The invention relates generally to organizational transformation, and more particularly, to a method, system, and storage medium for assessing and implementing an organizational transformation.
Traditional methods of addressing organizational transformation assessments are quantitative and qualitative in nature. The quantitative techniques involve benchmarking and are typically data, resource, and time intensive, often requiring weeks or months to implement. Many larger organizations rely on outsourcing much of the assessment functions to consulting firms to maintain its primary focus on the day-to-day operations. However, the expenses incurred when utilizing outside consultants to facilitate these assessments are often cost prohibitive. Moreover, because the methodologies used by consulting agencies vary from agency to agency, there are no assurances that the assessments will be conducted in a manner that is guaranteed to produce accurate and informative results. Likewise, the organization desiring the assessments may not be sufficiently equipped to effectively perform these assessments.
What is needed, therefore, is a method that enables an organization to make better, more informed and rational decisions to identify the candidates (i.e., functional areas) for organizational transformation and determine an optimal solution. Further, what is needed is a method, along with associated tools and automation that may be used in a workshop setting and may be conducted in a matter of hours or days, depending upon the scope of the assessment.
Exemplary embodiments relate to a method, system, and storage medium for assessing and implementing an organizational transformation. The method includes identifying at least one process area for each management area targeted for assessment and evaluating at least one solution for the at least one process area. A pairing of a solution to a process area results in a functional area. The method further includes performing orthogonal assessments for each functional area. The orthogonal assessments include determining a need for organizational transformation by ranking each of the functional areas according to a perceived need for organizational transformation, evaluating each of the at least one process area against each of the at least one corresponding solution and calculating any performance gaps identified based upon the evaluating, and evaluating an implementation capability for each of the at least one solution. The method also includes presenting results of each of the orthogonal assessments.
The foregoing and other objects, aspects, and advantages will be better understood from the following detailed description of exemplary embodiments of the invention with reference to the FIGURES, in which:
The organizational transformation assessment process system involves a process for evaluating, comparing, and prioritizing organizational transformation. The organizational transformation assessment process system is an interdisciplinary, proactive process that evaluates one or more functional areas within an organization (e.g., business enterprise, military, government, non-profit organization, educational institution, research institution, etc.). Each functional area, and its proposed solutions for organizational transformation, is assessed utilizing several defined and rank-ordered considerations. The method assesses each functional area's impact on organization, conducts process gap analyses, and compares the ease of implementation of potential solutions.
The organizational transformation assessment process system provides an orthogonal assessment of three key elements: impact on organization, process gap analysis, and ease of implementation of its solutions. The three elements are independent and may be graphically represented for visual comparison of solutions through a scoring methodology for rapid analysis. The organizational transformation assessment process system reveals the justification and the fit of the proposed solutions to the required transformation.
The impact on organization is measured in terms of various criteria. For example, in a business environment, impact may be measured in terms of revenue growth, market share improvement, cost reduction, customer satisfaction, inventory improvement, productivity improvement, and end-to-end cycle time reduction. Process gap analysis is conducted to evaluate any gaps between the current and required processes and it includes collecting information about the various key metrics, data, and rules. Usually, each functional area has more than one potential solution for closing the gap. Each potential solution is evaluated in terms of ease of implementation, which is measured by readiness, riskiness, implementation duration, and complexity, fit with the organization's strategy, and cost.
The organizational transformation assessment process system is sufficiently robust to handle dynamic organizational environments. The method is portable across organizational models and units, including products sold or services provided, if any. The method relates to management, process reengineering, and consultancy fields.
Turning now to
Host system 102 may also include a firewall to prevent unauthorized access to the host system 102 and enforce any limitations on authorized access. For instance, a system administrator (e.g., client system 106) may have access to the entire system and have authority to modify portions of the system. A firewall may be implemented using conventional hardware and/or software, as is known in the art.
Host system 102 may also operate as an application server. Host system 102 executes one or more computer programs to implement the organizational transformation assessment processes and related functions as described herein. As previously noted, it is understood that separate servers may be utilized to implement the network server functions and the application server functions. Alternatively, the network server, the firewall, and the application server may be implemented by a single server executing computer programs to perform the requisite functions.
