competitive advantage - Blog - Global Risk Community2024-03-28T10:11:48Zhttps://globalriskcommunity.com/profiles/blogs/feed/tag/competitive+advantageOhmae 3C Model: Crafting Winning Strategies in the Modern Marketplacehttps://globalriskcommunity.com/profiles/blogs/ohmae-3c-model-crafting-winning-strategies-in-the-modern-marketpl2024-03-20T18:27:01.000Z2024-03-20T18:27:01.000ZMark Bridgeshttps://globalriskcommunity.com/members/MarkBridges<div><p><a href="{{#staticFileLink}}12402879664,original{{/staticFileLink}}"><img class="align-full" src="{{#staticFileLink}}12402879664,RESIZE_710x{{/staticFileLink}}" width="710" alt="12402879664?profile=RESIZE_710x" /></a></p><p>The 3C Model was introduced in 1982 by organizational theorist and Japanese <a href="https://flevy.com/browse/flevypro/strategy-map-2488">Strategy</a> expert Dr. Kenichi Ohmae. This concept was expounded upon in his book entitled "The Mind of the Strategist: The Art of Japanese Business." <br /> <br /> The <a href="https://flevy.com/browse/flevypro/ohmaes-3c-model-strategic-triangle-8411">Ohmae 3C model, also known as "the Strategic Triangle</a>," assists in developing the <a href="https://flevy.com/browse/marketplace/guide-to-business-strategy-execution-873">fundamental components of the Business Strategy</a> of an organization. <br /> <br /> Ohmae's viewpoints emerged from his comprehensive understanding of the international business landscape and his substantial experience in consulting. Consequently, he espoused the adoption of a well-rounded approach that integrates essential elements to achieve a <a href="https://flevy.com/browse/marketplace/industry-analysis-and-competitive-advantage-toolkit-7078">competitive advantage</a>. <br /> <br /> The framework facilitates the generation of strategic insights pertaining to the pivotal determinants of success for an organization. The model posits that the effectiveness of <a href="https://flevy.com/browse/flevypro/best-practices-in-strategic-planning-2738">Strategic Planning</a> is dependent on three critical elements: leveraging organizational strengths by adopting customer-centric approaches, aligning these strengths with market demands by implementing corporate-focused strategies, and surpassing competitors by executing competitor-focused approaches. <br /> <br /> The model prioritizes customers over shareholders, operating under the assumption that <a href="https://flevy.com/browse/flevypro/customer-centricity-primer-3840">Customer Centricity</a> ultimately leads to the satisfaction of shareholders' interests. The 3C Model (Strategic Triangle) developed by Ohmae is applicable to numerous fields, such as Strategic Planning, <a href="https://flevy.com/browse/flevypro/introduction-to-market-and-industry-analysis-1695">Market Analysis</a>, and <a href="https://flevy.com/browse/flevypro/strategic-decision-making-4011">Decision making</a>. <br /> <br /> According to Ohmae’s 3C Model, executives must have a comprehensive understanding of 3 fundamental elements prior to formulating a strategy.</p><ol><li><strong>Customers</strong></li><li><strong>Company (or Corporation)</strong></li><li><strong>Competitors</strong></li></ol><p> <a href="{{#staticFileLink}}12402879701,original{{/staticFileLink}}"><img class="align-full" src="{{#staticFileLink}}12402879701,RESIZE_710x{{/staticFileLink}}" width="710" alt="12402879701?profile=RESIZE_710x" /></a></p><p>It is critical to incorporate these fundamental elements to devise a successful <a href="https://flevy.com/browse/marketplace/business-strategy-essentials-7839">Business Strategy</a>. Organizations that can effectively integrate these 3 C's into their overarching strategy develop the capability to penetrate the intended market segment. <br /> <br /> While functioning independently, each C exerts an impact on the others. For example, a reassessment of your <a href="https://flevy.com/browse/marketplace/corporate-strategy-toolkit-7991">Corporate Strategy</a> becomes imperative when a competitor launches a more cost-effective product that completely satisfies the needs of your clientele. Let’s explore the foundational elements further.</p><p><br /> <strong>Customers</strong> <br /> The consumer is an essential component of Ohmae's 3C paradigm. Maintaining a customer-centric approach throughout the entirety of the product or service development process is of utmost importance. Prioritizing the understanding, fulfillment, and resolution of the needs, concerns, and expectations of its clientele over those of its shareholders is of utmost importance for the organization. This can be achieved by employing a diverse range of digital tools, questionnaires, and methodologies. <br /> <br /> According to the Ohmae's 3C model, customer strategies serve as the fundamental basis for all other strategies. Organizations failing to implement a robust customer-centric strategy will fail to meet the demands and expectations of their stakeholders, including shareholders. The profitability and growth is facilitated when a company's strategic approach incorporates the desires, concerns, expectations, purchasing motivations, and needs of its customers. As an illustration, Apple places emphasis on design, innovation, and user experience with the aim of meeting the exacting criteria that consumers hold for technological products. <br /> <br /> <strong>Company</strong> <br /> This element pertains to the enhancement of an organization's internal resources with the intention of contending effectively. The emphasis of this element is on internal capabilities and strengths of the organization, including its organizational structures, resources, and skills. By prioritizing the development of its internal resources and capabilities, a business can navigate competition better. <br /> <br /> The capability to develop informed judgments is regarded as a critical component to efficiently tackling a wide range of challenges. Businesses can improve their Decision-making processes by focusing on a particular niche or critical functional domain, such as organizational culture, products, services, or technology. Achieving success in a specific functional domain can act as an impetus for the cultivation and achievement of excellence in other functions or domains. To provide an example, Toyota leverages its expertise in <a href="https://flevy.com/browse/flevypro/lean-led-business-transformation-3788">Lean Manufacturing</a> and <a href="https://flevy.com/browse/marketplace/six-steps-of-kaizen-2703">Continuous Improvement (Kaizen)</a> to guarantee optimal performance and operational efficiency. <br /> <br /> <strong>Competitors</strong> <br /> Competitors exert a significant influence on the objectives, methodologies, operations, effectiveness, and standing of an organization. In order to perform a competitive analysis, one must possess a comprehensive understanding of the market landscape, as well as the strategies, strengths, weaknesses, and potential moves of the rivals. By conducting an exhaustive competitive analysis of the market, a business is able to differentiate between and compete with its direct and indirect competitors.</p><p>Interested in learning more about the strategies and approaches under Ohmae's 3C model? You can download <a href="https://flevy.com/browse/flevypro/ohmaes-3c-model-strategic-triangle-8411">an editable PowerPoint presentation on Ohmae's 3C Model (Strategic Triangle) here </a>on the <a href="https://flevy.com/browse">Flevy documents marketplace</a>.</p><p><strong>Do You Find Value in This Framework?</strong></p><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.</p><p>For even more best practices available on Flevy, have a look at our top 100 lists:</p><ul><li><a href="https://flevy.com/top-100/strategy">Top 100 in Strategy & Transformation</a></li><li><a href="https://flevy.com/top-100/organization">Top 100 in Organization & Change</a></li><li><a href="https://flevy.com/top-100/consulting">Top 100 Consulting Frameworks</a></li><li><a href="https://flevy.com/top-100/digital">Top 100 in Digital Transformation</a></li><li><a href="https://flevy.com/top-100/opex">Top 100 in Operational Excellence</a></li></ul><p> </p><p> </p></div>Strategic Resources and Sustained Performance: A Deep Dive into RBV and VRINhttps://globalriskcommunity.com/profiles/blogs/strategic-resources-and-sustained-performance-a-deep-dive-into-rb2024-03-14T06:45:44.000Z2024-03-14T06:45:44.000ZMark Bridgeshttps://globalriskcommunity.com/members/MarkBridges<div><p> <a href="{{#staticFileLink}}12400086252,original{{/staticFileLink}}"><img class="align-full" src="{{#staticFileLink}}12400086252,RESIZE_710x{{/staticFileLink}}" width="710" alt="12400086252?profile=RESIZE_710x" /></a></p><p>In the 1980s, Michael Porter emerged as a notable proponent of the market-based positioning methodology as a means to achieve <a href="https://flevy.com/browse/marketplace/industry-analysis-and-competitive-advantage-toolkit-7078">strategic competitive advantage</a>. As technology advances, there is a heightened level of competition, workplace cultures evolve, and employees acquire greater expertise in crafting exceptional value propositions.</p><p>A multitude of scholars and researchers have put forth alternative frameworks in an effort to achieve <a href="https://flevy.com/browse/flevypro/profitability-and-cost-structure-analysis-internal-data-analysis-frameworks-1704">Profitability</a> and sustainable competitive advantage. Rumelt discovered in 1991 that individual organizational resources, not enterprise-level resources, were the <a href="https://flevy.com/browse/flevypro/key-performance-indicators-kpis-best-practices-4010">primary source of exceptional performance</a> and profitability in large U.S. corporations, in contrast to Porter's assertion that industry solutions are the principal source of profitability.</p><p>Superior performance and a competitive advantage can be achieved, according to Pralahad and Hamel, through the utilization of distinctive organizational competencies or capabilities. Understanding the variability in organizational performance is substantially facilitated by the <a href="https://flevy.com/browse/flevypro/resource-based-view-rbv-and-vrin-framework-8389">Resource-Based View (RBV) and VRIN</a>. The RBV argues that internal resources—including personnel possessing specialized skills, critical competencies, procedures, and knowledge—are the most crucial determinants in enabling an organization to achieve a competitive advantage over its rivals. These internal resources undergo a process of development, inhibition, and subsequent re-emergence.</p><p>Responsibility-Based View (RBV) guarantees the allocation of suitable resources to suitable projects with the aim of maximizing productivity and facilitating seamless project execution. RBV asserts that resources may take the following forms:</p><ul><li>Tangible resources include capital, land, structures, apparatus, and machinery, among others. These physical assets are easily accessible to rival firms.</li><li>Intangible — Brand reputation, trademarks, and intellectual property are examples of intangible assets.</li></ul><p>Principal benefits of employing the RBV include:</p><ul><li>A strong internal orientation that enables organizations to develop strategies that leverage their internal resources and capabilities. RBV demonstrates superior effectiveness and longevity when compared to those that rely solely on external market conditions.</li><li>Prioritizes the allocation of resources in accordance with internal capabilities, assets, and competencies.</li><li>Enables <a href="https://flevy.com/browse/flevypro/strategic-decision-making-4011">informed Decision making</a> by the identification of unique capabilities and resources.</li><li>Provides a thorough understanding of the dynamic relationship between internal capabilities and resources and their impact on the enterprise's overarching strategic goals.</li><li>Enhances the ability to navigate uncertainties, risks, and vulnerabilities by focusing on internal strengths.</li></ul><p>As postulated by Jay Barney in 1991, for an organization to differentiate itself from rivals and establish a sustainable competitive advantage, its strategic internal resources must demonstrate these attributes:</p><ol><li><strong>Valuable</strong></li><li><strong>Rare</strong></li><li><strong>Inimitable (or difficult to imitate)</strong></li><li><strong>Non-substitutable </strong></li></ol><p><a href="{{#staticFileLink}}12400086266,original{{/staticFileLink}}"><img class="align-full" src="{{#staticFileLink}}12400086266,RESIZE_710x{{/staticFileLink}}" width="710" alt="12400086266?profile=RESIZE_710x" /></a></p><p>The VRIN attributes of strategic internal resources delineate the determinants that contribute to the competitive advantage of an organization.