohesive Strategy, compared to 19 percent of Early-stage companies, according to the study. According to the research, Digitally Mature firms are 2 times as likely to strategize for at least a 5 year period.</span></p>
<p><span style="font-size:12pt;">Successfully implementing Digital Strategy requires a <a href="https://flevy.com/business-toolkit/organizational-change">focus on Organizational Change and the development of adaptability</a> to rapidly changing Digital environments. </span></p>
<h3><span style="font-size:12pt;"><strong>Digital Experimentation</strong></span></h3>
<p><span style="font-size:12pt;">Almost every company engages in technological experimentation. However, the scope and size of tests may not always provide results with enterprise-wide implications. Digitally Mature organizations are able to expand Digital Experiments.</span></p>
<p><span style="font-size:12pt;">The key to effective experimentation is conceiving of trials for pressing business challenges that will <a href="https://flevy.com/business-toolkit/innovation">drive enterprise-wide innovation</a>, followed by the execution of smaller experiments that can be scaled up, if successful.</span></p>
<p><span style="font-size:12pt;">Early-stage corporations are 2.5 times less capable of undertaking small experiments and scaling Innovation enterprise-wide than Digitally Maturing enterprises. The capability to scale up modest trials is bolstered by an attitude of openness toward failure and the capacity to learn from it.</span></p>
<p><span style="font-size:12pt;">Interested in learning more about Digital Maturity Strategy? You can download <a href="https://flevy.com/browse/flevypro/digital-maturity-strategy-6268">an editable PowerPoint on <strong>Digital Maturity Strategy</strong> here </a>on the <a href="https://flevy.com/browse">Flevy documents marketplace</a>. </span></p>
<h3><span style="font-size:12pt;"><strong>Want to Achieve Excellence in Digital Transformation?</strong></span></h3>
<p><span style="font-size:12pt;">Gain the knowledge and develop the expertise to become an expert in Digital Transformation. Our frameworks are based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. <a href="https://flevy.com/browse/stream/digital-transformation">Click here for full details.</a></span></p>
<p><span style="font-size:12pt;">Digital Transformation is being embraced by organizations of all sizes across most industries. In the Digital Age today, technology creates new opportunities and fundamentally transforms businesses in all aspects—operations, business models, strategies. It not only enables the business, but also drives its growth and can be a source of Competitive Advantage. </span></p>
<p><span style="font-size:12pt;">For many industries, COVID-19 has accelerated the timeline for Digital Transformation Programs by multiple years. Digital Transformation has become a necessity. Now, to survive in the Low Touch Economy—characterized by social distancing and a minimization of in-person activities—organizations must go digital. This includes offering digital solutions for both employees (e.g. Remote Work, Virtual Teams, Enterprise Cloud, etc.) and customers (e.g. E-commerce, Social Media, Mobile Apps, etc.). </span></p>
<h3><span style="font-size:12pt;"><strong>Do You Find Value in This Framework?</strong></span></h3>
<p><span style="font-size:12pt;">You can download in-depth presentations on this and hundreds of similar business frameworks from the <a href="https://flevy.com/pro/library">FlevyPro Library</a>. <a href="https://flevy.com/pro">FlevyPro</a> is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:</span></p>
<blockquote>
<p><span style="font-size:12pt;">“My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.”</span></p>
<p><span style="font-size:12pt;">– Bill Branson, Founder at Strategic Business Architects</span></p>
</blockquote>
<blockquote>
<p><span style="font-size:12pt;">“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.”</span></p>
<p><span style="font-size:12pt;">– David Coloma, Consulting Area Manager at Cynertia Consulting</span></p>
</blockquote>
<blockquote>
<p><span style="font-size:12pt;">“FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight – it’s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.”</span></p>
<p><span style="font-size:12pt;">– Roderick Cameron, Founding Partner at SGFE Ltd</span></p>
</blockquote></div>Key Pillars of Digital Manufacturing Executionhttps://globalriskcommunity.com/profiles/blogs/digital-manufacturing2021-09-17T07:30:13.000Z2021-09-17T07:30:13.000ZMark Bridgeshttps://globalriskcommunity.com/members/MarkBridges<div><div class="entry"><p><span style="font-size:12pt;"><a href="{{#staticFileLink}}9575523281,original{{/staticFileLink}}"><img class="align-right" src="{{#staticFileLink}}9575523281,RESIZE_400x{{/staticFileLink}}" alt="9575523281?profile=RESIZE_400x" width="306" height="204" /></a>Digital Transformation in <a href="https://flevy.com/business-toolkit/manufacturing">Manufacturing</a>, or Digital Manufacturing for short, is a matter of survival now for manufacturing concerns. Manufacturing companies desirous of survival have no choice but to hop on the Digital Transformation bandwagon, rapidly.</span></p><p><span style="font-size:12pt;">Business Transformation of any kind is not an easy endeavor. Change Management of Digital Manufacturing is typically more difficult than any Change or Transformation Program that an organization may undertake.</span></p><p><span style="font-size:12pt;">Forming a strategy to leverage digital technologies is the 1st step in transforming a manufacturing concern towards Digital Manufacturing. Bigger challenges are faced in strategy execution.</span></p><p><span style="font-size:12pt;">For Transformation execution to be effective, CEOs must reconsider almost everything about the way their companies work; for instance, establish <a href="https://flevy.com/business-toolkit/business-model-design-bmodel">new Business Models</a>, reorganize their Organizational Design, and also rethink their Leadership style.</span></p><p><span style="font-size:12pt;">Specifically, there are 3 key pillars of Digital Manufacturing execution that need careful consideration for the Transformation to be successful:</span></p><ol><li><span style="font-size:12pt;">Business Model over Technology</span></li><li><span style="font-size:12pt;">Independence of Digital Operations</span></li><li><span style="font-size:12pt;">CEO-driven Digital Transformation</span></li></ol><p><span style="font-size:12pt;"><a href="https://flevy.com/browse/flevypro/digital-manufacturing-primer-5853"><img class="aligncenter size-full wp-image-9680" src="https://flevy.com/blog/wp-content/uploads/2021/09/slide-deck-image-Digital-Manufacturing-Primer.png" alt="" width="694" height="521" /></a></span></p><p><span style="font-size:12pt;"><strong> </strong>Let us consider the key pillars a little more in detail.</span></p><h3><span style="font-size:12pt;"><strong>Business Model over Technology</strong></span></h3><p><span style="font-size:12pt;">Shifting from old technology to new is easier than changing the Business Model of any concern, especially a manufacturing concern. Customarily, manufacturers sell machinery, hand out software as complementary, and offer after sales repair and maintenance service for the machinery.