Storage device 128 is also included in the system 100 of
Each of networks 124 and 114 may be any type of known network including, but not limited to, a wide area network (WAN), a local area network (LAN), a global network (e.g., Internet), a virtual private network (VPN), and an intranet. Each of networks 124 and 114 may be implemented using a wireless network or any kind of physical network implementation known in the art. One or more of client systems 104-112 may be coupled to host system 102 through multiple networks (e.g., intranet and Internet) so that not all client systems 104-112 are coupled to host system 102 through the same network. One or more of the client systems 104-112 and the host system 102 may be connected to networks 124 and 114 in a wireless fashion. For purposes of illustration, client systems 104-110 are connected to host system 102 via a wide area network (WAN) 124, and client system 112 is connected to host system 102 via network 124 and internetwork 114 (e.g., Internet).
Client systems 104-112 may comprise general-purpose computer devices that allow systems to connect to one or more networks 124 and 114 and to host system 102. Client systems 104-112 may access the host system 102 via internal web browsers located therein. Individual client systems are described below. It will be understood that additional client systems may be utilized by the organizational transformation assessment process system and that the client systems 104-112 are representative of the types of client systems that may be found in system 100.
Individuals and teams involved in the organization executing the organizational transformation method perform specific roles throughout the organizational processes. They may also be in communication with each other via client systems 104-112.
Organization team client system 104 refers to a computer or workstation operated by senior leadership of the organization. The organization team, or senior leadership, is responsible for the strategic direction and governance of the organization. As described herein, an organization is comprised of one or more management areas, one or more organizational units, or one or more collective organizations. In one embodiment, the organization may be a combination of internal capabilities and external vendors. The organizational assessments may be conducted at the organizational level or organization-unit level, where very large organizations are divided into units for the sake of management and control. In those instances where the unit's management areas are being benchmarked, the unit name would be provided to a benchmarking team. The benchmarking component is described further in FIGS. 12 and 13A-13B.
System administrator client system 106 refers to a computer or workstation operated by individuals or teams that manage the performance, operation, and maintenance of the host system 102, storage device 128, and network 124 identified in the foregoing discussion.
Management team client system 108 refers to a computer device operated by one or more managerial team members. The managerial teams range from first line managers to senior executives or officers, depending upon the scope of the assessment. In accordance with exemplary embodiments, the management team supervises a specified management area that the organization team has selected for assessment. For example, in a business environment, some examples of a management area may include marketing, procurement, finance, manufacturing, channel management, etc. Additionally, when using the voting component 138 of the organizational transformation assessment process system, higher levels of management may have increased voting authority assigned for scoring and weighting activities based upon their position within the management team. Management areas are described further in the diagram 200 of
Process team client system 110 refers to a computer device operated by one or more process team members under a specified management team. In exemplary embodiments, the process team includes subject matter experts versant in all aspects of a process, including applications, data, metrics, organization rules, and required functionality. For example, in a business context, some examples of process areas may include scheduling, customer fulfillment, integrated marketing communications, inventory control, intra-company accounting, reverse logistics, etc. Process areas are described further in the diagram 300 of
Consultant team client system 112 refers to a computer or workstation operated by one or more consultants supporting the organization team in the conduct of the organizational transformation assessment process. These consultants may be internal or external, and may be expert practitioners in the art of conducting organizational transformation assessments. Consultants may be employed to expedite the organizational transformation assessment process or, alternatively, when the organization team deems the breadth and depth of the organizational assessment are sufficient for additional technical and facilitation assistance.
Organizational transformation assessment application 130 refers to a computer program that implements the organizational transformation assessment process system described herein. The organizational transformation assessment application 130 includes components 132-142, which are described below.
