Monday, April 23, 2007

Your Company's Trajectory: Up, Down, or Sideways?

At all times, in all companies, irrespective of size or industry, there is an Innate Trajectory(C) to their performance and viability that is independent of the economy, of the competition, of the current bottom line.

As that trajectory points - up or down - so will the company go. As the angle of the trajectory slopes, so will the company move: Quickly or slowly; up or down.

The Innate Trajectory(C) is not detected in the financials or even the KPI's; these are historic, retrospective measures. Their ability to show trends is very limited, even with the most sophisticated of models.

The Innate Trajectory is detected (and measured) by using the causes of it: The Drivers of Performance. (Nothing can show a trajectory better - or further ahead - than its causes.) They show both direction and intensity, at the very time they are creating the future. The Drivers, in fact, predict.

They can be identified - easily. They can be measured - simply. They can be changed - readily. As they change, they change the future.

Your thoughts are welcome. You can input your opinions and read those of others at the Comments button below.

Monday, April 16, 2007

The Cost and Return (ROI) of Corporate Development

Of the roads to corporate development/improvement, three great avenues stand out:
  • One is through the change of strategy, of tactics.
  • Another is through the reengineering of process.
  • The third, is through the transformation of the Operating Dynamic of the company.

Strategic/tactical change takes time to implement; is always disruptive; then takes time to prove - the success rate is seldom encouraging. And it is always expensive. The ROI (if any) is measured in percents per annum.

Reengineerig also takes time to implement; is even more disruptive; then takes time to prove that it works - the success rate here is little better than 30% (Hammer & Champy). It is of course expensive. And the ROI (if any) is still measured in percents per annum.

The third, improving the operating dynamic, is quick. It focuses and mobilizes the company. It costs little. It shows on the bottom line immediately - systemic improvements always do. And this provides the funds for further development.

The ROI is measured in multiples. A first year ROI of 10:1 is the least to be expected.

To transform the operating dynamic of the company requires just three things:

  • The ability to identify and measure its elements;
  • The techniques of triggering change; and
  • A manager with the courage to look deep into the soul of the company - and not flinch from what is seen.

For information on diagnosis, see article Mirror,Mirror, on the Wall . . .

For Information on triggering corporate change, see article: Fire In The Corporate Belly