Organization Effectiveness Simulator

To translate insight into action, Booz & Company have developed an online simulation tool that enables individuals to audition various five-step organizational change programs. After assessing the current state of your organization and diagnosing it as one of seven common types, you can select from among 28 specific actions that map to one or more of the organizational DNA building blocks—decision rights, information, motivators, or … [ Read more ]

The Dominant Genes: Organizational Survival of the Fittest

Most executives can readily agree: Organizational success hinges on effective execution, and effective execution is a matter of ability and agility. Can an organization quickly convert strategy into action, and can it deal effectively with discontinuous change in its competitive environment? This study finds that structural changes are half as effective as those focused on decision-making and information yet more often used.

Attacking Overhead Costs from Both Sides

Standout companies are now stepping back and adopting a new and broader perspective on the age-old cost reduction problem, one that encompasses not only traditional supply-side cost restructuring (e.g., business process reengineering (BPR), shared services, ERP, strategic outsourcing), but also demand-side optimization strategies. Approaching the cost reduction challenge from both sides has unlocked major benefits and savings for such companies.

Colonizers and Consolidators – The Two Cultures Of Corporate Strategy

Demand-driven innovations can, at best, develop and extend existing markets incrementally. These innovations usually come in the form of product extensions or process innovations. While valuable, they do not create disruptive new markets. Evidence shows that disruptive new markets are actually created in a haphazard manner when a new technology gets pushed onto a market. This kind of innovation process is called “supply push” by … [ Read more ]

Next Generation Outsourcing: Ensuring Success After Signing The Deal

Booz Allen Hamilton research reveals that a third of those who outsource fail to achieve the expected benefits. Is that outcome inevitable? Absolutely not, if companies pay close attention to outsourcing governance.

The DNA of Marketing

Marketing organizations are widely perceived to be falling short of the high expectations company leaders have for them. A new survey of 4,000 marketing executives by Booz Allen Hamilton and the Association of National Advertisers shows that poor functioning stems from the “DNA” of marketing organizations. Learn how to change your DNA and you will improve performance and profitability.

Hearts and Minds – The Key to Successful Mergers

Our experience has shown that the integration agenda with respect to people and culture requires two distinct areas of focus to address the “invisible” drivers of behavior.
– The first involves managing the initial emotional response, the state of mind, of the acquired personnel by making them feel welcome, valued and certain about their future. How they feel then determines their level of engagement with, and … [ Read more ]

The Four Dimensions of Intelligent Innovation: Winning the Race for Profitable Growth

Over the last decade, companies have made great strides in retooling their innovation engines. Leaner and faster, they can get products from concept to customer in record time. But even a Ferrari does not know where to drive. While there are still plenty of opportunities to enhance execution, inspiration and insight are increasingly the critical challenges for innovation executives. But improving these capabilities demands different, … [ Read more ]

Jeffrey W. Bennett, Steven B. Hedlund

At its heart, reengineering is based on the century-old theory of Frederick Winslow Taylor, that variation is waste. His followers sought to root out variation by routinizing, and if possible automating, core business processes. This approach makes sense when applied to clerical, easily measured work, like insurance claims processing and call-center operations. But this process-oriented approach breaks down in cases where individuals must make decisions … [ Read more ]

A New Take on Business Process Redesign

Product-focused organizations are becoming more customer-centric and learning that their current processes cannot deliver on new market requirements. Thus, once again, companies are reevaluating and redesigning their business processes-customer- and noncustomer-facing-in search of increased customer value, and internal efficiency. This new round of BPR (1) differentiates processes based on customer profitability and cost to serve; (2) occurs within the context of an overall organizational change; … [ Read more ]

Optimizing Internal Demand

As in the past, companies today are looking to internal services first to pare expenses. What is different is the lens they are applying; the perspective has broadened. Instead of relying solely on supply-side tactics to cut costs (e.g., BPR, automation, outsourcing, offshoring), companies are now managing the demand for internal services as well, challenging service providers and business unit customers to make serious affordability … [ Read more ]

Business Process Outsourcing & Offshoring

Having exploited most of the first-generation cost savings available through outsourcing, leading companies are now focusing on business model transformation. They are looking beyond IT and general and administrative (G&A) services and outsourcing processes closer to the core, including line operations, often using offshore resources. Moreover, many are exploring ways to commercialize their own world-class internal services through spin-offs and joint ventures.

Shining the Light on Shadow Staff

Peer into the hallways of any business unit, and you will likely find “shadow staff,” people performing tasks that duplicate those performed elsewhere in the organization, typically by corporate functions.