Reactive Organizations Are Very Costly

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Reactive organizations are very costly. Transforming organizations into proactive entities reduces costs and eliminates duplication and non value-added processes, which is key to improving the bottom line and improving product and/or service delivery at the same time. A transformation program provides the opportunity to transform organizations from being reactive to a proactive. CRG Consulting’s process is one that starts at the top of an organization ensuring management commitment and that strategic goals and objectives reflect the current organizational requirements. Once this is solidified then processes, operational objectives and human resources (HR) are transformed into a cohesive program that is truly cross-functional in nature. By the end of the transformation process, the organization will have developed into an efficient team – one that continually improves the organization through effective management of objectives ensuring sustainability long into the future. Many organizations immediately think of human resource alignment and transition when they hear the term “business or organizational transformation.” While CRG’s full program does address HR and organizational structures, it further extends to transforming all aspects of an organization to align with strategic objectives. Most organizations face never-ending pressure to reduce costs. Consequently they operate in a “reactive” state, spending a significant amount of money and human capital to remedy issues, implement quick fixes or revise policies and procedures to ensure that a process is in place to address the issue the next time it surfaces. Over a period of time, the significant volume of operating policies and procedures that are developed provides a false sense of security – a perception that the organization is operating in an effective manner. In reality, the organization has been burdened with bureaucracy, procedures and an over-abundance of records that very often do not get reviewed or analyzed. Moving from the reactive mode to a proactive mode allows organizations to simplify their operations by functioning in a strategic mode, addressing the root cause to eliminate issues. The program developed by CRG streamlines processes, reduces procedures and positions an organization to work in an effective, efficient and strategic alignment. The result is cost savings due to the efficient utilization of resources, more effective processes and higher level of quality. CRG’s complete organizational transformation program includes:

Transcript of Reactive Organizations Are Very Costly

Page 1: Reactive Organizations Are Very Costly

Reactive organizations are very costly. Transformingorganizations into proactive entities reduces costs andeliminates duplication and non value-added processes,which is key to improving the bottom line and improving productand/or service delivery at the same time.A transformation program provides the opportunity totransform organizations from being reactive to a proactive. CRGConsulting’s process is one that starts at the top of an organizationensuring management commitment and that strategic goalsand objectives reflect the current organizational requirements.Once this is solidified then processes, operational objectives andhuman resources (HR) are transformed into a cohesive programthat is truly cross-functional in nature. By the end of the transformationprocess, the organization will have developed into anefficient team – one that continually improves the organizationthrough effective management of objectives ensuring sustainabilitylong into the future.Many organizations immediately think of human resourcealignment and transition when they hear the term “businessor organizational transformation.” While CRG’s full programdoes address HR and organizational structures, it furtherextends to transforming all aspects of an organization to alignwith strategic objectives.Most organizations face never-ending pressure to reducecosts. Consequently they operate in a “reactive” state, spendinga significant amount of money and human capital to remedyissues, implement quick fixes or revise policies and procedures toensure that a process is in place to address the issue the next timeit surfaces. Over a period of time, the significant volume of operatingpolicies and procedures that are developed provides a falsesense of security – a perception that the organization is operatingin an effective manner. In reality, the organization has been burdenedwith bureaucracy, procedures and an over-abundance ofrecords that very often do not get reviewed or analyzed.

Moving from the reactive mode to a proactive mode allowsorganizations to simplify their operations by functioning in astrategic mode, addressing the root cause to eliminate issues.The program developed by CRG streamlines processes, reducesprocedures and positions an organization to work in an effective,efficient and strategic alignment. The result is cost savings due tothe efficient utilization of resources, more effective processes andhigher level of quality. CRG’s complete organizational transformationprogram includes:• organizational assessment• transformation• performance monitors• process improvement• performance reviewAny single or multiple element of the program can be implementedon its own merit to improve a key aspect of the organization.The transformation focus is on:

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• risk assessment• strategy• organizational alignment• teams• communication• sustainability• continual improvement• employee training and developmentOrganizational assessmentThe first step in organizational transformation is to benchmarkthe current state. The organization is assessed from top to bottomto fully comprehend the risks, leadership commitment,program requirements and human resource alignment to thestrategic direction, as well as how the operational processes havebeen implemented to meet the organization’s needs and wants.Next an action plan is defined to transform the organizationfrom “current state” to its “required state.” Once agreement isobtained on the way forward, the action plan is implemented toachieve organizational transformation.The key element for success is the alignment of humanresources to the strategic objectives of the organization. Thisensures all resources are working in synergy to the needs of theorganization and avoids the allocation of resources to activitiesthat are not value-added.The performance objectives are supported by processmetrics which are developed to identify opportunities forimproving process effectiveness and efficiency. By analyzingthe process metrics – identification of the most ineffectiveand inefficient processes – process improvement can be implemented.By implementing pareto and root cause analysis, andidentifying appropriate actions to address process inefficiencies,costs are reduced, issues eliminated and human resources workin a far more effective manner.All of these key process indicators are rolled up throughthe organization. This allows the leadership team the opportunityto conduct performance reviews to assess the state ofthe organization at any point during the transformation. Thisinformation is used to identify additional opportunities forimprovement and to adjust the strategic and business objectivesas required. This is a continual improvement and change managementprogram, since the organization now has the processesin place to ensure that opportunities are continually identifiedand adjustments made to improve the organization on anongoing basis. This ensures the program is sustainable once thetransformation process has been completed.Transformation risk assessmentThe risk assessment includes a performance managementassessment, process efficiency and effectiveness analysis, anorganizational baseline assessment, a communication strategyreview, a stakeholder satisfaction assessment, an applicable ISOsystems audit (when needed), and a compliance assessment tostrategy, customer/stakeholder requirements and applicableregulations and standards.StrategyThe next step is to develop a strategy to minimize risk and

