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INTELLIGENT ENTERPRISE




        The Adaptive Roadmap in                                                                    Arvinder “Monty” Singh

        Uncertain Times
                                                                                                   Senior Vice President – Sales, Marketing,
                                                                                                   and Re-engineering at Genpact




Executive Summary
Adaptive and agile firms grow revenue 37% faster and generate 30% higher profits than
non-agile companies, revealed a survey by the Economist Intelligence Unit in the wake of
the financial turbulence of 2008 (2008-09)1. Don Sull, professor of management practice
at the London Business School and author of the Upside of Turbulence says “In turbulent
markets, organizational agility, as the capacity to identify and capture opportunities more
quickly than rivals do, is invaluable.”2 Adaptive can also be equated with antifragile – the
term coined by Nassim Taleb, essayist, author, and former derivatives trader in his book
Antifragile: Things That Gain from Disorder. Taleb emphasizes that while the resilient
resist change and stays the same, the antifragile get better and better.

The antifragile organization can ride the wave of change and stay afloat and chart a
brighter course. They are highly adaptive because of steps taken and processes followed
without fail. They have aggressively engineered an “instinct to evolve.” Leaders in these
organizations know surviving and thriving isn’t about recognizing what you did wrong
in hindsight. It’s about having the insight and foresight to adapt and outcompete amidst
shifting tides.

Transforming the organization and its                                      maximum effectiveness, are the ones that have the most power
                                                                           to adapt and be agile. These are enterprises where the leaders at
processes                                                                  the helm – the C-suite executives including CFOs, CPOs, COOs,
The flow of information, decisions and resources that crisscross           work in tandem like the best crews on racing boats in
                                                                           stormy weather.
an organization must travel faster than ever before, along with
faster execution, given that volatility is a certainty, in our global
                                                                           This ability is directly related to how integrated an enterprise
and connected economy today.
                                                                           is – not just across different functions, but within processes and
In this fast flowing current, organizations that are able to               at all levels – for instance underwriting to call-center cross sales
take better and faster decisions and run their operations with             in financial services, Know-Your-Customer (KYC) to Anti Money


 1
     Organisational agility: how businesses thrive and survive in turbulent times: A report from the Economist Intelligence Unit
 2
     “Competing through organizational agility” in The European Business Review
Laundering (AML) in banking, in sourcing analytics to inventory              concept that industrializes support operations) and related
optimization in manufacturing, or budgeting to stock market                  practices and infrastructure, such as a truly intuitive Unified
earning guidance in any industry.                                            Collaboration (not just communication) environment. This in
                                                                             turn also allows for flexible business models and modular cost
Today, sales and operations planning require far more precision,             structures, as organizations are able to identify core versus non-
speed and detail – necessitating not just cooperation but actual             core processes and eliminate redundancies and inefficiencies –
collaboration between various parts of the enterprise. The day-              consequently enabling the adaptive and antifragile organization
to-close financial reporting process is another example of how               that is ready to outcompete.
closely interlinked numerous enterprise functions can be, and
how it can impact senior management decisions and the time to
plan and prepare for discussions with stakeholders, shareholders
                                                                             Leveraging data and insight
and markets.                                                                 Being adaptive starts with listening – and understanding the
                                                                             external environment. The most cited criteria according to
The web of business practices connecting the different functions             organizations that have adapted, and adapted with success in a
in an enterprise were designed in less volatile times. Operations            changing global environment, is the ability to track or measure
that were built for scale, today pose challenges in that they are            customer and market sentiment. All enterprises – whatever the
inflexible – both in what they can do, and in their cost structure.          product or customer base, collect data on performance, market
Along with this, talent imbalances, technology, and process                  size, customer feedback, demands, but do they have the ability
advances are defining what’s possible – making industrialized                to decode this data?
enterprise operations a viable alternative for a range of support
processes.                                                                   To harness the true potential of data and analytics, systems across
                                                                             the business have to be integrated and synchronized to create a
Leveraging a global network of skilled workforce for both                    cohesive business intelligence framework. When this framework
intellect and solutions is key to organizational agility in turbulent        is in place, organizations can quickly identify the drivers of
times. The ability to harness these resources in a frictionless way,         success in every division of an organization, anticipate the impact
irrespective of where they are, will be a defining trait for business        of change on key variables, measure progress toward enterprise
process operations of the future. It will hinge on the adoption              objectives – and consistently deliver the value that stakeholders
of global business models (such as the Global Business Service               demand.

