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Tag Archives: Culture

7 Principles of Culture Change

25 Nov

org culture 1

Employee behaviors are critical for the success of Business Transformation endeavors.  However, transforming the ingrained behaviors and mindsets of the workforce isn’t straightforward, and when tackled cause the enterprise’s emotional state to go down.

Leaders need to identify the components of Culture that are in line with their Corporate Strategy.  They have to ascertain and harness the positive elements of culture that can drive the desired Transformation and suppress those that obstruct it.

For the desired Organizational Culture to sustain, leaders should work on gaining acceptance of the transformed behaviors.  Leaders who do not give culture its due importance risk ruining their strategic endeavors, as they lack the commitment required from the employees to achieve success.

The real question is why senior leaders fail to use the positive elements of Organizational Culture constructively in the first place.  The answer is simple; there are 4 common yet wrong assumptions—or myths—regarding culture change that are deeply established in most businesses that are anything but facts.  Paying heed to—and acting on—these 4 myths results in grave consequences:

  1. Culture is the root cause of all our failures
  2. Changing our Organizational Culture is beyond us, forget about it
  3. Let Human Resources deal with Organizational Culture
  4. Culture is the responsibility of top management

When senior executives devise a strategy to transform the deeply entrenched organizational culture—by putting in place new policies, practices, reward structures, and performance management systems—there is strong resistance that outplays the strategy.

This is primarily due to employees’ reservations and uncertainties regarding the impact of these changes on their work, colleagues, atmosphere, routines, family, and their enterprise’s reputation.  Transforming the Organizational Culture using the individual’s actions and conduct necessitates seeking assistance from 7 guiding principles:

  1. Be Practical
  2. Reinforce New Behaviors
  3. Seek Out Role Models
  4. Identify Cultural Carriers
  5. Leverage Existing Culture
  6. Be a Role Model
  7. Explain Impact of New Behavior

Application of these guiding principles facilitates in transpiring successful culture change.  Let’s dive deeper into a few of these guiding principles.

Be Practical

The first guiding principle to changing the culture involves starting rationally and pragmatically.  It is not feasible to strive to change every behavior at once.  Leaders need to concentrate on the behaviors most critical for the organization.   The ones that reverberate with the existing company culture and have a key role in improving the organizational performance.  This entails ascertaining groups of employees whose behaviors should be transformed immediately.  A clear demonstration of the requisite changes goes a long way in reinforcing the desired behaviors and culture in the organization.

Reinforce New Behaviors

The 2nd principle to changing culture involves emphasizing new behaviors.  The desired behaviors should be reinforced using formal and informal mechanisms.  Formal reinforcement mechanisms include metrics, processes, appraisals, salary reviews, training, and incentives to reward new behaviors.  These formal mechanisms allow people to practice new behaviors repetitively, until they begin to realize their value.  Informal reinforcement mechanisms include support networks and associations to nurture sensitivity and devotion needed to cope with uncertainties.

Seek out Role Models

Organizational Culture Transformation necessitates distinguishing role models to demonstrate the desired behaviors.  Culture change begins when change practitioners act by modeling the new behaviors.  These change practitioners are pride builders for an organization.  The examples set by these practitioners assist in inculcating pride in others about embracing the desired behaviors.  This action is referred to as “positive deviance” or constructive non-conformity.  These pride builders in turn identify and develop more exemplars.

Interested in learning more about the other guiding principles of culture change?  You can download an editable PowerPoint on 7 Guiding Principles of Culture Change here on the Flevy documents marketplace.

Do You Find Value in This Framework?

You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro Library.  FlevyPro is trusted and utilized by 1000s of management consultants and corporate executives.  Here’s what some have to say:

“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.”

– Bill Branson, Founder at Strategic Business Architects

“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.”

– David Coloma, Consulting Area Manager at Cynertia Consulting

“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.”

– Roderick Cameron, Founding Partner at SGFE Ltd

Site Selection — 5Cs of Site Selection

22 Nov

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Site Selection is the practice of choosing a new facility location. It involves measuring the needs of a new project against the merits of potential locations. The practice became popular during the 20th century, as operations of many organizations expanded to new geographies on a national and international scale.

Selection of sites has been known to have taken place due to factors such as:

  • Best required skills being available in a particular city.
  • Setting up in an off-the-trail location because all operations will be managed remotely.
  • Following the trend to set up offices and facilities in a particular city because every company is doing so.
  • Factory facilities of the company being close-by.
  • Top boss living in the vicinity.
  • Person tasked with choosing the site liking the area for a particular feature such as restaurants and the like.

Making such significant long-term choices based on haphazard and indifferent reasons is a blunder.  The consequences of the mistake are exacerbated when such sites are being selected in emerging markets.

