Many times, the topic of process improvement neglects the more important topic of how to change a process. Measure, Analyze, Improve and Control After the change is implemented, results should be measured and analyzed.
However, these individuals can make poor decisions that will be detrimental to the organization. To this end, the literature is full of theories, methodologies, recommendations and analysis on how an organization should be structured in order to maximize the likelihood of obtaining successful change.
The real challenge lies in executing the paradigm shift that requires a clear understanding by everyone in the organization that change is already constantly successfully executing within the organization and a new delineation of responsibility between strategic and operational change is required.
For example, the allocation of focus related to strategic versus operational change by management level might look something like the following: The answer is simple — delegation of responsibility. These decisions, therefore, can bog down an organization and make it ineffective.
This alone can drive significant reduction in random variation. On the other hand, the collapse of once famous companies like Chrysler point to the transformational change that is sudden and radical in nature.
Strategy and operational decisions address different aspects of the organization. The following guidelines will help: The operational decisions then help the organization to bring about changes that move the business toward its strategic goals.
Will the change cause unanticipated results in their portions of the process? Operational change focuses on the short term expected and unexpected change that needs to be executed in support of the customer and is based upon strategic change that has occurred within the organization on a historical basis.
The answer lies in the fact that organizations have allowed the lines of responsibility between day to day operational change and strategic change to get blurred.
Following are eight steps that, if followed, allow us to properly change a process with discipline while still embracing the insights and excitement of our rank-and-file operators. We can typically erase special-cause variation with rifle-shot solutions turn off the special cause and we turn off the variation.
Documentation should lead to clear understanding with little to no operator-to-operator interpretation variation. Regardless of the reasons, we need to understand the lineage of the process to avoid past mistakes. Strategic change is in response to both internal opportunities for improvement and reaction to external influences that can threaten the organization.
Decisions A business does not make frequent decisions regarding operations because of constraints of time, resources and the workforce. Future Shock Another management thinker, Alvin Toffler, came up with an idea about the intersection of different paradigms and the accelerating rates of change and their impact on businesses.
There will always be operational change that requires involvement at the higher levels of management. Revalidate Process Discipline, Data and Measuring Systems for the Change At all times, we should be certain that processes are followed, data are reliable and our measuring systems are capable of providing data we can use to make good managerial decisions.
What is Strategic Change?
If appropriate, use the analyzed data to further improve the process, make adjustments based on reality and, most importantly, control the process. He used the term Future Shock to describe how the changes in technology, move towards globalism, resource constraints, and finally, the shortening of time itself were akin to the future arriving even before one could prepare for it and hence he likened human civilization being shocked by the future.
The key aspect about strategic change is that it is difficult to predict and control. For random variation, typically increased capital expenditure except in the cases of very sloppy processes is needed to decrease variation.
Step 4 — Adjust Organizational Responsibility to Clearly Support Operational and Strategic Change Assuming an organization is successful in Steps 1 through 3, it can still face challenges when addressing change within the organization if there is not a clear delineation of responsibility for operational and strategic change amongst the workforce.
Review all process documentation created throughout the process and ensure it accurately reflects the new process.What is Strategic Change? In response to the fast changing and fluid marketplace and industry landscapes, many management thinkers came with theories of strategic change.
The first among them was the legendary Peter Drucker who coined the term Age of Discontinuity to describe the way in which disruptive change affects us. Simply, while operational changes focus on the business and organizational systems, the strategic change main purpose is to renew these systems (Bold, ).
Activities involved in strategic change include restructuring, acquisitions, or mergers%(2). The operational workforce will largely determine whether the strategic shifts will succeed or fail as the operation adapts to a brave, new strategic change. If the strategic engine does its part, the organization will avoid the calcification and atrophy that occurs when a business doesn’t think ahead and disposes of strategic initiatives.
The operational decisions then help the organization to bring about changes that move the business toward its strategic goals. References (4) Small Business: Tips on Strategic, Tactical and.
Operational change focuses on the short term expected and unexpected change that needs to be executed in support of the customer and is based upon strategic change that has occurred within the organization on a historical basis. Operational change Considering the strategic change it can be considered as a field which is influenced by the decisions of the management.
It includes the maximum utilization of resources in terms of improving the performance of a business in the business environment.Download