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Sustaining Improved Organizational Performance

15_LC_Blog_May-2

Every organisation exists to deliver value (products, services or something less tangible) to ‘customers’ and other stakeholders. However strategic intent is defined, it is about delivering value both ‘outside’ (customers, suppliers, regulators, community etc.) and ‘inside’ (staff, shareholders, partners, franchisees etc.). We traditionally manage via the organisation chart, yet no entity shown on that chart can, by itself, deliver external value. In reality, we create, accumulate and deliver value by collaborating across the organisation. While resources are managed vertically with the organisation chart; value is created and delivered horizontally via the process architecture.   

Organizational performance is ultimately measured in terms of delivery of the value promised to customers and other stakeholders. This demands proactive management of the cross-functional activity that creates, accumulates, and delivers value. The value pathway must be discovered, value delivery performance must be measured, and performance gaps must be closed where there is a business case for doing so.       

It is no longer enough, if it ever was, to have a lean efficient organisation consistently producing a quality product. Henry Ford reduced the time it took to build a Model T chassis from 12½ hours to 1½ hours. That was a prodigious feat but would have been pointless if nobody wanted to buy a car.        

Sustaining organisational performance must start with the value proposition – what are we promising to deliver and does anybody care? Then we need to understand how we are delivering that value and the extent to which we are living up to our promises.   

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Roger Tregear
Roger Tregear
Roger is a Consulting Associate with Leonardo. He delivers consulting and education assignments around the world. This work has involved many industry sectors, diverse cultures, and organization types. Roger briefs executives, coach managers, and support project teams to develop process-based management. Several thousand people have attended Roger's training courses and seminars in many countries - and Roger frequently presents at international business conferences. Roger has been writing a column on BPTrends called Practical Process for over 10 years. This led to the 2013 book of the same name. In 2011, he co-authored Establishing the Office of Business Process Management. He contributed a chapter in The International Handbook on Business Process Management (2010, 2015). With Paul Harmon in 2016, Roger co-edited Questioning BPM?, a book discussing key BPM questions. Roger's own book, Reimagining Management, was published in 2016.

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