</span></p><p><span style="font-size:12pt;">For Digital Transformation to be truly successful, the whole way of doing business has to change. Manufacturers have to look at what they are selling i.e., outcome instead of a product. What is important is manufacturers should be willing to do away with existing Business Models to create and capture new value.</span></p><p><span style="font-size:12pt;">Value creation is achievable in many ways using industrial <a href="https://flevy.com/business-toolkit/internet-of-things">Internet of Things (IoT)</a> by manufacturers. All of the avenues for value creation should be used in parallel so as to gain the largest impact.</span></p><p><span style="font-size:12pt;">Value created through Digital Manufacturing can be captured in 2 ways:</span></p><ol><li><span style="font-size:12pt;">Software as a Service and Subscriptions/Licenses</span></li><li><span style="font-size:12pt;">Offering Success as a Service</span></li></ol><h3><span style="font-size:12pt;"><strong>Independence of Digital Operations</strong></span></h3><p><span style="font-size:12pt;">Digital operations can create a meaningful impact only when they are independent of the main business. Independence is important but so is proper linkage with the industrial business.</span></p><p><span style="font-size:12pt;">Initially, understanding regarding value provided by Digital operations may be very limited in the manufacturing business therefore cooperation may be inhibited. Finding ways to link Digital operations with the manufacturing business must cater to the requirement of understanding how the machines work.</span></p><p><span style="font-size:12pt;">Resistance from the manufacturing business is expected when the 2 forces combine, especially when the Digital operations grow. Delineating who handles customer relationship and all factors associated with it, is also a question that may spring up in cooperation between manufacturing and digital operations.</span></p><p><span style="font-size:12pt;">Ways to obtain gains from linking vertical business and the horizontal digital function must be found.</span></p><h3><span style="font-size:12pt;"><strong>CEO-driven Digital Transformation</strong></span></h3><p><span style="font-size:12pt;">Sponsor of the Digital Manufacturing initiative has to be the CEO. Only the CEO has the influence to decide the divergences between the old manufacturing business and the new digital business.</span></p><p><span style="font-size:12pt;">CEOs have to drive the Digital Manufacturing shift. Leading from the front to make everyone understand that Digital Transformation is a very serious and important endeavor.</span></p><p><span style="font-size:12pt;">CEOs must have the will and resolve to challenge incumbency, obliviousness, and existing state of affairs. While remaining firm on the strategic direction, CEOs must be flexible enough to experiment, learn, and adjust course.</span></p><p><span style="font-size:12pt;">Interested in learning more about Digital Manufacturing? You can download <a href="https://flevy.com/browse/flevypro/digital-manufacturing-primer-5853"><strong>an editable PowerPoint on Digital Manufacturing here</strong> </a>on the <a href="https://flevy.com/browse">Flevy documents marketplace</a>.</span></p><p><span style="font-size:12pt;"><strong>Editor's Note:<em> </em></strong></span></p><p><span style="font-size:12pt;">If you are interested in becoming an expert on Supply Chain Management (SCM), take a look at Flevy's </span><a style="font-size:12pt;" href="https://flevy.com/browse/stream/supply-chain"><strong>Supply Chain Management (SCM) Frameworks</strong> offering here</a><span style="font-size:12pt;">. 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 you stay ahead of the curve. </span><a style="font-size:12pt;" href="https://flevy.com/browse/stream/supply-chain">Full details here.</a></p><h3><span style="font-size:12pt;"><strong>Want to Achieve Excellence in Supply Chain Management (SCM)?</strong></span></h3><p><span style="font-size:12pt;">Gain the knowledge and develop the expertise to become an expert in Supply Chain Management (SCM). Our frameworks are based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. <a href="https://flevy.com/browse/stream/supply-chain">Click here for full details.</a></span></p><p><span style="font-size:12pt;">Supply Chain Management (SCM) is the design, planning, execution, control, and monitoring of Supply Chain activities. It also captures the management of the flow of goods and services. </span></p><p><span style="font-size:12pt;">In February of 2020, COVID-19 disrupted—and in many cases halted—global Supply Chains, revealing just how fragile they have become. By April, many countries experienced declines of over 40% in domestic and international trade. </span></p><p><span style="font-size:12pt;">COVID-19 has likewise changed how Supply Chain Executives approach and think about SCM. In the pre-COVID-19 era of globalization, the objective was to be Lean and Cost-effective. In the post-COVID-19 world, companies must now focus on making their Supply Chains Resilient, Agile, and Smart. Additional trends include Digitization, Sustainability, and Manufacturing Reshoring.</span></p><p><span style="font-size:12pt;"><a href="https://flevy.com/browse/stream/supply-chain">Learn about our <strong>Supply Chain Management (SCM) Best Practice Frameworks</strong> here.</a></span></p><h3><span style="font-size:12pt;"><strong>Do You Find Value in This Framework?</strong></span></h3><p><span style="font-size:12pt;">You can download in-depth presentations on this and hundreds of similar business frameworks from the <a href="https://flevy.com/pro/library">FlevyPro Library</a>. <a href="https://flevy.com/pro">FlevyPro</a> is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:</span></p><blockquote><p><span style="font-size:12pt;">“My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.”</span></p><p><span style="font-size:12pt;">– Bill Branson, Founder at Strategic Business Architects</span></p></blockquote><blockquote><p><span style="font-size:12pt;">“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.”</span></p><p><span style="font-size:12pt;">– David Coloma, Consulting Area Manager at Cynertia Consulting</span></p></blockquote><blockquote><p><span style="font-size:12pt;">“FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight – it’s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.”</span></p><p><span style="font-size:12pt;">– Roderick Cameron, Founding Partner at SGFE Ltd</span></p></blockquote></div><div class="entry"><span style="font-size:12pt;"> </span></div></div>Transformation Challenges: Digital Manufacturinghttps://globalriskcommunity.com/profiles/blogs/transformation-challenges-digital-manufacturing2021-09-14T07:55:15.000Z2021-09-14T07:55:15.000ZMark Bridgeshttps://globalriskcommunity.com/members/MarkBridges<div><div class="entry"><p><span style="font-size:12pt;"><a href="{{#staticFileLink}}9564571461,original{{/staticFileLink}}"><img class="align-right" src="{{#staticFileLink}}9564571461,RESIZE_400x{{/staticFileLink}}" alt="9564571461?profile=RESIZE_400x" width="300" /></a>Digital Transformation in <a href="https://flevy.com/business-toolkit/manufacturing">Manufacturing</a> or “Digital Manufacturing” for short is not an optional decision for companies anymore. Manufacturing concerns that want to survive have to jump on the Digital Transformation bandwagon hastily. Digital Manufacturing has become a prerequisite for a profitable existence even for mere survival of a manufacturing concern.