</p><p>Let’s now discuss the first two attributes of the VRIN.</p><p><strong>Valuable</strong></p><p>The VRIN model, an element of the RBV, asserts that the value of an organization's resources is determined by whether they facilitate the achievement of its objectives, stimulate demand for its offerings, improve quality, increase revenue, <a href="https://flevy.com/browse/flevypro/strategic-cost-reduction-primer-3741">reduce expenses</a>, differentiate the organization's offerings in the market, or counteract environmental threats.</p><p>By maximizing the use of valuable resources, the organization enhances its operational efficiency and effectiveness, thus taking advantage of market opportunities and assets. Assets that enhance the value proposition for consumers, such as unique technological innovations or well-established brand recognition, can potentially <a href="https://flevy.com/browse/marketplace/customer-loyalty-699">increase Customer Loyalty</a> and stimulate demand for premium pricing. For instance, the distinctive flavor of the proprietary formulation of Coca-Cola syrup, which is universally revered and fosters strong brand loyalty, constitutes a valuable asset. This invaluable resource supports the company's capacity to sustain its market leadership position and charge a premium price. The syrup's formulation is subject to stringent protection measures, guaranteeing that its exact flavor has yet to be replicated by any competitor. Coca-Cola has thus maintained a sustained competitive advantage.</p><p><strong>Rare</strong></p><p>A resource is categorized as scarce when the number of competitors who possess it is restricted and it is not easily obtainable. Replicating these resources or capabilities is difficult due to their scarcity.</p><p>Every organization possesses a unique and distinguishing characteristic. Rarity increases the worth of a resource by means of its limited availability, which hinders all firms from utilizing it to implement <a href="https://flevy.com/browse/marketplace/building-blocks-for-competitive-strategy-1877">competitive strategies</a>. A resource that is universally accessible to all competitors will render it ineffective as a source of competitive advantage, regardless of its inherent value.</p><p>To provide an example, a prime retail location could potentially be an insufficient supply.</p><p>Interested in learning more about the other attributes of RBV and VRIN framework? You can download <a href="https://flevy.com/browse/flevypro/resource-based-view-rbv-and-vrin-framework-8389">an editable PowerPoint presentation on Resource-Based View (RBV) and VRIN Framework here </a>on the <a href="https://flevy.com/browse">Flevy documents marketplace</a>.</p><p><strong>Do You Find Value in This Framework?</strong></p><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.</p><p>For even more best practices available on Flevy, have a look at our top 100 lists:</p><ul><li><a href="https://flevy.com/top-100/strategy">Top 100 in Strategy & Transformation</a></li><li><a href="https://flevy.com/top-100/organization">Top 100 in Organization & Change</a></li><li><a href="https://flevy.com/top-100/consulting">Top 100 Consulting Frameworks</a></li><li><a href="https://flevy.com/top-100/digital">Top 100 in Digital Transformation</a></li><li><a href="https://flevy.com/top-100/opex">Top 100 in Operational Excellence</a></li></ul></div>4 Ways to Implement Capabilities-driven Growth Strategyhttps://globalriskcommunity.com/profiles/blogs/4-ways-to-implement-capabilities-driven-growth-strategy2022-12-10T14:00:51.000Z2022-12-10T14:00:51.000ZMark Bridgeshttps://globalriskcommunity.com/members/MarkBridges<div><p><a href="{{#staticFileLink}}10907205859,RESIZE_930x{{/staticFileLink}}"><img class="align-full" src="{{#staticFileLink}}10907205859,RESIZE_710x{{/staticFileLink}}" width="710" alt="10907205859?profile=RESIZE_710x" /></a> </p><p>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:</p><ul><li>How much growth does their company require?</li><li>Should sales growth or margin expansion take precedence? How can the two be reconciled?</li><li>How can true growth be achieved?</li></ul><p>Sustainable growth necessitates a Capabilities-driven Strategy (CDS) as opposed to conventional market-driven strategies, which are centered on what customers want.</p><p>The <a href="https://flevy.com/browse/flevypro/capabilities-driven-growth-strategy-6653">Capabilities-driven Growth Strategy</a> involves capitalizing on the company's current strengths via all viable channels, including existing or adjacent markets, organic channels (<a href="https://flevy.com/business-toolkit/marketing">Marketing</a> or <a href="https://flevy.com/browse/stream/innovation">Innovation</a>), and <a href="https://flevy.com/browse/flevypro/mergers-and-acquisitions-manda-target-operating-model-tom-3630">inorganic methods (Mergers & Acquisitions</a>).</p><p>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 <a href="https://flevy.com/business-toolkit/competitive-advantage">Competitive Advantages</a>. Prior to execution, a coherent Capabilities-driven Growth Strategy requires the formulation of three major criteria:</p><ul><li>The product or service offerings of the business</li><li>A set of skills that competitors cannot replicate</li><li>A value proposition that aligns with what customers want</li></ul><p>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.</p><p>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:</p><ol><li><strong>In-market Opportunities </strong></li><li><strong>Near-market Opportunities</strong></li><li><strong>Disruptive Opportunities </strong></li><li><strong>Capability Development </strong></li></ol><p> <a href="{{#staticFileLink}}10907206252,original{{/staticFileLink}}"><img class="align-full" src="{{#staticFileLink}}10907206252,RESIZE_710x{{/staticFileLink}}" width="710" alt="10907206252?profile=RESIZE_710x" /></a></p><p>The relationship between these four techniques is crucial to success, while being often disregarded. It contributes to the formation of a continuous improvement cycle.</p><p>Let's go further into the first two of these Capabilities-driven Growth Strategy techniques.</p><p><strong>In-market Opportunities</strong></p><p>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:</p><ul><li>Identify gaps between customer wants and current products/services on the market, and then fill those gaps with new or upgraded solutions.</li><li>Identify the features, benefits, and channels of communication that will convince customers to switch to the new offerings.</li><li>Construct, improve, reorganize, or refocus your organization's specific skills in order to bridge the gap and encourage customers to move.</li></ul><p>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.</p><p><strong>Near-Market Opportunities</strong></p><p>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.</p><p>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, <a href="https://flevy.com/browse/stream/supply-chain">supply chain</a>, 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.</p><p>Interested in learning more about the other approaches to Growth Strategy? You can download <a href="https://flevy.com/browse/flevypro/capabilities-driven-growth-strategy-6653">an editable PowerPoint presentation on Capabilities-driven Growth Strategy here </a>on the <a href="https://flevy.com/browse">Flevy documents marketplace</a>.</p><p><strong>Do You Find Value in This Framework?</strong></p><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.</p><p>For even more best practices available on Flevy, have a look at our top 100 lists:</p><ul><li><a href="https://flevy.com/top-100/strategy">Top 100 in Strategy & Transformation</a></li><li><a href="https://flevy.com/top-100/digital">Top 100 in Digital Transformation</a></li><li><a href="https://flevy.com/top-100/organization">Top 100 in Organization & Change</a></li><li><a href="https://flevy.com/top-100/consulting">Top 100 Consulting Frameworks</a></li><li><a href="https://flevy.com/top-100/opex">Top 100 in Operational Excellence</a></li></ul><p> </p><p> </p></div>4 Essential Elements to Assess a Company’s Potential to Become a Supercompetitorhttps://globalriskcommunity.com/profiles/blogs/4-essential-elements-to-assess-a-company-s-potential-to-become-a-2022-11-10T15:33:32.000Z2022-11-10T15:33:32.000ZMark Bridgeshttps://globalriskcommunity.com/members/MarkBridges<div><p><a href="{{#staticFileLink}}10879151658,RESIZE_1200x{{/staticFileLink}}"><img class="align-full" src="{{#staticFileLink}}10879151658,RESIZE_710x{{/staticFileLink}}" width="710" alt="10879151658?profile=RESIZE_710x" /></a>Different tactics are used by organizations to gain <a href="https://flevy.com/business-toolkit/competitive-advantage">competitive advantage</a> 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.</p><p>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 <a href="https://flevy.com/browse/stream/transformation">transforming their entire businesses</a>.</p><p>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 <a href="https://flevy.com/browse/flevypro/mergers-and-acquisitions-manda-target-operating-model-tom-3630">Mergers and Acquisitions</a> to stay on top of the game.</p><p>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.</p><p>Supercompetitors fall into one of three major categories:</p><ul><li><strong>Innovator</strong>—frequently releasing new offerings.</li><li><strong>Value Player</strong>—offering low-cost products.</li><li><strong>Aggregator</strong>—selling products developed by others.</li></ul><p>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:</p><ol><li><strong>Analysis of the industry and its change potential</strong></li><li><strong>Analysis of upcoming Supercompetitors and their core competencies</strong></li><li><strong>Assessing the Future State</strong></li><li><strong>Devising a Strategic Plan</strong></li></ol><p><a href="{{#staticFileLink}}10879151685,original{{/staticFileLink}}"><img class="align-full" src="{{#staticFileLink}}10879151685,RESIZE_710x{{/staticFileLink}}" width="710" alt="10879151685?profile=RESIZE_710x" /></a></p><p>The evaluation enables the firms to comprehend where they and their competitors stand in the future race to become Supercompetitors.</p><p>Let's examine the key elements of the Supercompetitors evaluation in greater detail.</p><p><strong>Industry Analysis</strong></p><p>To determine whether a firm will be a Supercompetitor, a <a href="https://flevy.com/browse/marketplace/industry-analysis-773">detailed assessment of the market</a> 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:</p><ul><li>Have your leaders remained consistent over the past 10 years? Are newcomers taking on leadership positions within the business?</li><li>Are competitors focusing on unique value propositions, with just a small number of them successful overall?</li><li>Do top businesses compete using the same tactics as the forerunners of old?</li><li>Are multinational corporations breaking up into separate businesses?</li></ul><p>Why Are competencies, rather than assets or product portfolios, the key to the success of the best businesses in a certain industry?</p><ul><li>Do leaders in the industry possess scalable capabilities? Is it feasible to scale without costs increasing?</li><li>Do current capabilities contribute to the distinctiveness of products or services?</li></ul><p><strong>Supercompetition Analysis</strong></p><p>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.</p><p>Interested in learning more about the other critical elements of the Supercompetitors potential evaluation? You can download <a href="https://flevy.com/browse/flevypro/supercompetitors-6469">an editable PowerPoint presentation on <strong>Supercompetitors </strong>here </a>on the <a href="https://flevy.com/browse">Flevy documents marketplace</a>.</p><p><strong>Do You Find Value in This Framework?</strong></p><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.