​The Theory of Constraints is a philosophy and a practical guide to managing systems. It provides an integrated approach to management. This philosophy has been widely adopted by organizations across the world.
 
Theory of Constraints is one of the promising process improvement methodologies.
​ 

• Business Process Improvement for Manufacturing & Service Industry: ​18 proven methodologies to maximize organizational effectiveness, efficiency, and profitability.

 
It was developed to manage systems that have many interconnected parts. It implies that organizations are simpler to manage when they are able to focus on a single constraint. It also assumes that humans are inherently good and deserve to be respected even when they make mistakes. It's a systematic approach that involves six steps. First, a company must define its goal. This is often a measurable quantity, such as the throughput of products or services. This goal is typically related to the success of the company.
 
Once an organization has identified the constraint(s) that are holding it back, it can begin to eliminate those constraints and improve throughput. This is done by underlying process improvement. In some cases, this will require significant changes to the company's culture or business model. This process is cyclical and requires constant introspection. Ultimately, it helps organizations grow.
 
To know more about how to effectively manage organizational change, checkout this video-

Additionally, embedding a culture of Kaizen helps bigtime with increasing process improvement initiatives, more so under the backdrop of an organizational change. Read more about Kaizen and How to use Kaizen for Increased Profitability and Organizational Excellence.
 
The Theory of Constraints is a fundamental management philosophy aimed at helping organizations achieve their goals. It identifies the factors that prevent them from achieving their goals and continually strives to eliminate them. Identifying these factors, also known as bottlenecks, can help businesses become more efficient and profitable.
 
It includes a sophisticated problem solving approach that has been optimized for complex systems. The five-step theory of constraints thinking process is designed to help you organize your thinking when you are approaching a bottleneck or constraint. To apply the theory of constraints, it's important to understand the problem and agree on a solution.
 
Another key attribute of the Theory of Constraints is buffer management. There are many ways to manage buffers in the Theory of Constraints, but one of the most common is by using a three-color visual system to designate buffers. This allows the system to align itself with the constraint. I have a separate post on visual management, you may check it out here.

As with any other technique of process improvement, the first step is to determine what is the constraint. By identifying the constraint, you can begin to prioritize improvement projects, and then, find the weakest link. By improving the weakest link, you can improve the entire organization. This approach is more holistic and based on a holistic view to bring-in operational excellence.


​Related Reading:​

1. How to cut costs strategically using Kaizen
2. Streamline processes and workflows with Gemba Walk.
3. Top Ten Strategic Decision-Making Tools for Operational Excellence

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Categories:  Continuous Improvement | Operations | Process Improvement

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#operationalexcellence #buffermanagement #bottlenecks #constraint #theoryofconstraints #visualmanagement #kaizen #problemsolving #organizationaldevelopment

In a previous project, your team might have faced a resistance to change due to a few factors. These factors include communication, control of their own jobs, and the power of the force field. Here are some tips for managing your team's resistance to change. Read on to discover how to handle different kinds of resistance to change. This article will highlight three main strategies to get your team on board with your change initiative.
 
6 Strategies to overcome employee resistance to organizational change- 

Strategic communication plan 

Often, leaders respond to the symptoms of resistance to change. But this will not solve the problem. By understanding the underlying causes of employee resistance, you will be able to navigate it more smoothly. Firstly, explain the reasons why the changes are necessary.
 
Communicate the reasons for the changes. Let your team members know what they stand to gain by these changes. Let them know what they can do to help you implement the changes. You can do this by sharing your reservations, but you must emphasize that your team needs the change to succeed. They must be involved in the process, too, so they need to understand the positive benefits. If you don't, the changes you've proposed may backfire.
 
Follow a strategic communication plan to succeed with your change initiatives. I’ve a separate blogpost on communication plan, you may check it out here.
 