</span></p><p><span style="font-size:12pt;">Business Transformation of any kind is difficult—more so when it is a Digital Transformation in Manufacturing. In fact, Change Management of Digital Transformation in Manufacturing is typically more difficult than any change or Transformation program that an organization may undertake.</span></p><p><span style="font-size:12pt;">Not many manufacturing concerns had cognizance of the digital technologies until very recently. Still, manufacturing concerns find it very hard to manage a successful Digital Transformation.</span></p><p><span style="font-size:12pt;">Digital technologies can disrupt businesses. A Digital Transformation is not the Digitalization of an existing business. Digital Manufacturing does not entail simply changing technologies, automating processes, taking aid of <a href="https://flevy.com/business-toolkit/artificial-intelligence">Artificial Intelligence</a> in the process; in fact it means redefining the nature of work and productivity.</span></p><p><span style="font-size:12pt;">Starting a Digital Manufacturing project can be an arduous process. Executives customarily approach this task with a lot of prudence and get caught in questions that are actually misnomers and myths, weakening the Digital Transformation process. The 4 biggest myths about Digital Manufacturing are:<strong> </strong></span></p><p><span style="font-size:12pt;"><strong>Myth 1. </strong>Is outsourcing or partnering, to build digital capabilities, not speedier and less investment intensive?<strong> </strong></span></p><p><span style="font-size:12pt;"><strong>Myth 2.</strong> Why can the existing IT team and CIO not be used for this project instead of hiring new talent and creating a CDO position, both unaware of our business?<strong> </strong></span></p><p><span style="font-size:12pt;"><strong>Myth 3.</strong> Should each of our businesses not have individual digital capabilities tailored to their needs rather than a central digital unit that serves all businesses?<strong> </strong></span></p><p><span style="font-size:12pt;"><strong>Myth 4.</strong> Should not our approach to developing digital capabilities be phased rather than big bang?</span></p><p><span style="font-size:12pt;">More on these myths can be found in the PowerPoint presentation titled <a href="https://flevy.com/browse/flevypro/challenges-to-digital-manufacturing-5844"><strong>Challenges to Digital Manufacturing</strong> on Flevy</a>.</span></p><p><span style="font-size:12pt;">Digital Manufacturing opens doors for many opportunities. It allows the manufacturers to find ways of refining the performance and reliability of machines and increasing customer productivity through customer usage data gathered by sensors in their machines.</span></p><p><span style="font-size:12pt;">This approach allows manufacturers to sell outcomes rather than products. Outcome delivery via Data Analysis and Performance Enhancement is a business opportunity worth trillions of dollars, according to a World Economic Forum study.<strong> </strong></span></p><p><span style="font-size:12pt;">Despite realizing the opportunities of Digital Manufacturing, companies find the process extremely difficult. Digital Manufacturing has both structural as well as behavioral barriers stopping it from being successfully executed.</span></p><p><span style="font-size:12pt;">Manufacturers have to surpass the following 3 chief obstacles in order for them to be true Digital Manufacturers:</span></p><ol><li><span style="font-size:12pt;"><strong>Incumbency</strong></span></li><li><span style="font-size:12pt;"><strong>Talent</strong></span></li><li><span style="font-size:12pt;"><strong>Culture</strong></span></li></ol><p><span style="font-size:12pt;"><a href="https://flevy.com/browse/flevypro/challenges-to-digital-manufacturing-5844"><img class="aligncenter size-full wp-image-9642" src="https://flevy.com/blog/wp-content/uploads/2021/09/Slide-Deck-image-Challenges-to-Digital-Manufacturing.png" alt="" width="721" height="541" /></a></span></p><p><span style="font-size:12pt;">Let us dive a little deeper into the obstacles.<strong> </strong></span></p><h3><span style="font-size:12pt;"><strong>Incumbency</strong></span></h3><p><span style="font-size:12pt;">Rigidity is a major barrier in bringing about change. Companies create capabilities and Business Models to succeed. Overtime, when these capabilities and Business Models become critical for success and hard to imitate for the rivals, they transform into rigidities. Success of such capabilities and models make the companies wary of bringing change in them.</span></p><p><span style="font-size:12pt;">Leaders refrain from touching projects with longer time periods as it may not show benefits during their tenures. The reward structure in companies also encourages short-term gains to longer-term, capital intensive endeavors. <strong> </strong></span></p><h3><span style="font-size:12pt;"><strong>Talent</strong></span></h3><p><span style="font-size:12pt;">Not many manufacturing organizations consider developing Digital Talent internally. This leads to a dearth of key talent integral to build Digital Manufacturing capabilities.</span></p><p><span style="font-size:12pt;">The primary reason for this is the view that digital technology is an auxiliary function.</span><br /> <span style="font-size:12pt;"> In-house capabilities are not developed because Digital Manufacturing requires an amalgam of personnel from the virtual sciences and the conventional engineering sciences. Both have a very different way of thinking and doing things, making it a great challenge to build them into a team.</span></p><h3><span style="font-size:12pt;"><strong>Culture</strong></span></h3><p><span style="font-size:12pt;">Organizational culture at manufacturing firms is a significant hurdle in adopting digital technology. Manufacturers have traditionally had long product-development lifecycles, long sales cycles, and a culture of constantly improving efficiency. In order to be more digital, manufacturing concerns have to accept concepts used in the digital world e.g., agility, simplicity, and responsiveness.</span></p><p><span style="font-size:12pt;">Interested in learning more about the Challenges to Digital Manufacturing?” “You can download <a href="https://flevy.com/browse/flevypro/challenges-to-digital-manufacturing-5844"><strong>an editable PowerPoint on Challenges to Digital Manufacturing here</strong></a><u> </u>on the <a href="https://flevy.com/browse">Flevy documents marketplace</a>.</span></p><h3><span style="font-size:12pt;"><strong>Want to Achieve Excellence in Supply Chain Management (SCM)?</strong></span></h3><p><span style="font-size:12pt;">Gain the knowledge and develop the expertise to become an expert in Supply Chain Management (SCM). Our frameworks are based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. <a href="https://flevy.com/browse/stream/supply-chain">Click here for full details.