A colleague and I were discussing a merger they were involved in. The organization that acquired them was amazed to see that the acquisition had drastically better systems and processes. They did not, pre-merger, fully grasp the efficiencies the new acquisition brought to the table. Clearly they saw value in the acquisition - but did they overlook where the value was coming from and does that matter?

Organizations overlook IS and business process improvement as a source of value for many reasons including complexity, reactive approaches, and lack of measurements. These are common themes at Fortune 500 companies and small and medium businesses alike.

Business is complex. It is hard to avoid that. We hear “there is not enough time” and also “if you do not have time to do it right, when will you have time to redo it?” Which saying wins in your organization? Complexity and lack of time tend to feed off of each other. If you do not understand your business and where it is adding value (and losing value!) you are living in that reactive zone that all of us slide into at times.

Reactive approaches seem difficult to avoid with the endless funnel of projects pouring in. The problem here is that we often try to use the “strategic hammer” - simply saying we need to be more strategic does not make it so. Experience shows that you often do not even realize you have slipped into a reactive mode, until you are there.

There is typically no time allocated after a project to measure or complete retrospectives on the project. Additionally, time is rarely allocated before a project begins to recap what failed and succeeded on past projects. If the only lessons learned are by the individual, how can the organization increase its knowledge? If no goals (time and budget don’t count) were developed when the project was approved, how do you know if you have been successful?

It is important to understand where your value is coming from and going. Without understanding these sources you cannot focus your resources on the most important areas of the business. Until those “magic beans ” are created to solve all problems, consider a few ideas to deal with these issues.
► Develop a high level overview of your business or simply one business area. Start small and build!
► Outline key areas that are causing problems (time, money, frustration, loss of moral). Use basic measurements to start and keep it simple! Determine the root cause!
► Drill down and focus on one area or sub-area and set some goals to improve it. Empower a champion to achieve these changes or ask to be empowered to make them!

Bottom line here is to start in one small area, and iteratively move forward. Build on each step. Think ‘lean strategy’.

It is important for the source of value to be recognized. Without this recognition, resources are not allocated to business process improvement and information systems projects. Shining the light on this value is up to everyone in the organization, since everyone suffers if the organization wastes money and time.

Have questions about how to get started? Email me with questions or comments.