                                                   Organization eco-system
                                                            Extenal Stakeholders

                                                  Reporting                        Performance expectations
                                    (financial, non-financial)                       (financial, non-financial)

                                      Forecast, Report            CEO, Board              Short- and long-term expectations of:
                               (financial, non-financial)                                   Margin, Earnings Growth, Capital Intensity



                                                                        Finance
                            Revenue,                                                                      Working
                             Working                                                                      Capital (AP)
                           Capital (AR)
                                                                                     COGS
                                                          Budget,
                                                                                  (short and
                                                           KPIs,
                                                                                  long term)
                                                      allocation and
                                                                                      and
                                  Sales &             monitoring of
                                                                                   respective       Procurement
                                 Marketing              OP/CAPEX,
                                                                                      risk,
                                                         inventory
                                                                                    EHS risks


                     COGS for pricing                                                                     Demand and availability
            (short and medium term),                                                                      of production inputs
                    demand/inventory,                             Operations                              (commodities, energy,
                      logistics, supply                         (mfg, facilities)                         components),
                        chain footprint                                                                   respective short and
                                                                                                          medium term price
Global business services (GBS)

                                    NOW                                                                          FUTURE

                          LoB 1                                                                      LoB 1                        LoB 2



                                                                                                                                            Unified
                                                                                                                                          Collaboration
         Country A                                                                                                   GBS




                                             GBS


                                                                                           Region 1
                                                                                           Region 2

                         Country B



                                                                LoB 2

                         WFH


                                                                                           Contractor


             Knowledge worker                         Transaction worker

In many respects, building this framework – for effective                            ability to access the right information at the right time (34%) and
“analytical enterprise behavior” is a process. Consider the                          accountability (34%).
following chart Leveraging data and insight in business processes
(Page 4), which provides a view on the role of information as the                    As organizations grow, these four factors suffer from
pulsating lifeblood of a business operation. Better data doesn’t                     diseconomies of scale: for example, driving a common culture
mean more effective insight. To become really effective, data                        becomes harder across large teams, as does finding the right
needs to be turned into insight and provide visibility to the right                  information. Building a scientific data-to-insight framework and
people, constitute the foundation for setting the right operational                  embedding this in operations helps palliate such issues.
metrics, and guide the actions of employees throughout the
organization and its partner ecosystem.                                              Running processes with efficiency and
The arc of data-to-insight, and the embedding of insight in
                                                                                     effectiveness
the countless big and small decisions, is a process and should                       But organizational agility can’t be based on the power of data
be treated as such. The reward for creating such an effective                        and global work force alone. Processes and systems have to be
process is significant – because this is what drives agility in an                   robust and stable, and hence flexible to accommodate change.
organization.                                                                        Automating, standardizing, and integrating fundamental
                                                                                     processes and systems significantly increases an organization’s
According to the Economist Intelligence Unit Survey on                               ability to problem-solve, improve decision-making and convert
Organisational Agility3- rapid decision making and execution                         information into insight, directly impacting its ability to change.
is the most important trait of an adaptive enterprise (61% of                        And this is an approach that is typically at odds with traditional
respondents) followed by a high-performance culture (44%), the                       structures – where individual sub-functions were optimized

3
    Organisational agility: how businesses thrive and survive in turbulent times: A report from the Economist Intelligence Unit
Leveraging data and insight in business processes

               Information consolidation, reconciliation                                 Set and cascade KPIs, budgets
                                                                                  Set
                                                                                                               Correct
                           Report                             Account           Targets
                                                                                                               Strategy

                                                    PROVIDE                         MANAGE
   Periodic dashboards for                                                                                     Redefine revenue, cost,
                                                  VISIBILITY                    EFFECTIVENESS                  capital profile, derive
   key stakeholders
                                                                                                               strategic actions
                                      Gather
                                     Feedback*                                               Analyze and
                                                                                              Benchmark
  Internal and external ecosys-
                                                                      EXECUTE
  tem help continuously refine
  questions, define boundary                                     PROCESSES                                   Advanced descriptive and
  conditions*
                                             Implement                                Measure                predictive analysis
                                            Initiatives**                            Performance