Employee engagement
 
Among the most common methods used to implement change in small and large organizations is employee participation. But this approach can be problematic. First, you must understand the true nature of employee resistance. Employees typically resist changes in social settings, which are often an accompaniment to the technical changes. The problem stems from the staff specialists' blind spots, which are caused by their preoccupation with the technical aspects of new ideas. The good news is that you can use employee involvement to counteract the problems associated with employee resistance.

• How To Increase Employee Engagement as a New Boss 

If the change you are proposing is a fundamentally different way of operating, then your employees will be much more likely to support it. In addition to making sure that employees are informed of the change, you should involve key employees in the process. They can help you build a bridge between your management team and your team. When communicating changes, however, be sure to share your reservations and ask for employees' involvement. In addition, make sure that employees understand what their roles are and how they will benefit from them.
 
Embedding a culture of Kaizen helps bigtime with increasing employee engagement, more so under the backdrop of an organizational change. Read more about Kaizen and How to use Kaizen for Increased Profitability and Organizational Excellence.
 
Also, check out this video to know more about how Kaizen can help your organization’s initiatives on increasing employee engagement.​

Control of own jobs
 
One of the key strategies for overcoming your team’s resistance to change is to communicate clearly and consistently. Identify your audiences and highlight the benefits of the change. Employees often resist changes due to fear of losing their jobs, or the change affecting their working life. Although employees may be well-informed about the benefits of change, the "WIIFM" (what’s in it for me) factor still plays an important role. If they do not believe the changes will benefit them, they will resist.
 
If you want to increase employee satisfaction, your team's resistance to change is often one of the top factors preventing them from being engaged. But if you want to minimize resistance to change, you must take the time to ensure that employees have control over their own jobs. Achieve this by being transparent and providing direction, goals, and parameters. Ensure that your team has the power to make changes - practice effective delegation and set critical path points for feedback.

• How To Overcome Challenges of Creating Effective Work Teams 

Force field analysis
 
The force field analysis is an effective tool for identifying the forces driving and restraining the adoption of change. It helps managers identify the levers that can strengthen driving forces and mitigate restraining forces to make changes stick. This approach involves the participation of all key stakeholders and requires some careful deliberation. However, it can be a great help to identify internal and external forces, which are often not visible.
 
To begin, write down what you wish to change in one sentence. Next, draw a force field diagram. Essentially, this consists of a sheet of paper with a line down the middle. On this sheet of paper, list both restraining and driving forces. Brainstorm for these forces and write down their strengths and weaknesses. Once you have identified these forces, you can begin to make a plan for how to implement the change.
 
Employee feedback
 
One of the best ways to overcome your team’s resistance to change is to identify the reasons behind their reluctance. While identifying the reasons can help you to overcome this obstacle, it's also important to realize that there are different reasons for people to be against a change. Then, you can tailor your approach to work through the problem. Using employee feedback to identify these reasons will allow you to overcome these obstacles.
 
The first key to breaking down the resistance to change is communication. Employees are happy to give you their opinion, and you can leverage that to your advantage. Identifying the root of resistance can help you steer the change project in the direction you want it to go.

Here's my blogpost citing the Best Practices of Giving Feedback to Your Subordinates and Peers and get their feedback; you might want to check it out.
 
 Transparency
 
The vital step in overcoming your team’s resistance to change, is to identify and address potential sources of resistance. Hold workshops or discussions to ensure you understand employee concerns and goals. Listen to their objections to ensure you address the source of their resistance in a productive and respectful manner.
 
Communicate the benefits of the organizational changes to your team. They may be unaware of the reasons for their resistance, or they may have been blindsided by a plan they aren't familiar with.
 
One of the first ways to overcome your team’s opposition to change is to communicate the benefits of the changes to your team and employees. Make sure to create a safe environment for employees to voice their concerns.
​

• How to Bring in Organizational Culture Change
• What Role Does Culture Play in Business Transformation?

 
Practice active listening skills and listen for any possible misunderstandings. Communicate clearly and thoroughly your objectives and why the changes are necessary. This will help reduce resistance to change and ensure everyone is on board with the changes.

