Simitec N 67th Ave Suite 1186 Glendale, Arizona (484)

Transcription

1 Simitec N 67th Ave Suite 1186 Glendale, Arizona (484) info@simitecinc.com 2013 Simitec, Inc. and/or affiliates. All Rights Reserved. Reproduction and distribution of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Simitec disclaims all warranties as to the accuracy, completeness, or adequacy of such information. Simitec shall have no liability for errors, omissions, or inadequacies in the information contained herein of or interpretations thereof. The opinions expressed herein are subject to change without notice.

2 simitec THE TRANSFORMATIONAL ENTERPRISE A Methodology for Transformational Change Transformational change that leads to sustainable growth and innovation

3 The Transformational Enterprise The transformational enterprise Going beyond the traditional approach of aligning business and technology to include aligning the organizational architecture In the past executives could assume that their business strategies and models were lasting. Organizations strived to be better, but seldom did they have to become distinctively different so frequently. Today becoming different is imperative. Turbulent times demands continual change that provides the means for your organization to outperform the global economy and deliver maximum rates of return. Managing effective, transformational change entails having a clear, distinct vision and strategy, coordinated with business model innovation, integrated with dynamic business capabilities, and an aligned IT architecture. Combined with a parallel change in the organization s culture, workplace climate, and stakeholder s relationships, and network (informal) structure, the organization becomes consistently proactive and responsive. Transformational change begins with an organization s attitude and aptitude toward change. An organization s willingness and ability to change is paramount to setting the organization apart from the rest. This is accomplished by maintaining a balanced perspective of the business and creative spirit sides of the enterprise. One side cannot effectively change without equal change on the other. Organizational change requires the following elements to exist in sync: Clear vision and business strategy, business model creativity and innovation, and dynamic business capabilities to initiate change. Cultivated culture to establish the underpinning for enduring change A motivating, passionate climate to create the catalyst for change Mutually invested stakeholders to execute the change Integrated organizational networks. A responsive IT organization and adaptive architecture to complement the business and organizational change An established change management capability that possesses the combination of strategic and operational leadership that continuously identify the necessary change, champion, manage, and support the change. 1

4 Distinguished Workplace distinguish your workplace positive, empowered Culture The importance of the organizational culture in creating sustainable change cannot be understated. While it well understood that culture matters, the impact that culture has on unity of effort, creating clear focus, and producing high performance is not. A positive, empowered culture and motivating, passionate climate creates the underpinning for enduring change. Aligned with the business strategy it sets the tone for organizational effectiveness and motivation for an environment that leads to engaged stakeholders and better collaboration and innovation throughout the enterprise. motivated, energized climate Interrelated to the organization s culture, workplace climate defines the perceptions and experiences of individuals within the organization. Employees want to feel they contribute value to the organization and have a secure future. A motivating, energizing workplace serves as a catalyst for lasting change. engaged stakeholders Every activity an organization undertakes can only be successful with the commitment of its stakeholders. Engaging the right stakeholders at the right time and managing their interests requires a structured approach to creating a stakeholderengaged workplace. A strategically enabled enterprise recognizes its employees are one of their greatest assets and primary stakeholder. Developmental assignments, challenging work, and advancement opportunites are paramount to a diverse workforce that is adaptive and innovative. integrated networks As powerful epicenters of working relationships and social interactions, these networks describe people s activities that can provide insight into how things really get done within the organization. Because these networks are in constant flux, these networks need to be constantly assessed and integrated as the business environment changes. If managed, they can prove beneficial. If left unmanaged, they can be destructive that results in lost opportunities, business inefficiencies, strategic initiatives failure, and even deliberate sabotage of business goals. 2

5 Differentiated Workspace Differentiate your workspace By coordinating the change in the strategy with the necessary change in the business model and capabilities combined with an associative change in technology capabilities and services, sustainable business change can occur. Two factors must exist: 1. Alignment of the organization s mission, vision, business strategy, business model and capabilities to create line-of-sight visbility. 2. Integration with the organization s workplace to develop cross-organizational vitality. Workplace DISTINGUISH Separate your organization from others by creating an environment that values their employees and manages their stakeholders relationships and organizational networks. Primary steps to get there: 1. Enable your organization with the right people working in the right conditions by managing talent and creating a positive, energized work environment 2. Build stakeholder-engaging relationships. 3. Integrate organizational networks with business capabilities development and execution. 4. Articulate clear, definitive objectives for organizational strategic intent. 5. Generate a strategically aligned business model for tactical direction. 6. Detail the business capabilities for operational execution. 7. Implement the right technology after having all the right pieces in place to achieve the right results. 8. Improve through monitoring and feedback. Enterprise dimensions Organizational Culture Workplace Climate Stakeholder Relationships Organizational Networks Business Strategy Business Model Business Capabilities Technology Capabilities and Services Technology Application, Information, and Infrastructure Architecture 3

