PDJ Consulting

Business Transformation Focus Areas

By PHIL DE JAGER

Business Transformation Focus Areas

In an ever-increasing disruptive business world currently, the pace and flexibility of business transformation actions are critical. The speed of efficient execution is vital. The days of the strategic plans hidden somewhere in a file is over. In comes, short term and frequent strategic sessions and out go es the long-term plan to satisfy the top executives.

On-time and in full (OTIF) execution of plans is critical for organizations to be successful and relevant currently. It is also critical that the quality and speed of execution should produce sustainable results. Rather have fewer key objectives to ensure that focus on execution is realistic and achievable. Rather complete the 20% that will produce 80% value than over-planning and not getting things done. I have also found that many organizations are not clear on the actual business priorities that should form part of their strategic plan.

Knowledge of industry benchmarks is critical otherwise companies might be thinking that they are doing well but could be a long way from being competitive i.e. meeting industry benchmarks like cost/kg produced etc.

I have also found that focus is lacking on the few key cost areas making up 80% of the total cost. As an example, 55% of the total conversion cost in a factory is labour cost, but really focus could be elsewhere like maintenance cost that is essential. Businesses must distinguish between essential and non-essential cost.

Timings set for execution is sometimes not in line with what is really required to change or improve businesses. Late execution of key actions will benefit your competitors who executed before you, hence increasing their competitiveness instead of your own.

I have also noticed that the executive team consisting of various disciplines are not challenging poor results enough. It is not just the job of the manager to challenge but all department heads, then good progress and improved results will follow. The manager should not be a micromanager like in so many businesses. Delegation of duties will develop subordinates as I have witnessed in so many companies.

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