It’s transformation or wither in today’s business environment
There are fundamental changes in business operation. Effects of globalisation, a major slowdown in Western economies, significant shifts in technology, rising energy costs, and the challenges of regulatory compliance. Add to that the requirement for lower cost, lower price, and higher quality, and you have a set of objectives that cannot be achieved using traditional strategies and techniques. That’s why we need strong business transformation strategies.
When many significant drivers are changing at the same time the business environment becomes really complex. The time to react to change has also shortened because of technological advances in communications. So flexible solutions are needed if businesses are to adapt, maybe even survive. Organisations used to have months to prepare for shifts in operating practice, now they have days or at best a few weeks.
In a recent survey by KPMG over 90% of, nearly 1000, respondents surveyed said that they have just completed, are planning, or are in the midst of a transformation programme.
Midaero specialises in business transformation programmes that follow a simple 6-step approach that will make it easy for you to get the most out of your processes, whilst having the flexibility you need to respond to changes.
Step One: Getting the right approach is critical
We begin by defining company direction that will satisfy your stakeholder demands. There are several ways to approach the transformation depending on the current performance of the business, and the objective of the transformation. We agree this direction and execution strategy very early on.
At Midaero we have defined three options for transformation based on the common drivers for improvement.
- Total Transformation: The wholesale turnaround of results through a total review and overhaul of all business processes, and installation, and deployment of our Accelerated Improvement Model.
- Progressive Transformation: Taking processes that are working well, and leveraging that success, to propagate further success through the deployment of our Accelerated Improvement Model.
- Process Transformation: Where a department, or value stream is failing, overhaul of current practices to stop inefficiency that is undermining the rest of the organisation. Once again the transformation includes the use of our Accelerated Improvement Model to ensure sustainability.
Step Two: Ensuring Alignment
Whatever form the transformation will take, it is essential that the strategy is well deployed, understood, and aligned throughout your organisation. It is also necessary to advocate the vision, strategy, and transformation type. We want to ensure deployment seeds in an arable environment.
Our Policy Deployment Tool is designed to ensure that we can develop objectives, initiatives and, goals that can be quickly deployed and aligned, and are based on the need of your stakeholders and operating environment. It is a very simple process to understand, and is an essential element in our Accelerated Improvement Model.
We focus on developing a strategy that incorporates transformation of all key elements of your organisation. Importantly, it will also be aligned to your customer needs.
Step Three: Execution
Stephen G. Hasty at KPMG estimates that 50% of companies get transformation wrong because they can’t execute the strategy.
In Step Two of our Transformation Programme we aligned your organisation with your strategy, which is a large part of the problem solved.
We use our macro planning tools to create a road map that shows what needs to be done, and when, to make the business transformation a success. It also communicates the status of the transformation in real-time.
From the Macro-Planning Tool we build a Deployment Progress Review. This provides a list of tactics that we will deploy to make sure your strategy is properly executed.
Next, we build the True North Metrics Chart. This is very basic target tracker. It will show how the transformation is affecting performance. Also, it will track all organisational performance indicators.
By following these steps of our Accelerated Improvement Model you can deliver on your strategy. Moreover, you can track and intervene when things are going off plan.
Step Four: Paradigm Shift
One of the largest threats to transformation is leadership thinking. It is hard to change traditional thinking without a strong case for the change, especially when an organisation has had remarkable successes in their history. We use reflection and justified learning to ensure that the business solves real problem with new thinking. We do not use many assumptions in our approach.
Now your strategy is prepared for full deployment, but we need to make sure the workforce is ready too. We look at the Business Philosophy of the organisation to make sure that it will aid and not hinder change. We also help reshape thinking within the leadership team and build engagement with the workforce. Essentially, we help shift the paradigm to meet the business transformation’s objectives, and we build a low Power Distance ratio to ensure that everyone in the organisation is collaborating to reach common goals.
Step Five: Daily Management
Our Accelerated Improvement Model has elements that are essential to the business transformation success. They will also lead to continual improvement and that gives you the flexibility to cope with changes in the future. Flexibility is the key.
First, we install robust Visual Management using our suite of templates. Giving the Gemba walk focus on the results of the day.
Second, we work with your quality professionals to set up a Quality Clinic where failing processes can be analysed and fixed.
Third, we install the Gemba walk. This is where leaders spend time each day on the shop floor, or in the office seeing first-hand, what is happening. This connects leaders and followers, and is essential in engagement.
Fourth, we install a continuous improvement toolbox and train the people how to use it. Giving a foundation for Kaizen that is essential for sustainable success.
Step Six: Repeat
We take a time to celebrate. We have stepped through the entire business transformation process with you, and ensured that you have a system that you understand, and can operate without us.
The transformation will be starting to take hold and results are gradually moving northward. When you are finished with this programme it is time to do it again. This should be a continuous cycle of transformation.
This creates a flexible organisation attuned to both its market, and its customers. There is no greater recipe for sustainable success than that.
If you want to learn more about how we can help you transform your business, please get in touch.