Wednesday, October 28, 2020

Going Digital via Accelerating the Variety of Business Cycles

 What's fundamentally changed is that management no longer gets to sit on the sidelines, they need to proactively adapt to the new normal, uncovering hidden or loose coupled business logic, understand and accelerate the variety of business cycles.

Running digital organizations are all about information savvy, adaptation, people-centricity, high-performance, and speed. Business management often has to spin multiple plates and keep them synchronized. The more complex the situation is, the more different approaches and role gaming is needed to reach for effective pattern-finding behind the “VUCA” new normal and drive the organizational change effectively. 

Forward-looking companies across vertical sectors are at the inflection point of digital transformation, they need to accelerate the variety of business cycles for catalyzing innovations and accelerating business performance.

Divergence - Convergence cycle: In the business setting, in order to innovate, it is necessary to follow a process where divergent and convergent thinking are always present and where you can use different tools. Ideas are seeds of creativity that can change a certain situation and future. The future vision is one of them, a very powerful one. Divergent thinking is nurtured by interdisciplinary knowledge and enriched experience to create new ideas. Divergence cycle typically occurs in a spontaneous and flow manner, such that many ideas are generated in an emergent cognitive fashion. And then, convergence cycles consolidate, optimize, prioritize, and implement the best of a few ideas based on top business goals or resource availability, to achieve high business value.

The digital workforce today is hyper-connected and divergent in many ways, sharing natural affinity for fresh perspectives and collective insight. They do not focus on hierarchy but on ideas, openness, and creative problem-solving via harnessing cross-functional communication, fostering collaboration, embracing collective insight, and enforcing the divergence-convergence innovation cycle. From the problem-solving perspective, creative problem-solving is an iterative convergence-divergence-convergence cycle. While the team is analyzing the "problems," it will better go more convergent to really hone in on the "why." Once you figure out what the true problems are and are ready to ideate that needs to be divergent thinking. Finally, when down-selecting ideas and eventually prototyping, that would be more convergent thinking.

Sequence-Consequence cycle: The digital era upon us is about people-centricity. The sequence is like the journey, helping you understand the overall customer experience. If the sequence of events is based on "outside in" data and the end result is to transform the company to increase its customer centric maturity, and build a culture to focus on creating customer values, then it is a sequence of customer experiences or simply a strategic plan to achieving business goals. Defining what the best customer experience is leads to a positive emotional reaction, a “WOW” factor. After that, you have to create a relationship, to maintain positive behavior of the customer (loyalty, word of mouth, positive influence on employee engagement, etc.), and accelerate a healthy sequence-consequence cycle as a sort of business logic to delight customers and drive progressive changes.

From the strategy management perspective, the alignment process becomes an analytical harmony process in which the actual configuration of the organization's customer-centric strategy is a consequence of design and implementation people-centric strategies. When a problem occurs, it is an unintended consequence of the design. If a problem occurs due to the construction of the business system, not the design of the system, that particular problem is not an unintended consequence of the design. It is a consequence of the construction. For such problems, intervention would not be needed beyond the structure level of the iceberg model. So understanding the sequence-consequence cycle helps the business management narrows down the root causes of problems and solve them effectively.

Performance - Conformance cycle: Performance without conformance is not genuine. Conformance without performance adds very little to the firm value. To some degree, conformance is inherent within the value-driven performance. The transformation-driven strategic management takes a holistic view of things both internally and externally as the way of coming up with actions that will improve organizational performance and conformance in order to achieve the set goals in a structural way.

More specifically, "performance management with a conformance mechanism embedded should be focused on the maximization of capital allocation, company performance and shareholder value. An effective performance-conformance management framework provides an anchor to define and deal with the Key Performance Indicators, integrating both numerical and qualitative information that relates to improving business performance. It has a functional specification detailing its meaning, intent, relationships to other measures, calculation, data requirements, reporting requirements and ownership, and conformance standards, etc. It helps to generate stated outputs under specific life cycle conditions; consequently, resulting from specific inputs, processes, and outputs.

The digital world is dynamic, nonlinear, uncertain, and volatile, emergence becomes apparent. What's fundamentally changed is that management no longer gets to sit on the sidelines, they need to proactively adapt to the new normal, uncovering hidden or loose coupled business logic, understand and accelerate the variety of business cycles, be fully engaged in helping the team deliver the most valuable things for the organization, achieve better business results and unleash the full digital potential of the organization.


Thanks for this. I really like what you've posted here and wish you the best of luck with this blog and thanks for sharing. Property Search

Post a Comment