Site selection, in particular, for R&D, Design, and Engineering, warrants a more serious approach than is given to it.  Employing a formalized selection method aids in eliminating sentiment in the concluding decision.  The orderly selection procedure is also valuable in conveying the ultimate decision to all involved.  Selection criteria and their priority should be agreed to in advance for removal of any partiality from the Site Selection process.

Site Selection, especially when being done in emerging markets, has to be conducted while considering at least 5 factors—or the 5 Cs of Site Selection.  Companies ought to identify which among the 5 factors they deem significant and prioritize the factors accordingly:

  1. Cost
  2. Capacity
  3. Capability
  4. Communications
  5. Culture

Selecting a site in light of the set priority order, the company has to take into consideration the characteristics of the site in the present time as well as in 3 to 5 years.

Let us delve a little deeper into some of the factors.

Cost

Ideally, Cost Reduction should not be the only factor influencing site selection decisions.  If Cost factor is predominant in the decision, then the local standard of living and the changes there to, have to be taken into consideration.  Costs in setting up a site include items such as:

  • Buying or leasing land.
  • Office equipment costs.
  • Communication infrastructure and operations costs.
  • IT infrastructure costs.
  • Employee Training costs.

Companies basing their decisions exclusively on Cost factor rather than what suits their requirements end up paying more than estimated.

Capability

Capability is the ability of the site under consideration to provide the necessary infrastructure, resources, and the work/ operational environment required by the company.  Capability includes existence of exclusive skills and expertise that a company explicitly needs.

Also advantageous to capability are nearby R&D, design, testing, and prototyping centers setup by foreign and local companies.

Capacity

Capacity refers to the abundance of qualified skill available on the site under consideration.  Capacity comes into play when the company needs rapid scaling up of its operations.

Although the 5 Cs are of extreme significance, there is an additional factor that cannot be ignored—the Customer.  Recent advances in technology and communication have further empowered the Customer.  The result is that more organizations are seeking to focus on Customer-centric Design.

Interested in learning more about 5 Cs of Site Selection?  You can download an editable PowerPoint on 5 Cs of Site Selection here on the Flevy documents marketplace.

Do You Find Value in This Framework?

You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro Library.  FlevyPro is trusted and utilized by 1000s of management consultants and corporate executives.  Here’s what some have to say:

“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.”

– Bill Branson, Founder at Strategic Business Architects

“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.”

– David Coloma, Consulting Area Manager at Cynertia Consulting

“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.”

– Roderick Cameron, Founding Partner at SGFE Ltd

Transformation Challenges: Digital Manufacturing

14 Sep

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Digital Transformation in Manufacturing or “Digital Manufacturing” for short is not an optional decision for companies anymore.  Manufacturing concerns that want to survive have to jump on the Digital Transformation bandwagon hastily.  Digital Manufacturing has become a prerequisite for a profitable existence even for mere survival of a manufacturing concern.

Business Transformation of any kind is difficult—more so when it is a Digital Transformation in Manufacturing.  In fact, Change Management of Digital Transformation in Manufacturing is typically more difficult than any change or Transformation program that an organization may undertake.

Not many manufacturing concerns had cognizance of the digital technologies until very recently.  Still, manufacturing concerns find it very hard to manage a successful Digital Transformation.

Digital technologies can disrupt businesses.  A Digital Transformation is not the Digitalization of an existing business.  Digital Manufacturing does not entail simply changing technologies, automating processes, taking aid of Artificial Intelligence in the process; in fact it means redefining the nature of work and productivity.

Starting a Digital Manufacturing project can be an arduous process.  Executives customarily approach this task with a lot of prudence and get caught in questions that are actually misnomers and myths, weakening the Digital Transformation process.  The 4 biggest myths about Digital Manufacturing are:

Myth 1. Is outsourcing or partnering, to build digital capabilities, not speedier and less investment intensive?

Myth 2. Why can the existing IT team and CIO not be used for this project instead of hiring new talent and creating a CDO position, both unaware of our business?

Myth 3. Should each of our businesses not have individual digital capabilities tailored to their needs rather than a central digital unit that serves all businesses?

Myth 4. Should not our approach to developing digital capabilities be phased rather than big bang?

More on these myths can be found in the PowerPoint presentation titled Challenges to Digital Manufacturing on Flevy.

Digital Manufacturing opens doors for many opportunities.  It allows the manufacturers to find ways of refining the performance and reliability of machines and increasing customer productivity through customer usage data gathered by sensors in their machines.

This approach allows manufacturers to sell outcomes rather than products.  Outcome delivery via Data Analysis and Performance Enhancement is a business opportunity worth trillions of dollars, according to a World Economic Forum study.

Despite realizing the opportunities of Digital Manufacturing, companies find the process extremely difficult.  Digital Manufacturing has both structural as well as behavioral barriers stopping it from being successfully executed.