                                                                                         Data extract, cleanse,
              Implement enterprise data and                                              standardize, enhance
              BI enablers, operations rules

                                                                Operate New
                                                                 Processes              Enable decision making at the
            * Recommended starting point
            ** Common starting point                                                    "moment of truth"




within their organizational silo. Such legacy processes are               strongest ability to adapt. If an organization’s core processes and
responsible for much of the organizational rigidity and slowness          operations lack standardization and efficiency, it is most likely to
in responding to shocks.                                                  be fragile. Building process excellence and best in class operations
                                                                          is integral to the adaptive roadmap.
Which is why for large global organizations, having process
expertise is critical. For instance, enterprises with an end-to-end
understanding and knowledge of their global order-to-cash
                                                                          Adopting smart technology
processes, can respond faster to volatility of demand in case of          Technology is crucial to run large scale operations but the
a credit crunch, not only by changing credit risk limits but rather       need for agility throws additional complexity at technology
coordinating all aspects of the cycle including segmentation of           investments and related change management. To ensure that
receivables and flexible staffing of collection campaigns.                organizations respond to internal and external changes in
                                                                          real-time without compromising on operational efficiencies,
Similarly, scaling up and down in mortgage processing or the              technology has be deployable with shorter implementation times,
ability to access robust institutional banking KYC remediation            easily configurable, mobile and seamlessly accessible through the
“factories” to comply with new regulations in a cost effective            internet.
manner is something adaptive organizations can do with ease.
The same applies in manufacturing environments, for example by            In fact, recent research has shown that large ERP programs
guaranteeing the same, mature, strategic sourcing practices even          are becoming the exception as organizations turn to smaller,
if the volumes fluctuate wildly.                                          agile programs that don’t block capital and human resources.
                                                                          Understandably, many organizations struggle with the
The ability to quickly access managed services for order-to-cash,         prioritization of technology initiatives and their scope.
source-to-pay, and record-to-report for developing markets such
as China and India has an impact on cost, quality and time.               An effective approach is to go in with much sharper focus and
                                                                          examine technology that enables the key drivers of operations
Why this is critical to the adaptive drive, is because it is              process effectiveness – as opposed to everything the technology
organizations with stable and strong processes that have the              can do. There are instances where cloud-based solutions work
Case study: mortgage processing

  Traditional view: efficiency of a sub-process
                                                                                                              Functional optimization
                                                                                                              resulting in 10-20%
                                                                                                              efficiency gains, e.g.
                                                                                                                Collection calls made
                  Customer                                             Deductions                               per agent
    Input                             Credit Risk                                          Output
                   Set Up                                             Management                                Orders processed
                                                                                                                per agent


  Enterprise-wide view of the process: effectiveness of end-to-end process
                                                                                                              End-to-end process
                                                                                                              optimization resulting in
                                                                                                              2-5 times higher impact on
                  Customer                                             Deductions                             outcomes, e.g.
    Input                             Credit Risk                                         Output
                   Set Up                                             Management                                Revenue dilution
                                                                                                                Improved days sales
                                                                                                                outstanding (DSO)
                                                                                                                and cash flow


just as well instead of ERPs - for example in case management for           Organizations that have the ability to transform are ones that
compliance-related processes impacted by new regulations, or                have embraced change management, through good governance
collection management to handle cash flows in the presence of                and communications strategies. Building a culture of change
client volatility.                                                          accounts for the small things as well as the large – for instance
                                                                            an individual’s ability to adapt through cross-skilling and

Managing change and risk                                                    facilitation of re-deployment, become central in achieving success
                                                                            at scale and within cost.
Technology isn’t the o nly impediment for organizations to
be adaptive. An organization’s measure of success on being
adaptive will depend significantly on how top leadership enable
                                                                            Conclusion
and facilitate organization agility. It is important for leaders to         Enterprises and operations need to keep pace with the
build employee resilience to deal with change and uncertainty               changed economic and political landscape. Building an adaptive
and ensure that employees can work with ambiguity. Even the                 organization goes much deeper than just being ‘change ready’
communication strategy to manage change can be a powerful                   – adapting also tests organizational elasticity (or anti-fragility as
tool in the adaptive drive.                                                 defined by Nassim Taleb) across processes and functions.

