Transforming the enterprise
Organisations have to constantly re-think their strategies and implement new
ones if they are to remain competitive and improve their performance. A company's
survival and profitability depends on its change management strategy. This book
discusses various models such as re-engineering, Six-Sigma and the Malcolm Baldridge
National Quality Award criteria that are used to assess an organisation's performance.
Implementing Strategic Change is an informative read for CIOs, focussing as
it does on a customer-centric culture which forms the basis of a successful
business. The ideas and solutions provided are all geared towards making improvements
according to changing environmentsone of the most important challenges
faced by CIOs today.
The book begins by reinforcing the statement that a company's strategic decisions
are customer-focussed. There are several methods which an organisation can use
to determine the efficacy of its customer-centric culture. The Baldridge criteria
provide the most comprehensive view of an organisation's customer-oriented culture.
Along with developing a focus on customers, an organisation
must aim to create shareholder value. Economic Value Added (better known as
EVA) is a method that helps measure and generate wealth. This method takes into
consideration financial as well as non-financial factors in a way that each
complements the other.
Title: Implementing Strategic Change
Authors: Steven H Hoisington,
S A Vaneswaran
Publisher: Tata McGraw-Hill
Price: Rs 350
Besides developing the right focus, organisations need to
assess their strengths and weaknesses so that they can determine their areas
for improvement. As per this book, the Malcolm Baldridge National Quality Award
criteria for performance excellence is the most important assessment tool available
This view is backed by research that shows a direct relation between Baldridge
assessments and organisational performance. Apart from this, the European Foundation
for Quality Management (EFQM) model is another widely accepted organisational
assessment tool. Another model discussed is the QFD or Quality Function Deployment
model. This is used to translate customer requirements into process requirements.
It can change the working of an organisation and make it customer-centric.
Change in an organisation can be caused by many factors such as consumer demand,
technological improvements, competition, customisation of products and services,
and transformation in workplace demographics. Effective change management can
be brought about by understanding the four stages of the change continuum, and
then devising means of changing the behaviour of people resistant to change.
But the first and most important step is to ascertain whether the organisation
is ready to change.
In order to make plans for process improvement, one must determine whether the
process is strategically important, what it costs, and also its importance to
customers. Once the right process is identified, a good process improvement
method can be applied. Six Sigma is the most important method being used today.
After a good plan for process improvement is in place, the organisation needs
to undertake organisation-wide reviews to track progress relative to the plans.
These reviews must begin at the top management level and percolate to the lowest
levels. The aim should be to continuously improve the company's performance.
All the methods have been designed to make an organisation deliver the greatest
possible value to its stakeholders. Equally important are governance issues.
The governance structure of an organisation is the final arbiter as to whether
the organisation is meeting its obligations to stakeholders. Several guidelines
have been devised to enable companies to assess the effectiveness of organisational
governance, a notable one being the Sarbanes-Oxley Act.
Global changes have made it essential for organisations to revamp themselves.
In such a scenario, this book not only discusses the various approaches to change
management, but also provides suggestions for integrating all these methods
into a composite whole which can deliver better value than standalone deployments.
- Newly Paul