Tuesday, June 11, 2019

The Multiple Paths to Reach the Inflection Point for Achieving the High Level Business Maturity

 When the organization has put a stronger emphasis on empowering people, the source of knowledge, innovation, business adaptation, and people-centricity, it is reaching the inflection point to achieve the next level of organizational maturity.

The journey of improving business maturity is more evolutionary than revolutionary. The organization reaches the tipping point when the business fundamental elements such as people, process, technology, or culture are about to change. To keep moving forward, the organization can take multiple paths to reach the “inflection point” where it goes from being able to hold the business architecture in the mind of key business leaders and where a greater shared understanding of business transformation will lead to a greater commonality of organizational purpose, less duplication of effort and more cohesive business competencies to achieve the next level of business growth and enterprise success.

Strategic alignment: Strategic alignment is the process of ensuring all organizational actions are directed to achieving common strategic goals and objectives of the business. This is characterized as an important step to reach the inflection point of improving business maturity. Strategic alignment is a cascading top-down process. First, define the strategic corporate goals; from that goal, you determine certain “action items” which become the tactical goals of business units; these business units then determine action items from those goals; and then, align business functional goals with individuals’ daily tasks, etc. Business management needs to ensure they have enough resources and necessary skills to implement the business strategy; the risks and assumptions are understood and manageable; the business is synchronized with the flow of the right information to the right people at the right time to make the right decisions, coordinate and execute strategy, tactics, and risks. Organizations that achieve the seamless alignment, integration, collaboration, and synchronization will outperform their competitors and tend to be highly responsive to the business dynamic and reach the inflection point for achieving high-level business maturity with accelerated business speed.

Operational excellence: Today's organizations become interdependent and over-complex due to the hyperconnected business nature with the overly rigid organizational structural pyramid. Many organizations suffer from overloaded tasks and overwhelming information. When a business becomes so complicated with outdated rules or rigid processes or procedures, people get frustrated and annoyed by not being able to accomplish things easily, this drives the search for simpler concepts and methods to pursue operational excellence. It’s important to keep trimming wastes and redundancy, set priority to bring transparency and keep optimizing business structures and processes. Achieving operational excellence is fundamental but not so easy. It’s challenging because it requires rethinking the way to do things and reinventing the business to get digital ready. When the business operation is refined to the point that they are nimble, can adapt to changing business demands in a timely fashion, the organization reaches the inflection point to achieve high-level business maturity. In practice, building operational competency is fundamental, but not so easy. It is challenging because it requires some kind of rethinking and reinventing corporate processes and fine-tuning the business competency.

Differentiated business competency: Business capability provides differentiation and the ability to do things and finish tasks in a consistent manner. Business capabilities are fundamental pillars to achieve the corporate strategy. Organizations need to make an objective assessment of their business competencies, identify and close enterprise capability gaps in order to implement the capability-based strategy smoothly. Create an organizational strategy-capability mapping and make a road map that sets goals for capability shaping and competency building. More specifically, it might include things like portfolio rationalization, enterprise architecture roadmaps, operational reliability metrics/dashboard, and human capital management. It is not necessary to reinvent the wheel in building capabilities. The organization can reach the inflection point to achieve high-level business maturity when the business can build the dynamic business capability via existing building blocks or recombining those existing capabilities to highly sophisticated competencies for complex problem-solving, driving business growth and perpetuating business improvement. The right set of scalable, coherent, and impactful capabilities directly contribute to gain the short-term business benefit and long-term winning proposition for reaching a high-level of business maturity.

Digital transformation is a thorny journey full of uncertainty, velocity, complexity, and ambiguity, with many curves and bumps, roadblocks and pitfalls on the way. When the organization has put a stronger emphasis on empowering people, the source of knowledge, innovation, business adaptation, and people-centricity, it is reaching the inflection point to achieve the next level of organizational maturity.


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