</p><p>For even more best practices available on Flevy, have a look at our top 100 lists:</p><ul><li><a href="https://flevy.com/top-100/strategy">Top 100 in Strategy & Transformation </a></li><li><a href="https://flevy.com/top-100/consulting">Top 100 Consulting Frameworks </a></li><li><a href="https://flevy.com/top-100/opex">Top 100 in Operational Excellence</a></li><li><a href="https://flevy.com/top-100/digital">Top 100 in Digital Transformation </a></li><li><a href="https://flevy.com/top-100/organization">Top 100 in Organization & Change </a></li></ul><p> </p><p> </p><p> </p></div>Using Machine Learning to Facilitate in Strategic Decision makinghttps://globalriskcommunity.com/profiles/blogs/using-machine-learning-to-facilitate-in-strategic-decision-making2022-09-22T07:38:15.000Z2022-09-22T07:38:15.000ZMark Bridgeshttps://globalriskcommunity.com/members/MarkBridges<div><p><a href="{{#staticFileLink}}10821764266,original{{/staticFileLink}}"><img class="align-full" src="{{#staticFileLink}}10821764266,RESIZE_710x{{/staticFileLink}}" width="710" alt="10821764266?profile=RESIZE_710x" /></a> </p><p>Automation has a substantial influence on <a href="https://flevy.com/operational-excellence">improving Operational Excellence</a> and Decision Making. <a href="https://flevy.com/browse/flevypro/strategic-decision-making-with-machine-learning-ml-6382">Executives' strategic decision-making abilities are being enhanced</a> by Machine Learning (ML) in an increasing number of firms nowadays.</p><p>Global research done by MIT Sloan Management Review in collaboration with Google, involving 4,700 CEOs and a number of Key Informant Interviews, indicates that ML is increasingly transforming how firms generate and analyze value. This is largely due to the capacity of Machine Learning to make Key Performance Indicators (KPIs) more rigorous and analytical. When KPIs are more demanding, executives can improve corporate operations by applying strategic indicators to guide machine learning (ML) algorithms.</p><p>Companies who invest in and employ ML to improve customer service are fundamentally distinct from those that do not. They have a comprehensive picture of their clientele and examine KPI data and reports frequently. It enables firms to liberate people from menial tasks so they may concentrate on essential goals.</p><p>Companies with a focus on Machine Learning regard data as one of their most valuable assets and adopt ML and other technology tools of the current period <a href="https://flevy.com/business-toolkit/competitive-advantage">to develop a Competitive Advantage</a>. Significant findings of the MIT SMR study indicate that:</p><ul><li>Approximately 75% of research participants stated that investing in <a href="https://flevy.com/browse/flevypro/artificial-intelligence-ai-machine-learning-ml-3336">Machine Learning and Automation</a> enables them to meet their functional KPIs more effectively.</li><li>Organizations with the most innovative and remarkable ML projects demonstrated a strong commitment to managing data as a valuable asset.</li><li>Data-driven enterprises have a significant competitive advantage over those that adopt data or machine learning capabilities slowly.</li></ul><p>Typically, the Marketing department is the first in a business to implement Machine Learning. Advertising, customer intelligence, and segmentation are the most common applications of machine learning.</p><p>Technology executives employ 3 crucial Machine Learning best practices to support Strategic Decision making:</p><ol><li><strong>Employ KPIs to Enable an Integrated, Single View of Customers.</strong></li><li><strong>Analyze and Interpret Factors Driving KPIs.</strong></li><li><strong>Evaluate KPI Reports Carefully and Regularly. </strong></li></ol><p><a href="{{#staticFileLink}}10821764285,original{{/staticFileLink}}"><img class="align-full" src="{{#staticFileLink}}10821764285,RESIZE_710x{{/staticFileLink}}" width="710" alt="10821764285?profile=RESIZE_710x" /></a></p><p>Let's delve deeper into the complexities of the best practices.</p><p><strong>Employ KPIs to Enable an Integrated, Single View of Customers</strong></p><p>A comprehensive, data-driven view of the client is essential for company executives today. Companies that incentivize their staff to implement Machine Learning with relevant, quantifiable KPIs have a comprehensive, broad perspective of their customers.</p><p>The development of a single customer view is facilitated by rewarding the use of machine learning and <a href="https://flevy.com/browse/flevypro/strategic-key-performance-indicators-kpis-4031">establishing meaningful, practical, and attainable KPIs</a> to measure its efficacy. This enables businesses to generate precise consumer segmentation and plan effective client interactions.</p><p><strong>Analyze and Interpret Factors Driving KPIs</strong></p><p>The subsequent <a href="https://flevy.com/browse/flevypro/strategic-decision-making-4011">best practice for enabling Strategic Decision Making using Machine Learning</a> is to interpret the underlying factors that impact their performance indicators. Companies that are compensated for utilizing machine learning are more likely to agree that they can assess the factors and data that comprise their key performance indicators. The capacity to evaluate and analyze the elements of business KPIs contributes to the improvement of Operational Excellence.</p><p>This ability promotes a better understanding of company data and consumer demands, thereby influencing decision-making based on data. Leading companies <a href="https://flevy.com/browse/marketplace/big-data-analytics--implementation-toolkit-6019">utilize data, analytics, and M</a>L to run software and apps essential for predicting client desires, manage systems required to comprehend business requirements, and make these systems smarter.</p><p>Interested in learning more about the Machine Learning best practices to enable Strategic Decision Making ? You can download <a href="https://flevy.com/browse/flevypro/strategic-decision-making-with-machine-learning-ml-6382">an editable PowerPoint on <strong>Strategic Decision Making with Machine Learning </strong>here</a><a href="https://flevy.com/browse/flevypro/core-competence-model-6264"><strong> </strong></a>on the <a href="https://flevy.com/browse">Flevy documents marketplace</a>.</p><p><strong>Do You Find Value in This Framework?</strong></p><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><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><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></div>4 Strategies for Technology Commoditizationhttps://globalriskcommunity.com/profiles/blogs/4-strategies-for-technology-commoditization2022-09-02T17:20:46.000Z2022-09-02T17:20:46.000ZMark Bridgeshttps://globalriskcommunity.com/members/MarkBridges<div><p><span style="font-size:12pt;"><a href="{{#staticFileLink}}10802087269,original{{/staticFileLink}}"><img class="align-right" src="{{#staticFileLink}}10802087269,RESIZE_400x{{/staticFileLink}}" alt="10802087269?profile=RESIZE_400x" width="180" height="320" /></a>Companies, particularly those in the technology sector, used to invest a substantial amount of time, effort, and cash to innovate <a href="https://flevy.com/business-toolkit/competitive-advantage">and establish a Competitive Advantage</a> based on their design and engineering.</span></p><p><span style="font-size:12pt;">Integration of design and technical expertise via the development of high-tech manufacturing and design tools <a href="https://flevy.com/business-toolkit/innovation-management">has simplified the Innovation</a> <a href="https://flevy.com/business-toolkit/production">and Production processes</a>. Consequently, new entrants may now exploit readily and affordably accessible technical knowledge and resources to expedite the creation of their own technology-intensive goods with much greater ease. <a href="https://flevy.com/browse/flevypro/technology-commoditization-6336">This phenomenon is known as Technology Commoditization.</a></span></p><p><span style="font-size:12pt;">This increase in Technology Commoditization has 3 key causes:</span></p><ol><li><span style="font-size:12pt;">Open infringement of Intellectual Property (IP).</span></li><li><span style="font-size:12pt;">Governments requiring companies to exchange technology in order to obtain permits for conducting business.</span></li><li><span style="font-size:12pt;">Regular knowledge transfer as a result of multinational staff transferring to local businesses.</span></li></ol><p><span style="font-size:12pt;">Due to Technology Commoditization, there are some situations where new, unknown firms are catching up to long-established companies and becoming highly formidable competitors.</span></p><p><span style="font-size:12pt;">There are additional, less recognized elements at play that are driving commoditization and making it more difficult to maintain product distinctiveness.</span></p><p><span style="font-size:12pt;">On the plus side, Technology Commoditization has spawned new global rivals and provided customers with more options. In addition, it has created serious and maybe existential issues for existing industry leaders.</span></p><p><span style="font-size:12pt;"><a href="https://flevy.com/business-toolkit/strategy-frameworks">Market leaders must now consider countermeasure strategies to this grave threat</a>. These pressures can be countered by incumbent firms by employing the following 4 strategies:</span></p><ol><li><span style="font-size:12pt;"><strong>Instead of focusing on the commoditized portions of the Value Chain, emphasis should be on complex systems design and defendable areas.</strong></span></li><li><span style="font-size:12pt;"><strong>Differentiation should be based on pushing the design envelope and scaling rapidly in areas where embedded knowledge in tools is high.</strong></span></li><li><span style="font-size:12pt;"><strong>Noticeable IP should be the point of differentiation and should be uncompromisingly safeguarded.</strong></span></li><li><span style="font-size:12pt;"><strong>Process knowledge should be guarded in indiscernible areas.</strong></span></li></ol><p><span style="font-size:12pt;"><a href="https://flevy.com/browse/flevypro/technology-commoditization-6336" target="_blank"><img class="align-center" src="{{#staticFileLink}}10802086066,RESIZE_710x{{/staticFileLink}}" alt="10802086066?profile=RESIZE_710x" width="710" /></a></span></p><p><span style="font-size:12pt;">Let's examine some of the strategies in further detail.</span></p><p><span style="font-size:12pt;"><strong>Instead of focusing <a href="https://flevy.com/business-toolkit/value-chain">on the commoditized portions of the Value Chain</a>, emphasis should be on complex systems design and defendable areas.</strong></span></p><p><span style="font-size:12pt;">Numerous businesses have used this strategy, especially in sectors where the product may be divided into commodity and proprietary components.</span></p><p><span style="font-size:12pt;">GE is an example of a company that purchases a lot of its components, such as easily replicable parts for its commercial jet engines, from lower-cost geographic regions.</span></p><p><span style="font-size:12pt;">GE manufactures what it considers to be essential components itself, such as ceramic matrix composite blades and combustors, and carries out final assembly in its own plants.</span></p><p><span style="font-size:12pt;"><strong>Differentiation should be based on pushing the design envelope and scaling rapidly in areas where embedded knowledge in tools is high.</strong></span></p><p><span style="font-size:12pt;">To keep competitors at bay while relying only on high-tech tools, it appears reasonable to exceed the limits of the equipment.</span></p><p><span style="font-size:12pt;">Leading chip manufacturers, for instance, employ this method by aiming to stay on the cutting edge of tool capabilities by driving advancements that draw on interdisciplinary knowledge and skills.</span></p><p><span style="font-size:12pt;"><strong>Noticeable IP should be the point of differentiation and should be uncompromisingly safeguarded.</strong></span></p><p><span style="font-size:12pt;">Such a method is only rational <a href="https://flevy.com/business-toolkit/innovation-management">when dealing with Innovations</a> where the fundamental innovation is evident.</span></p><p><span style="font-size:12pt;">Companies can produce difficult-to-manufacture unique items and then vigorously protect their patents.</span></p><p><span style="font-size:12pt;">Interested in learning more about Technology Commoditization? You can download <a href="https://flevy.com/browse/flevypro/technology-commoditization-6336">an editable PowerPoint on <strong>Technology Commoditization</strong> here </a>on the <a href="https://flevy.com/browse">Flevy documents marketplace</a>.