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Riding the Whirlwind - 6.9

6.9 Develop Organisational & Technological Capabilities

6.9.1 To be agile and responsive to the customer, the business processes need to be re-engineered and the new mediums exploited to the full. All parts of the organisation will need to make adjustments, with departments and individuals reviewing their capabilities in the light of the new commitments to customers. McKinsey's 7 S's Model provides a useful framework for reviewing the impact of change:

 
 

McKinsey's 7 S's Model of Organisational Change

Developing Shared Values and Beliefs linked to the Vision is a key to developing all the other aspects.

Developing Shared Values and Beliefs linked to the Vision is a key to developing all the
 

Shared Values and Beliefs: A role of the vision statement is to impart to the organisation (and externally) what A role of the vision statement is to impart to the organisation (and externally) what the organisation stands for and what it believes in.

this is a role for senior management. They must not only formulate and constantly re-iterate

this is a role for senior management. They must not only formulate and constantly re-iterate values and beliefs but also adhere to them if they are to shape peoples behaviour in a lasting way.

Strategy defines key actions and capabilities along the major dimensions of marketing, product and service development, sales and channel distribution, business systems and processes, and management of alliances and partnerships.

Strategy: States how an organisation will attain its vision and respond to the threats and : States how an organisation will attain its vision and respond to the threats and opportunities of the new mediums. Capabilities are needed in:

marketing:

marketing:

market research: customer surveys and data analysis.of the new mediums. Capabilities are needed in: marketing: promotional management: co-ordination across all mediums.

promotional management: co-ordination across all mediums.market research: customer surveys and data analysis. media management. consumer management: ensuring awareness of

media management.promotional management: co-ordination across all mediums. consumer management: ensuring awareness of the new

consumer management: ensuring awareness of the new communications channels, the processes involved, and the benefits to be gained. Managing expectations. Providing training and support. Gaining timely feedback.research: customer surveys and data analysis. promotional management: co-ordination across all mediums. media management.

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Riding the Whirlwind - 6.9

 

distribution:

channel management: co-ordination of existing and new distribution channels, PR to existing channels.  distribution: sales management: training and support, timely feedback, motivation and reward systems. product and

sales management: training and support, timely feedback, motivation and reward systems.and new distribution channels, PR to existing channels. product and service development: customer collaboration,

product and service development:and support, timely feedback, motivation and reward systems. customer collaboration, personalisation and customisation.

customer collaboration, personalisation and customisation.and reward systems. product and service development: pricing. business requirements analysis: development of

pricing.customer collaboration, personalisation and customisation. business requirements analysis: development of

business requirements analysis: development of architectures, models, frameworks, high level systems and processes, etccollaboration, personalisation and customisation. pricing. creation and management of alliances & partnerships.

creation and management of alliances & partnerships.models, frameworks, high level systems and processes, etc   Systems, including Processes: Capabilities are

 

Systems, including Processes: Capabilities are required in: 

Systems requires capabilities in both information technology and in organisational processes, methods and controls.

IT & IS:Systems requires capabilities in both information technology and in organisational processes, methods and controls.

design: user interface (HCI), OO analysis and design, techniques.processes, methods and controls. IT & IS: development: prototyping and RAD, OO programming in C++,

development: prototyping and RAD, OO programming in C++, CGI, Java Scripts, Java Applets; new OO development tools, OO databases, temporal databases, data mining tools.user interface (HCI), OO analysis and design, techniques.   systems delivery: distribution to multiple users,

 

systems delivery: distribution to multiple users, locations, device types, and media types in various combinations. 

operation: wide-area network management, object resource management, security management (firewalls).device types, and media types in various combinations. sales and service: design, development and delivery of

sales and service:object resource management, security management (firewalls). design, development and delivery of new responsive processes

design, development and delivery of new responsive processes to support intimate customer relationships.security management (firewalls). sales and service: operation: call handling for promotion, sales, service,

operation: call handling for promotion, sales, service, claims, legal, etc., 24 hr. / 7 day support.processes to support intimate customer relationships. legal: personalisation and customisation of products /

legal:sales, service, claims, legal, etc., 24 hr. / 7 day support. personalisation and customisation of products

personalisation and customisation of products / services.service, claims, legal, etc., 24 hr. / 7 day support. legal: on-line advice, selling, and servicing.

on-line advice, selling, and servicing.personalisation and customisation of products / services. actuarial: assessment on a 1:1 basis; overall risk

actuarial: assessment on a 1:1 basis; overall risk management.products / services. on-line advice, selling, and servicing. Staff need the skills and aptitude for developing

Staff need the skills and aptitude for developing customer relationships, service and sales.

Staff: HR management for developing the skills and aptitude for building lifetime customer relationships, providing quality service and making appropriate sales. Policies, standards and processes re:Staff need the skills and aptitude for developing customer relationships, service and sales.

recruitment.quality service and making appropriate sales. Policies, standards and processes re: appraisal, training & development.

appraisal, training & development.relationships, providing quality service and making appropriate sales. Policies, standards and processes re: recruitment.

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Riding the Whirlwind - 6.9

   
    motivation & rewards.

motivation & rewards.

The management style is likely to be a mixture of self management for customer facing

activities and task management for organisational activities

likely to be a mixture of self management for customer facing activities and task management for
- Management Challenge - Style : If staff are to treat customers as individuals, then

- Management Challenge -

Style: If staff are to treat customers as individuals, then they themselves will need to be managed as individuals. This suggests a self management style.

However, cross-organisational activities probably require a task management style. The challenge for management is to mix the styles as appropriate without confusing staff.

require a task management style. The challenge for management is to mix the styles as appropriate
 

Relationship Marketing suggests a move to a Self Management style.

 
  Structure : Organisations will find that changes to processes and style inevitably require changes to

Structure: Organisations will find that changes to processes and style inevitably require changes to their structure. To be responsive and results oriented an organisation needs to move to a Network structure (see diagram).

Network structures support a responsive and result oriented organisation.

Network structures support a responsive and result oriented organisation.

Those that are hierarchical may need to adopt transition structures, say via Decentralised, Matrix or Process structures. Commensurate changes to management structures will be needed.

   
   
 

Relationship Marketing suggests a move to a Network Organisation.

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Riding the Whirlwind - 6.9

- A Learning Environment - For staff to develop appropriate new skills requires a learning
- A Learning Environment -
For staff to
develop
appropriate
new skills requires a
learning environment.
Skills: If staff and mangers are to acquire all the skills outlined above, then
there needs to be an appropriate learning environment. One that:
is driven by a desire to realise the vision.
has a sharing culture with mutual support.
provides space and time for learning, preferably closely linked to specific
tasks and objectives (Just In Time Learning).
allows risk.
tolerates failure, provided it is part of the learning process.
has visible recognition for success that is built on new learning.
Where skills and experience cannot be resourced or developed internally within the
required timescales then external companies will need to be retained.

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