MURPHY’S LAW“IF SOMETHING MIGHT GO WRONG, IT WILL”
Business Facts Competition is fiercer than ever Almost every company is convinced that it MUST Refocus their business to increase its Throughput & Competitive edge in the Market place . *Corporations estimate yearly investment of 1 Trillion Dollar implementing IT & HR/ Business Transformation initiatives such as:- Strategic Plan/Organization Restructuring/Design/Alignment- Business Process High Value Improvement (BPI/BPR/BPM/TQM/LEAN/Six Sigma/ Operational Excellence, etc.)- Knowledge Management- Enterprise Application Integration (EAI)- Business Intelligence- ERP/HCM/CRM/SCM 80-90% IT & Business Transformation Projects are unsuccessfully implemented (don’t meet Project Performance and Financial Requirements). Based on Juran Institute Research. Only 40% of IT & Business Transformation Projects address training needs. Only 25% of these Projects give Integrated Technology & Business Goals Almost every company is disappointed with the slow rate of initiatives implementation and low impact in bottom line results. Low Utilization & ROI & High TCO. New Business Model utilization is less than 40% & High Total Cost of Ownership (TCO)
The Question is: WHY?• IT Platforms & New Business Model’s Functionality didn’t FIT Organization Processes,Culture and Structures• Lack of Readiness (Bandwidth): • Outside Consultants ( New Business Model/IT Provider/Systems Integrator) • Client How to ensure that Strategic Business Transformation initiatives are effectively implemented?
The Answer:ORGAIZATION/PEOPLE READINESS ASSESSMENT & CHANGE MANGEMENT (OCM)PLATFORM
Business Readiness Assessment WHEN TO DO IT Strategic Decisions Information Technology Business ProcessMERGERS PROCESS AUTOMATION BUSINESS PROCESSES VALUE ADDEDACQUISITIONS SYSTEMS UPGRADING COST REDUCTIONORGANIZATION ABC SYSTEMRESTRUCTURING/ CONTINUOUS HIGH VALUEDESIGN/ALIGNMENT IT PLATFORM (SAP, MS, IMPROVEMENT ORACLE, IBM, SUN, etc.)STRATEGIC ISO/QS CERTIFICATIONPLANNING ANY OTHER IT TRANSFORMATION BPR, TQM, SIX SIGMA, LEANMARKETING INITIATIVE MANUFACTURING, ETC.STRATEGIES HUMAN RESOURCES MANAGEMENT SYSTEM HCM/TALENT MANAGEMENT
Organization Readiness Assessment SystemA highly practical Top Management Strategic Assessment tool designed to Diagnose Organization/People Preparedness to identify Capability Gaps (Skills, Processes & Systems) to makesure that New Business Model’s functionality Fits Organization’s Structure, Processes and Culture and defining Change Governance and Communications Strategy to engage Stakeholders/Sponsors,
Organization Readiness Assessment System Assessment Areas CULTURE CHANGE Business Focus RESISTANCE CORE Leadership PROCESSES Decision Making Involvement Communication Communication Mission/Goals Rewards Planning Performance Status Quo Decision Making Appraisal Past Experience Performance Leadership Management Communication MANAGEMENT ORAS SYNERGISM STRUCTURE Leadership Leadership Management Teamwork Practices Diversity of Values/Attitudes Perspective People Involved
O.R.A.S. Characteristics A pragmatic tool designed to systematically, timely, & cost effectively collect real and valid data about organization/people’s change preparedness. Customizable Anonymity of respondents Objective Very user friendly Interpretation and diagnosis results Action Plan (Change Governance/Engage Stakeholders/Sponsors, Communications Strategy)
ORGANIZATION READINESS ASSESSMENT SYSTEM THE DATA COLLECTOR.- The instrument is composed of several statements of Organizational difficulties. Respondents are asked to indicate how frequently each difficulty occurs on scale from 1 (never) to 9 (all the time). THE SCALE.- For each of the items, the respondents are asked to choose a number from 1 to 9 indicating how frequently they perceive the difficulty. 1 2 3 4 5 6 7 8 9 ___________________________________________________________Never Rarely Sometimes Frequently All the time
ORGANIZATION READINESS ASSESSMENT SYSTEM Interpretation of Results Low Risk Moderate Risk High Risk OPPORTUNITY CAUTION DANGER_________________________________________________________________________1 2 3 4 5 6 7 8 9 BUSINESS READINESS FACTORCategory I Low Risk - OPPORTUNITY RANGE (1.0-3.0).- Any area within this range, indicates a positive prognosis, so a proactive approach is required in order to ensure Implementation success.Category II Moderate Risk - CAUTION RANGE (3.01-6.0).- Any area within this range, indicates a guarded prognosis, so immediate actions are required to achieve successful implementation. Category III High Risk - DANGER RANGE (6.01-9.0).- Any area within this range, indicates a negative prognosis, so, it is mandatory to take corrective actions to Strengthen Organization Vulnerabilities prior to implementation stage.