</a></span></p><p><span style="font-size:12pt;">Supply Chain Management (SCM) is the design, planning, execution, control, and monitoring of Supply Chain activities. It also captures the management of the flow of goods and services. </span></p><p><span style="font-size:12pt;">In February of 2020, COVID-19 disrupted—and in many cases halted—global Supply Chains, revealing just how fragile they have become. By April, many countries experienced declines of over 40% in domestic and international trade. </span></p><p><span style="font-size:12pt;">COVID-19 has likewise changed how Supply Chain Executives approach and think about SCM. In the pre-COVID-19 era of globalization, the objective was to be Lean and Cost-effective. In the post-COVID-19 world, companies must now focus on making their Supply Chains Resilient, Agile, and Smart. Additional trends include Digitization, Sustainability, and Manufacturing Reshoring.</span></p><p><span style="font-size:12pt;"><a href="https://flevy.com/browse/stream/supply-chain">Learn about our <strong>Supply Chain Management (SCM) Best Practice Frameworks</strong> here.</a></span></p><h3><span style="font-size:12pt;"><strong>Do You Find Value in This Framework?</strong></span></h3><p><span style="font-size:12pt;">You can download in-depth presentations on this and hundreds of similar business frameworks from the <a href="https://flevy.com/pro/library">FlevyPro Library</a>. <a href="https://flevy.com/pro">FlevyPro</a> is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:</span></p><blockquote><p><span style="font-size:12pt;">“My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.”</span></p><p><span style="font-size:12pt;">– Bill Branson, Founder at Strategic Business Architects</span></p></blockquote><blockquote><p><span style="font-size:12pt;">“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.”</span></p><p><span style="font-size:12pt;">– David Coloma, Consulting Area Manager at Cynertia Consulting</span></p></blockquote><blockquote><p><span style="font-size:12pt;">“FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight – it’s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.”</span></p><p><span style="font-size:12pt;">– Roderick Cameron, Founding Partner at SGFE Ltd</span></p></blockquote></div></div>Decision Matrix for Platform Scaling Strategyhttps://globalriskcommunity.com/profiles/blogs/decision-matrix-for-platform-scaling-strategy2021-04-20T06:06:02.000Z2021-04-20T06:06:02.000ZMark Bridgeshttps://globalriskcommunity.com/members/MarkBridges<div><p><span style="font-size:12pt;"><a href="{{#staticFileLink}}8812893896,original{{/staticFileLink}}"><img class="align-right" src="{{#staticFileLink}}8812893896,RESIZE_400x{{/staticFileLink}}" alt="8812893896?profile=RESIZE_400x" width="305" height="203" /></a>The phenomenal success of tech innovators using Platforms has spurred a desire in companies, from a greater variety of sectors and markets, to gain advantage of Product to Platform Transformation.</span></p><p><span style="font-size:12pt;">This Transformation is based on the need to model businesses on a Customer-Centric Design approach. The need has arisen because the concept of Economies of Scale has become archaic and has been taken over by Economies of Unscale. Each customer is now being offered customized products and solutions.</span></p><p><span style="font-size:12pt;">The phenomenal success, by the trailblazing tech innovators, was achieved partly by deploying Platform Scaling that enabled Business Transformation and monopolization of the market. Though, this monopolization and questionable use of the Platform, especially data generated therefrom, saw attempts to regulate these tech companies—making the decision to scale a complex one. Understanding the intricacies of Platform Scaling is thus critical to the development and deployment of any Platform Strategy.</span></p><p><span style="font-size:12pt;">When considering Platform Scaling Strategy, there are 2 key aspects that are of utmost significance:</span></p><p><span style="font-size:12pt;"><strong>Regulatory Complexity</strong></span></p><p><span style="font-size:12pt;">Regulatory Complexity means present level of legal and regulatory impediments that govern Platform entry and operation in a sector.<strong> </strong></span></p><p><span style="font-size:12pt;"><strong>Regulatory Risk</strong></span></p><p><span style="font-size:12pt;">Regulatory Risk refers to the probability of an upsurge in Legal and Regulatory Costs and Complexity in the future.</span></p><p><span style="font-size:12pt;">Some equitable and measurable metrics for calculating Regulatory Risks do exist but generally it is extremely challenging to predict policy outcomes or even ascribe odds to various outcomes.</span></p><p><span style="font-size:12pt;">A straightforward approach for Platform owners and operators to understand and evaluate the prospective combinations of Regulatory Complexity and Risk is to create a 2×2 matrix of high vs. low for the 2 factors.</span></p><p><span style="font-size:12pt;"><a href="https://flevy.com/browse/flevypro/platform-scaling-strategy-5575"><img class="aligncenter size-full wp-image-9044" src="https://flevy.com/blog/wp-content/uploads/2021/04/Slide-deck-image-Platform-Scaling-Stgy.png" alt="" width="715" height="537" /></a></span></p><p><span style="font-size:12pt;">Regulatory Complexity and Risk are turning out to be the determining factors in the strategic decision between Fast and Slow Scaling.</span></p><p><span style="font-size:12pt;">Fast Scaling, which has also been referred to as Blitzscaling, requires choosing speed over efficiency. Fast Scaling has the strategic objective of growing briskly, experimenting swiftly to tweak product-market fit, and taking advantage of robust network effects to achieve and maintain a leading market share.</span></p><p><span style="font-size:12pt;">Fast Scaling is required to activate 3 interconnected positive feedback loops:</span></p><ol><li><span style="font-size:10pt;">Network Loop</span></li><li><span style="font-size:10pt;">Data Loop</span></li><li><span style="font-size:10pt;">Capital Loop.</span></li></ol><p><span style="font-size:12pt;">Slow Scaling is the most sensible strategy in areas with both High Regulatory Complexity and High Regulatory Risk. Slow Scaling does not disregard the quest for network effects, which are a requirement for success of platform businesses, but it gives preference to analysis, constant growth, and risk curtailment instead of speed.</span></p><p><span style="font-size:12pt;">Platform businesses functioning in High-Risk, High Complexity situations may evade pitfalls by employing 4 key components of Slow-Scaling strategy:</span></p><ol><li><span style="font-size:10pt;">Analysis of the Macro Environment</span></li><li><span style="font-size:10pt;">Careful Risk Management</span></li><li><span style="font-size:10pt;">Investment in Stakeholder Trust</span></li><li><span style="font-size:10pt;">Incremental Geographic Expansion.</span></li></ol><p><span style="font-size:12pt;">Let us now delve a little deeper into the various permutations of Regulatory Complexity and Risk, quadrant-wise, in the matrix.</span></p><h3><span style="font-size:12pt;"><strong>QUADRANT 1</strong></span></h3><p> </p><p><span style="font-size:12pt;"><strong>Regulatory</strong> <strong>Risk</strong> <strong>Regulatory</strong> <strong>Complexity</strong></span></p><p><span style="font-size:12pt;">Low Low</span></p><p><span style="font-size:12pt;">Compliance costs are comparatively low in such situations and there are no serious deliberations among regulators and policy makers concerning restrictions on business models or operations.</span></p><p><span style="font-size:12pt;">The Strategy in this case is to Scale Fast.