Template component 132 contains standardized templates, which include the names of the management areas, process areas, scores, weights, and other pertinent data used in conducting the assessments. The standardized templates are completed via other components (e.g., one or more of components 134-142) from separate client systems (e.g., 104-112) as described herein. In exemplary embodiments, the scores and weights are indicated as positive integers, with scores ranging from 1 to 5 in whole number increments with associated legends. All calculations (averages and totals) are carried to one decimal place throughout the templates and will range from 1.0 to 5.0 in one tenth increments.
Scoring component 134 permits the management and process teams to score the templates. The scoring is based on a scale of 1 to 5 in whole number increments, with each scoring methodology having its unique legend based on the particular template being completed. In highly interactive sessions, the scoring may be determined by secret voting (weighted or unweighted) using the voting component 138 via one or more client systems as described herein.
Weighting component 136 permits the management and process teams to weight information provided in the templates within the template and voting components, 132 and 138 respectively. The weights are assigned by relative magnitude to each other, and need not equal 100. Weights are assigned to each of the templates, are positive integers, and permit the allocation of emphasis throughout the assessment. In exemplary embodiments, the default weight is the number one (1), and this default weight may be used for all unweighted assessments. Weights should not be zero or negative as either situation would invalidate the results of the assessment. The total weight calculations are the divisor in the template calculations, providing a normalizing factor across the template when calculating the overall scoring totals. In highly interactive sessions, the weighting may be determined by secret voting (weighted or unweighted) using the voting component 138 from one or more client systems as described herein. The organization team 104 may adjust the weighting schema in the weighting component 136 to conduct sensitivity analyses and visualize the results within the analytics component 140.
Voting component 138 permits the management and process teams to vote on the scoring and weighting functions applied to the templates. In highly interactive sessions, the scoring and weighting may be determined by secret balloting (weighted or unweighted) using the voting component 138 from one or more client systems as described herein. In workshop sessions, consensus-building techniques may be used to determine weighting and scoring.
Analytics component 140 produces the assessment reports and provides graphical representation based on the completed templates. The assessment reports may be weighted and unweighted (default weight is “1”) for evaluating the role and degree of bias played within the assessment.
Web component 142 permits the use of web technology and applications to streamline and expedite the interactions between the various teams and to automate the processes provided by the organizational transformation assessment process system. For the assessments, the organization and/or benchmarking teams may determine if the Web component 142 will be used in the conduct of virtual assessments or whether a manual workshop setting is preferred for either assessment. In some cases, the workshop may be conducted over the Web using Web conferencing tools such as IBM's SameTime™ e-meeting technology.
For purposes of illustration, the organizational transformation process will be described with respect to a business enterprise. However, it will be understood by those skilled in the art that other types of organizations, such as non-profit organizations, may implement organizational transformations by modifying one or more of the templates. Turning now to
As indicated above, each management area 202 comprises one or more process areas. A diagram depicting a sample management area architecture 300 will now be described with reference to
The organizational transformation assessment process system contemplates three ways in which the organizational transformation assessment application 130 may be deployed. The first option is an organizational process (with or without consultants), and is described with reference to the flow diagram 400 of
The method described in the flow diagram 400 of
As indicated above, the organizational transformation assessment process system may be implemented with the outside assistance of a consulting group. At step 405, it is determined by the organization team whether consultants should be brought in. If so, a consulting group is selected and brought in to the process at step 406. The consulting team may assist in the assessment process via access to one or more components 132-140 via web component 142 and network 124.
At step 408, the organization team, in consultation with selected management team(s) (and optionally the consulting team), identifies one or more management areas to be assessed. In a business context, for example, examples of management areas may include marketing, supply chain, human resources, distribution, transitional activities or turnover points between two or more management areas, etc. In the government sector, examples of traditional management areas include public safety, emergency management, agriculture, labor, defense, commerce, health services, diplomatic service, criminal justice, treasury, etc. The identifying number of the management area (e.g., 1-q) is entered in column 502 of Organization template 500 and a description of the management area (e.g., human resources) is entered into column 504 of Organization template 500. As described above, this process may be facilitated in a collaborative manner via one or both of client systems 104 and 112 (via web component 142).
