Execute Strategy :
A successful strategy must be built around the following two scenarios in the new
economic set-up :
1. Alignment of business elements, structure and functions around value chain
The value a function creates is defined by functional indicators and the cost of
a function . Around this structure are the traditional KRA / KPIs followed by horizontal
/ vertical function based MIS linked to them. But we have no end to end visibility
on :
- Total value;
- How value is built up component wise ;
- Measures of total value and each component of value that adds up to create value
finally ;and
- What it costs to create each component of value .
All these pieces of value add up to create customer value for which we are paid
by customer. Is it not unfortunate ? You will be amazed to see small value add and
disproportionate cost to deliver it.
Contact PBOPlus to unravel the hidden wealth when you see business as series of
value and cost of each piece of value. The value a function creates is defined by
functional indicators and the cost of a function . Around this structure are the
traditional KRA / KPIs followed by horizontal / vertical function based MIS linked
to them. But we have no end to end visibility on :
2. Elimination of non-core activities
Being the skeleton of your organization's business activity, you must give utmost
importance to your business process as a whole. This is extremely important since
the success or failure in achieving the goals of your business will largely depend
on the process that you have followed, together with your business strategies and
plans. Thus, without an effective business process, your business is as good as
dead when the time comes.
Business process is classified into three categories, which are as follows:
- The management processes, which is followed to run the operation of the business
and comply with all existing yet relevant requirements.
- The operational processes, which is followed in delivering the business value to
clients, and is considered as an integral part of a corporate organization's core
business.
- The supporting processes, which is followed to support the core-based processes.
It includes accounting, information technology (IT) support, and recruitment processes.
Realizing the importance of a business process in achieving their business objectives,
there are companies that prefer to eliminate some or all of their business process
(most specifically the non-core processes) .
The main motive in eliminating a non-core business process is to allow the business
to invest most of their time, financial, and human resources into core activities
and focus on building effective strategies, which will fuel the growth of the company.