</span></p><h3><span style="font-size:12pt;"><strong>QUADRANT 2</strong></span></h3><p> </p><p><span style="font-size:12pt;"><strong>Regulatory Risk Regulatory Complexity</strong></span></p><p><span style="font-size:12pt;">Low High</span></p><p><span style="font-size:12pt;">Sectors in such scenarios are highly regulated e.g., financial services sector. Significant workforce is employed in governance, risk management, and compliance activities. Entering such markets necessitates careful consideration of Regulatory Complexity.</span></p><p><span style="font-size:12pt;">The strategy in such scenarios is to Scale Fast.</span></p><h3><span style="font-size:12pt;"><strong>QUADRANT 3</strong></span></h3><p> </p><p><span style="font-size:12pt;"><strong>Regulatory Risk Regulatory Complexity</strong></span></p><p><span style="font-size:12pt;">High Low</span></p><p><span style="font-size:12pt;">Operations are generally in a Regulatory void—i.e., no established and powerful regulatory authority, tight net of rules, or strict barriers to entry. There is a great degree of ambiguity regarding how regulators may react. Environment in such markets makes it difficult for businesses to mature discrete policy scenarios, allocate probabilities, and make strong assumptions on timing.</span></p><p><span style="font-size:12pt;">Strategy is to Scale Fast in such environments.</span></p><h3><span style="font-size:12pt;"><strong>QUADRANT 4</strong></span></h3><p> </p><p><span style="font-size:12pt;"><strong>Regulatory Risk Regulatory Complexity</strong></span></p><p><span style="font-size:12pt;">High High</span></p><p><span style="font-size:12pt;">There is high Regulatory Complexity, such as unclear approach by various regulators in the various markets. There are strong chances of sudden change in regulator and policy maker’s approach due to a particular incident. Precipitous increase in entire sector’s Regulatory Risk triggered by events is highly likely.</span></p><p><span style="font-size:12pt;">The most sensible strategy in such cases is to Scale Slow.</span></p><p><span style="font-size:12pt;">Interested in learning more about the permutations of these 2 Scaling Strategies, areas of strategic focus, and the 4 components of Slow Scaling Strategy? You can download <a href="https://flevy.com/browse/flevypro/platform-scaling-strategy-5575">an editable PowerPoint on <strong>Platform Scaling Strategy</strong> here </a>on the <a href="https://flevy.com/browse">Flevy documents marketplace</a>.</span></p><h3><span style="font-size:12pt;"><strong>Do You Find Value in This Framework?</strong></span></h3><p><span style="font-size:12pt;">You can download in-depth presentations on this and hundreds of similar business frameworks from the <a href="https://flevy.com/pro/library">FlevyPro Library</a>. <a href="https://flevy.com/pro">FlevyPro</a> is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:</span></p><blockquote><p><span style="font-size:12pt;">“My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.”</span></p><p><span style="font-size:12pt;">– Bill Branson, Founder at Strategic Business Architects</span></p></blockquote><blockquote><p><span style="font-size:12pt;">“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.”</span></p><p><span style="font-size:12pt;">– David Coloma, Consulting Area Manager at Cynertia Consulting</span></p></blockquote><blockquote><p><span style="font-size:12pt;">“FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight – it’s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.”</span></p><p><span style="font-size:12pt;">– Roderick Cameron, Founding Partner at SGFE Ltd</span></p></blockquote></div>Successful Business Transformation—5 Critical Success Factorshttps://globalriskcommunity.com/profiles/blogs/successful-business-transformation-5-critical-success-factors2021-04-02T08:30:00.000Z2021-04-02T08:30:00.000ZMark Bridgeshttps://globalriskcommunity.com/members/MarkBridges<div><p><span style="font-size:10pt;"><a href="https://flevy.com/browse/flevypro/business-transformation-success-factors-5561"><img class="alignright size-medium wp-image-1846 align-right" src="http://powerpointing-templates.com/wp-content/uploads/2021/03/Stock-Image-2-Business-Transfromation-CSFs-200x300.jpg" alt="Stock Image 2 - Business Transfromation CSFs" width="200" height="300" /></a>Business Transformations have become a necessity in the fast-changing technological and competitive business environment. Transformation is characterized by significant and risk-laden <a href="https://flevy.com/business-toolkit/restructuring">Restructuring</a> of a company, with the objective of accomplishing Operational Excellence and changing its future course.</span></p><p><span style="font-size:10pt;">Business Transformation is a priority for many top executives but it is usually a reaction to challenging circumstances rather than being a preemptive measure.</span></p><p><span style="font-size:10pt;">Business Transformation is prompted by a combination of 2 situations:</span></p><ul><li><span style="font-size:10pt;">Need to address inherent problems causing organizational drag—these problems may be internal and/or external.</span></li><li><span style="font-size:10pt;">Aspiration by the top management and other senior stakeholders to seize the occasion of addressing these problems, in ways that deeply alter the Business Model of the organization including Value Creation.</span></li></ul><p><span style="font-size:10pt;">Business Transformation entails not just making incremental changes but fundamentally changing all or some of the following:</span></p><ul><li><span style="font-size:10pt;">Organizational Structure</span></li><li><span style="font-size:10pt;">Core Product or Service Portfolio</span></li><li><span style="font-size:10pt;">Systems</span></li><li><span style="font-size:10pt;">Processes</span></li><li><span style="font-size:10pt;">People—the way employees work</span></li><li><span style="font-size:10pt;">Technology</span></li></ul><p><span style="font-size:10pt;">Undertaking such arduous effort requires approaching the task in a structured way. Research shows that quite a few of such undertakings are based on anecdotal beliefs instead of being based on empirical data.</span></p><p><span style="font-size:10pt;">Countering this trend, the Boston Consulting Group conducted an empirical study of financial and non-financial data-set comprising 300 U.S. public companies. The data spanned a period of 12 years from 2004 to 2016. Selection was based on the following criteria:</span></p><ul><li><span style="font-size:10pt;">Companies that had a $10 billion or more market capitalization between 2004 and 2016.</span></li><li><span style="font-size:10pt;">Of these, companies with an annualized deterioration in <a href="https://flevy.com/business-toolkit/total-shareholder-value">Total Share-holder Return (TSR)</a> of 10% or more relative to their industry average (2 years running or more) were identified.</span></li></ul><p><span style="font-size:10pt;">Based on extensive analysis—that included use of methodologies like trained proprietary algorithms, prediction models, and Multivariate Regression Analysis—a pattern pertaining to Business Transformation emerged. The pattern depicted the following themes:</span></p><ol><li><span style="font-size:10pt;">Frequency of Failure</span></li><li><span style="font-size:10pt;">Impact of Digital Disruption</span></li><li><span style="font-size:10pt;">Impact of Downturn</span></li><li><span style="font-size:10pt;">Competitive Volatility</span></li></ol><p><span style="font-size:10pt;">The study also suggested the following 5 evidence-based <a href="https://flevy.com/business-toolkit/critical-success-factors">Critical Success Factors (CSFs)</a> for achieving Transformation Success.