Encouraging risk-taking, the acceptance of failure and                      Which is why adapting in uncertain times necessitates re-thinking
recognizing and rewarding innovative breakthroughs, are critical            traditional practices. The critical factors that come into focus in
for ensuring a culture of continuous innovation that enables                these circumstances relate to an organization’s ability to:
adaptation. Management should accept and adopt the 80/20                    •         harness a distributed and              global workforce
rule and recognize that there is also a strong element of risk that         •         decode data which in turn enables speedy execution
comes with speed. So organizations must factor in a ‘beta’ test             •         maintaining a lean cost and asset base
phase and improvements and upgrades. Adapting is a continuous               •         deploy           technology
process.                                                                    •         work with innovative yet robust operational practices

An organization’s risk management ability also needs to evolve              Eventually mature, flexible and lean global process operations
as they balance internal change and “non-negotiable” demands                are critical to making adaptive a reality, and not just a strategy.
from the business. For instance, the impact of new regulations              The old ways of running operations may have already been
such as Dodd-Frank on banking operations drive the need for                 stretched to the limit, but fragmentation of the front lines,
industrial-grade processes that keep cost structures in check and           regulatory demands and volatility in the market continue. And
still enable compliance. These are however not just Financial               because success is more likely to come to those that embrace
Services issues – large manufacturing organizations have been               more scientific, industrial-strength business process design and
fined heavily because of inappropriate transactions with clients             management.
and suppliers, and the fact that they didn’t have exhaustive and
granular transaction controls.
About Genpact                                                                           About the Author
Genpact Limited (NYSE: G), a global leader in business process management and           Arvinder “Monty” Singh is the global leader for sales and marketing at Genpact,
technology services, leverages the power of smarter processes, smarter analytics        and also leads the company’s growing re-engineering business. He joined Genpact
and smarter technology to help its clients drive intelligence across the enterprise.    in June 2005 as the senior vice president for Six Sigma solutions, transitions and
Genpact’s Smart Enterprise Processes (SEPSM) framework, its unique science of           re-engineering, and helped transform processes for Fortune 500 clients, by
process combined with deep domain expertise in multiple industry verticals, leads       effectively utilizing Lean, Six Sigma, transition and solution resources.
to superior business outcomes. Genpact’s Smart Decision Services deliver valuable
                                                                                        Prior to joining Genpact, Monty was senior vice president, Six Sigma and Chief
business insights to its clients through targeted analytics, reengineering expertise,
                                                                                        Quality Officer for GE Vendor Financial Services and also held various leadership
and advanced risk management. Making technology more intelligent by embedding
                                                                                        roles with GE Capital India businesses.
it with process and data insights, Genpact also offers a wide variety of technology
solutions for better business outcomes.                                                 Monty has more than 20 years of experience in the area of driving process
                                                                                        improvement. He holds a bachelor’s degree of commerce from the University of
For more information, visit www.genpact.com. Follow Genpact on Twitter,                 Delhi and an MBA in finance and marketing from Xavier Labor Relations Institute
Facebook and LinkedIn.                                                                  (XLRI), Jamshedpur, India.


© 2013 Copyright Genpact. All Rights Reserved.                                          You can contact Monty at arvinder.singh@genpact.com

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The Adaptive Roadmap in Uncertain Times