At step 410, the management team associated with the management area 202 identified, in consultation with selected process teams, identify process areas 302 (e.g., scheduling, customer fulfillment, integrated marketing communications, inventory control, intra-company accounting, reverse logistics, manufacturing planning, distribution planning, supply and demand planning, pricing, revenue management, customer support etc.) and functional areas to be assessed. Possible solutions for each identified process area are identified as well. This information is entered into columns 506-508 of Organization template 500 at step 412. Process areas are denoted as alphabetical characters (e.g., A, B, C, etc.) and solutions are designated as numeric characters (e.g., 1, 2, 3, etc.). The number of rows in Organization template 500 may be expressed as (rows i=1 to n, whereby n=Sum of nx, x=1 to q, q=number of management areas, nx=number of solutions for management area x, and n=total number of solutions for the organization).
As indicated above, there may be multiple process areas associated with each management area. Further, there may be multiple possible solutions for each process area. Process areas are broken down into functional areas in order to pair up multiple solutions to each process area. For example, if process area A is associated with three possible solutions, then the pairing of the first solution to the process area A is referred to as a first functional area. A second solution paired with the process area A is then referred to as a second functional area, and so forth. The identifying character of each process area is entered by the respective management area team in column 506 of Organization template 500 of
It will be appreciated that in some organizational transformation assessments, a single process area may be identified for two or more management areas. However, the solutions supporting the process area may be the same or different. For instance, for a process area “Planning”, one solution may be used for three different management areas (interdisciplinary), whereas another “Planning” solution may be applicable to only one management area. In the interdisciplinary “Planning” scenario, the assessment may identify the impact on three management areas for this single solution. With each management area potentially being weighted differently, the organizational impact, gap analysis, and ease of implementation may vary, and provide insightful reflection for solutions. Therefore, the organizational transformation assessment process system is sufficiently robust to handle all of these variations and assess their impact on organization.
Once the Organization template 500 of
The management team assigns weights to seven facets identified as being relevant to the organization. For illustrative purposes, these facets are directed to a business environment as shown in the Template 600 and are identified in columns 608-620 of Template 600 as: revenue growth (column 608), market share improvement (column 610), cost reduction (column 612), customer satisfaction (column 614), inventory improvement (column 616), productivity improvement (column 618), and end-to-end cycle time reduction (column 620). These items are then transferred to the weighting component 136 of
The management team provides weights to these facets by specifying a score ranging from 1 to 5, whereby 1 denotes a very low score, 2 denotes a low score, 3 denotes a medium score, 4 denotes a high score, and 5 denotes a very high score. The greater the impact of a facet on the management area, the higher the weighting score will be. Scores ranging from 3 to 5 indicate a strong need for organizational transformation. The scores may be expressed as Sij, whereby i=1 to nx, and j=1 to 7. The weighting component 136 of
In exemplary embodiments, each functional area is rated equally, as the assessment performed is agnostic of any proposed solutions. This Template 600 anchors the assessment process by providing an initial ranking for organizational transformation. If the management team is unable to agree upon one or more rankings, the organizational transformation assessment process system provides a voting component 138 of
At step 416, process teams associated with the process areas to be assessed access a Process template 700A-B from template component 132 of
Upon accessing the Process template 700A-B of
The process team members then assign a current performance scoring and a required performance scoring, which may be expressed as (_CP(functional area)_) and (_RP(functional area)_), respectively, for each functional area utilizing a scoring system of 1-5. The analytic component 140 calculates the average scores for both the current performance and required performance items, expressed as (AV_(functional area)_C)=[Sum of _CP(functional area)_]/z, whereby the first blank is denoted by one of ‘M’ for metrics, ‘F’ for required functionality, ‘D’ for data, and ‘R’ for rules, and the second blank is from 1 to z, with z being the highest number of names within each functional area and solution. Additionally, (AV_(functional area)_R)=[Sum of _CP(functional area)_]/z, whereby the first blank is denoted by one of ‘M’ for metrics, ‘F’ for required functionality, ‘D’ for data, and ‘R’ for rules, and the second blank is from 1 to z, with z being the highest number of names within each functional area and solution. The results of these calculations are provided in rows 732 of template 700.
