Wednesday, December 31, 2008

So, why is it so difficult to build effective and efficient processes?

It seems quite simple, after all - Establish workflow, Establish rules, Implement the same leveraging technology,Train people and voila; you are ready to go.

Reality, unfortunately, is however messy.

To begin with, lets examine the first step - Establish Workflow. If only this was as simple as it sounds.

Work flows not only needs to contend with common-sense rules but also with the political map of every organization. Who gets to decide on what and why? What are the exceptions to these workflows, and why?

How do you establish workflows when you have an extended organization spanning multiple locations, even countries? How about time zone differences and the ineviable delays it will introduce?

What about firms with additional complexities? Multiple product lines, multiple suppliers, multiple sales channels, etc.?

Finally, not all workfows exists within the firm's boundaries. It extends to customers, distributors and suppliers as well. The need to include them stems from Strategic reasons to Regulatory. But then, how do we coopt them into 'our' workflows? And, in parallel, how should we conform to 'their' workflows?

Sunday, December 28, 2008

Processes that help to Scale

How, how do we really get to the elusive Scale? what enables some (a select few) organizations to grow sucessfully while most firms simply stall a some point in their growth trajectory?

The secret sauce is of course - processes. Robust processes help firms execute, simplifies routine decision making, eases information flow and enables large organizations respond quickly to threats and opportunities. Done right, processes reduces average cost of operations, thereby confering the 'economy of scale'

Most processes can be categorized into 4 main sections:
  1. Customer Operations
  2. Enterprise Operations
  3. Supplier Operations
  4. Corporate Operations

Thursday, December 25, 2008

How to Scale

Sacle. The most potent force of nature. And business.

All living organisms strive to attain advantage of scale - either thru physical size or through numbers.

Business organizations follow the same urge. All mature industries are dominated by few - handful - leaders, who account for most of the industry revenue and profits.

So, how should challengers approach? How do the challengers surmount the potent force called Scale?

This should be an interesting discussion