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to institute a set of strategic objectives to move the organizationto a high performing, effective, proactive and efficientorganization. Based on the risk analysis and the needs of theorganization, CRG would review and assist with the updateof the strategic plan and planning process itself. The managementteam is involved and a strategic planning sessionis facilitated to assist with defining and/or refining the missionand vision. Once complete we assist with defining thekey organizational objectives and implement a performancemanagement balanced scorecard. Then the strategic planningprocess is mapped and documented to ensure year-to-yearsustainability.Organizational allianceAligning human resources to implement the strategic objectivesof the organization is key to success. All resourcesneed to work in synergy with the needs of the organization.Performance objectives are aligned with the organizationalobjectives. The performance objectives are supported by processmetrics which are developed to identify opportunitiesfor improving process effectiveness and efficiency. By analyzingthe process metrics, we are able to implement processimprovement. As mentioned earlier, all of these key processindicators are rolled up through the organization to allowthe leadership team the opportunity to conduct performancereviews to assess the state of the organization at any pointduring the transformation.TeamsAt this stage the only way to ensure ongoing success of anytransformation, or improvement program, is to institutehighly effective, empowered and high-performing teamswithin the organization. Key team members are identifiedfrom a cross section of the organization. The cross functionalteam members are trained by CRG, which also assists withthe team building implementation until it becomes selfmanaging. To assess the effectiveness and success of a teamwithin the organization, key improvement projects are identifiedand implemented. Highly effective cross-functionalteams are very effective at implementing improvements andmanaging change.

CommunicationsAnother element of any successful program is communication– both internal and external – with internal communicationbeing the primary concern of most organizations. Employeesvery often state that they are unaware of the strategy, directionand performance of the organization. A successful transformationprogram needs to ensure all employees and stakeholders areaware of strategic plans and the current performance of the organization.There must be a communications strategy, plan andprocess in place for employees and external stakeholders.SustainabilityCRG’s program is designed to ensure mentorship and trainingthroughout, and to ensure processes are in place for continuedsustainability. During the risk assessment phase, a business continuityassessment can be included and any risks and potential

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improvement opportunities would be identified.From this an organizational sustainabilityplan is developed. The key focus forensuring success is to identify keyresources within the organizationand to develop and implement ahuman resource succession plan and adisaster recovery plan to ensure ongoingsustainability.Current skills are assessed throughout the organization,and employees at all levels are trained to provide the skillsrequired to transform and sustain the transformation. CRG thendevelops/revises and implements process improvement metricswithin the organization and implements an effective program toensure long-term sustainability.Continual improvementOnce the organizational transformation program is implementedand sustainable processes are now in place to ensure continualimprovement, initiatives are actioned to further improve theperformance of the organization. This is done through performancemonitoring and the implementation of effective correctiveand preventive measures. The organization now has thetools to develop continual improvement plans. Using employeesthat have been trained in pareto and root cause analysis, processinefficiencies can be identified and appropriate actions taken toreduce costs, eliminate issues and ensure human resources areworking in a far more effective manner. The organization willalso possess monitors for all key processes based on improvementactivities. CRG provides mentorship for continual improvementprojects and assistance with the development process to manageeffective change.Employee training and developmentAny successful program needs to provide adequate training anddevelopment for all employees, which ensures that employeeproductivity and efficiency is improved and cost-effective. CRGtraining covers human resources, including leadership and teamdevelopment, professional development coaching, career coaching,quality tools and techniques, Lean/Six Sigma, QualityManagement and the implementation of a healthyworkplace program.Performance monitorsThe actual transformation process, which is the vital step,is often referred to as a transition or change managementprogram. This involves implementing the alignment of thestrategic plan and objectives and mentoring the leaders, managementand high performance cross-functional teams.In many cases, an organization needs to realign humanresources to meet the new strategic plans and objectives. Thisis a crucial segment in any transformation program in that italigns all human resources to ensure that the employees’ goalsand objectives are in synch with the larger organizational strategicdirection. Often employees are found to be working onprojects that have no relevance to the strategic direction of theorganization and this one area has a significant negative impactto the bottom line and performance of any organization. All

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employees, including management, needto have their performanceobjectives and metricsaligned with thestrategy.ProcessimprovementsHaving ensured theorganization’s humanresources are aligned, the nextstep is to ensure that the processes in the organizationare also in synch with the objectives of the organizationand aligned with the strategic plan. We review and update ordevelop process maps and procedures, implement an effectivedocument control process and implement key metrics to monitorprocess performance. This is the one area that can providethe most significant return on investment, reduce risk andtransform organizations into high performers.Performance reviewNow that the organizational transformation program is implementedand sustainable processes are in place to ensure continualimprovement, initiatives are actioned to further improvethe performance of the organization. This is done throughperformance monitoring and the implementation of effectivecorrective and preventive measures. The organization nowhas the tools to develop continual improvement plans usingemployees that have been trained in problem solving and rootcause analysis. The organization will also possess monitors forall key processes based on improvement activities. Mentorshipfor continual improvement projects and assistance with thedevelopment process to manage continual improvementis provided.