</span></p><ol><li><span style="font-size:10pt;">Cost Management (drives short-term success)</span></li><li><span style="font-size:10pt;">Revenue Growth (drives long-term success)</span></li><li><span style="font-size:10pt;">Long-term Strategy and R&D Investment</span></li><li><span style="font-size:10pt;">New, External Leadership</span></li><li><span style="font-size:10pt;">Holistic Transformation Programs</span></li></ol><p style="text-align:center;"><span style="font-size:10pt;"><a href="https://flevy.com/browse/flevypro/business-transformation-success-factors-5561"><img class="aligncenter" src="https://flevy.com/blog/wp-content/uploads/2021/03/Slide-deck-image-Business-Transformation-CSFs.png" alt="" width="678" height="561" /></a></span></p><p><span style="font-size:10pt;">Let us examine in a bit more detail some of the CSFs.</span></p><h3><span style="font-size:12pt;"><strong>Cost Management</strong></span></h3><p><span style="font-size:10pt;">In order to launch the Transformation effort on the correct footing, <a href="https://flevy.com/business-toolkit/cost-management">Cost Management</a> is key, in the short term especially. Predictably, empirical analysis suggests that the leading driver for organizations recovering from severe TSR deterioration is a determined Cost-cutting effort during the 1st year of Turnaround. By year 3, Cost Reduction is accountable for the major share of TSR growth as companies divert their portfolios and make available funding for growth investments.</span></p><h3><span style="font-size:12pt;"><strong>Revenue Growth</strong></span></h3><p><span style="font-size:10pt;">Merely short-term operational improvements do not augur well for a sustainable Transformation. There has to be a long-term <a href="https://flevy.com/business-toolkit/growth-strategy-growth">Growth Strategy</a> put in place. For this to happen, leaders have to challenge the foundations of the company’s Business Model.</span></p><p><span style="font-size:10pt;">Research divulges that Revenue Growth progressively becomes the driver for TSR recovery after year 1 in all the successful Transformation efforts. Revenue Growth overshadows, by far, all the initial drivers for TSR recovery by year 5 of all successful Turnaround efforts.</span></p><h3><span style="font-size:12pt;"><strong>Long-term Strategy and R&D Investment</strong></span></h3><p><span style="font-size:10pt;">Turbulent competitive environments, particularly, require long-term Strategic Planning and investment in Research and Development for fruitful Business Transformations. Empirical research and analysis demonstrates:</span></p><ul><li><span style="font-size:10pt;">A 4.8% difference between Transforming companies showing above-average long-term strategic direction compared to companies with a below-average orientation.</span></li><li><span style="font-size:10pt;">More pronounced findings in transforming companies operating in turbulent competitive environments—long-term orientation linked with a TSR increase of 7%.</span></li><li><span style="font-size:10pt;">Companies with above-average R&D investments had upwards of 5.1% TSR impact in contrast to those with below-average spending.</span></li></ul><p><span style="font-size:10pt;">These CSFs strengthen the odds of success in Business Transformation individually. When used together, most of them produce an impact that is larger than the totality of their individual parts.</span></p><p><span style="font-size:10pt;">Interested in learning more about the <a href="https://flevy.com/browse/flevypro/business-transformation-success-factors-5561">5 Critical Success Factors for Successful Business Transformation</a>? You can download <a href="https://flevy.com/browse/flevypro/business-transformation-success-factors-5561">an editable PowerPoint on 5 Critical Success Factors for Successful Business Transformation here </a>on the <a href="https://flevy.com/browse">Flevy documents marketplace</a>.</span></p><h3><span style="font-size:12pt;"><strong>Want to Achieve Excellence in Business Transformation?</strong></span></h3><p><span style="font-size:10pt;">Gain the knowledge and develop the expertise to become an expert in Business Transformation. Our frameworks are based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. <a href="https://flevy.com/browse/stream/transformation">Click here for full details.</a></span></p><p><span style="font-size:10pt;">"If you don't transform your company, you're stuck." - Ursula Burns, Chairperson and CEO of VEON; former Chairperson and CEO of Xerox</span></p><p><span style="font-size:10pt;">Business Transformation is the process of fundamentally changing the systems, processes, people, and technology across an entire organization, business unit, or corporate function with the intention of achieving significant improvements in Revenue Growth, Cost Reduction, and/or Customer Satisfaction.</span></p><p><span style="font-size:10pt;">Transformation is pervasive across industries, particularly during times of disruption, as we are witnessing now as a result of COVID-19. However, despite how common these large scale efforts are, research shows that about 75% of these initiatives fail.</span></p><p><span style="font-size:10pt;">Leverage our frameworks to increase your chances of a successful Transformation by following best practices and avoiding failure-causing "Transformation Traps."</span></p><p><span style="font-size:10pt;"><a href="https://flevy.com/browse/stream/transformation">Learn about our <strong>Business Transformation Best Practice Frameworks</strong> here.</a></span></p><h3><span style="font-size:12pt;"><strong>Do You Find Value in This Framework?</strong></span></h3><p><span style="font-size:10pt;">You can download in-depth presentations on this and hundreds of similar business frameworks from the <a href="https://flevy.com/pro/library">FlevyPro Library</a>. <a href="https://flevy.com/pro">FlevyPro</a> is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:</span></p><blockquote><p><span style="font-size:10pt;">“My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.”</span></p><p><span style="font-size:10pt;">– Bill Branson, Founder at Strategic Business Architects</span></p></blockquote><blockquote><p><span style="font-size:10pt;">“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.”</span></p><p><span style="font-size:10pt;">– David Coloma, Consulting Area Manager at Cynertia Consulting</span></p></blockquote><blockquote><p><span style="font-size:10pt;">“FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight – it’s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.”</span></p><p><span style="font-size:10pt;">– Roderick Cameron, Founding Partner at SGFE Ltd</span></p></blockquote></div>5 Critical Success Factors of Strategic Restructuringhttps://globalriskcommunity.com/profiles/blogs/5-critical-success-factors-of-strategic-restructuring2021-02-11T13:49:19.000Z2021-02-11T13:49:19.000ZMark Bridgeshttps://globalriskcommunity.com/members/MarkBridges<div><div class="entry"><p><a href="{{#staticFileLink}}8543198671,original{{/staticFileLink}}"><img class="align-right" src="{{#staticFileLink}}8543198671,RESIZE_400x{{/staticFileLink}}" alt="8543198671?profile=RESIZE_400x" width="318" height="212" /></a>Reorganization becomes essential at some stage in the lifecycle of any organization. In order to emerge triumphant through this tumultuous challenge, it is necessary that the focus remains on the challenges impeding the organization, thorough Strategic Planning to tackle the challenges, and prioritizing strategic initiatives to deliver effective Business Transformation. Strategic Restructuring has the capability to deliver these results.