</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>6 Value Drivers of IT Redesignhttps://globalriskcommunity.com/profiles/blogs/6-value-drivers-of-it-redesign2022-03-22T12:02:07.000Z2022-03-22T12:02:07.000ZMark Bridgeshttps://globalriskcommunity.com/members/MarkBridges<div><p><a href="{{#staticFileLink}}10229021897,original{{/staticFileLink}}"><img class="align-right" src="{{#staticFileLink}}10229021897,RESIZE_400x{{/staticFileLink}}" width="350" alt="10229021897?profile=RESIZE_400x" /></a>Disruptive change has put a tremendous strain on organizations and their IT departments. The capabilities of the IT talent is declining due to inadequate technical education and aging workforce. Legacy systems and diverse IT applications are frequent across most organizations. <a href="https://flevy.com/browse/flevypro/mergers-and-acquisitions-manda-target-operating-model-tom-3630">Mergers and Acquisitions</a> have become a norm, pushing vendors to form alliances. Mobile devices, tablets, and social media have been quite common across employees of almost all organizations. <a href="https://flevy.com/browse/marketplace/cloud-computing--risks-and-opportunities-770">Cloud Computing</a> and <a href="https://flevy.com/browse/marketplace/sales-process-for-start-up-or-established-saas-businesses-2976">software-as-a-service</a> (SAAS) have further complicated IT strategies, facilitation of <a href="https://flevy.com/browse/marketplace/guidelines-for-information-security-and-policy-review-5037">Information Security</a>, and keeping costs under control.</p><p>Systems to capture real-time data and using it to make informed decisions and provide personalized responses to customers (predictive analysis) will become a necessity in future. Organizations that will not equip themselves with these systems quickly will simply <a href="https://flevy.com/browse/flevypro/business-process-outsourcing-bpo-sales-deck-1854">end up outsourcing to companies able to provide such services inexpensively and efficiently</a>.</p><p>Due to these factors, leadership of the IT units is under immense pressure to revamp their IT function, to deliver advanced functionalities, stay abreast of <a href="https://flevy.com/browse/stream/innovation">Innovation</a>, curtail costs, provide superior customer experiences, and gain distinct <a href="https://flevy.com/business-toolkit/competitive-advantage">Competitive Advantage</a>.</p><p><a href="https://flevy.com/browse/flevypro/information-technology-it-redesign-6125">IT Redesign</a> does not work merely by following generic recommendations of pundits from leading IT companies. It necessitates following a systematic process of clearly directing the unit’s focus on the value propositions of the company. To accomplish this, IT leadership needs to first analyze their existing service or product offerings and evaluate the value they generate.</p><p>The IT function of an organization can generate value in 6 ways—the key Value Drivers—by using efficient deployment of technology. These Value Drivers assist the technology leadership in their role to facilitate in providing capabilities the business needs most:</p><ol><li><strong>Cost-effectiveness </strong></li><li><strong>Quality </strong></li><li><strong>Responsiveness</strong></li><li><strong>Aggregation </strong></li><li><strong>Agility </strong></li><li><strong>Innovation </strong></li></ol><p><a href="https://flevy.com/browse/flevypro/information-technology-it-redesign-6125"><img class="aligncenter size-full wp-image-10704" src="https://flevy.com/blog/wp-content/uploads/2022/03/IT-Redesign.png" alt="" width="1002" height="752" /></a></p><p>A dedicated commitment to the delivery of these 6 value drivers enhances the impact of the IT unit tremendously. Let’s discuss these value drivers in a bit detail.</p><h3><strong>Cost-effectiveness </strong></h3><p>Managing IT related costs is the foremost driver of value for the IT function. This value driver demands commitment from the leadership to:</p><ul><li>Keep IT related costs lower than those of rivals.</li><li>Reliably enhance the cost indicators.</li><li>Finance initiatives to build distinctive capabilities.</li><li>Curtail spending in activities not adding value for the enterprise.</li></ul><p>For example, a renowned retail supermarket has in place a sole straightforward yet reliable IT system to track and manage all functions. The system monitors all expenditures and allows investing only in initiatives that positively impact its critical capabilities (e.g. superior customer service).</p><h3><strong>Quality</strong></h3><p>This driver of value for the IT function warrants maintaining high standards of quality of service / products. The driver warrants commitment from the leaders to:</p><ul><li>Consistently achieve or exceed the agreed upon—or standard—service or product quality levels.</li><li>Conform to security, confidentiality, and regulatory standards, risk management protocols, and operational guidelines.</li></ul><p>For instance, a large global industrial corporation employs customized <a href="https://flevy.com/browse/marketplace/robotics-process-automation-1103">Robotics</a> and <a href="https://flevy.com/browse/stream/supply-chain">Supply Chain Management</a> applications to develop and manage outstanding <a href="https://flevy.com/operational-excellence">Operational Excellence</a> capabilities of their people.</p><h3><strong>Responsiveness</strong></h3><p>This value driver demands consistently high levels of engagement across the different departments of the company. The driver warrants commitment from the leaders to:</p><ul><li>Maintain efficient service delivery, candid communication, and high-degree of engagement with internal stakeholders.</li><li>Collaborate and partner with all other units of the organization to prepare realistic estimates and interpret changing internal demand patterns.</li><li>Stay informed of the organizational-level requirements, objectives, and priorities.</li></ul><p>For example, in order for financial institutions to serve their consumers better and thrive in this age, it is imperative to transform their Strategy and operations. This entails enabling rigorous cooperation and harmony between the business and IT departments to ensure that the back office operations fully facilitate front office functions.</p><p>Interested in learning more about Information Technology (IT) Redesign? You can download <a href="https://flevy.com/browse/flevypro/information-technology-it-redesign-6125"><span style="text-decoration:underline;">an editable PowerPoint on <strong>Information Technology (IT) Redesign</strong> here</span></a><u> </u>on the <a href="https://flevy.com/browse">Flevy documents marketplace</a>.</p><h3>Do You Find Value in This Framework?</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>Capabilities-driven IT Strategy for the Digital Agehttps://globalriskcommunity.com/profiles/blogs/digital-age-it-strategy-capabilities-driven2022-02-08T08:00:10.000Z2022-02-08T08:00:10.000ZMark Bridgeshttps://globalriskcommunity.com/members/MarkBridges<div><p><span style="font-size:12pt;"><a href="{{#staticFileLink}}10080294288,original{{/staticFileLink}}"><img class="align-right" src="{{#staticFileLink}}10080294288,RESIZE_400x{{/staticFileLink}}" alt="10080294288?profile=RESIZE_400x" width="300" height="450" /></a>Customary practice to Capital Budgeting for satisfying needs of Information Technology development and support pursues a fragmented process and considers requests as stand-alone projects, each with its particular business justification.</span></p><p><span style="font-size:12pt;">The approach bases most of the capital allocation on historical expenditure patterns and financial projections. It handicaps the underlying <a href="https://flevy.com/business-toolkit/enterprise-architecture">Enterprise Architecture</a> making it inflexible and layered with unnecessary complexity. The practice results in inferior outcomes with far greater expenditure. It also increases the fixed costs of IT operations because of reluctance to retire legacy systems.</span></p><p><span style="font-size:12pt;">Conventional approach to <a href="https://flevy.com/business-toolkit/capital-budgeting">Capital Budgeting for IT projects</a> is too outdated and sluggish for today’s Digital Age, where technology has taken a more strategic role.</span></p><p><span style="font-size:12pt;">In the Digital Age, technology needs to be rapidly developed to support not only the operations of the organization, but also to directly support Corporate Strategy. Thus, we need a faster, more agile approach to IT Strategy.</span></p><p><span style="font-size:12pt;">Capabilities-driven IT Strategy uses an approach where a comprehensive view to IT is adopted based on unique proficiencies of the company. It shapes an organization-wide justification for Information Technology. It also puts IT function and business unit together for developing the IT Strategy. Capabilities-driven approach highlights the strategic worth of visionary IT leadership, particularly in assisting companies comprehend which strategies are most feasible.</span></p><p><span style="font-size:12pt;">The approach presses the company to base judgment on the manner in which the company creates value, on the investment required for distinguishing capabilities, and on the contribution that IT ought to make. Capabilities-driven approach centers investment on limited distinctive capabilities that set the company apart.</span></p><p><span style="font-size:12pt;">Quite a few companies have employed such strategies, over a short period of time, and have attained a new kind of IT and operational leadership.</span></p><p><span style="font-size:12pt;">Capabilities-driven IT Strategy is achieved through a 4-phase approach:</span></p><ol><li><span style="font-size:12pt;"><strong>Determine our Distinctive Capabilities in Relation to IT.</strong></span></li><li><span style="font-size:12pt;"><strong>Prioritize our IT Project Portfolio.</strong></span></li><li><span style="font-size:12pt;"><strong>Develop Technology Roadmap of IT Investments and Activities.</strong></span></li><li><span style="font-size:12pt;"><strong>Develop Culture and Governance to Support IT Strategy</strong>.</span></li></ol><p><span style="font-size:12pt;"><a href="https://flevy.com/browse/flevypro/capabilities-driven-it-strategy-5977"><img class="aligncenter size-full wp-image-10076" src="https://flevy.com/blog/wp-content/uploads/2021/11/Slide-Deck-image-Capabilities-driven-IT-Strategy.png" alt="" width="789" height="592" /></a></span></p><p><span style="font-size:12pt;">The phases are sequential, where in each phase, a fundamental question regarding the role of IT in the organization is answered.</span></p><p><span style="font-size:12pt;">Let us probe some aspects of the phases a little more deeply.</span></p><h3><span style="font-size:12pt;"><strong>Determine our Distinctive Capabilities in Relation to IT</strong></span></h3><p><span style="font-size:12pt;">The question answered in this phase is regarding Distinctive Capabilities of the company—capabilities that sustain the company’s strategic priorities and gives it a <a href="https://flevy.com/business-toolkit/competitive-advantage">Competitive Advantage</a>—and how Information Technology can play a part in improving them.<strong> </strong></span></p><h3><span style="font-size:12pt;"><strong>Prioritize our IT Project Portfolio</strong></span></h3><p><span style="font-size:12pt;">The question answered in this phase is how should the IT projects that will enhance the distinctive capabilities identified in phase 1 be prioritized?</span></p><p><span style="font-size:12pt;">To do this, an IT investment portfolio matrix—based on Strategic Importance and Value Potential criteria—is used that places the IT investment in 1 of the following 4 categories:</span></p><ul><li><span style="font-size:12pt;">Invest to Grow</span></li><li><span style="font-size:12pt;">Invest to Sustain</span></li><li><span style="font-size:12pt;">Invest to Refine</span></li><li><span style="font-size:12pt;">Invest to keep the lights on</span></li></ul><h3><span style="font-size:12pt;"><strong>Develop Technology Roadmap of IT Investments and Activities</strong></span></h3><p><span style="font-size:12pt;">The question answered in this phase is regarding the order of investment and activity that will permit the company to achieve the goals set and fill the gaps that need closing.</span></p><h3><span style="font-size:12pt;"><strong>Develop Culture and Governance to Support IT Strategy</strong></span></h3><p><span style="font-size:12pt;">The issue to tackle in this phase pertains to the nature of <a href="https://flevy.com/business-toolkit/corporate-culture">Cultural</a> and Governance support needed to put this IT strategy into practice.