ORGANIZATIONAL PROCESSES ASSESSMENT Process Areas MISSION AND GOALS PLANNING DECISION MAKING PERFORMANCE MANAGEMENT LEADERSHIP TEAMWORK COMMUNICATION SITUATION APPRAISAL PROBLEM SOLVING POTENTIAL PROBLEM ASSESSMENT MEETINGS TRAINING
ORGANIZATIONAL PROCESSES ASSESSMENT SampleIn my organization, people assume they know the cause of a problem - only to find out later they were wrong. 1 2 3 4 5 6 7 8 9 __________________________________________________________Never Rarely Sometimes Frequently All the time Select an answer ranging from 1 to 9, where 1 is NEVER and 9 is ALWAYS
ORGANIZATIONAL PROCESSES ASSESSMENT Sample Readiness Factor by Process Area Process Area Readiness Factor - PLANNING 6.56 - TEAMWORK 6.56 - DECISION MAKING 6.21 - SITUATION APPRAISAL 6.20 - PERFORMANCE MANAGEMENT 6.00 - PROBLEM SOLVING 5.96 - LEADERSHIP 5.83 - POTENTIAL PROBLEMS ASSESSMENT 5.83 - MISSION AND GOALS 5.78 - COMMUNICATION 5.42 - MEETINGS 5.28 - TRAINING 4.14
ORGANIZATIONAL PROCESSES ASSESSMENT ... detailed explanation DECISION MAKING - (6.21) The difficulty in this area indicates a need for refinement of the way: criteria are set for decisions, alternatives are generated and compared and, risks are assessed and final choices are made. OF MOST CONCERN IN THIS AREA WAS: - In my organization, people take too long to make a decision. (7.50) OF LEAST CONCERN IN THIS AREA WAS:- In my organization people lose sight of the purpose of their decisions. (5.50)
ORGANIZATIONAL CULTURE ASSESSMENT Assessment Areas Business Focus Performance Appraisal Structure Leadership Communication Teamwork Decision Making & Problem Solving Implementation Consequence Management
CLUSTER FACTOR (SYNERGY) ASSESSMENT Assessment Areas LEADERSHIP TEAMWORK DIVERSITY OF PERSPECTIVE INTERDEPENDENCE PEOPLE INVOLVED
CHANGE RESISTANCE ASSESSMENT Assessment Areas PURPOSE INVOLVEMENT COMMUNICATION REWARD CONSEQUENCE MANAGEMENT SUPPORT JOB CHARACTERISTICS LEADERSHIP PERSONAL GOALS STATUS QUO PAST PERFORMANCE
Business Readiness Assessment Results to be expected Objective Assessment of Organization/People’s Readiness to implement a New Business Model, Strategic Plan/Organization Restructuring/Human Capital/IT/Business Transformation Strategy Sharp diagnosis of Organization/People’s Preparedness to anticipate any potential constraints when implementing Strategic Initiatives. Action Plan that includes Change Governance, Engage Stakeholders/Sponsors, & Communications Strategy, etc. making sure that New Business functionality fits Organization’s Structures, Processes and Culture Clear Picture of key Organization’s Strengths & Vulnerabilities before engaging in a major HR/IT/Business Transformation Strategy. A sound mechanism to timely & objectively identify current and future key capabilities (Processes, Systems, Skills) requirements/KPIS to be addressed before, during and after any IT/ Business Transformation Strategy Implamentation. Pragmatic evaluation of Talent Management Strategies. Objective mechanism to assess progress of Strategy Implementation Organization’s profile to be used for benchmarking purposes.
