The 5 Criteria of Process Transformation
When looking at business over the past 10, 20 or 40
years, it’s clear that all of the major functions have been transformed by various
different technologies methodologies or systems. All of these transformations have five basic criteria in common.
Additionally, there are further examples where a new innovation or system has promised much but has ultimately failed
to achieve the full transformational potential that was initially suggested.
Before
outlining the five basic criteria for process transformation in depth, the
following is a high level introduction
to some of the technologies that have changed the landscape of business.
• Communications •
Email • The Internet
• Finance
• Derivatives an • Securitisation
• Logistics
• Containerisation • RFID (radio frequency
identification)
•
Marketing •
CRM • Social Media
•
Manufacturing •
Six Sigma • ERP (Enterprise resource planning )
•
Sales •
Mobile phones • Smart phones and tablets
The
list above is quite diverse with some items dating back 40 or 50 years such
as containerization and the internet while others have only emerged in
the past 3, 4 or 5 years such as social media, smart phones and tablets. The point however
is not historic but is more a reflection on the absence of anything related to HR or people management.
Additionally, the six functions above are all core to contemporary businesses.
Logistics and manufacturing
are sector specific while changes to internal and external communications, marketing and sales all impact the service
sector. Given this broad based change, it would be hard to find a contemporary
organisation that has not benefited from or does not use one or more of the transformational innovations above.
The
following five criteria create a framework with which to judge the likely
success of transformational change in any particular function or
department.
1. Simple to Explain
2. Consistent, Scalable
and Predictable
3. New Skills
4. A Business Case
5. External Validation
1. Simple to Explain
The first criterion is
that the change or innovation must be explained simply and clearly. This
explanation can take many different forms but the majority of people
affected or who could benefit from the change should be able to
understand it. The explanation may take the form of a simple memo, a diagram, a
short presentation
or the classic elevator pitch. The point is not the medium itself but that the
transformation be communicated quickly and easily.
2. .Consistent, Scalable
and Predictable
The
second criterion is arguably the most important. The ability for the innovation
or process to be run in a consistent, scalable and predictable fashion is
vital for its success. Being able to reuse a particular methodology or system in a
consistent manner goes a long way to creating a robust business case for deploying the innovation in
question.
3.
New Skills
The development and
acquisition of new skills is the third criteria for successful transformation.
New skills
demonstrate that the underlying innovation is fundamentally different and that
a new approach is required to realise its benefits. By extension, the
development of new skills is an important test in the adoption of any new
transformational process or system.
4. A Business Case
The ability of any
innovation or process to show business value is paramount. As mentioned
already, context is very important and what is valuable in one
instance may not be valuable in another, so every situation needs to be looked
on it’s own merits.
5.
External Validation
The
fifth and final criteria for process transformation are external validation. External
validation is a way of showing credibility and endorsement amongst peers and
relevant stakeholders for the change in question.
Warm Regards,
C S Manjunath
Chief Mentor & Advisor (DV)
+919483086615
http://www.directovoyage.com/advisory.phpFacebook Id: https://goo.gl/tjA4T9
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