</span></p><p><span style="font-size:12pt;">Interested in learning complete details of Capabilities-driven IT Strategy and its phases? You can download <a href="https://flevy.com/browse/flevypro/capabilities-driven-it-strategy-5977">an editable PowerPoint on <strong>Capabilities-driven IT 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>Pharmaceutical Supply Chain Reinventionhttps://globalriskcommunity.com/profiles/blogs/pharmaceutical-supply-chain-reinvention2022-01-15T10:54:35.000Z2022-01-15T10:54:35.000ZMark Bridgeshttps://globalriskcommunity.com/members/MarkBridges<div><p><a href="{{#staticFileLink}}10013835694,original{{/staticFileLink}}"><img class="align-right" src="{{#staticFileLink}}10013835694,RESIZE_400x{{/staticFileLink}}" alt="10013835694?profile=RESIZE_400x" width="350" /></a>Majority of pharmaceutical companies are persisting with decade old processes and routines. They have transactional relationships with suppliers, lack of concerted efforts to progress ahead, and no vision to reap productivity rewards. The reasons for continuing with these traditional practices include tax regimes, regulatory hurdles, and stable revenues from customers dependent on existing industry offerings.</p><p>Disruption—spurred by technological <a href="https://flevy.com/browse/stream/innovation">Innovation</a>, fluctuating customer demand patterns, and more agile and creative competitors—has forced the pharmaceutical sector to think of ways to face these challenges, survive, and thrive. One of the strategic response to this competitive disruption—by leading manufacturers—is to reexamine their manufacturing operations, embracing agile principles, reducing costs, revolutionizing procurement and distribution functions, and striving to achieve Operational Excellence. Above all, they view their supply chain not as a cost center, but as a source of Competitive Advantage.</p><p>The increasing influence of generic drugs is another challenge for large multinational pharmaceuticals. In the past, multinational companies (MNCs) dominated the market owing to possessing a number of high-market drugs protected under patents. Patent protection afforded them the leverage to set high prices on each product. The scenario is fast changing. Expiry of high-market drugs patents is creating a huge opening for generic competitors and the space is widening compared to the past.</p><p>In the past, pharma manufacturers were able to counter the threat to generic competitors by developing new drugs. However, this is becoming difficult and the new drugs pipeline is shrinking with time. R&D expenditure has continuously gone up, however, drug approval from the authorities has not kept paced with it. It has rather declined, straining the MNCs further.</p><p>Other disruptive factors include newer distribution methods, public health plans favoring generic drugs over proprietary ones due to cost effectiveness, the newer internet / mail delivery options displacing traditional pharmacy dispensing options. Pharmacy chains—e.g. Walgreens—have given a leverage to the retailers to negotiate reduction in medicine prices where again generics have an edge over MNCs.</p><p>Moreover, the trend of drugs purchased through a formal tender process is increasingly gaining acceptance, adding to the difficulties of large pharma manufacturers. Additionally, strict regulations are minimizing the cost benefits that MNCs traditionally enjoyed in the past.</p><p>All these factors have forced the pharma companies to reorganize their Supply Chains in a more flexible manner to manage complexities, bring in efficiency, and contain costs to compete in off-patent segment with generics.</p><p>Reorganization of a conventional <a href="https://flevy.com/browse/flevypro/pharmaceutical-supply-chain-reinvention-6053">pharmaceutical Supply Chain</a> into an Agile, flexible, and inexpensive Supply Chain warrants developing Operational Excellence and Cost Reduction competencies. This necessitates 5 strategic steps (phases):</p><ol><li><strong>Avoid a one-size-fits-all approach to SCM</strong></li><li><strong>Develop Agile product design and packaging capabilities</strong></li><li><strong>Restructure the Supply Chain footprint</strong></li><li><strong>Establish partnerships with 3<sup>rd</sup> party suppliers</strong></li><li><strong>Enhance planning capabilities</strong></li></ol><p><a href="https://flevy.com/browse/flevypro/pharmaceutical-supply-chain-reinvention-6053"><img src="https://flevy.com/blog/wp-content/uploads/2022/01/Pharma-SCM.png" alt="Pharma-SCM.png" width="595" height="450" /></a></p><p>Let’s discuss these steps in detail.</p><h3><strong>Step 1 – Avoid a One-size-fits-all Approach to SCM</strong></h3><p>Large pharma MNCs typically maintain the Supply Chain of all of their drugs with a single strategy of retaining high inventory and service levels. Such a strategy can only work for products having a high profit margin, in a static environment. It is not suitable for low-margin products, contrasting environments, and does not take into account fluctuations in demand patterns. An appropriate approach is to implement a multiple Supply Chains model based on individual products and markets.</p><h3><strong>Step 2 – Develop Agile Product Design and Packaging Capabilities</strong></h3><p>The 2<sup>nd</sup> step in Pharma Supply Chain Reinvention involves quick distribution of different versions of products to markets based on demand. For low-margin products with high demand volatility, the <a href="https://flevy.com/browse/stream/supply-chain">Supply Chain Management</a> Strategy should be to employ Pack-to-Order system. The Pack-to-Order approach involves developing a version of a product that could be timely dispatched to several markets of varying demand across the globe. This approach coupled with Postponement Strategy—where products are packed to order during later stages of production based on regional demand—assists in trimming down the inventory, reducing complicatedness, and enhancing Supply Chain nimbleness to demand volatility.</p><p>Interested in learning more about how to reinvent your Pharmaceutical Supply Chain? You can download <a href="https://flevy.com/browse/flevypro/pharmaceutical-supply-chain-reinvention-6053">an editable PowerPoint on <strong>Pharmaceutical Supply Chain Reinvention</strong> here </a>on the <a href="https://flevy.com/browse">Flevy documents marketplace</a>.</p><h3>Do You Find Value in This Framework?</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>Digital Fabrication: Manufacturing Transformationhttps://globalriskcommunity.com/profiles/blogs/digital-fabrication-transformation2021-12-06T17:32:25.000Z2021-12-06T17:32:25.000ZMark Bridgeshttps://globalriskcommunity.com/members/MarkBridges<div><div class="entry"><p><span style="font-size:12pt;"><strong>Editor's Note:</strong><em> If you are interested in becoming an expert on Supply Chain Management (SCM), take a look at Flevy's Supply Chain Management (SCM) Frameworks offering. 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/supply-chain">Full details here.</a></em></span></p></div><div class="entry"><p><span style="font-size:12pt;"><a href="{{#staticFileLink}}9885558865,original{{/staticFileLink}}"><img class="align-right" src="{{#staticFileLink}}9885558865,RESIZE_400x{{/staticFileLink}}" alt="9885558865?profile=RESIZE_400x" width="210" height="315" /></a>The conventional <a href="https://flevy.com/business-toolkit/business-model-design-bmodel">Business Model</a> for <a href="https://flevy.com/business-toolkit/manufacturing">Manufacturing</a> is in the process of Transformation. Centralized production has given way to dispersed manufacturing that is customized. Conventional operating practice at large-scale manufacturers is to keep the high-cost R&D distinct from the low-cost production. Digital Fabrication is changing this operating practice.</span></p><p><span style="font-size:12pt;">More and more Digital Fabrication Tools are being developed and used every day which is laying the foundation for Digital Transformation revolution. These tools are being used to develop customized end-products by small-scale manufacturers and in some cases single-person manufacturing concerns. Digital Fabrication tools may be 1 of the following 2 types:</span></p><ol><li><span style="font-size:10pt;"><strong>Programmable Subtractive Tools</strong>—designed to carve shapes from raw materials. Examples of such tools include laser cutters, CNC routers and milling machines, plasma or water jet cutters.</span></li><li><span style="font-size:10pt;"><strong>Additive Rapid Manufacturing Tools</strong>—which are predominantly computer-operated 3-D printers that chiefly construct objects layer by layer but may also be designed to use laser or electron beams.</span></li></ol><p><span style="font-size:12pt;">The impact of the community of individuals dealing in Digital Fabrication tools in disrupting the conventional manufacturing model, is more than the tools themselves. The community is, essentially, a self-established, worldwide Supply Chain, involving quite a few interconnected setups, user clusters, cybershopping sites, and social media environments.</span></p><p><span style="font-size:12pt;">The creators have fashioned open-source collaborations that leverage dropping costs of Digital Fabrication and current social media connectedness. Distributed manufacturing networks allow customers to post job requests that can be taken up directly by fabricators.</span></p><p><span style="font-size:12pt;">In the fabricator-culture, individuals are supposed to make their plans and specifications public, usually under an open-source license, which permits anyone to replicate, adapt, and learn from the designs; always giving credit to the creators and common access to ideas. Collaborators share information mutually, assist each other in progressing, and nothing is owned or controlled centrally. Accessible repositories allow creators to trade plans and instructions, align production, and sell their designs and fabricated articles straight to the society.</span></p><p><span style="font-size:12pt;">Considered holistically, Digital Fabrication and information sharing is ushering in a broadening of the manufacturing environment.</span></p><p><span style="font-size:12pt;">Big manufacturers will have to undergo Business Transformation by adopting open-source innovation, adaptable production, and knowledge-intensive production lines in order to move towards Digital Manufacturing. Large-scale manufacturers desirous of taking advantage of the Digital Fabrication Transformation will find the following 5 principles indispensable in transforming their operating practices:</span></p><ol><li><span style="font-size:10pt;"><strong>Cultivate Digital Capabilities.</strong></span></li><li><span style="font-size:10pt;"><strong>Establish a Hybrid Product Line.</strong></span></li><li><span style="font-size:10pt;"><strong>Embrace Open Innovation.</strong></span></li><li><span style="font-size:10pt;"><strong>Develop New Fabrication Materials.</strong></span></li><li><span style="font-size:10pt;"><strong>Prepare for Misuse and Infringement.</strong></span></li></ol><p><span style="font-size:12pt;"><a href="https://flevy.com/browse/flevypro/digital-fabrication-transformation-5994"><img class="aligncenter size-full wp-image-10126" src="https://flevy.com/blog/wp-content/uploads/2021/12/Slide-Deck-image-Digital-Fabrication.png" alt="" width="720" height="541" /></a></span></p><p><span style="font-size:12pt;">Digital Fabrication’s effect on manufacturing has been similar to that of the internet on information-centric solutions and services or like video content platforms’ effect on television networks.<strong> </strong></span></p><p><span style="font-size:12pt;">Let us delve a little deeper into some of the principles.<strong> </strong></span></p><h3><span style="font-size:12pt;"><strong>Cultivate Digital Capabilities</strong></span></h3><p><span style="font-size:12pt;">Investing in technology that enables the business to make part of the product portfolio using printable composites, in a back room, will give it a <a href="https://flevy.com/business-toolkit/competitive-advantage">Competitive Advantage</a>.</span></p><p><span style="font-size:12pt;">Gaining Digital Fabrication skills and experience now will set the launch pad for leveraging when the time is right.<strong> </strong></span></p><h3><span style="font-size:12pt;"><strong>Establish a Hybrid Product Line</strong></span></h3><p><span style="font-size:12pt;">Start a product line that is mixed—with corresponding mass-production and individual-production articles. New feature substitution, alteration in production line, or restarting production of old products can easily be achieved with Digital Fabrication tools, at a profit.</span></p><p><span style="font-size:12pt;">Certain commonly used products that are consumed in large quantities are better off produced on large scale.