Related Reading:​

1. How to cut costs strategically using Kaizen
2. Streamline processes and workflows with Gemba Walk.
3. Top Ten Strategic Decision-Making Tools for Operational Excellence

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Categories:  Strategy | Operations | Leadership

Keywords and Tags:
#operationalexcellence #strategicdecisionmaking #strategymanagement #strategiccommunicationplan #transparency #employeeengagement #forcefieldanalysis #employeefeedback #controlofownjobs #sixstrategiesofovercomingemployeeresistance #organizationalchange #kaizen #kaizenfororganizationalexcellence

A strategic communication plan can help your organization navigate existing processes or create new ones. For example, if you're a new CEO, you'll need a roadmap to help you chart your course. According to media experts, the secret to effective communication is engaging your leadership team in a conversation and using simple messaging.
 
Understanding the link between message and organizational goals
Understanding the link between message and organizational goals is a key element of strategic communication for leaders. Unless the core message reflects the organization's vision, change efforts will be mediocre and ineffective. In addition, poorly framed and communicated messages can muddy the overall effectiveness of a company. In order to create a strategic communication plan (SCP), leaders should consider the following key components:
 
The first step is to evaluate the existing communication systems and channels. While some organizations may have an elaborate electronic database, others might prefer a more personal face-to-face channel. By examining communication issues, leaders can develop a more effective communication strategy and determine what types of messages should be sent to different segments of employees.
 
Once an organization has identified its key stakeholders, it must decide which messages are appropriate for each group, which mediums will be most effective, and what messages will achieve the most impact. A strategic communication plan can only be effective if it reaches its intended audience. For this, it must first identify the stakeholders that will be affected by the strategic communication goal, which can include employees, citizens, and lawmakers.
 
Creating a culture of straightforward communication
Creating a culture of straightforward communication for leadership is vital for the success of any organization. Employees of all levels perform better with a clear vision and an open culture of communication. Clearly communicating expectations for work quality and pay grade is an effective way for leaders to achieve this. People want to be honest and transparent with their employers.
 
One of the effective ways of doing this is to host multiple forums for employees to keep in touch. For instance, you (the leader) could conduct a "birthday chat" every other month, where you could speak to employees directly, without the usual senior management presence. Also, you could record a video blog once a month and share it with your workforce. Such communications give leaders a chance to speak directly to their employees, and it builds trust.
 
Another way to foster effective communication is to invite the team members to share their ideas and feedback with you. While you are the leader of the company, you are not the one who needs to tell everyone what to do. You need to listen to everyone. This will lead to better decisions.
 
Developing a communication plan
The first step in developing a communications plan for business leaders is to define the goal of your plan. Once you have this, you can decide which messages to communicate and how you'll get your message across. The next step is to outline a timeline, create a communications editorial calendar, and determine the channels and metrics you'll use to measure your communications strategy.
 
A communication plan should target key constituents, based on their needs and interests. It should not focus on what they don't need to know, but it should ensure that everyone receives the same big picture message. To ensure that everyone is getting the same information, you should periodically survey the key stakeholders to see if they have any questions.

• Best Practices of Giving Feedback to Your Subordinates and Peers
• Best Practices of Giving Feedback to Your Seniors and Top Management

 
Communication management is essential for the development of a strong organizational culture. It helps retain and promote top talent, boost employee engagement, and enhance innovation. In order to improve your company's culture, you should invest in an executive communications plan. The plan should be integrated into the overall communications strategy and work closely with the larger communications team, human resources and sales and marketing leaders.
 
In addition to the goal, your communication plan should outline how you'll communicate with your team. It's important to identify which channels are appropriate for different types of communications, such as email and video conference. It's important to note that some methods are more effective than others, and that you need to choose the right method for your needs.
 
Developing a communication plan is an ongoing process. As with any other strategy, you'll need to modify it from time to time as you learn more. Creating a plan will help you refine your message and make it more effective and efficient. It will also save you time later on.
 