  • 1. INTELLIGENT ENTERPRISE The Adaptive Roadmap in Arvinder “Monty” Singh Uncertain Times Senior Vice President – Sales, Marketing, and Re-engineering at Genpact Executive Summary Adaptive and agile firms grow revenue 37% faster and generate 30% higher profits than non-agile companies, revealed a survey by the Economist Intelligence Unit in the wake of the financial turbulence of 2008 (2008-09)1. Don Sull, professor of management practice at the London Business School and author of the Upside of Turbulence says “In turbulent markets, organizational agility, as the capacity to identify and capture opportunities more quickly than rivals do, is invaluable.”2 Adaptive can also be equated with antifragile – the term coined by Nassim Taleb, essayist, author, and former derivatives trader in his book Antifragile: Things That Gain from Disorder. Taleb emphasizes that while the resilient resist change and stays the same, the antifragile get better and better. The antifragile organization can ride the wave of change and stay afloat and chart a brighter course. They are highly adaptive because of steps taken and processes followed without fail. They have aggressively engineered an “instinct to evolve.” Leaders in these organizations know surviving and thriving isn’t about recognizing what you did wrong in hindsight. It’s about having the insight and foresight to adapt and outcompete amidst shifting tides. Transforming the organization and its maximum effectiveness, are the ones that have the most power to adapt and be agile. These are enterprises where the leaders at processes the helm – the C-suite executives including CFOs, CPOs, COOs, The flow of information, decisions and resources that crisscross work in tandem like the best crews on racing boats in stormy weather. an organization must travel faster than ever before, along with faster execution, given that volatility is a certainty, in our global This ability is directly related to how integrated an enterprise and connected economy today. is – not just across different functions, but within processes and In this fast flowing current, organizations that are able to at all levels – for instance underwriting to call-center cross sales take better and faster decisions and run their operations with in financial services, Know-Your-Customer (KYC) to Anti Money 1 Organisational agility: how businesses thrive and survive in turbulent times: A report from the Economist Intelligence Unit 2 “Competing through organizational agility” in The European Business Review
  • 2. Laundering (AML) in banking, in sourcing analytics to inventory concept that industrializes support operations) and related optimization in manufacturing, or budgeting to stock market practices and infrastructure, such as a truly intuitive Unified earning guidance in any industry. Collaboration (not just communication) environment. This in turn also allows for flexible business models and modular cost Today, sales and operations planning require far more precision, structures, as organizations are able to identify core versus non- speed and detail – necessitating not just cooperation but actual core processes and eliminate redundancies and inefficiencies – collaboration between various parts of the enterprise. The day- consequently enabling the adaptive and antifragile organization to-close financial reporting process is another example of how that is ready to outcompete. closely interlinked numerous enterprise functions can be, and how it can impact senior management decisions and the time to plan and prepare for discussions with stakeholders, shareholders Leveraging data and insight and markets. Being adaptive starts with listening – and understanding the external environment. The most cited criteria according to The web of business practices connecting the different functions organizations that have adapted, and adapted with success in a in an enterprise were designed in less volatile times. Operations changing global environment, is the ability to track or measure that were built for scale, today pose challenges in that they are customer and market sentiment. All enterprises – whatever the inflexible – both in what they can do, and in their cost structure. product or customer base, collect data on performance, market Along with this, talent imbalances, technology, and process size, customer feedback, demands, but do they have the ability advances are defining what’s possible – making industrialized to decode this data? enterprise operations a viable alternative for a range of support processes. To harness the true potential of data and analytics, systems across the business have to be integrated and synchronized to create a Leveraging a global network of skilled workforce for both cohesive business intelligence framework. When this framework intellect and solutions is key to organizational agility in turbulent is in place, organizations can quickly identify the drivers of times. The ability to harness these resources in a frictionless way, success in every division of an organization, anticipate the impact irrespective of where they are, will be a defining trait for business of change on key variables, measure progress toward enterprise process operations of the future. It will hinge on the adoption objectives – and consistently deliver the value that stakeholders of global business models (such as the Global Business Service demand. Organization eco-system Extenal Stakeholders Reporting Performance expectations (financial, non-financial) (financial, non-financial) Forecast, Report CEO, Board Short- and long-term expectations of: (financial, non-financial) Margin, Earnings Growth, Capital Intensity Finance Revenue, Working Working Capital (AP) Capital (AR) COGS Budget, (short and KPIs, long term) allocation and and Sales & monitoring of respective Procurement Marketing OP/CAPEX, risk, inventory EHS risks COGS for pricing Demand and availability (short and medium term), of production inputs demand/inventory, Operations (commodities, energy, logistics, supply (mfg, facilities) components), chain footprint respective short and medium term price