</span></p><h3><span style="font-size:12pt;"><strong>Embrace Open Innovation</strong></span></h3><p><span style="font-size:12pt;">Offset reverse engineering and modification culture being driven by the ease of Digital Fabrication with Open Innovation.</span></p><p><span style="font-size:12pt;">Interested in learning more about Digital Fabrication Transformation? You can download <a href="https://flevy.com/browse/flevypro/digital-fabrication-transformation-5994">an editable PowerPoint on <strong>Digital Fabrication Transformation</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 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>7 Tactics to Upskill Your Workforcehttps://globalriskcommunity.com/profiles/blogs/7-tactics-to-upskill-workforce2021-11-13T08:08:07.000Z2021-11-13T08:08:07.000ZMark Bridgeshttps://globalriskcommunity.com/members/MarkBridges<div><div class="entry"><p><span style="font-size:12pt;"><strong>Editor's Note: </strong><em>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. 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/human-resources">Full details here.</a></em> </span><span style="font-size:12pt;"> </span></p></div><div class="entry"><p><span style="font-size:12pt;"><a href="{{#staticFileLink}}9797614053,original{{/staticFileLink}}"><img class="align-right" src="{{#staticFileLink}}9797614053,RESIZE_400x{{/staticFileLink}}" alt="9797614053?profile=RESIZE_400x" width="307" height="205" /></a>Disruptive technology is re-shaping the present-day work environment. Technological advances are making long-standing job roles superfluous.</span></p><p><span style="font-size:12pt;">Digital Disruption being faced by many companies is exacerbating the gap between what employers want their employees to be able to do and what they can actually do. This skills gap needs to be bridged rapidly but with due consideration to the course taken to fill it.</span></p><p><span style="font-size:12pt;">A change in job roles with the help of Upskilling has become necessary in light of the evolving <a href="https://flevy.com/business-toolkit/disruption">Disruption</a>. Upskilling comprises of acquisition of new and pertinent competencies, made necessary because of the current or emerging work environment. Upskilling adds to the skills the employee already possesses. It is a key component to robust <a href="https://flevy.com/business-toolkit/talent-management">Talent Management</a> and can be a source of <a href="https://flevy.com/business-toolkit/competitive-advantage">Competitive Advantage</a>.</span></p><p><span style="font-size:12pt;">Having a robust Upskilling Strategy in place is the first step towards a successful Upskilling effort. Upskilling Strategy can create new roles for existing employees leveraging their experience.</span></p><p><span style="font-size:12pt;">However, the brass tacks of an effective program to bridge the talent gap are the following 7 tactics to Upskilling which can help employers Upskill their workforce:</span></p><ol><li><span style="font-size:12pt;"><strong>Learning and Development</strong></span></li><li><span style="font-size:12pt;"><strong>Job Rotation</strong></span></li><li><span style="font-size:12pt;"><strong>Job Enlargement</strong></span></li><li><span style="font-size:12pt;"><strong>Job Enrichment</strong></span></li><li><span style="font-size:12pt;"><strong>Peer Coaching</strong></span></li><li><span style="font-size:12pt;"><strong>Peer Mentoring</strong></span></li><li><span style="font-size:12pt;"><strong>Hire External Experts/Specialists</strong></span></li></ol><p><span style="font-size:12pt;"><a href="https://flevy.com/browse/flevypro/7-tactics-to-upskilling-5939"><img class="aligncenter size-full wp-image-9927" src="https://flevy.com/blog/wp-content/uploads/2021/11/Slide-Deck-image-7-tactics-of-Upskilling.png" alt="" width="690" height="518" /></a></span></p><p><span style="font-size:12pt;">Contingent on the organization’s requirements, based on a skills gap analysis, one or more tactics in combination may be needed to fill the skills gap.</span></p><p><span style="font-size:12pt;">Let us look at some of the tactics in a little more detail.</span></p><h3><span style="font-size:12pt;"><strong>Learning and Development (L&D)</strong></span></h3><p><span style="font-size:12pt;">L&D programs are a common approach to Upskilling and foundational to becoming a true <a href="https://flevy.com/business-toolkit/learning-organization">Learning Organization</a>. These programs are dependent on a number of factors. One of the key factors is L&D Strategy, which can be developed based on a number of models. Depending on the model chosen, L&D Strategy development will generally go through the following 4 phases:</span></p><ul><li><span style="font-size:12pt;">Training Needs Analysis</span></li><li><span style="font-size:12pt;">Learning objective stipulation</span></li><li><span style="font-size:12pt;">Training material and approach design</span></li><li><span style="font-size:12pt;">Monitoring and Evaluation</span></li></ul><p><span style="font-size:12pt;">Methods chosen for Upskilling will naturally vary for every organization due to the variation in L&D strategy and program, for e.g., online courses, online courses along with live lectures, peer coaching with an Upskill track on Learning Management System.</span></p><h3><span style="font-size:12pt;"><strong>Job Rotation</strong></span></h3><p><span style="font-size:12pt;">Job Rotation is another first-rate technique to Upskill. New skills, knowledge, and competencies can be learnt by moving employees between jobs. Employees learn skills, knowledge, competencies of a specific job other than their own.</span></p><p><span style="font-size:12pt;">Purpose of Job Rotation can be preparing backups for a job, exposing future managers to all types of jobs, exposing HR employees to other jobs for better understanding. Job Rotations are generally at the same level and are temporary in nature.</span></p><h3><span style="font-size:12pt;"><strong>Job Enlargement</strong></span></h3><p><span style="font-size:12pt;">Job Enlargement comprises of adding more activities within the same level to a current role. It expands the ambit of a job by spreading the breadth of duties and responsibilities usually within the same level.</span></p><p><span style="font-size:12pt;">Purpose of Job Enlargement is to encourage employees to expand their skill set by intensifying their performances and exposure. Job Enlargement imparts diverse skills to employees and aids their career growth. Added job responsibilities necessitate training and assist in gaining further experience.</span></p><p><span style="font-size:12pt;">Interested in learning more about the 7 Tactics to Upskilling? You can download <a href="https://flevy.com/browse/flevypro/7-tactics-to-upskilling-5939">an editable PowerPoint on <strong>7 Tactics to Upskilling</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 Human Resource Management (HRM)?</strong></span></h3><p><span style="font-size:12pt;">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. <a href="https://flevy.com/browse/stream/human-resources">Click here for full details.</a></span></p><p><span style="font-size:12pt;">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. </span></p><p><span style="font-size:12pt;">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. </span></p><p><span style="font-size:12pt;">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.</span></p><p><span style="font-size:12pt;"><a href="https://flevy.com/browse/stream/human-resources">Learn about our <strong>Human Resource Management (HRM) 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>Upskilling Strategy in 6 Phaseshttps://globalriskcommunity.com/profiles/blogs/6-phase-upskilling-strategy2021-10-26T13:56:00.000Z2021-10-26T13:56:00.000ZMark Bridgeshttps://globalriskcommunity.com/members/MarkBridges<div><p><span style="font-size:12pt;"><a href="{{#staticFileLink}}9738510277,original{{/staticFileLink}}"><img class="align-right" src="{{#staticFileLink}}9738510277,RESIZE_400x{{/staticFileLink}}" alt="9738510277?profile=RESIZE_400x" width="294" height="190" /></a>Employees with the right skills make or break an enterprise, create brand impression, represent the company’s culture and values.</span></p><p><span style="font-size:12pt;">Disruptive technology is changing the contemporary work environment. Employees in traditional roles are now feeling insecure and disengaged. This dissonance threatens to take away the <a href="https://flevy.com/business-toolkit/competitive-advantage">Competitive Advantage</a> of companies.</span></p><p><span style="font-size:12pt;"><a href="https://flevy.com/business-toolkit/employee-engagement">Employee Engagement</a> has emerged as one of the significant pillars on which the Competitive Advantage, Productivity, and Growth of an organization rests.</span></p><p><span style="font-size:12pt;">Disruptive technology and the resulting Digital Economy have uprooted many of the so-called traditional jobs. <a href="https://flevy.com/business-toolkit/artificial-intelligence">Artificial Intelligence</a> (AI) making diagnosis on medical tests is an example. Does this mean that the doctors will lose their jobs? The answer is no. Doctors will have to train to gain new skills to work with AI.</span></p><p><span style="font-size:12pt;">Many other fields are, likewise, seeing work of employees being taken over by machines. Does that mean employees will lose jobs? Yes and no. There is an urgent need for managements to upgrade employee roles and skills as well as take other steps that make an AI-enabled Workforce.</span></p><p><span style="font-size:12pt;">Upskilling Strategy can create new roles for existing employees leveraging their experience and help engage employees in an otherwise adverse work environment.</span></p><p><span style="font-size:12pt;">Upskilling comprises of acquisition of new and pertinent competencies, made necessary because of the current or emerging work environment. Upskilling adds to the skills the employee already possesses. Contemporary examples of Upskilling may be provision of Digital skills, Analytical skills, or Organizational Transformation skills to the employees.</span></p><p><span style="font-size:12pt;">Contrastingly, Reskilling means teaching totally new skills to employees. Reskilling often mandates sending employees back to college or trade school to obtain a degree or certificate in a new field.</span></p><p><span style="font-size:12pt;">Expanding comprehension regarding how to effectively design and implement Upskilling projects may possibly determine society’s Knowledge Assets. The following 6-phase approach to Upskilling Strategy summarizes the key actions required to ensure effective design and implementation of Upskilling initiatives:</span></p><ol><li><span style="font-size:12pt;">Determine the circumstances and define the project.</span></li><li><span style="font-size:12pt;">Create a skills plan.</span></li><li><span style="font-size:12pt;">Evaluate and guide each employee.</span></li><li><span style="font-size:12pt;">Pair jobs and skills and involve workers.</span></li><li><span style="font-size:12pt;">Pick out trainings and trainers.</span></li><li><span style="font-size:12pt;">Manage the project and examine output.</span></li></ol><p><span style="font-size:12pt;"><a href="https://flevy.com/browse/flevypro/upskilling-strategy-5925"><img class="aligncenter size-full wp-image-9835" src="https://flevy.com/blog/wp-content/uploads/2021/10/Slide-Deck-Image-Upskilling-Strategy.png" alt="" width="739" height="555" /></a></span></p><p><span style="font-size:12pt;">Let us explore some of the phases of the Upskilling Strategy a bit more.</span></p><h3><span style="font-size:12pt;"><strong>Determine the Circumstances and Define the Project</strong></span></h3><p><span style="font-size:12pt;">Each circumstance is exclusive. For determining what is involved in making an Upskilling Strategy for that particular situation; coordination, decisions, and actions on a number of levels at the same time is essential.</span></p><p><span style="font-size:12pt;">All Upskilling initiatives, whether originated by the local government or a result of a situation faced by a single enterprise, have some shared elements.</span></p><h3><span style="font-size:12pt;"><strong>Create a Skills Plan</strong></span></h3><p><span style="font-size:12pt;">The skills plan should center priorities on the categories of jobs being impacted by the disrupting technologies, personnel extremely at risk, companies that stand to gain the greatest.