Manufacturers have to surpass the following 3 chief obstacles in order for them to be true Digital Manufacturers:

  1. Incumbency
  2. Talent
  3. Culture

Let us dive a little deeper into the obstacles.

Incumbency

Rigidity is a major barrier in bringing about change.  Companies create capabilities and Business Models to succeed.  Overtime, when these capabilities and Business Models become critical for success and hard to imitate for the rivals, they transform into rigidities.  Success of such capabilities and models make the companies wary of bringing change in them.

Leaders refrain from touching projects with longer time periods as it may not show benefits during their tenures.  The reward structure in companies also encourages short-term gains to longer-term, capital intensive endeavors. 

Talent

Not many manufacturing organizations consider developing Digital Talent internally.  This leads to a dearth of key talent integral to build Digital Manufacturing capabilities.

The primary reason for this is the view that digital technology is an auxiliary function.
In-house capabilities are not developed because Digital Manufacturing requires an amalgam of personnel from the virtual sciences and the conventional engineering sciences. Both have a very different way of thinking and doing things, making it a great challenge to build them into a team.

Culture

Organizational culture at manufacturing firms is a significant hurdle in adopting digital technology.  Manufacturers have traditionally had long product-development lifecycles, long sales cycles, and a culture of constantly improving efficiency.  In order to be more digital, manufacturing concerns have to accept concepts used in the digital world e.g., agility, simplicity, and responsiveness.

Interested in learning more about the Challenges to Digital Manufacturing?”  “You can download an editable PowerPoint on Challenges to Digital Manufacturing here on the Flevy documents marketplace.

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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. 

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. 

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.

Learn about our Supply Chain Management (SCM) Best Practice Frameworks here.

Do You Find Value in This Framework?

You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro Library.  FlevyPro is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:

“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.”

– Bill Branson, Founder at Strategic Business Architects

“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.”

– David Coloma, Consulting Area Manager at Cynertia Consulting

“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.”

– Roderick Cameron, Founding Partner at SGFE Ltd

11 Pillars: Quality 4.0 Framework

17 Feb

Stock image 2 - Quality 4.0

The introduction of emerging, digital technologies has ushered in the Fourth Industrial Revolution.  To keep the competitive advantage in this era of Digital Transformation, leveraging contemporary technology is an absolute necessity.  Using cutting-edge technology means not just augmenting, but in fact, revamping the whole Quality outlook.

Quality 4.0 is the complimentary Quality approach to the Industry 4.0 era. Quality 4.0 is about transforming and improving Organizational Culture, collaboration, competency, and Leadership Development among other things through the application of technology.

Quality 4.0 is characterized by:

  • Transforming and improving culture, collaboration, competency, and leadership through the application of technology.
  • Digital Transformation of Management Systems and compliance.
  • Enabling technology and processes necessary to maximize value, resolve customary Quality impediments, and provide innovative solutions.

Quality 4.0 is not just about Digitalization, but more importantly about the impact of that Digitalization on Quality technology, processes, and people.

Companies can use the 11 pillars of Quality 4.0 Framework to identify how the existing capabilities and initiatives can be transformed and then educate, plan, and act accordingly.  The framework uses the traditional Quality methods to build upon and improve them.  The 11 pillars of Quality 4.0 include:

  1. Data
  2. Analytics
  3. Connectivity
  4. Collaboration
  5. App Development
  6. Scalability
  7. Management Systems
  8. Compliance
  9. Culture
  10. Leadership
  11. Competency

The majority of the companies are still not in a position to take leverage of Quality 4.0.  This warrants making investments in improving traditional Quality and bringing themselves in a position where they can spring up to use Quality 4.0 to prepare for the future.

There are strong interrelationships between the pillars of Quality 4.0, and adding new capabilities to certain pillars facilitates new applications on other pillars.  Let us delve a little deeper into a few of these pillars.

1. Data and 2. Analytics

Data and Analytics form the first 2 pillars.  Data is key to informed decision making.  Most companies are still using fragmented data while the innovating market leaders have progressed to taking leverage of Big Data.  Data can be better understood by understanding its 5 components:  Volume, Variety, Velocity, Veracity, and Transparency.

Analytics help reveal the insights contained within raw data.  Correct metrics are key to uncovering correlations and patterns—meaningful information.  Big Data Analytics using Machine Learning and Artificial Intelligence is beneficial if the Analytics Framework—comprising Descriptive, Diagnostic, Predictive, and Prescriptive Analytics—is understood clearly.

3. Connectivity

Connectivity encompasses the link between Business Information Technology—e.g., Enterprise Quality Management Systems (EQMS), Product Life-cycle Management (PLM), Enterprise Resource Planning—and Operational Technology that is used in Manufacturing, Labs, and Services.  Connectivity is achieved through abundant and inexpensive sensors providing real-time feedback from Connected People, products, edge devices, and processes.

