TOPSTM METHOD FOR
BUSINESS TRANSFORMATION
All business is a “going concern” and
everyone wants the going to be smooth. In an ever changing world where Moore’s
law, Butler’s law and Kryder’s law seem to be inversely proportional to
customer perception; staying ahead of the competition becomes a matter of
survival. But apparently, as Hector Berlioz has said “Time is great healer, but
unfortunately it kills all its pupils”; one does not have all the time
in the world to learn, apply and wait for the long run. Results are expected
from day one and most leaders do not realize that concrete outcomes are
fructified only after deliberate attempts are made to obtain them. If all of
this sounds like Greek or Latin, then let me spell it out directly – “Business
Transformation” is the need of the hour if one has to maintain their
operational resilience amidst the fourth industrial revolution.
In my two decades of career, I have been able
to witness world class manufacturing, best-in-class productivity, industry best
practices and several innovative methods to achieve overall improvement. As a
Management Consultant, I always insist on remaining a skeptic with an open mind
without which it is practically impossible to either learn from or advise your
clients effectively. For any organization, business transformation means
management of change at its core. The more rigid the organization, the more
difficult it becomes. Let me clarify here that I’m not pointing towards agile
methodology, as in the current context even an agile organization is deemed to
be rigid. Given the innate nature of mankind, a definite structure appeals to
us more than a formless manner of functioning. Hence, resistance to change is
imminent and how do we manage this resistance is critical to success in modern
times. A simple IFTTT (If This Then That) approach can be as disastrous as the ITTYTWIT
(I Thought That You Thought What I Thought) error that most of us are
prone to. In general, without mincing my words - most of us have witnessed that
organizations, enterprises, programs and projects are driven by HiPPOs
(Highly Paid Person’s Opinion). While the matter of fact is that
opinions don’t matter, actions do. I have personally witnessed leaders in
pretty good organizations toying with ideas like “Thought Leadership” and “Design
Thinking” and thereby costing the organization huge amounts of wasteful
expenditure by attempting to engage in miscalculated or misleading steps and
activities like using “post-it notes for process mapping” involving entire top
and middle management team for weeks altogether, where it could have been
easily executed by an outsourced expert at a fraction of the cost or like moving
from one legacy system to the other before ending up with budgetary constraints
for a real digital transformation project.
Let me bring you back to the current topic,
where I wish to present a proprietary method for achieving business
transformation with the least resistance as shown below:
As can be seen from the above image, one can
drive transformation using any of the four paths viz. Technology, Operations, Process
and Strategy. However, the stars provided for each indicate the
weightage or importance of that particular aspect w.r.t to overall improvement
in the organization. The stars also are an indicator of the level of paradigm
shift and ensuing resistance to change that can occur while bringing
about the transformation. Hence, if an organization is geared up for
operational resilience right from the beginning, then it would be ideal to follow
the steps as described below:
§ STRATEGY:
Irrespective of the vision, mission and goals of the company; the strategic direction must be formulated after a careful consideration of the overall context to successfully manage the stakeholders. A risk based approach is required to envisage unforeseen circumstances and be prepared for accommodating major tweaks in the future.
The more flexible the strategy, the more resilient is the organization as opposed to a robust strategy that harbors enormous internal resistance and does not provide enough space for management of change. In pure layman terms, your strategy is your bulletproof vest – it has to be soft enough to allow you to breath and hard enough to be impenetrable.
Strategy can neither be run through bias nor is it a mere thought experiment. From strategy emanates tactics and from tactics flow maneuverability and from maneuverability comes victory.
§ PROCESS:
Once the overall strategy has been established, a clinical approach to process management is required. Without a process approach, an organization cannot achieve its intended purpose. To do this effectively, one has to sift through layer upon layer of existing dogmas, norms and practices. One must not hesitate to question the adequacy of the existing procedures and rethink the alternative possibilities of getting the job done.
Consider process as the battlefield formation, where it must work with synchronicity and swiftness to enable one to adapt to ever changing requirements and newer environments. However, one must be smart enough to not to reinvent the wheel when not required and diligent enough to dive deep to uncover hidden treasures, if the need be.
Process transformation is one of the toughest nuts to crack and it really does pay in the long run.
§ OPERATIONS:
Now that an excellent process has been set up, one can look into transforming operations. One must note that both strategy and process are enabling functions while operation is an execution function. Here, one must have a hands-on approach to solving everyday problems. A cursory glance here and slight nudge there will only lead to weakening of the pipeline. A thorough systems approach is required to identify opportunities for improvement and close the gaps if any.
Allegorically, operation is the weapon without which any enterprise is rendered unviable. So, to bring about operational transformation it is imperative to get your hands dirty and perform a microscopic examination of all the corners involved.
§ TECHNOLOGY:
Technological advancement is inevitable in the current times and organizations need to either adapt to this change or adopt newer ways of working. But it must be noted that, any kind of technological transformation must not be attempted if the underlying foundations of operations, processes and strategy are not strongly resilient; unless one has the willingness and capacity to change the entire landscape solely on the pillar of technology.
Technology can be either an enabling function or an execution function or both depending upon the context, scale of operations, and complexity of processes. Mere shift from legacy systems to latest technology does not constitute digital transformation. Business transformation that leverages technology to build upon its operational resilience in accordance with the strategic direction is the preferred way to go.
Technically speaking, technology is
like a telescope that helps you aim better and hit the bullseye with ease. However, it can be of no help to
the one who is blind. In the current context, what is implied is that going
gung-ho with a haywire approach to whatever is the latest will not work. A
careful and holistic take is required to undergo transformation at the
technological level which must also be supported by the other three levels
described earlier.
An organization can survive without
technological transformation as this can be achieved later if not imminently.
Similarly, operational transformation may or may not affect the overall
performance of the organization in the immediate future but is important in the
long run. In a competitive scenario, revamping operations is a must in order to
survive and stay ahead. On the contrary, process transformation is a critical
factor that can decide the bottom-line of the organization and define its
growth. If this is overlooked, things can go wary with the slightest of change
in market dynamics or the business environment. Under stable conditions, most
organizations assume that their processes are performing to their optimum
values while the reality is otherwise. The greatest risk in times of change or
turmoil is that a company might cease to exist if processes are not reviewed
periodically. Lastly, strategic transformation is needed when there is massive
change or advancement in the industry. If there is rigidity and resistance at
this level, then the existence of the company itself can be questionable.
No matter which framework one may choose to adhere to or follow, the TOPSTM method for business transformation ensures a smooth transition with the least friction.
