10 Colors to SCORE The Matrix! (3)

Another week is behind us and in front of us. It is time to continue the story of changing the organisation from the "squares" into matrix, which we started with http://blog.avanton.si/2014/03/10-colors-to-score-matrix.html and continued with http://blog.avanton.si/2014/03/10-colors-to-score-matrix-2.html. Let's finally change!

6. Change!
1st rule of change: If you want for the change to work, authorize people to make mistakes! While implementing change the mistakes are quite common companion. For sure, the changes are driven by people and people do mistakes. So, empower your colleagues to do mistakes too! For we don’t do right things the first time right. But encourage them not to repeat the same mistakes twice…

2nd rule of change: The change changes something known. And we fear the unknown. So, invest heavily in communication! It will repay you beyond your expectations. Listen to suggestions of The Catalysts during the change design and its implementation – they are the one that will actually implement the change, they will fight the unknown, the fear.

3rd rule of change: Be a decision-maker! Efficient implementation of the change requires prudent and affirmative decisions. Do not forget – the owner is paying you to be a leader – so you are paid mostly to take decisions. 

7. Drop the grey squares, boxes and lines... Shift to colorful donut and curves!
Playfulness aside. Above all: adapt your organizational structure in a way that it would also to a reader mirror how do you organize – in a contemporary, dynamic way representing revitalized business environment, where it's not only the BIG that eat the SMALL... it's also the FAST that nibble the SLOW!
Go simplicity, go! Remove the layers! Between you and The Catalysts as well as between them and next crucial, middle management level of strategy implementation. Why? To reach strategic goal, there should be controllable amount of complexity. 

Pave the way for P4P!

• simplification of internal policies – most likely all regulatory stuff are written in law already. So, don’t write what is written already. A real challenge for you – do the policy on organization on one piece of paper! Write systemization of workplace on not more than two!
• define not more than 5 KPI to be managed by one person. By increasing their amount you will defocus this person’s attention from critical success factors to mediocrity of plenty. And the importance of each individual KPI in P4P story would relatively decrease. No focus, no priorities…

New representation embraces all we talked about – basic business functions of the venture, key business processes, process pillars and still some squares (“what works with what will work even better). As well as … MBTI colors, for final touch!

8. Play the game!
From design to implementation of new organization it should take you not more than 3Q of one year. Define effective activities. Perform the action plan efficiently. Reorganize! Put formalizations on a piece of paper. Sorry, two – one for organization and one for the systemization of workplaces… Can’t be done? Sure it can! The best have already did it! Draw results in a contemporary way. Adjust the authorization system from boxes to matrix – and again - do it on one page for all key processes by using the RACI matrix. Additionally, adjust compensation system for P4P. Reward people for their results!

9. Evaluate success of the SCORE implementation! 
a. Have you negotiated new procurement contracts and decreased prices for at least 5-6%? 
b. Have you implemented at least 200 proposals of cost rationalization measures for additional up to 10% savings?
c. Have you straightened the chain of command by decreasing thenumber of organizational units for more than a third?
d. Have you improved your key business processes in a “materialized” way? Have you set KPIs?
e. Have the matrix process integration led by The Catalysts decreased the importance of silos and ranks to the extent that engages and empowers people to participate all their their effort to meet the goals?
f. Is importance of individuum appraised not by the position in the organization, but according to his /her contribution in the working process?
g. Is inefficiency of redundant dualities overcame by complied interests that, interplayed in the business process, encourage employees to cooperate in healthy environment of coopetition?
h. Have employees, as empowered and engaged, become responsible for the work they perform? Therefore, they are exposed to the consequences of their action and they now that they will be held accountable for…
i. Do you compensate employees accordingly and by introducing P4P decrease negative selection?
j. DO YOUR COLLEAGUES COMMUNICATE IN A MATRIX WAY?

10. Do a follow up!
The improvement never stops! WWW – what went wrong? Or… what went wonderful? Where and how to improve?

All this in a year?

Magic triangle of achieving the high quality operational excellence within time and budget that predefines success of change does not refer to SCORE! toolkit, but to PEOPLE, which with small change in their mindset enables big change for the company:

Saved for the end… Let’s be clear:

Referring to the current recession in search of explanations for the rationale behind implementation of such approaches might be seen at least as a dubious behavior. And it really doesn’t matter whether the company is in distress or it is a blue chip in a long prospective stable industry. It’s not just cost killing neither solely business process reengineering. It is all together, mixed right.  It has to be simply the principal occupation of each and every MB – to optimize what they have been entrusted with – THE COMPANY.

For donut to work, it is not enough to remove the boxes and lines, survey and improve the business processes. We need to work with people, to enable them to interact and cooperate in revitalized organism, where they would be motivated to fulfill the set goals. Leaders should give change a chance and be an example to those that lead - not solely delegate the work.