The analytic component 140 further calculates the weighted process current performance (presented in column 726) and weighted process required performance for each functional area (presented in column 728). The weighted process current performance may be expressed as (PCP(functional area)—p) and as applied to all line items shown in row 732 for functional area A1 may be expressed as PCP(A1)p=[{PWm*AVM(A1)C}+{PWf*AVF(A1)C}+{PWd*AVD(A1)C}+{PWr*AVR(A1)C}]/OPWp. The weighted process required performance may be expressed as (PRP(functional area)—p) and as applied to all line items shown in row 732 for functional area A3 may be expressed as PRP(A3)p=[{PWm*AVM(A3)R}+{PWf*AVF(A3)R}+{PWd*AVD(A3)R}+{PWr*AVR(A3)R}]/OPWp. Utilizing the weighted process current performance data and the weighted process required performance data, the analytic component 140 calculates any gap in performance for each functional area. The process gap may be expressed as (PG(functional area)—p)=PRP(functional area)p−PCP(functional area)p and is presented in column 730.
One Process template 700A-B for each management area is completed by the process team. Once all management areas have been covered by the Process template, the process team(s) then access the Management Area template 800 from the template component 132 of
If the process team members cannot reach a consensus in determining the total weights, the voting component 138 may be utilized as described above. The analytics component 140 calculates a total process weight (expressed as TPWx) for each management area. The process gap scores, or (PG(functional area)p), are transferred from the Process template 700A-B of
At step 422, the management teams access an Ease of Implementation template 900, a sample of which is shown in
The management team completes the Ease of Implementation template 900 from template component 132 of
The Overall Evaluation template 1000 of
For illustrative purposes, the following analysis is provided with respect to chart 1100 of
Solution “B2” would be deemed to the preferred solution for functional area “B” since it rated high in closing the process gap and has moderate ease of implementation. Solution “B1” was rated low in closing the process gap with a high ease of implementation.
Solutions “C1” and “C2” are rated closely, with solution “C1” providing the greatest process benefit. Both solutions provide moderate to high ease of implementation. Solution “C3” has low process gap closure and ease of implementation and, thus, should not be considered.
If resources permit, solution “A2” should be adopted over solutions “A1” and “A3”. All three solutions moderately close the process gap, with solution “A2” having a very high ease of implementation compared to low ease of implementation for solutions “A1” and “A3”.
The above represents a typical analysis for management area “1”. However, if solutions are interdisciplinary (e.g., cross management area boundaries), this analysis may need to be reassessed in light of other favorable considerations identified in the organizational transformation assessment.
Utilizing the data provided in chart 1100, the management teams conduct analysis of assessment results based upon the Overall Evaluation template 1000 of
As required, the method as described above may be repeated for each organizational transformation assessment desired by the organization by returning to step 401 of
As described above, there are three modes of implementation for the transformation assessment process: organizational, benchmarking, and a combination of both organizational and benchmarking. The benchmarking mode of implementation is performed in conjunction with a third-party providing confidential and proprietary data from external users (e.g., operators of client system 122). Turning now to
The exemplary system 1200 of
The organizational transformation assessment process system enables the benchmarking team to provide relative performance scores to their clients' (e.g., external users) organizational transformation assessment application's benchmarking component 144 without revealing confidential information about specific external users. The benchmarking application 154 includes a computer program that implements the third-party benchmarking processes described herein. Due to the breadth of the organizational transformation assessment process system, there may be multiple benchmarking applications utilized for assessments.
Benchmarking team client system 116 refers to a computer or workstation operated by an independent third party whose value proposition includes providing a confidential benchmarking service to its customers. In some cases, the benchmarking team may be all or part of the consultant team of client system 112 when directed by the organization team. The benchmarking team interacts with the organization team's representatives and other external users (other customers). The benchmarking team selects standard management areas, process areas, functional areas, and solutions (usually based upon a decomposed standard process model with associated solutions), maintains a list of its customers, compiles the data provided by its customers, and produces confidential assessment reports. The assessment reports rank customers in relationship to the comparative population, but does not reveal the specific rankings of the other benchmarked companies. The benchmarking team initializes, manages, and maintains the benchmarking application 154.