Tools for evaluating effectiveness of communication
In evaluating the effectiveness of strategic communication, it is critical to identify and address the most significant issues. Often, internal communications teams face the challenge of proving their impact on business results. This challenge is compounded by the fact that communication does not happen in a vacuum, and its impact is difficult to isolate from other factors. However, with the use of communication analytics tools, it is possible to ensure that the communications being sent to employees are effective long term.
 
Measures like the engagement rate and open and click-through rates help measure the effectiveness of internal communications. These metrics give a clear understanding of how the communication campaign is impacting the target audience. The results of these measures can be used to adjust future communications, or to adjust the focus of current efforts.
 
Effective communication is a process of repeated messaging and requires a lot of effort. Organizations should communicate their strategic plans seven times across seven different mediums. These include brochures, speeches, newsletters, workshops, internal blog posts, and videos.
 
Strategic communications plans must be aligned with the overall goals of the organization. The purpose of communication is to influence the attitudes and behaviors of employees. To be effective, the communication program must be focused on achieving the key goals of the business. Benchmarking the current communications program and executing iterative process improvement regularly, is a good way to grow communication effectiveness over time.
 
Disclaimer- Suggestions given here are for educational purpose and not advice. Please follow applicable privacy laws and code of conduct best practices recommended by your workplace.

 
Related Reading:​

1. Up to speed with workflow- How to choose business process improvement methodology for your organization and measure the positive change. 
2. Kaizen for pharmaceutical, medical device and biotech industries
3. How to cut costs strategically using Kaizen
4. Streamline processes and workflows with Gemba Walk.
5. Top Ten Strategic Decision-Making Tools for Operational Excellence

Follow Shruti on Twitter, Facebook, YouTube, LinkedIn

Categories:  Strategy | Operations | Leadership

Keywords and Tags:
#operationalexcellence  #strategicplanning #strategymanagement #communicationplan #businesscomunication #managingchange  #employeeengagement #processimprovement #creatingacultureoftransparentcommunication

What is Machine Learning (ML) and how does it work? How does it help in improving operational excellence in manufacturing and service industries? Machine learning is a sub-field of artificial intelligence and deals with a machine's capability to self-learn based on its surroundings and imitate intelligent human behavior. The basic concept is to create algorithms that learn from data and then apply them to new situations.

There are several types of machine learning, but broadly there are two types of machine learning: Supervised ML and Unsupervised ML.

Unsupervised machine learning aims to find patterns in unlabeled data, while supervised machine learning looks for trends in labels. In this post, I shall touch upon what is machine learning, where is machine learning used, benefits & challenges of machine learning and few examples of its industry applications. So, let’s get started…
 
Industrial uses of machine learning
Machine learning is an innovation and is used in Industry 4.0 or smart factories. 

Machine learning is a vey powerful tool for business. It helps business leaders to predict customer demands, price products and segment customers. It also helps to forecast inventory levels and detect fraudulent activities. Machine learning’s capabilities range from image recognition to natural language processing. Businesses that rely on these technologies can provide better customer service, improve security, and even allow consumers to complete transactions without a human being. These innovations are changing the way we buy and sell goods.

Machine learning can be used to predict which products and services are best for a customer. Streaming service companies and social media apps use recommendation engines that analyze data to make recommendations based on personal preferences. Enterprises also use AI to predict customer churn. This allows them to better serve their customers and maximize profits.

Application of machine learning concept to technical and business processes improves operational excellence and in turn, increases profitability. 
 
Which industries will benefit most from machine learning?
Transportation industry for now. The transportation & logistics industry perhaps uses machine learning the most. Reinforcement machine learning trains models through trial and error and is often used to teach autonomous vehicles how to drive. It rewards the machine when it makes the right decisions.
 