  • 3. Global business services (GBS) NOW FUTURE LoB 1 LoB 1 LoB 2 Unified Collaboration Country A GBS GBS Region 1 Region 2 Country B LoB 2 WFH Contractor Knowledge worker Transaction worker In many respects, building this framework – for effective ability to access the right information at the right time (34%) and “analytical enterprise behavior” is a process. Consider the accountability (34%). following chart Leveraging data and insight in business processes (Page 4), which provides a view on the role of information as the As organizations grow, these four factors suffer from pulsating lifeblood of a business operation. Better data doesn’t diseconomies of scale: for example, driving a common culture mean more effective insight. To become really effective, data becomes harder across large teams, as does finding the right needs to be turned into insight and provide visibility to the right information. Building a scientific data-to-insight framework and people, constitute the foundation for setting the right operational embedding this in operations helps palliate such issues. metrics, and guide the actions of employees throughout the organization and its partner ecosystem. Running processes with efficiency and The arc of data-to-insight, and the embedding of insight in effectiveness the countless big and small decisions, is a process and should But organizational agility can’t be based on the power of data be treated as such. The reward for creating such an effective and global work force alone. Processes and systems have to be process is significant – because this is what drives agility in an robust and stable, and hence flexible to accommodate change. organization. Automating, standardizing, and integrating fundamental processes and systems significantly increases an organization’s According to the Economist Intelligence Unit Survey on ability to problem-solve, improve decision-making and convert Organisational Agility3- rapid decision making and execution information into insight, directly impacting its ability to change. is the most important trait of an adaptive enterprise (61% of And this is an approach that is typically at odds with traditional respondents) followed by a high-performance culture (44%), the structures – where individual sub-functions were optimized 3 Organisational agility: how businesses thrive and survive in turbulent times: A report from the Economist Intelligence Unit
  • 4. Leveraging data and insight in business processes Information consolidation, reconciliation Set and cascade KPIs, budgets Set Correct Report Account Targets Strategy PROVIDE MANAGE Periodic dashboards for Redefine revenue, cost, VISIBILITY EFFECTIVENESS capital profile, derive key stakeholders strategic actions Gather Feedback* Analyze and Benchmark Internal and external ecosys- EXECUTE tem help continuously refine questions, define boundary PROCESSES Advanced descriptive and conditions* Implement Measure predictive analysis Initiatives** Performance Data extract, cleanse, Implement enterprise data and standardize, enhance BI enablers, operations rules Operate New Processes Enable decision making at the * Recommended starting point ** Common starting point "moment of truth" within their organizational silo. Such legacy processes are strongest ability to adapt. If an organization’s core processes and responsible for much of the organizational rigidity and slowness operations lack standardization and efficiency, it is most likely to in responding to shocks. be fragile. Building process excellence and best in class operations is integral to the adaptive roadmap. Which is why for large global organizations, having process expertise is critical. For instance, enterprises with an end-to-end understanding and knowledge of their global order-to-cash Adopting smart technology processes, can respond faster to volatility of demand in case of Technology is crucial to run large scale operations but the a credit crunch, not only by changing credit risk limits but rather need for agility throws additional complexity at technology coordinating all aspects of the cycle including segmentation of investments and related change management. To ensure that receivables and flexible staffing of collection campaigns. organizations respond to internal and external changes in real-time without compromising on operational efficiencies, Similarly, scaling up and down in mortgage processing or the technology has be deployable with shorter implementation times, ability to access robust institutional banking KYC remediation easily configurable, mobile and seamlessly accessible through the “factories” to comply with new regulations in a cost effective internet. manner is something adaptive organizations can do with ease. The same applies in manufacturing environments, for example by In fact, recent research has shown that large ERP programs guaranteeing the same, mature, strategic sourcing practices even are becoming the exception as organizations turn to smaller, if the volumes fluctuate wildly. agile programs that don’t block capital and human resources. Understandably, many organizations struggle with the The ability to quickly access managed services for order-to-cash, prioritization of technology initiatives and their scope. source-to-pay, and record-to-report for developing markets such as China and India has an impact on cost, quality and time. An effective approach is to go in with much sharper focus and examine technology that enables the key drivers of operations Why this is critical to the adaptive drive, is because it is process effectiveness – as opposed to everything the technology organizations with stable and strong processes that have the can do. There are instances where cloud-based solutions work
