Thursday, December 29, 2005

Enterprise Wide Innovation

Organisational transformation is often only ever applied to the 'operational' part of a business, for example - in the factory for manufacturers or the delivery floor for call centres. However, true organisational transformation relies on making significant change to value streams and these cut across organisations. For example, to satisfy an order, a company will have a receipts function, an order fulfillment process, a despatch service and an invoice activity - which cuts right through the business. However, by applying improvement tools to only part of the organisation means that the improvement potential is never fully realised - meaning lost opportunity and aiding transformation 'burn out' (the process where a company becomes fed up with change because they feel that they have not achieved enough).

With over 85% of change programmes failing to achieve sustainable results, the failure of many can be squarely laid at the inability of the organisation to address the entire value stream. Don't let yours go that way!

No comments: