Corporate leaders should make an objective assessment of multidimensional business effectiveness as a necessary step in developing core competencies and accelerating performance.
In face of fierce competitions and frequent disruptions, forward-thinking companies need to apply an interdisciplinary management approach, make an objective assessment of the key success factors of the corporation, such as capability, performance, culture, etc, to get the organization from here to there for adapting to the over-complexity and fast-pace of changes, and enhance an iterative strategy-implementation continuum.
Corporate capability assessment: Business capabilities enable corporate strategy execution. Capabilities are typically expressed in general and high-level terms and typically require a combination of organization, people, processes, resources, and technology to achieve. By assessing the business capability, the management readily considers process, information, asset, people, etc, dimensions of the adequacy, differentiation, or maturity level of the capability to fulfill their business strategy. Capability assessment includes analyzing capability gaps in the context of future need, capability dependency or investment calculation, etc. The management should have an in-depth understanding of what capabilities are critical to building the long-term competency for the business's long-term prosperity.
The business capabilities today are the result of its history and this history constrains what capabilities the firm can perform in the future. That means there is a collective personalized learning factor that is hard to duplicate by other companies. So besides basic business capabilities that keep the lights on, It is also important to compare your set of capabilities with competitors' to ensure that it is developing differentiated capabilities to gain unique competency. Through the objective assessment, the quantifiable business inefficiency such as dysfunctional processes or overlapping capabilities can also be brought to light for making the improvement, fine tuning organizational capability, and increasing capability coherence.
Organizational performance assessment: You can only manage what you measure, performance management is a critical aspect of business optimization. Any organization that didn't have a systematic approach to performance analysis at both the strategic level and operational level has a giant blind spot that is impairing their performance. There are individual performance, team performance, and business performance. There is performance at strategic and tactical level. Senior managers focus more on innovation, culture, and long-term outcome; and middle management emphasizes on tactical tasks to meet short-term delivery timeline, and individual contributors perhaps have their own set of priorities. It’s important to balance a diverse viewpoint of performance management and well define the right set of key performance indicators to measure the right “outcome” in the right way.
The performance assessment also includes such as cost estimation - the operation cost, financials, the varying cost of business optimization. Make an assessment on business responsiveness and speed - how the organization meets the needs of customers and deliver the high quality products/services/solutions with speed. Selection of the right set of performance indicators is critical and spend the time upfront organizing and unifying the information you collect across systems, so you can build common performance analytics tools that allow you to investigate data-based performance results. Information led performance management aims in improving an organization’s performance with logical cause-effect analysis and tangible results of performance improvement.
Business culture assessment: Culture is collective mindset and behavior. Any cultural assessment starts on a premise that there is a particular angle on the organization’s culture which is important. There are diverse dimensions of cultural perspective such as multi-faceted business values, behaviors and underlying assumptions. There is no instrument that could possibly assess culture as it is too complex and overly focuses on the underlying assumptions which are a deeper level of understanding. In the end, it comes down to which perspective you wish to take. Select the right instruments that cover different aspects and hence why qualitative data is so important to pick up the richness and the 'invisible' aspects of culture, underlying assumptions and unwritten rules.
Generally speaking, strong, adaptive cultures tend to nurture higher business performers, compared to those with weak or non-adaptive cultures. To design and build a high performance culture, one part of the assessment is to get employees to identify what the ideal culture would look like and the instrument captures the current culture; as well as the desired culture that can accelerate strategy management such as culture of innovation, learning or collaboration. Then, you can integrate strategy, people, change, culture, performance into a holistic approach to improve the overall organizational maturity.
The digital paradigm shift is multidimensional expansion; corporate leaders should make an objective assessment of multidimensional business effectiveness as a necessary step in developing core competencies, reaching the state of business fluency, quality, balance, ripeness, and resilience; accelerating performance, unlocking potentiality, and improving the organizational maturity.
Corporate capability assessment: Business capabilities enable corporate strategy execution. Capabilities are typically expressed in general and high-level terms and typically require a combination of organization, people, processes, resources, and technology to achieve. By assessing the business capability, the management readily considers process, information, asset, people, etc, dimensions of the adequacy, differentiation, or maturity level of the capability to fulfill their business strategy. Capability assessment includes analyzing capability gaps in the context of future need, capability dependency or investment calculation, etc. The management should have an in-depth understanding of what capabilities are critical to building the long-term competency for the business's long-term prosperity.
The business capabilities today are the result of its history and this history constrains what capabilities the firm can perform in the future. That means there is a collective personalized learning factor that is hard to duplicate by other companies. So besides basic business capabilities that keep the lights on, It is also important to compare your set of capabilities with competitors' to ensure that it is developing differentiated capabilities to gain unique competency. Through the objective assessment, the quantifiable business inefficiency such as dysfunctional processes or overlapping capabilities can also be brought to light for making the improvement, fine tuning organizational capability, and increasing capability coherence.
Organizational performance assessment: You can only manage what you measure, performance management is a critical aspect of business optimization. Any organization that didn't have a systematic approach to performance analysis at both the strategic level and operational level has a giant blind spot that is impairing their performance. There are individual performance, team performance, and business performance. There is performance at strategic and tactical level. Senior managers focus more on innovation, culture, and long-term outcome; and middle management emphasizes on tactical tasks to meet short-term delivery timeline, and individual contributors perhaps have their own set of priorities. It’s important to balance a diverse viewpoint of performance management and well define the right set of key performance indicators to measure the right “outcome” in the right way.
The performance assessment also includes such as cost estimation - the operation cost, financials, the varying cost of business optimization. Make an assessment on business responsiveness and speed - how the organization meets the needs of customers and deliver the high quality products/services/solutions with speed. Selection of the right set of performance indicators is critical and spend the time upfront organizing and unifying the information you collect across systems, so you can build common performance analytics tools that allow you to investigate data-based performance results. Information led performance management aims in improving an organization’s performance with logical cause-effect analysis and tangible results of performance improvement.
Generally speaking, strong, adaptive cultures tend to nurture higher business performers, compared to those with weak or non-adaptive cultures. To design and build a high performance culture, one part of the assessment is to get employees to identify what the ideal culture would look like and the instrument captures the current culture; as well as the desired culture that can accelerate strategy management such as culture of innovation, learning or collaboration. Then, you can integrate strategy, people, change, culture, performance into a holistic approach to improve the overall organizational maturity.
The digital paradigm shift is multidimensional expansion; corporate leaders should make an objective assessment of multidimensional business effectiveness as a necessary step in developing core competencies, reaching the state of business fluency, quality, balance, ripeness, and resilience; accelerating performance, unlocking potentiality, and improving the organizational maturity.
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