6 Investing in your workplace and workspace Buisness Model DESCRIBE Architect the business strategy into a business model that connects the strategy to the business capabilities that serves as a blueprint for how the organization will produce busines value. Technology DEPLOY Design, develop, and deploy technology capabilities, services, and infrastructure to enable business value. DEFINE DETAIL Business Strategy Articulate the mission and vision of the organization. Outlay the strategic direction that aligns investments in people, technology, and organizational capital to create business value. Business Capabilities Translate into details how the business areas will execute the business strategy and model to deliver business value. 4

7 Differentiated Workspace visionary strategy dynamic business capabilities Typically, the driver for change is business strategy. Through a threefold process scan the business continuum to set clear intention and focus, sense the possibilties to innovate the business design, and seize the opportunities by the reconfiguration of business capabilities. Complement the business strategy through organizational development and IT bilateral relationships to strategically enable the organization in a more comprehensive way. Combined with the visionary strategy and innovative business model, dynamic capabilities are another dimension that determines an organization s ability to sustain change. Dynamic capabilities are the organization s ability to reconfigure and integrate its internal and external competencies to address rapidly changing environments. The essence of dynamic capabilities is the ability of the enterprise to scan, sense, and seize new opportunities. They lead to short-term competitive positioning that leads to long-term performance. creative, innovative business model The ever changing competitive continuum demands business model innovation. Organizations today operate in an intensely competitive, rapidly changing world that causes business models to have a short life span. To meet the ever changing demands of stakeholders organizations must continually reinvent their business through unique value propositions, innovative channels and relationships combined with more effective resources, efficient activities, and mutually beneficial partnerships. responsive, adaptive technology In today s ever-changing environment, the role of information technology has become a key, strategic asset to drive and support innovation, profitability, and customer satisfaction. Characterized by the essential use of information technology organizations face the challenge of finding a balance between leveraging existing and deploying new and emerging technologies. Organizational change is not complete without equal change in the IT organization and its capabilities, services, and infrastructure to support the business and organizational change. 5

8 Creating effective, transformational change Creating Effective Change s 1 - Scan s 2 - Sense s 3 - Seize Actionable Insight Manageable Recommendations Measurable Results Develop an enterpise-wide capability to probe the business continuum. Build necessary teams that are diverse, adaptable with the right skills, knowledge, and relationships. Develop monitoring and learning mechanisms. Support by decentralization, local autonomy, and strategic partnerships. Requires interrelated traits of acuity, adaptability, and agility. Evaluate the markets and identify the trends. Identify the performance and opportunity gaps. Prioritize the hot spots (opportunity gaps) and focus areas (performance gaps). Identify future problems and opportunities for the enterprise. Requires interrelated traits of innovation, integration, and business intelligence. The ability to execute is as important as the strength of the business strategy and model. Seize the opportunities through dynamic business, organizational, and technology reconfiguration ahead of the competition. Maintain consistent execution through governance. Requires interrelated traits of effectiveness, efficiency, and ethicalness and social responsibility. Key Enablers Mobilized stakeholders who possess the knowldege, skills, and competencies. Energized environment conducive to creativity and innovation. Utilized organizational networks of collaboration, innovation, and information flow. Allocated key resources and identified key activities to gain insight, develop intent, and execute the objectives. 6

9 Transformational Change Lifecycle Transformational Change Lifecycle The enterprises of today are dynamic and continually changing. Organizational transformation takes a proactive, balanced, and holistic approach that follows five phases designated as I 5. Begin with gaining insight into the current state of the organization that leads to innovative direction by investing in the key initiatives then setting into motion the transformation. Perpetuated by continuous feedback and learning, sustain the change. INSIGHT CHAMPION THE TRANSFORMATION To successfully transform the enterprise align the business, organizational, and technology architectures with the critical few objectives. CHAMPION I 1 - INSIGHT RATE the organization Assess Enterprise Identify hot spots of opportunities and focus areas of improvement INNOVATE CREATE THE TRANSFORMATION Architect your organization s transformation. Perform gap analysis of current and desired organization. Align the organization s business, organizatinal, and technology architectures. Integrate the workspace and workplace Determine the strategic fit of the enterprise s technology architecture. INVEST COMMIT TO THE TRANSFORMATION Address business barriers, organizational forces, and technology limitations. Recruit the right leadership that supports, directs, and manages the transformation. Conduct economic justification of key initiatives. Prioritize hot spots of opportunities and focus areas of improvement. Incorporate into program management and project planning. IMPLEMENT CULTIVATE THE TRANSFORMATION Execute the transformation at all levels of the organization. Engage management first, subsequently employees. Manage the risks. Address security issues. Maintain the transformation through a governance process that strictly adheres to the framework and methodology. IMPROVE CONTINUE THE TRANSFORMATION Never ending transformation is critical to sustain organizational growth. Develop a formalized learning program to take corrective action when necessary. Perpetuate the transformation through grass roots effort to gain feedback and make recommendations. Develop and utilize best practices. 7

