Incorporating & Integrating to Accelerate Business Management Cycle

Organizations can incorporate both means and ends, harmonize the environment in which the business can grow organically and people can unleash their potential completely.

We are experiencing the digital paradigm shift. Traditional management runs in silos; silos introduce lots of delays, waste, queues, gaps and bottlenecks. There are overly rigid processes, inflexible structures, and organizational pyramids which cause bureaucratic management redundancy. The digital organization can reach the stage of ripeness when it acts as an organic system which continues evolving and adapting, informative and innovative, with the right appetite to tolerate risks and having the differential competency to accelerate performance.

Incorporates informational balancing into business transformation cycle: Information is an important business asset and Information Systems are business oriented, designed to integrate Information Technology components for processing and refining information to improve decision effectiveness and drive transformative changes. However, in many organizations which get stuck at the low level of business maturity, there are too many large-scale transformational programs based on the introduction of new technology either run for years will make little progress towards the strategic goals or on outdated information which create friction to changes.

The systematic view of Information Management helps the management understand information management as a system, incorporating informational balancing into business transformation for shaping high-responsive and high-intelligent digital organizations. The key point is to make sure the “system-of-interest” is defined to establish the flexible business boundary and the properties that interact with the environment dynamically. Some complex systems produce behavior that is hard to fathom and sometimes impossible to understand. But these properties function together in the hyperconnected and interactive manner as one interactive, dynamic, multidimensional system of purpose.

Incorporates cultural requirements into strategy management cycle: Different businesses are at a different stage of the business maturity cycle. Culture is invisible, but one of the most critical success factors of the organization. Good culture lifts up an average strategy, and poor culture decelerates business speed. Business management needs to make an objective assessment of the culture, and incorporate cultural requirements into the strategy management cycle. The strategy as a vector has both direction and force, the goals should be clear; it's important to incorporate cultural requirements into strategy management cycle, create an organizational roadmap for competency building in order to implement the strategy smoothly.

Ideally, the strategic intent should include the desired culture changes. The cultural changes should be made before any other strategy elements which require a particular culture. A lot of its culture is in a state of flux and can transform to suit a new chosen strategy. But in practice, changing the culture to fit the strategy is tough because culture changes both slowly and reluctantly. Actually few strategies can wait for culture's evolutionary change. So the two are strongly intertwined and any change should be lock-stepped and used together to make a business stronger by incorporating cultural requirements into strategy management cycle.

Incorporates conformance into performance management 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. An effective performance-conformance management framework provides an anchor to define and deal with the Key Performance Indicators, incorporating conformance into the performance management cycle, integrating both numerical and qualitative information that relates to improving business performance.

In the digital era, we will be confronting a number of high-complex problems in the hyper-connected world. In fact, running business is an iterative business problem solving continuum. The business solutions will require an integration of different sets of knowledge and digital fluency across multiple disciplines. Methodologically, performance management with conformance mechanisms embedded should be focused on the maximization of capital allocation, company performance and shareholder value. 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.

Digital transformation is a long journey full of uncertainty, velocity, complexity, and ambiguity, with many curves and bumps, roadblocks and pitfalls on the way. Organizations need to be self-adaptive to the dynamic environment; the varying stakeholders can adjust "every day" of the digital transformation journey as the current situation and its net value changes. So organizations can incorporate both means and ends, harmonize the environment in which the business can grow organically and people can unleash their potential completely.

Posted in: Digital Master,Digital Maturity