  • 5. Case study: mortgage processing Traditional view: efficiency of a sub-process Functional optimization resulting in 10-20% efficiency gains, e.g. Collection calls made Customer Deductions per agent Input Credit Risk Output Set Up Management Orders processed per agent Enterprise-wide view of the process: effectiveness of end-to-end process End-to-end process optimization resulting in 2-5 times higher impact on Customer Deductions outcomes, e.g. Input Credit Risk Output Set Up Management Revenue dilution Improved days sales outstanding (DSO) and cash flow just as well instead of ERPs - for example in case management for Organizations that have the ability to transform are ones that compliance-related processes impacted by new regulations, or have embraced change management, through good governance collection management to handle cash flows in the presence of and communications strategies. Building a culture of change client volatility. accounts for the small things as well as the large – for instance an individual’s ability to adapt through cross-skilling and Managing change and risk facilitation of re-deployment, become central in achieving success at scale and within cost. Technology isn’t the o nly impediment for organizations to be adaptive. An organization’s measure of success on being adaptive will depend significantly on how top leadership enable Conclusion and facilitate organization agility. It is important for leaders to Enterprises and operations need to keep pace with the build employee resilience to deal with change and uncertainty changed economic and political landscape. Building an adaptive and ensure that employees can work with ambiguity. Even the organization goes much deeper than just being ‘change ready’ communication strategy to manage change can be a powerful – adapting also tests organizational elasticity (or anti-fragility as tool in the adaptive drive. defined by Nassim Taleb) across processes and functions. Encouraging risk-taking, the acceptance of failure and Which is why adapting in uncertain times necessitates re-thinking recognizing and rewarding innovative breakthroughs, are critical traditional practices. The critical factors that come into focus in for ensuring a culture of continuous innovation that enables these circumstances relate to an organization’s ability to: adaptation. Management should accept and adopt the 80/20 • harness a distributed and global workforce rule and recognize that there is also a strong element of risk that • decode data which in turn enables speedy execution comes with speed. So organizations must factor in a ‘beta’ test • maintaining a lean cost and asset base phase and improvements and upgrades. Adapting is a continuous • deploy technology process. • work with innovative yet robust operational practices An organization’s risk management ability also needs to evolve Eventually mature, flexible and lean global process operations as they balance internal change and “non-negotiable” demands are critical to making adaptive a reality, and not just a strategy. from the business. For instance, the impact of new regulations The old ways of running operations may have already been such as Dodd-Frank on banking operations drive the need for stretched to the limit, but fragmentation of the front lines, industrial-grade processes that keep cost structures in check and regulatory demands and volatility in the market continue. And still enable compliance. These are however not just Financial because success is more likely to come to those that embrace Services issues – large manufacturing organizations have been more scientific, industrial-strength business process design and fined heavily because of inappropriate transactions with clients management. and suppliers, and the fact that they didn’t have exhaustive and granular transaction controls.
  • 6. About Genpact About the Author Genpact Limited (NYSE: G), a global leader in business process management and Arvinder “Monty” Singh is the global leader for sales and marketing at Genpact, technology services, leverages the power of smarter processes, smarter analytics and also leads the company’s growing re-engineering business. He joined Genpact and smarter technology to help its clients drive intelligence across the enterprise. in June 2005 as the senior vice president for Six Sigma solutions, transitions and Genpact’s Smart Enterprise Processes (SEPSM) framework, its unique science of re-engineering, and helped transform processes for Fortune 500 clients, by process combined with deep domain expertise in multiple industry verticals, leads effectively utilizing Lean, Six Sigma, transition and solution resources. to superior business outcomes. Genpact’s Smart Decision Services deliver valuable Prior to joining Genpact, Monty was senior vice president, Six Sigma and Chief business insights to its clients through targeted analytics, reengineering expertise, Quality Officer for GE Vendor Financial Services and also held various leadership and advanced risk management. Making technology more intelligent by embedding roles with GE Capital India businesses. it with process and data insights, Genpact also offers a wide variety of technology solutions for better business outcomes. Monty has more than 20 years of experience in the area of driving process improvement. He holds a bachelor’s degree of commerce from the University of For more information, visit www.genpact.com. Follow Genpact on Twitter, Delhi and an MBA in finance and marketing from Xavier Labor Relations Institute Facebook and LinkedIn. (XLRI), Jamshedpur, India. © 2013 Copyright Genpact. All Rights Reserved. You can contact Monty at arvinder.singh@genpact.com