04 Corporate Transformation in Practice Flashcards Preview

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Flashcards in 04 Corporate Transformation in Practice Deck (16)
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1

What is the key transformation activity where most time & effort are spent?

Key effort-heavy activity is to map the new Co strategy into processes, implement them & then keep them evolving

2

What is the 1st step to do it?

 

Why is it key?

1st segmentation step is to map these taxonomies:

  • products
  • costomer segments
  • regions
  • distribution channels

with their relationships, i.e. which subcategory is related with which subcategory (it is a 4D-matrix)


 

It is key to agree on 1 common Co segmentation because it provides a common language, which must then be enforced by the Co.

3

What is step 2 of transformation?

 

what is the outcome?

Medium- to long-term planning for the Co, done properly:

estimate growth prospects, and then decide how much to invest, for every segment of the 4D segmentation matrix resulting from step 1.

 

The outcome is the (target) positioning.

4

usual planning technique by CFOs:

just use avg of analysts' projections

LOL brilliant!

5

industrial complexity: driver?

diversity (in the 4 segmentation dimensions)

6

What are the characteristics of a strategic biz fields?

biz field def=

the homogeneity of the environment (incl. competition)

def= product X customer segment

7

Step 3 of transformation:

+ 2 typical models therein

map biz field X Customer Relationship Interactions to find Macro Processes!

(think how to bundle them, considering your strategy & customer experience)
 

2 typical models for bundling in here:

  • a cost leader "is oriented horizontally" with its MPs, i.e. bundles horizontally across biz fields => looking for synergies
  • a differentiator "is oriented vertically" with its MPs, i.e. bundles vertically => looking for "intimacy"

8

Macro-Processes:

  • def=
  • how many
  • for how long

  • strategic bundles of CRIs X biz fields
  • from 6 to 18
  • don't change them for a long time: this is standardization for stability

9

Two outcomes of Macro-Processes:

  • synergies
    • found in shared activities, either primary or secondary
  • org chart
    • can be reverse-engineered to the biz segmentation
    • nowadays it is typically structured by processes, rather than as a matrix

10

Step 4:

  • what?
  • how?
  • goals?

  • go from strategic planning to operations
  • going from Biz Process Architecture to to project portfolio
    • then implementing those projects with experienced project managers
  • keep value added activities, outsource the rest (incl. problems)

11

Taxonomy of Co resource allocation

resource allocation <= at top, controlled by board

  • resources for operations
  • investments
    • incremental improvement
    • strategic programs / projects

12

3 levels of project management - w 3 considerations!

3 levels of project management:

  • project portfolio mgmt:
    board wonders: can we afford all of the projects that we need? (NO=>SELL)
  • external project mgmt:
    like client controlling their own architect
  • internal project mgmt:
    like the architect running the construction project

 

3 considerations:

  • Just like there are 5 types of strategies!
  • They need different types of skills & EXPERIENCE
  • a Co must correctly identify levels & skills, or it fails

 

13

Resource allocation: responsibilities

  • board => think of how to change the biz => first allocate resources to strategic programs/projects, then allocate money to run the biz based on biz cases
    • key: use psy & social competencies to make top managers feel not like individual representatives of BUs, but like "team members" of the system
  • BU top managers should put forward only honest biz cases, for a constructive discussion in the Co's interest
    • in most companies every BU just lies

 

14

steering committee

def=

hierarchical structure

committee dealing w strategic programs / projects

Structure:

  • program manager => looks across projects
  • for each project: 
    project owner (sometimes aka sponsor) => allocates the project budget, prepares "project request"
    • people taking material decisions:
      project committee + project manager
      • sub-project manager
        • sub-project team

15

why do projects always take longer than anticipated?

because of disagreements =>

negotiations =>

cycles of revisions

16

How to increase acceptance for a corp standardization process?

involve geographical units with competitions to define the standards

+ work on identity: clarify & highlight advantages