</span></p><p><span style="font-size:12pt;">Devising a skills plan helps determine jobs that will be affected by new technologies, savings realized because of automation, categories of new skills that will be required, time span for these changes to take place.</span></p><p><span style="font-size:12pt;">Determining above factors helps design the training initiative that focuses on specific strategic training goals.</span></p><h3><span style="font-size:12pt;"><strong>Evaluate and Guide Each Employee</strong></span></h3><p><span style="font-size:12pt;">Change always conjures fears in employees and takes them out of their comfort zones. A well-thought-out assessment program that incorporates individual counselling and guidance can go a long way towards pacifying employee fears and assisting them move to an improved situation.</span></p><p><span style="font-size:12pt;">Interested in learning more about pitfalls and benefits of Upskilling, costs and ROI of Upskilling initiatives, details of the 6 phases of Upskilling Strategy? You can download <a href="https://flevy.com/browse/flevypro/upskilling-strategy-5925">an editable PowerPoint on <strong>Upskilling 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>From Economies of Scale to Economies of Unscalehttps://globalriskcommunity.com/profiles/blogs/from-economies-of-scale-to-unscale2021-04-21T09:51:11.000Z2021-04-21T09:51:11.000ZMark Bridgeshttps://globalriskcommunity.com/members/MarkBridges<div><div class="entry"><p><span style="font-size:12pt;"><a href="{{#staticFileLink}}8818272056,original{{/staticFileLink}}"><img class="align-right" src="{{#staticFileLink}}8818272056,RESIZE_400x{{/staticFileLink}}" alt="8818272056?profile=RESIZE_400x" width="314" height="207" /></a>Futuristic, technology-driven business models are weakening the conventional advantages of Economies of Scale. Large corporations, founded on Scale, nevertheless have areas that they can exploit if they reposition rapidly.</span></p><p><span style="font-size:12pt;">For the best part of over a century, Economies of Scale—Cost Advantages that businesses achieve owing to their scale of operation—fashioned the corporation into a perfect engine of business. The economic concept of Economies of Scale was first floated in the Adam Smith era where the idea of obtaining larger production returns through the use of division of labor was introduced.</span></p><p><span style="font-size:12pt;">A technological rush, distinct in history, was observed near the beginning of the 20th century. These new technologies were accompanied by scale i.e., bulk production and access to huge markets. The Economies of Scale guided business success—the strong inverse relationship connecting fixed costs and output grew into a basis of Competitive Advantage.</span></p><p><span style="font-size:12pt;">Back then, investments in scale was the most sensible proposition. Not only did it lower fixed costs but also created a formidable barrier for competitors, denying them entry in the market. Every type of business spent the 20th century in the quest for scale.</span></p><p><span style="font-size:12pt;">The advent of game-changing new technologies such as mobile devices, social media, and cloud computing, augmented by Artificial Intelligence (AI), is whirling Economies of Scale into Economies of Unscale.</span></p><p><span style="font-size:12pt;">Specifically, rise of Software as a Service (SaaS) and emergence of Product to Platform Transformations—coupled with AI’s ability to customize—overthrows bulk production and mass marketing as a basis of Competitive Advantage. These progressions have battered the powerful inverse correlation between fixed costs and output that delineated Economies of Scale.</span></p><p><span style="font-size:12pt;">Today, minor, unscaled businesses, leveraging Platform Scaling Strategieswhile renting SaaS, can hunt in niche markets, effectively contesting big companies that are strained by decades of investment in scale, i.e., in large-scale production, distribution, and marketing.</span></p><p><span style="font-size:12pt;">The triumphant companies in the current tech rush—enabled by Platforms and SaaS—are the ones led by Customer-centric Design, providing each customer precisely what they want, that too while making a profit, and not companies offering everyone uniform products.</span></p><p><span style="font-size:12pt;">Large corporations can remain relevant in this era of niche marketing by taking leverage of their existing infrastructure through astute modifications in their use. They can deploy 3 key tactics to accomplish this:</span></p><ol><li><span style="font-size:10pt;"><strong>Product to Platform Transformation</strong></span></li><li><span style="font-size:10pt;"><strong>Absolute Product Focus</strong></span></li><li><span style="font-size:10pt;"><strong>Dynamic Rebundling</strong></span></li></ol><p><span style="font-size:12pt;"><a href="https://flevy.com/browse/flevypro/economies-of-unscale-5576" target="_blank"><img class="align-full" src="https://flevy.com/blog/wp-content/uploads/2021/04/Slide-Deck-image-Economies-of-Unscale.png?profile=RESIZE_710x" alt="Slide-Deck-image-Economies-of-Unscale.png?profile=RESIZE_710x" width="674" /></a></span></p><p><span style="font-size:12pt;">Let us delve a little deeper into the details of the 3 tactics for leveraging Economies of Unscale.</span></p><h3><span style="font-size:12pt;"><strong>Product to Platform Transformation</strong></span></h3><p><span style="font-size:12pt;">Dynamic corporations have expended decades building scale which is extremely specialized for their industry. Efficient factories, distribution channels, retail outlets, supply chains, marketing expertise, and global partnerships have been painstakingly developed. It is time for these corporations to take a decision on whether it is more viable to rent out this capability to other companies or not.</span></p><p><span style="font-size:12pt;">An example of such an approach is that of P&G’s Connect + Develop program that has been running for more than a decade. <strong> </strong></span></p><h3><span style="font-size:12pt;"><strong>Absolute Product Focus</strong></span></h3><p><span style="font-size:12pt;">As corporations become bigger, emphasis on control becomes more pronounced—processes, regulations, stock prices, and a variety of non-core issues take precedence over great product offering. Niche market focus blurs and attempts are made to make a product that may appeal to the masses in an effort to create Economies of Scale.</span></p><p><span style="font-size:12pt;">In this age of Unscale, the product/customer-focused competitor preys on such weakness. Large corporations can mitigate the repercussion of such weakness by organizing as a network of small businesses focusing on core function while outsourcing non-core functions. Each business, completely dedicated to creating a product perfect for its part of the market.</span></p><p><span style="font-size:12pt;">Apple Inc. contracts out manufacturing to Chinese companies while keeping the R&D and innovation—its core function—in the U.S.<strong> </strong></span></p><h3><span style="font-size:12pt;"><strong>Dynamic Rebundling</strong></span></h3><p><span style="font-size:12pt;">Successful companies in this day and age of Unscale are the ones that make every customer feel like a market of one. A corporation—a compendium of products—can match this by initially understanding its customer, then bundling its products as per each customer’s needs.</span></p><p><span style="font-size:12pt;">A great example is The Honest Co., which in 2012, began selling specialized line of diapers and wipes by subscription. First year, the company raked in $10 million in revenue by supplying a niche customer, a niche product, dissimilar to mass-market brands. By 2016 it was making sales exceeding $300 million.</span></p><p><span style="font-size:12pt;">Interested in learning more about the 3 tactics for leveraging <a href="https://flevy.com/browse/flevypro/economies-of-unscale-5576">Economies of Unscale</a> and how corporations have, in their own way, taken advantage? You can download <a href="https://flevy.com/browse/flevypro/economies-of-unscale-5576">an editable PowerPoint on <strong>Economies of Unscale</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 Strategy Development?</strong></span></h3><p><span style="font-size:12pt;">Gain the knowledge and develop the expertise to become an expert in Strategy Development. 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/strategy-development">Click here for full details.</a></span></p><p><span style="font-size:12pt;">"Strategy without Tactics is the slowest route to victory. Tactics without Strategy is the noise before defeat." - Sun Tzu </span></p><p><span style="font-size:12pt;">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. </span></p><p><span style="font-size:12pt;">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.</span></p><p><span style="font-size:12pt;"><a href="https://flevy.com/browse/stream/strategy-development">Learn about our <strong>Strategy Development 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"> </div></div>Post-Merger Integration Synergies: 6 Strategieshttps://globalriskcommunity.com/profiles/blogs/post-merger-integration-synergies-6-strategies2021-03-13T11:42:06.000Z2021-03-13T11:42:06.000ZMark Bridgeshttps://globalriskcommunity.com/members/MarkBridges<div><div class="entry"><p><a href="{{#staticFileLink}}8662133692,original{{/staticFileLink}}"><img class="align-right" src="{{#staticFileLink}}8662133692,RESIZE_400x{{/staticFileLink}}" alt="8662133692?profile=RESIZE_400x" width="297" height="167" /></a>A significant number of Mergers remain unsuccessful, because companies do not employ a thorough and disciplined approach to realizing Post-Merger Integration Synergies. In reasons for failure, we hear remarks like:</p><ul><li><span style="font-size:14pt;">Targets were set several months earlier by the top management without consulting the line managers, or taking ground realities into consideration.</span></li><li><span style="font-size:14pt;">Assumption base for setting targets was untested.</span></li><li><span style="font-size:14pt;">Targets were met but the timeframe for achieving them made them ineffective—in terms of diminished returns, shareholder disappointment, or depressed share value.</span></li><li><span style="font-size:14pt;">Desired Synergies were achieved but at a very high cost or fairly weakened morale.</span></li></ul><p>A disciplined and rational approach to pursuing Merger Synergies is key to successful Post-Merger Integration (PMI). Companies that authenticate and set pragmatic yet ambitious Post-Merger Integration Synergy targets do the following to exceed targets and achieve substantial share price premium and a significant <a href="https://flevy.com/business-toolkit/competitive-advantage">Competitive Advantage</a>:</p><ul><li><span style="font-size:14pt;">Advise Integration Leaders on how to aim high.</span></li><li><span style="font-size:14pt;">Give managers—responsible for achieving targets—a say in target-setting process.</span></li><li><span style="font-size:14pt;">Create detailed plans with built-in accountabilities.</span></li><li><span style="font-size:14pt;">Pursue their targets aggressively.</span></li></ul><p>Successful PMI Synergies—be it in <a href="https://flevy.com/business-toolkit/cost-optimization">Cost Optimization</a>, <a href="https://flevy.com/business-toolkit/strategic-sourcing-src">Strategic Sourcing</a>, Greater Revenues or any other Cost or Revenue realm—have the common characteristic of leaders pursuing synergies with speed, rigor, discipline, and pragmatism with lots of analysis, planning, preparation, and fine-tuning before the close.</p><p>Success can be ensured time and again if the 6 Strategies for Post-Merger Integration Synergies are followed to the letter:</p><ol><li><span style="font-size:14pt;"><strong>Link Due Diligence (DD) and Post-Merger Integration (PMI)</strong></span></li><li><span style="font-size:14pt;"><strong>Leverage Clean Teams</strong></span></li><li><span style="font-size:14pt;"><strong>Establish Stretch Targets</strong></span></li><li><span style="font-size:14pt;"><strong>Rapidly Iterate to Targets</strong></span></li><li><span style="font-size:14pt;"><strong>Pursue Both Revenue and Cost Synergies</strong></span></li><li><span style="font-size:14pt;"><strong>Institute Performance Management</strong></span></li></ol><p><a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-6-strategies-for-synergies-5542"><img class="aligncenter size-full wp-image-8856" src="https://flevy.com/blog/wp-content/uploads/2021/03/Slide-Deck-Image.png" alt="" width="707" height="531" /></a></p><p>Implementation of the 6 Synergy Strategies involves adopting High-Engagement and Rapid Iteration approach which yields effective Stretch Target Validation and High Level of Line Accountability.