</p><p>When the word “Restructuring” pops up, the foremost idea that comes to mind is achieving Cost Reduction by minimizing payroll costs—predominantly by cutting back on the headcount.</p><p>Scores of organizations have suffered because, in the melee of headcount reduction, the most competent employees quickly found opportunities elsewhere, leaving inappropriately competent employees behind, resulting in a crippled organization.</p><p>The purpose of Restructuring is to make the organization profitable, efficient, and effective. Headcount reduction should be a consequence of the Restructuring initiative and not the prime objective.</p><p>To avoid an outcome that debilitates the organization as a result of Restructuring, it is absolutely essential to keep an eye on the Critical Success Factors (CSFs) while the organization moves through the 4 phases of Strategic Restructuring. Strategic Restructuring’s 5 CSFs include:</p><ol><li><span style="font-size:12pt;"><strong>Strategic Focus</strong></span></li><li><span style="font-size:12pt;"><strong>Continuous Communication</strong></span></li><li><span style="font-size:12pt;"><strong>Participative Focus</strong></span></li><li><span style="font-size:12pt;"><strong>Positions before People</strong></span></li><li><span style="font-size:12pt;"><strong>Focus on Competency</strong></span></li></ol><p><a href="https://flevy.com/browse/flevypro/strategic-restructuring-critical-success-factors-5389"><img class="aligncenter size-full wp-image-7693" src="https://flevy.com/blog/wp-content/uploads/2020/12/Slide-Deck-image-Strategic-Restructuring-Critical-Success-Factors.png" alt="" width="1002" height="752" /></a>Experts suggest envisioning a “Future State” for the organization, to be achieved through a robust Strategy that includes Change Management, implemented by the most competent employees who are redeployed. The rest of the employees either severe ties voluntarily or are laid off—ideally with a good severance package or a job placement, with the organization’s help, somewhere else.</p><p>Leadership has to ensure firm resolution in employing these <a href="https://flevy.com/business-toolkit/critical-success-factors">Critical Success Factors</a> in order to establish its role and build a constituency among employees who believe in the need for change. Let’s dig deeper into the 5 CSFs of Strategic Restructuring.</p><h3><strong>1. <span style="font-size:14pt;">Continuous Communication</span></strong></h3><ul><li><span style="font-size:12pt;">Communication is a decisive factor in Strategic Restructuring. Pitfall in this factor is the “need to know” approach. Top-level leadership should be communicating with the whole organization quite frequently.</span></li><li><span style="font-size:12pt;">Immediate and full disclosure of information builds trust in the management’s actions.</span></li><li><span style="font-size:12pt;">Repetition is key in getting the message across. Believing that enunciating once is enough, will be erroneous on the leadership’s part.</span></li></ul><h3><strong>2. <span style="font-size:14pt;">Participative Focus</span></strong></h3><ul><li><span style="font-size:12pt;">Redesign of structure is a bottoms-up job because the information and expertise are dispersed throughout the organization.</span></li><li><span style="font-size:12pt;">Employees in the thick of the action are in the best position to undertake this effort.</span></li><li><span style="font-size:12pt;">The management develops the organizational framework and keeps apprising the employees regarding the overall strategy in order to keep the direction true.</span></li><li><span style="font-size:12pt;">A participative approach to Restructuring assists in building employee morale and engagement levels</span>.</li></ul><p>Interested in learning more about the Restructuring’s <strong>Critical Success Factors</strong>, <strong>Transformation Phases</strong>, and a <strong>Case Study</strong> on Restructuring?” You can download <a href="https://flevy.com/browse/flevypro/strategic-restructuring-critical-success-factors-5389">an editable PowerPoint on <strong>Strategic Restructuring: Critical Success Factors</strong></a><u> </u>on the <a href="https://flevy.com/browse">Flevy documents marketplace</a>. </p></div><div class="entry"><h3><span style="font-size:14pt;"><strong>Want to Achieve Excellence in Business Transformation?</strong></span></h3><p>Gain the knowledge and develop the expertise to become an expert in Business Transformation. Our frameworks are based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. <a href="https://flevy.com/browse/stream/transformation">Click here for full details.</a></p><p>"If you don't transform your company, you're stuck." - Ursula Burns, Chairperson and CEO of VEON; former Chairperson and CEO of Xerox </p><p>Business Transformation is the process of fundamentally changing the systems, processes, people, and technology across an entire organization, business unit, or corporate function with the intention of achieving significant improvements in Revenue Growth, Cost Reduction, and/or Customer Satisfaction. </p><p>Transformation is pervasive across industries, particularly during times of disruption, as we are witnessing now as a result of COVID-19. However, despite how common these large scale efforts are, research shows that about 75% of these initiatives fail. </p><p>Leverage our frameworks to increase your chances of a successful Transformation by following best practices and avoiding failure-causing "Transformation Traps."</p><p><a href="https://flevy.com/browse/stream/transformation">Learn about our <strong>Business Transformation Best Practice Frameworks</strong> here.</a></p><h3><span style="font-size:14pt;"><strong>Do You Find Value in This Framework?</strong></span></h3><p>You can download in-depth presentations on this and hundreds of similar business frameworks from the <a href="https://flevy.com/pro/library">FlevyPro Library</a>. <a href="https://flevy.com/pro">FlevyPro</a> is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:</p><blockquote><p>“My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.”</p><p>– Bill Branson, Founder at Strategic Business Architects</p></blockquote><blockquote><p>“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.”</p><p>– David Coloma, Consulting Area Manager at Cynertia Consulting</p></blockquote><blockquote><p>“FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight – it’s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.”