Profitability or Stagnation? Efficiencies or Deficiencies? Part 1 of 3
- Published: July 27, 2015
- Written by Shelley Sweet
Ask yourself these questions:
- Is our productivity increasing or decreasing? It has been decreasing globally over the last 10 years (about 30%). (Conference Board, June 2015)
- Are you eager to grow revenues in new regions, but hampered by processes that do not scale?
- Are you having a hard time hiring new employees and then onboarding and skilling them quickly to produce outputs?
If you have any of these concerns, operational efficiencies will impact your bottom line. In addition, understanding workflow and metrics could help your company make more effective choices toward profitability.
You could benefit from process improvement. Process improvement provides a new viewing lens—to see workflow and inefficiencies from the company, customer, and employee perspectives. It provides tools and techniques to model current processes, analyzing real data, and identifying the root causes of bottlenecks. You can improve your processes to provide higher quality, greater agility, lower costs, scalability, and faster turnaround or time to market.
But are you ready for process improvement? According to a research study by BPM.com of approximately 500 firms, over 54% of process improvement projects fail because of:
- Scope creep
- Resistance from the end users and key stakeholders
- Lack of executive sponsorship
How can you be in the other half who succeed with process improvement?
This report provides three tools to help you make a good decision about the value of process improvement for your company.
- A company self-assessment called The I-4 Process Capability Self-Assessment to measure your organization’s current level of process capability.
- An analysis of the elements in your company’s self-assessment.
- Questions to help you decide whether process improvement will bring the benefits you want.
Next, use this report to understand how each survey question points to one element of the McKinsey 7S Framework (explained below). Consider how to align each element with other elements to build a holistic approach to increase operational excellence and company performance.
Lastly, review the summary results for your company. In which areas is your company strong and where are the leaders that make it strong? What challenges does your company still face, and what would you need to do to build greater productivity and profits?
Want a personal consultation? Send me a copy of your completed I-4Process Capability Self-Assessment and your preliminary thoughts. I will provide you a free 30 minute consultation on how to develop a roadmap that will get your company off to the right start, build leadership and employee skills, and create results.
Part 2 uses the self- assessment to identify where your organization is in building execution capability (Beginning, Middle, or Advancing Process). Then it relates your company answers to the McKinsey 7S elements, and shows you how to evaluate the elements to build a more productive organization.
This final part, Part 3, looks at the last three elements in the 7S Model and then discusses how to build a company roadmap for your organization. Each of the questions in the survey is related by number to one of the 7S categories; then examples are given about the category and how it impacts execution.