Eduardo J. Muñiz After many years leading the design & delivery of HR/Business Transformation Stratgies directly performing Business Readiness Assessments for the Manufacturing, Service and Government industry, he started the idea of developing O.R.A.S.He is GM & Strategic Change Practice Lead of The Advantage Group, Inc., a US based Strategic Business Transformation Consulting firm. With more than fifteen years of experience in Strategic Planning, Organization Restructuring , Business Readiness/Change Management and Human Capital/Business Process High Value Improvement working with companies within the USA, Latin America, APAC, ME.Formerly performed leadership positions working for leading international Strategic consulting firms in APAC, USA & LATAM. His educational background includes BSC Industrial Chemical Engineering and Business Process Architecture Studies.
OCM PLATFORM Approach & Scope OCM PLATFORM is designed to objectively, consistently, accurately, and timely diagnose Organization/People Preparedness to identify Key Capabilties (Skills, Processes, Systems) to be developed and make sure that New Business Model’s functionality fits Organization Process, Culture and Structure before implementation. OCM PLATFORM will make sure that IT/Business Transformation Strategies are successfully implemented maximizing utilization and ROI. Our overall objective is to help ensure Organization realizes business benefits that more than justify their investment in this New Business Model OCM PLATFORM will be implemented within 12 month period. This Approach is focused in two dimensions: STRATEGIC: To do the right thing. Defining “WHAT” is the Strategic profile of the OCM PLATFORM is the starting point OPERATIONAL: To do things right. Defining “HOW” to do it is also critical Therefore we will be pursuing the following objectives:
OCM PLATFORM Approach & Scope OCM PLATFORM will make sure that Organization increases its Throughput while reducing Business Process Cyce Time, Work in Process Inventory, Operating Expenses and Customer Complaints as well as its Competitive Advantage in the market place.. This strategic framework is designed to establish a Business Readiness Platform to objectively, consistently, accurately, and timely diagnose Organization/People Preparedness to identify Key Capabilties (Skills, Processes, Systems) to be developed and make sure that New Business Model’s functionality fits Organization Process, Culture and Structure before implementation. Our overall objective is to help ensure Organization realizes business benefits that more than justify their investment in this New Business Model OCM PLATFORM will be implemented within 12 month period. This Approach is focused in two dimensions: STRATEGIC: To do the right thing. Defining “WHAT” is the Strategic profile of the OCM PLATFORM is the starting point OPERATIONAL: To do things right. Defining “HOW” to do it is also critical Therefore we will be pursuing the following objectives:
OCM PLATFORM STAKE HOLDER & COMMUNICATION. OCM PLATFORM STRATEGIC FRAMEWORK. START UP WORK. Linking Strategic Business Priorities/KPIS Definition. Parameterization Technological/ Organizational/Develop Stake Holders/ Sponsors Global Assessment/Governance /Roles/ Communication Plan CHANGE IMPACT & ACTIONS. Business Process Design Audit/Review/BIA. Execute Change Actions BUSINESS READINESS. Diagnose Organization/People Preparedness to identify Key Capabilities (Skills, Processes, Systems) to be developed and make sure New Business Model’s functionality fits Organization Process/Culture/Structure. Impact Review. Execute Change Actions KEY CAPABILTIES DEVELOPMENT. Customized Job Models/ OCM Training/ Systems/ Processes Designand Logistics/Consequence Management/Progress Monitoring BENEFITS REALIZATION. Business Process Alignment/ Results Measurement/ KPIS Evaluation/ Perform Post BIA/Readiness Assessment. People’s Total Commitment.
OCM PLATFORM Functional Structure (Core Functions) Top Management OCM’S IN HOUSE CONSULTANT OUTSIDE CONSULTANTS OCM PLATFORM ADMINISTRATORBUSINESS READINESSASSESSMENT CENTER BUSINESS UNITS MANAGERS FUNCTIONAL AREAS PROJECT MANAGERS MEASUREMENTS & READINESS TRAINING & DEVELOPMENT BUSINESS PROCESSES TECHNOLOGY INFRASTRUCTURE TECHNOLOGY CAPABILITIES DEVELOPMENT STRUCTURE FINANCIAL SUPPORT OTHER LOGISTIC SERVICES