</p><p>Let us delve a little deeper into 2 of these PMI Synergy Strategies.</p><h3><span style="font-size:14pt;"><strong>Link Due Diligence (DD) and Post-Merger Integration (PMI)</strong></span></h3><p>Linking DD to PMI ensures realistic estimates on part of the DD team thus avoiding formulation of broad-brushed and imprecise Synergies. Linking also guarantees greater amount of ownership and accountability at the same time enabling more compelling Stretch Targets. Linking of DD to PMI is necessary because:</p><ul><li><span style="font-size:14pt;">Under pressure to complete the M&A, <a href="https://flevy.com/business-toolkit/due-diligence">Due Diligence</a> teams frame assumptions with little knowledge of the levers influencing Synergies or the challenges involved in achieving them.</span></li><li><span style="font-size:14pt;">Due Diligence teams typically project more value in <a href="https://flevy.com/business-toolkit/cost-reduction">Cost Reduction</a> and enhanced Revenues based on erroneous assumptions—without taking into account either the Operating Model (of the former entities and the freshly created one) or the difference / overlap in Customer Base.</span></li></ul><p>Successful Mergers ensure a harmonized hand-off from Due Diligence teams to Integration Planning teams by ensuring the following:</p><ul><li><span style="font-size:14pt;">Placing members of the Mergers and Acquisition team on the Post-Merger Integration (PMI) team to produce a greater degree of ownership and continuity.</span></li><li><span style="font-size:14pt;">Involving Business Unit Heads in target setting at the Due Diligence stage and ensuring ownership and accountability.</span></li><li><span style="font-size:14pt;">Linking of Due Diligence and PMI to enable setting of more profound Stretch Targets.</span></li><li><span style="font-size:14pt;">Analyzing and detailing drivers of saving at a high-level for creating Synergy Targets and Ranges which make later improvements possible based on subsequent information. These targets and ranges enable evaluation of potential gains from new company’s Operating Model.<strong> </strong></span></li></ul><h3><span style="font-size:14pt;"><strong>Leverage Clean Teams</strong></span></h3><p>Clean team is an independent group that is tasked with the collection and analysis of sensitive company data—pre-closure—with the guidance of management. Clean team may comprise of third-party members or employees who can be reassigned out of business in case of deal failure eradicating the risk of compromising confidential information. Clean team is formed by legal contract based on protocols agreed to by both company’s legal departments. Clean teams help by:</p><ul><li><span style="font-size:14pt;">Accelerating PMI planning.</span></li><li><span style="font-size:14pt;">Enabling the acquiring company to have a clearer picture of the target company without violating anti-trust regulation or confidentiality agreements.</span></li><li><span style="font-size:14pt;">Assessing risks and enabling companies to achieve Synergies faster.</span></li><li><span style="font-size:14pt;">Keeping sensitive information of both sides safe—pre-closure—yet embark on planning and preparation even before close in order to save precious time and keep customer confidence high.</span></li><li><span style="font-size:14pt;">Aiding companies accomplish 3 core integration activities before closing—compiling wide-range baseline data, vetting Synergy targets, and preparing options for key decisions.</span></li><li><span style="font-size:14pt;">Empowering companies to avoid / diminish confusion caused by overlap in client assignments and sales people.</span></li><li><span style="font-size:14pt;">Assisting provision of clear information to customers regarding products and services thus avoiding drop in sales.</span></li></ul><p>Interested in learning more about the 6 Strategies for Post-Merger Integration Synergies? You can download an <a href="https://flevy.com/browse/flevypro/post-merger-integration-pmi-6-strategies-for-synergies-5542">editable PowerPoint on <strong>Post-Merger Integration (PMI): 6 Strategies for Synergies</strong> here</a> on the Flevy documents marketplace.</p><h3><span style="font-size:14pt;"><strong>Want to Achieve Excellence in Post-merger Integration (PMI)?</strong></span></h3><p>Gain the knowledge and develop the expertise to become an expert in Post-merger Integration (PMI). 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/post-merger-integration">Click here for full details.</a></p><p>M&A is an extremely common strategy for growth. M&A transactions always look great on paper. This is why the buyer typically pays a 10-35% premium over the of the target company's market value. </p><p>However, when it comes time for the Post-merger Integration (PMI), <em>are we really able to capture the expected value?</em> Studies show only 20% of organizations capture projected revenue synergies and only 40% capture cost synergies. Not to mention, the PMI process is typically very painful, drawn out, and politically charged, often resulting in the loss of key personnel.</p><p><a href="https://flevy.com/browse/stream/post-merger-integration">Learn about our <strong>Post-merger Integration (PMI) 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>5 Dimensions of Employee Engagement Scorecardhttps://globalriskcommunity.com/profiles/blogs/employee-engagement-measurement-scorecard-guiding-principles2021-02-20T17:05:05.000Z2021-02-20T17:05:05.000ZMark Bridgeshttps://globalriskcommunity.com/members/MarkBridges<div><div class="entry"><p><a href="{{#staticFileLink}}8578601065,original{{/staticFileLink}}"><img class="align-right" src="{{#staticFileLink}}8578601065,RESIZE_400x{{/staticFileLink}}" alt="8578601065?profile=RESIZE_400x" width="162" height="260" /></a><a href="https://flevy.com/business-toolkit/employee-engagement">Employee Engagement</a> has emerged as one of the significant pillars on which the <a href="https://flevy.com/business-toolkit/competitive-advantage">Competitive Advantage</a>, <a href="https://flevy.com/business-toolkit/workplace-productivity-wp">Productivity</a>, and <a href="https://flevy.com/business-toolkit/growth-strategy-growth">Growth</a> Strategy of an organization rests. Employee Engagement has many facets. To assess an organization’s current status of Employee Engagement, executives need to devise a measurement system. Measuring Employee Engagement is vital in shaping Employee Engagement Strategies that help propel the organization towards growth.</p><p>A framework that is quite effective in measuring the existing levels of Employee Engagement and devising strategies based on the individuals’ requirements is the “Employee Engagement Scorecard.”</p><p><a href="https://flevy.com/browse/flevypro/employee-engagement-measurement-and-improvement-5321"><img class="aligncenter size-full wp-image-7554" src="https://flevy.com/blog/wp-content/uploads/2020/11/Stock-image-Employee-Engagement-Measurement.png" alt="" width="702" height="527" /></a></p><p>The Employee Engagement Scorecard comprises of:</p><ul><li><span style="font-size:14pt;"><strong>Metrics for each component of Employee Engagement.</strong></span></li><li><span style="font-size:14pt;"><strong>A scale for scoring metrics in each component.</strong></span></li><li><span style="font-size:14pt;"><strong>A comprehensive scorecard that pulls everything together.</strong></span></li></ul><p>The Employee Engagement Scorecard is composed of a number of metrics used to measure the individual employee engagement components. Each metric is based on a 1 to 5 scale, with 1 being lowest and 5 being highest. The scorecard was developed through an extensive research process involving academic literature reviews and managerial interviews across the world.</p><p>The Employee Engagement Scorecard categorizes engagement scores into 4 groups:</p><p><span style="font-size:14pt;"><strong>Score of 20 to 39 –</strong><strong> Low Engagement Level</strong></span></p><p>Indicates that individual components—e.g., Employee Satisfaction, Employee Identification, Employee Commitment—should be addressed.</p><p><span style="font-size:14pt;"><strong>Score of 40 to 59 –</strong><strong> Somewhat more Engaged</strong></span></p><p>Implies that some Employee Engagement factors require immediate attention.</p><p><span style="font-size:14pt;"><strong>Score of 60 to 79 –</strong><strong> High Level Engagement</strong></span></p><p>Shows that generally the company would operate smoothly and achieve good results but further improvement is needed for growth.</p><p><span style="font-size:14pt;"><strong>Score of 80 to 100 –</strong><strong> Adherence</strong></span></p><p>Signifies that the company observes Employee Engagement Best Practices and the Employee Engagement is at a very high level giving the company an advantage in growth.</p><p>The Employee Engagement Scorecard encompasses 5 guiding principles (or dimensions):</p><ol><li><span style="font-size:14pt;"><strong>Enhance Employee Satisfaction</strong></span></li><li><span style="font-size:14pt;"><strong>Promote Employee Identification</strong></span></li><li><span style="font-size:14pt;"><strong>Enhance Employee Commitment</strong></span></li><li><span style="font-size:14pt;"><strong>Ensure Employee Loyalty</strong></span></li><li><span style="font-size:14pt;"><strong>Manage Employee Performance</strong></span></li></ol><p>The 5-dimension Employee Engagement Scorecard has been implemented in 7 countries across the Asian, European and American continents in more than 75 companies. Let us delve a little deeper into the first 2 dimensions of measurement and key actions needed for Strategy Development.</p><h3><span style="font-size:14pt;"><strong>1. Enhance Employee Satisfaction</strong></span></h3><p>Valuable time and resources of the organization may be lost because of dissatisfied employees. Dissatisfied employees tend to be unenthusiastic about work, which negatively affects the quality of work.</p><p>Various measures by the management can enhance Employee Satisfaction once the metrics are analyzed, i.e.:</p><ul><li><span style="font-size:14pt;">Rearranging roles and responsibilities to correspond effectively with employee skill sets and interests.</span></li><li><span style="font-size:14pt;">Mentoring employees more actively.</span></li><li><span style="font-size:14pt;">Developing effective rewards and benefits systems in line with performance.</span></li><li><span style="font-size:14pt;">Offering flexible work hours.</span></li></ul><h3><span style="font-size:14pt;"><strong>2. Promote Employee Identification</strong></span></h3><p>Identifying with the organization is as vital for growth as is employee satisfaction. A satisfied employee who does not identify with the organization will not be able to embody the organization’s culture and values, and thus will stand out from the ones who do. This creates dissonance in team building activities which are a necessary part of generating new ideas for employee development. In such a scenario, the leadership can encourage employee identification by:</p><ul><li><span style="font-size:14pt;">Offering mentorship programs</span></li><li><span style="font-size:14pt;">Creating Idea development platforms</span></li><li><span style="font-size:14pt;">Reinforcing the organizational culture and values, to connect the employees with the organizational culture and nurture growth.</span></li></ul><p>Interested in learning more about the Employee Engagement Measurement & Improvement and the results of its implementation in 75 companies? You can download <a href="https://flevy.com/browse/flevypro/employee-engagement-measurement-and-improvement-5321">an editable PowerPoint on <strong>Employee Engagement Measurement & Improvement</strong> here </a>on the <a href="https://flevy.com/browse">Flevy documents marketplace</a>.</p><h3><span style="font-size:14pt;"><strong>Want to Achieve Excellence in Human Resource Management (HRM)?</strong></span></h3><p>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. <a href="https://flevy.com/browse/stream/human-resources">Click here for full details.</a></p><p>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. </p><p>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. </p><p>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.</p><p><a href="https://flevy.com/browse/stream/human-resources">Learn about our <strong>Human Resource Management (HRM) 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>