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Six Steps to Operational Innovation




 Six key factors:
1. Process focus
Begin with the creation of an enterprise process model, which describes a business's operations in terms of a small number of value-creating end-to-end processes. Most companies set too narrow a scope for their innovation efforts and thus can make only incremental improvements....
 


Six Steps to Operational Innovation
Six key factors:
1. Process focus
Begin with the creation of an enterprise process model, which describes a business's operations in terms of a small number of value-creating end-to-end processes. Most companies set too narrow a scope for their innovation efforts and thus can make only incremental improvements.
2. Process owners
Major results demand change to many parts of an organization; but since each part of the organization—and its manager—has its own agenda, goals, and metrics, efforts to make major changes typically run aground on the shoals of turf, inertia, and resistance. A process owner is a senior executive empowered to make the changes needed to the process across the enterprise as a whole.
3. Full-time design team
Part-time assignment to a process redesign team is an exercise in frustration: Scheduling is a nightmare, emergencies in team members' day jobs inevitably arise, and the organization is inclined to doubt leadership's commitment if it can spare only limited resources. Treat process redesign as the serious undertaking it is, investing in education for the team members, providing them with a formal methodology, and backing them up with a program office.
4. Managerial engagement
The finest idea will not get implemented unless there is an organizational framework for shepherding it from concept to reality.
a. Actively engage seniormost leadership, meeting monthly to review progress and solve problems that needed their involvement.
b. Form a process council consisting of the process owners and a handful of other operating managers. This group is to be responsible for boosting operating performance by linking improvement initiatives to strategy and by leading change in the business.
c. Involve senior leaders from each department in the process innovation as a team to lead the implementation of the new process design. This is a particularly important and difficult role, requiring departmental managers to let go of their focus on narrow departmental concerns and focus instead on the larger goals of the end-to-end process.
5. Building buy-in
Dropping changes on people out of the blue will guarantee failure, and preaching to them about enterprise financial goals will not help them adjust. Therefore, get the front lines engaged throughout the redesign effort making them feel like participants rather than victims and helping them see both the flaws in the old ways of doing things and the power of the new. Provide them with adequate training and education, reinforcement and support, and results-based incentives, all help them adapt to the new ways of operating.
6. Bias for action
Voltaire :  „Perfection is the enemy of the good.“  Develop a solution that provides most but not all desired capabilities, get into the field quickly, and then enhance it over time. This approach allows concepts to be tested, builds momentum and credibility, and delivers early benefits that silence critics and sway doubters.
The revised ANB process differs from the old one in numerous ways: Sales reps, who had been specialized by offering, now represent all Schneider's services, so no time is lost handing off an opportunity from rep to rep; proposals no longer bounce across multiple departments but are handled by integrated customer response and development teams; and pricing has been simplified, standardized, and supported with a new computer system.
This new process is far from the end of the story, however. Enterprises are tightly integrated systems; change one part, and many other parts must adapt. Schneider quickly discovered that its existing ways of handling orders and shipments could not accommodate the increased volume generated by the new ANB process, so it began redesign efforts for these processes, which are now delivering significant business value. Nor was the new ANB process enshrined behind glass. A new project has just kicked off to come up with a revised design that will exploit advances in technology to support customers even more effectively.
 
Podle Michael Hamer :  "Making Operational Innovation Work,"
Harvard Management Update, Vol. 10, No. 4, April 2005.

Michael Hammer is president of Hammer and Company, a management education and research form, and the author of four books, including Reengineering the Corporation: A Manifesto for Business, with James Champy.

 



Written By: Čejková
Date Posted: 21.2.2011
Number of Views: 3547

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