System administrator client system 120 refers to a computer or workstation operated by a system administrator of the benchmarking teams of client system 118. The system administrator handles the network administrative functions that enable benchmarking team members to communicate with the entities associated with the system 1200 of
External users client system 122 refers to a computer or workstation operated by customers of the benchmarking entity 116. In most cases, the external users would have teams performing assessments that would be forwarded to the benchmarking application 154.
In exemplary embodiments, benchmarking component 144 is initialized, operated, and maintained by the benchmarking team. The benchmarking team selects standard process model with associated management areas, functional areas, processes and solutions (applications). Benchmarking component 144 calculates averages and totals, and produces confidential assessments (weighted and/or unweighted) based on requests from the enterprise team.
Turning now to
For purposes of illustration, the functions performed by, or on behalf of, external parties (e.g., benchmarking client system 118, system administrator client system 120, and external users 122) are provided in
The organization team (e.g., the entity receiving the Organization template 500) selects one or more management teams and management areas for participation in the assessment at step 1314. The organization team and management team then select the desired benchmarked organizations against which they will be assessed at step 1316. This selection may come from the listing of previously benchmarked organizations. At step 1318, the management team selects process teams for participation in the assessment. Further, the management team and selected process teams identify standard (e.g., industry standard) functional areas for evaluation at step 1320. This selection may originate from the Organization template 500 which includes the information supplied at steps 1304 and 1306 of
The management team then provides scoring data via the Impact on Organization and Ease of Implementation templates 600 of
The benchmarking team receives the templates and calculates the averages and total scores in the templates at step 1332. The benchmarking team then generates a graphical analysis (including comparative assessments) via the analytics component 140 of
Upon receiving the results, the management team conducts an analysis of the assessment information and recommends one or more courses of action to the organization team at step 1338. The organization team reviews the recommendations and selects a course of action at step 1340. The management and process teams then execute a transformation process based upon the selected course of action at step 1342.
If desired, the assessment process may be repeated whereby the method returns to
As indicated above, the organizational transformation assessment process system provides the ability to evaluate, compare, and prioritize transformation. The organizational transformation assessment process system is an interdisciplinary, proactive process that evaluates one or more functional areas within an organization. Each functional area, and its proposed solutions for organizational transformation, is assessed on several defined and rank-ordered considerations. The method assesses each functional area's impact on the organization, conducts process gap analyses, and compares the ease of implementation of potential solutions.
As described above, the embodiments of the invention may be embodied in the form of computer-implemented processes and apparatuses for practicing those processes. Embodiments of the invention may also be embodied in the form of computer program code containing instructions embodied in tangible media, such as floppy diskettes, CD-ROMs, hard drives, or any other computer-readable storage medium, wherein, when the computer program code is loaded into and executed by a computer, the computer becomes an apparatus for practicing the invention. The present invention can also be embodied in the form of computer program code, for example, whether stored in a storage medium, loaded into and/or executed by a computer, or transmitted over some transmission medium, wherein, when the computer program code is loaded into and executed by a computer, the computer becomes an apparatus for practicing the invention. When implemented on a general-purpose microprocessor, the computer program code segments configure the microprocessor to create specific logic circuits.
While the invention has been described with reference to exemplary embodiments, it will be understood by those skilled in the art that various changes may be made and equivalents may be substituted for elements thereof without departing from the scope of the invention. In addition, many modifications may be made to adapt a particular situation or material to the teachings of the invention without departing from the essential scope thereof. Therefore, it is intended that the invention not be limited to the particular embodiment disclosed as the best mode contemplated for carrying out this invention, but that the invention will include all embodiments falling within the scope of the appended claims. Moreover, the use of the terms first, second, etc. do not denote any order or importance, but rather the terms first, second, etc. are used to distinguish one element from another.
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