4. Scalability

Scalability creates uniformity in Quality.  It is the ability to harmonize processes, best practices, competencies, and lessons learnt across the organization, be it global.  Cloud Computing has played a pivotal role in harnessing scalability by providing Software as a Service (SaaS), Infrastructure as a Service (IaaS), Platform as a Solution (PaaS), and connection of databases.

The reality of the future is Quality 4.0.  It is being adopted very swiftly.  Those who remain unfamiliar with it or are slow to adopt run the risk of being marginalized very quickly.

Interested in learning more about Quality 4.0? You can download an editable PowerPoint on Quality 4.0 here on the Flevy documents marketplace.

Do You Find Value in This Framework?

You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro Library.  FlevyPro is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:

“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.”

– Bill Branson, Founder at Strategic Business Architects

“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.”

– David Coloma, Consulting Area Manager at Cynertia Consulting

“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.”

– Roderick Cameron, Founding Partner at SGFE Ltd

When Critical Situations Call for a 911 Rescue: The 10 First Steps to Crisis Management

18 Oct

Never before has Crisis Management been considered important.  With businesses being exposed to a disruptive environment, the emphasis on Crisis Management has never been more profound.

“The secret of Crisis Management is not good vs. bad, it’s preventing the bad from getting worse.”- Andy Gilman of Comm Core Consulting Group

An organization is considered to be undergoing a crisis when there is a sudden and unexpected event leading to major unrest amongst the individuals at the workplace.  It is an emergency situation which disturbs the employees as well as leads to the instability of the organization.  When this occurs, organizations are expected to have critical documentation and process, e.g. Crisis Management Plan, Disaster Recovery Plan, Business Continuity Plan, etc., in place.

Crisis Management is the art of dealing with these sudden and unexpected events which disturb the employees and organization. Yet, often companies are like the metaphorical frog that doesn’t notice the water it is in is warming up until it is too late.  There are managers who either do not realize that they are in a crisis or their crisis situation is worsening.  The early signs of distress are often missed.  While they are not bad managers, these are managers that are under a set of paradigms that no longer apply and just let the power of inertia carry them along.

As a result, organizations in crisis find themselves faced with a potential cost that is greatly significant.  This can lead to longer recovery time, a direct impact on downtime, and lost revenue.

First Things First: Taking a Good Handle of Crisis Management

Crisis Management is the application of strategies to enable organizations to deal with a disruptive and unexpected event that threatens to harm the organization or its stakeholders. It is a situation-based management system with clear roles, responsibilities, and processes. In Crisis Management, it requires a crisis mindset. A crisis mindset is the ability to think of the worst-case scenario while simultaneously suggesting numerous solutions.

Being well prepared for a crisis is the epitome of Crisis Management. It ensures rapid and adequate response to a crisis and maintaining clear lines of reporting and communication in the event of crisis.

Yet, often the organization and communication involved in responding to a crisis in a timely fashion provide the most challenge to business. Responding to crisis in the most effective way can be done by taking the 10 First Steps.

The 10 First Steps to Crisis Management

The 10 strategic First Steps are the organization’s guide when in crisis and there is a strong call toward initiating organizational change.

The first 4 steps focus on Culture and Leadership.

  1. Establish a Wide Perception of Distress
  2. Establish a Crisis Mindset
  3. Activate the Board as a Crisis Detector
  4. Change Top-Team Members

The first 4 steps will widen one’s understanding of distress and move people to actions at the time of crisis. It is at this stage that the Board will be empowered to see the forest for the trees and can enable organizations to focus on tough movers that can successfully make organizational changes.

The 5th step focuses on Change Management.

  1. Communicate a Great Changed Story

Communicating a Great Changed Story can create positive motivation to spur action towards change. When Change Management starts evolving, the organization is now ready to advance towards Business Transformation.

The 6th to 9th steps focus on Business Transformation.

  1. Integrate Trigger Points
  2. Have a Strong Cash Position
  3. Focus on Quick Wins
  4. Make Target-focused Incentive Plans

Business Transformation starts when trigger points are integrated and a strong cash position is maintained. Management can focus on quick wins to create a trajectory effect to spur actions and develop target-focused Incentive Plans to achieve a successful turnaround.

The 10th and final step is sustaining the gains through effective Talent Strategy.

  1. Retain your Talent

The final step is Retaining your Talent. It is recognizing those that can make a difference and finding the next level of talent that can create and sustain change.

Organizations can build its Crisis Management capability following the 10 first steps.  Crisis Management is not anymore a matter of choice; it has become a necessity.

Interested in gaining more understanding of the first 10 steps to surviving a crisis?  You can learn more and download an editable PowerPoint about Crisis Management: 10 First Steps here on the Flevy documents marketplace.

Are you a management consultant?

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