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COOs and Rapid Business Adaptation

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Value is based on Impact, impact is based on Production, and production now must be driven by relevance as affected by constant change. Adaptive Productivity is the basic performance requirement of operations.

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COOs and Rapid Business Adaptation

  1. 1. Adaptive Productivity The Challenge for COOs
  2. 2. Performance management and the COO Performance is a measure of how much of an assumed potential is reached with a given deliberate effort. The effort produces the actual output measured against the assumed potential. Productivity, then, really is the key perspective for assessing the value of doing things a certain way. Circumstances constantly influence whether there is a reliable correlation between the current mode of production and the necessary level of performance. Awareness of circumstances influences how reliable the decision to change or stay is seen to be. Given today’s hyper-awareness, change is, with increasing frequency, seen to be necessary, and not changing is seen to be insufficient. For the purpose of managing performance, rapid adaptation is not just a “requirement”… it’s a competency. In production, people are an essential part of the adaptive productivity. The question is, how can and should people be supported in that responsibility for production?
  3. 3. CHALLENGE In current operating environments where value is measured in terms of performance-based gains, conventional reliance on exploiting stable arrangements of the environment is increasingly less helpful, since those arrangements are exactly what is most subject to change. Despite higher visibility of the diversity of environmental factors, volatility of emergent significant impacts is now the “new normal”, making current-state conditions highly transitory for everyone, thus future states less predictable except for shorter terms, and making adaptive productivity a critical success factor of sustained execution. Suddenly, it’s much like playing in a tournament without brackets, in games without scripts. But in a free-for-all, what do you still need to have, to “manage” your way to a winning “performance”? • Outcome incentives • Achievement threshholds • Incremental but cumulative progress • Conservation of opportunity • Modeled approach • Defined fundamentals Each of these issues is a performance variable; but anything that is used to meet a need must have an effect that aligns with how the other needs are met. The alignment is responsible for the productivity; the selections are responsible for the potential.
  4. 4. NEED RESPONSE RESOURCE Defined Awareness Here Modeled Relevance Here Channeled Engagement Here MOTIVATION IMPORTANCE DESIGN Adaptivity in Productivity: continual cycling through awareness of Needs, Responses and Resources Intentionality in Production: continual active aligning of Importance, Design and Motivation ©2018 Malcolm Ryder / Archestra Research
  5. 5. compatible complementary available compatible complementary available Environmental complexity means that operational collaboration of differing production capabilities may have higher probability of generating a successful adaptation. Capability-on- demand can be offered as a service. Service orientation can be the architecture behind the organization’s sense-&-respond stance. ©2018 Malcolm Ryder / Archestra Research
  6. 6. NEED RESPONSE RESOURCE MONITOR DEFINE COMPREHEND PRIORITIZE PROPOSE SUBSCRIBE SUPPORT SERVE OPERATE PRODUCE DEVELOP RESEARCH Agility presumes that there is a known need Supporting the need requires availability of an appropriate response Services make up ready-to-use capability as elements of a supporting response ©2018 Malcolm Ryder / Archestra Research
  7. 7. NEED RESPONSE RESOURCE MONITOR DEFINE COMPREHEND PRIORITIZE PROPOSE SUBSCRIBE SUPPORT SERVE OPERATE PRODUCE DEVELOP RESEARCH Understand the need Dynamically enable the response Real-time operational capability is built bottom up to create functional recognition of the capacity for responding to sensed need ©2018 Malcolm Ryder / Archestra Research
  8. 8. The variable called People • I am not “capital” ! • I am not a “resource” • I am a Stakeholder • I am an Evaluator • I am an Agent • I am a Contributor • I am an Actor Come to terms with WHY people will engage the production. Afterwards, attend to how people become “production ready”. ©2018 Malcolm Ryder / Archestra Research
  9. 9. NEED RESPONSE RESOURCE MONITOR DEFINE COMPREHEND PRIORITIZE PROPOSE SUBSCRIBE SUPPORT OFFER MANAGE ACTIVATE TRAIN RECRUIT Different types of responses are made by orchestrating multiple services People become part of an offered service ©2018 Malcolm Ryder / Archestra Research
  10. 10. NEED RESPONSE RESOURCE MONITOR DEFINE COMPREHEND PRIORITIZE PROPOSE SUBSCRIBE SUPPORT OFFER MANAGE ACTIVATE TRAIN RECRUIT One or more roles become viable for the person and become part of their Profile talent The needy party can contract receipt of supportive responses as well as make ad-hoc on-demand utilization requests A worker can subscribe to one or more types of responses in which their role in a service is expected to be effective ©2018 Malcolm Ryder / Archestra Research
  11. 11. RESOURCE (managed asset) DEPARTMENT (= allocated inventory) RESPONSIBILITY (compliance to plan) RESOURCE (utilization role) RESPONSIBILITY (curated availability) COMPARTMENT (= performance analytics view) Evolving Operations Management From OLD To NEW • RETURN ON INVESTMENT • IMPACT VALUE • AVAILABILITY • CLASS OF SERVICE • ECONOMY OF SCOPE • RISK MITIGATION • WORKLOAD SCHEDULING • ASSET OWNERSHIP Typically featuring static constructions needing refreshes Featuring dynamic construction needing regeneration ©2018 Malcolm Ryder / Archestra Research
  12. 12. NEED RESPONSE RESOURCE DEMAND MATCHING SUPPLY The primary inhibitor of an “open” system for on-demand supply matching is the Department, which does not function today primarily as a resource developer and opportunity broker, but instead as an expense accounting center. Organizational evolution moves towards managed openness for agility. AD HOC MONITORING PREDICTIVE CONTRACTING GOVERNANCE SOURCING MODELS PROFILES ©2018 Malcolm Ryder / Archestra Research
  13. 13. Archestra notebooks compile and organize decades of in-the-field and ongoing empirical findings. All presented findings are derived exclusively from original research. Archestra notebooks carry no prescriptive warranty. As ongoing research, all notebooks are subject to change at any time. ©2018 Malcolm Ryder / Archestra Research www.archestra.com mryder@archestra.com Archestra research is done from the perspective of strategy and architecture. With all subject matter and topics, the purpose of the notes is analytic, primarily to: * explore, expose and model why things are included, excluded, or can happen in given ways and/or to certain effects. * comment on, and navigate between, motives and potentials that predetermine Decisions about, and shapings of, the observed activity.

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