</p><p>– Roderick Cameron, Founding Partner at SGFE Ltd</p></blockquote></div></div>Restructuring: Assessment Processes and Methods for Redeploymenthttps://globalriskcommunity.com/profiles/blogs/restructuring-assessment-processes-and-methods-for-redeployment2021-01-09T06:10:00.000Z2021-01-09T06:10:00.000ZMark Bridgeshttps://globalriskcommunity.com/members/MarkBridges<div><p><a href="{{#staticFileLink}}8401379254,original{{/staticFileLink}}"><img class="align-right" src="{{#staticFileLink}}8401379254,RESIZE_400x{{/staticFileLink}}" alt="8401379254?profile=RESIZE_400x" width="292" height="195" /></a>Organizations that have survived over time have had to reinvent themselves over and over with the changes in the environment. These Business Transformations almost always include Cost Reduction that tend to lean towards Headcount Reduction. Headcount Reduction is typically achieved using 2 approaches:</p><ol><li>Downsizing</li><li>Restructuring</li></ol><p>Downsizing keeps the fundamentals of the roles same with only fewer people performing those roles. Whereas, <a href="https://flevy.com/business-toolkit/restructuring">Restructuring</a> creates new roles, as well as modify existing roles, requiring a new mix of skills or altogether new resources to perform them.</p><p>Restructuring presents a more challenging task in that a new mix of skills has to be identified for each role, an Assessment Process has to be set up to assess existing employees against new competencies, and Redeployment after Restructuring (or new recruitment) done.</p><p>The important question in both scenarios is: Who should we eliminate and who should stay?</p><p>The question can be answered by devising and using key criteria to evaluate and then choose the most relevant assessment method.</p><p>Assessment of employees is key in both Downsizing as well as Restructuring. The Assessment Process has to be vigorous enough to identify the right employees to keep and lay off. A broader assessment process ensures coverage of more aspects of a new role which in turn makes the assessment process fairer. Measures, in this regard, may include:</p><ul><li>Covering a broad range of competencies in the interview process rather than concentrating on a few specific competencies.</li><li>Using a mix of relevant performance data from the last role as well as some elements of future-oriented assessment, such as role plays or OPQs.</li><li>Taking input from Line managers.</li></ul><p>Linkage of the entire assessment process to the requirements of the job is the crucial part of this phase.</p><p>As with any assessment system, the content and design will be settled through consideration of various factors, some practical like cost, logistics and some more about safeguarding the output like instrument validity. When taking into account assessment tools for incorporation in the process it is beneficial to examine them against following criteria:</p><ul><li>Coverage of range</li><li>Accuracy</li><li>Relevance</li><li>Freedom from bias</li><li>Acceptability</li><li>Practicality</li></ul><p>The tools, based on the above criteria, help in various assessment methods that gather information on different aspects pertaining to the elements of the new roles. The most widely used Assessment methods include:</p><ol><li><strong>Existing Performance Management Data</strong></li><li><strong>Line Manager Performance Ratings</strong></li><li><strong>Competency Based / Behavioral Interviews</strong></li><li><strong>Personality Measures (OPQ) Linked to Competencies</strong></li><li><strong>Simulation Exercises</strong></li><li><strong>Pertinent Employee Data</strong></li></ol><p><a href="https://flevy.com/browse/flevypro/restructuring-redeployment-assessment-process-and-methods-5422"><img class="aligncenter size-full wp-image-8312" src="https://flevy.com/blog/wp-content/uploads/2020/12/Slide-deck-image-Redep-Assesment-process-methods.png" alt="" width="713" height="535" /></a></p><p><span style="font-size:10pt;">Let us examine the methods in a little more detail.</span></p><h3><span style="font-size:12pt;"><strong>Existing Performance Management Data</strong></span></h3><p>There are various benefits of using this employee assessment method, such as:</p><ul><li>No additional data gathering is required since the data is already in place.</li><li>Such existing data can be obtained speedily and effortlessly.</li><li>Existing performance data is perceived as pertinent.</li></ul><p>There are some drawbacks associated with the existing Performance Management data method that executives should be mindful of:</p><ul><li>The data is often inconsistent and may vary in quality.</li><li>Does not provide clear distinction between people.</li><li>Does not reflect behavior therefore difficult to base decisions on.</li><li>Usefulness depends on extent of overlap with the new role.</li></ul><p>Such data although convenient and easy to obtain, has to be augmented from other sources—and through other assessment methods—for a complete picture to base the employee selection decision on.</p><p>Interested in learning more about <a href="https://flevy.com/browse/flevypro/restructuring-redeployment-assessment-process-and-methods-5422">Redeployment Assessment Process & Methods</a>? You can download <a href="https://flevy.com/browse/flevypro/restructuring-redeployment-assessment-process-and-methods-5422">an editable PowerPoint on <strong>Restructuring: Redeployment Assessment Process & Methods</strong> here</a><u> </u>on the <a href="https://flevy.com/browse">Flevy documents marketplace</a>.</p><h3><span style="font-size:12pt;"><strong>Want to Achieve Excellence in Business Transformation?</strong></span></h3><p>Gain the knowledge and develop the expertise to become an expert in Business Transformation. Our frameworks are based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. <a href="https://flevy.com/browse/stream/transformation">Click here for full details.</a></p><p>"If you don't transform your company, you're stuck." - Ursula Burns, Chairperson and CEO of VEON; former Chairperson and CEO of Xerox</p><p> Business Transformation is the process of fundamentally changing the systems, processes, people, and technology across an entire organization, business unit, or corporate function with the intention of achieving significant improvements in Revenue Growth, Cost Reduction, and/or Customer Satisfaction.</p><p> Transformation is pervasive across industries, particularly during times of disruption, as we are witnessing now as a result of COVID-19. However, despite how common these large scale efforts are, research shows that about 75% of these initiatives fail.</p><p>Leverage our frameworks to increase your chances of a successful Transformation by following best practices and avoiding failure-causing "Transformation Traps."</p><p><a href="https://flevy.com/browse/stream/transformation">Learn about our <strong>Business Transformation Best Practice Frameworks</strong> here.</a></p><h3><span style="font-size:12pt;"><strong>Do You Find Value in This Framework?</strong></span></h3><p>You can download in-depth presentations on this and hundreds of similar business frameworks from the <a href="https://flevy.com/pro/library">FlevyPro Library</a>. <a href="https://flevy.com/pro">FlevyPro</a> is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:</p><blockquote><p>“My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.”</p><p>– Bill Branson, Founder at Strategic Business Architects</p></blockquote><blockquote><p>“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.”</p><p>– David Coloma, Consulting Area Manager at Cynertia Consulting</p><p>“FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight – it’s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.”</p><p>– Roderick Cameron, Founding Partner at SGFE Ltd</p></blockquote></div>