10 Transformational Change Lifecycle COMMIT I 3 - INVEST Prioritize initiatives Select initiatives Perform economic justification Develop funding strategy Gain enterprise committment CONTINUE I 5 - IMPROVE Monitor issues Obtain feedback and recommendations Learn and correct mistakes Develop best practices I 2 - INNOVATE Architect the change Gap analysis Alignment of business, people, and technology Integration of workspace and workplace IT Strategic Fit I 4 - IMPLEMENT Mobilize stakeholders and resources Execute the plan Manage the risks Maintain governance process CREATE CULTIVATE 8

11 Challenges and Issues challenges AND ISSUES Successful transformation requires overcoming business barriers, organizational forces, and technology limitations organizational forces Business BarRiers Little or no multilateral assesment that includes organizational and technology architecture. No bilateral relationship between business and technology. Outdated business model. Hard-wired business processes rather than loosely- coupled business capabilities. Misconceived, misaligned, and mistimed initiatives. Culture and climate are not aligned with the business objectives. Sub cultures are not managed and counter cultures are not addressed. Effective management prevails, but real leadership is lacking. Employees are not engaged and unhappy with their job. Organizational networks are not a part of the official hierarchy and deprived of resources and management attention. technology limitations IT is not consider a strategic asset by the business, but an operational liability. IT maintains an internal technology view rather than an external business view. Technology not aligned with business objectives. IT does not operate as a provider of innovative services and solutions. Technology not leveraged across business capabilities. 9

12 Epicenter of Transformational Change epicenter of transformational change Continual enterprise transformation is only possible through a balanced, holistic approach that continually aligns all three architectures of business, organizational, and technology. The results can be an energized environment, engaged stakeholders, supportive business infrastructure, and responsive technology. Unleashed is structured creativity and flexible boundaries where stakeholders with shared vision have the equal interest to accomplish the organization s objectives. A formula for transformational change T c = A 2 + S 3 + D 2 + I 5 : a 2 attitude and aptitude Transformation begins and ends with the attitude (willingness) and aptitude (ability) of the organization to embrace continual change. Long-term committment, dedication, and fortitude is key. s 3 scan, sense, and seize Effective change is possible when an organization scans the business continuum and senses the market and technology trends to identify the focus areas of improvement and hot spots of opportunities. Seize the transformation by exploiting the organization s strengths and addressing its weaknesses. Direct and manage through a organization-wide initiative. d 2 distinguish the workplace and differentiate the workspace Being interrelated and interdependent the workplace and workspace must change in parallel. Change in one without associated change in the the other results in transformational change that will not be fully realized and sustainable growth that will remain elusive. I 5 insight, Innovate, Invest, implement, and improve Transformational change is accomplished through a five-phase lifecycle that assesses the enterprise, architects the workspace and workplace, prioritizes and selects the transformation initiatives, executes and manages the investments, and monitors and learns how to maintain the change. 10

13 Organizational, Business, and Technology Benefits Benefits of transformational Change business benefits Generate Revenue growth 1 Lower customer dissatisfaction 2 Reduce cost of poor quality 2 Increase new product revenue 2 Improve operational productivity 2 Increase sales growth 3 Increase employees productivity and their physical and emotional well-being 4 Organizational benefits Technology benefits Change Management promote effective change throughout the organization. Business Analysis bring people together with different perspectives from other teams, functional areas, and geographical locations. Project Management develop high-performing, value-creating teams. Build stronger partnerships. Better manage mergers, acquistions, and alliances. Take advantage of peoples talent, not just their knowledge and acquired competencies. Utilize subject matter expertise across functional boundaries. Improve communication, collaboration, and information flow within business capabilities. Improve decision-making and conflict resolution. Technology differentiated making it difficult for other organizations to imitate. Technology aligned with business objectives. Technology enabling the execution of the business model. Technology leveraged across business capabilities. Technology strategically and economically justified that results in realized business value demonstrated by a return on investment, not just cost savings. Sources 1. Cameron & Quinn 2. Rob Cross, 3. Gallup 4. Benziger Breakthrough 11