Many organizations implement new business systems to take advantage of new technology. These projects typically represent millions of dollars of investment. Much too often, all of the effort is focused on the technology and the human component is ignored. New business systems require new operating models -- that is, new ways of doing business.
Brooks defines every operating model in terms of three elements:
Expectations, Capabilities and Motivators, or E-C-M.
Using this framework, we can analyze an organization and determine its potential for improvement.
New models require integrated change. To compete and succeed in the long term (or, perhaps, even in the near term), many companies need to implement new operating models. A new model must create aligned expectations, competitive capabilities, performance-based rewards, and a culture of continuous improvement. Our proven methodology integrates changes in core processes, management systems and technology with sustainable changes in organizational behavior.
During Stage I of our engagement, Opportunity Assessment, a comprehensive analysis of the organization’s management system is performed to determine how the design of the operating model supports the new business system. The results of this analysis phase will identify opportunities for improvement.
During Stage II Implementation, ECM elements are identified and implemented. It is imperative that all levels of the organization have an understanding of their common goals and objectives. Everyone needs to understand the Expectations of their role. Next, people need to have the Capabilities to deliver on that which is expected. Finally, the Motivator system must be designed to provide the right incentives for individuals to march towards the goal. In addition to these elements, a continuous improvement process is established to ensure that the organization continually moves forward.