Advantages and disadvantages of machine learning
Some of the advantages of machine learning include the ability to customize education, which allows students to work on materials that are most suitable for their learning style. This can save teachers time because they do not have to plan a lesson for every student. Another benefit is an automatic grading system, which saves teachers time and gives a realistic assessment of student performance.
 
However, this technique requires a large amount of data to function properly. This is not only a time-consuming task, but it also requires resources such as CPU and GPU power. Furthermore, it may use more storage space than expected. In addition, machine learning algorithms can only be used as much as they have historical data to work with.
 
Another advantage of machine learning is that it allows for fast and automatic adaptation, which eliminates the need for human intervention. This feature is also used in anti-virus software and security software, which can automatically adapt to any situation without human intervention. The downside of machine learning is that it can sometimes make mistakes, causing inaccurate predictions or inaccurate advertising.
 
Challenges of machine learning
Machine learning has a wide range of implications. Its use in making decisions can have a huge impact on the economy and our everyday lives. Research in this field is aimed at understanding the impacts and potential harms of machine-learning-based systems and developing tools and policies to avoid them. It also examines the optimal use of machine-learning systems to maximize aggregate social welfare.
 
Machine-learning specialists face many challenges in the deployment of their projects. Sometimes the algorithms they use are not accurate enough to solve a business problem. In this case, the project may fail. To avoid such scenarios, it is vital to have a team of experts with business qualifications working on the project. This will enable organizations to make the best use of this new technology and get faster ROL
 
In addition, organizations are under pressure to only develop machine-learning models that produce a positive ROI. The ROI of a model can depend on how users react, as well as how well it predicts the future. Moreover, it can be impacted by competition, public opinion, brand image, and algorithmic fairness.
 
Examples of machine learning in action
Predictive analytics is one of the most exciting examples of machine learning in action. It can be used to make predictions about a wide variety of things, from real estate prices to product development. Machine learning algorithms use big data to make these predictions. They do this by analyzing billions of data samples and automating the process of annotating them.
 
Another great example of machine learning in action is the social media news feed. The recommendation engine in the news feed uses machine learning to recommend articles based on the user's past browsing behavior. This kind of learning is possible because the algorithms are able to improve their accuracy over time as they are used more.

Machine learning has found wide-spread applications in drug discovery & biomedical research, financial institutions, healthcare, IT, transportation & logistics, retail & e-commerce, agriculture, aviation and education industry verticals. I have covered these in-depth in my book Machine Learning- How does it improve operational excellence in manufacturing and service industries. You may check out more about my book on Machine Learning here.


Related Reading:​

1. Continuous improvement tools
2. How to cut costs strategically using Kaizen
3. Streamline processes and workflows with Gemba Walk.
4. Top Ten Strategic Decision-Making Tools for Operational Excellence

​Follow Shruti on Twitter, Facebook, YouTube, LinkedIn

Categories:  Innovation | Operational Excellence |  AI, ML, DL

Keywords and Tags:
​#operationalexcellence #AI #ML #artificalintelligence #innovation #machinelearning #whatismachinelearning #machinelearningintrasportationindustry #profitability

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Regardless of your role in the organization, there are a number of challenges that you must overcome in order to lead a successful biopharma startup. These challenges include finding the right people and fostering a company culture.

In this post I'll cover how to find the right team, manage execution, and track performance. So let's get started...
 
Finding the right team
 
One of the biggest challenges facing a new biopharma startup is finding the best team. It can be difficult to attract top talent, especially when you're a small startup without a proven track record. To attract top talent, you must offer competitive compensation. Smaller startups often struggle to offer competitive compensation, while larger organizations are often more willing to offer generous benefits packages and equity compensation.
 
While leading a biotech startup is a challenging role, there are some factors that can help you overcome these challenges and build a strong company culture. First of all, it's important to recognize that the corporate culture will affect the work being done. While companies will always have a culture, it's important to intentionally build a positive and productive one. Developing a positive culture means identifying your strengths and leveraging them to make decisions based on core values and knowledge.
 
Your co-founders are an important part of your team. In addition to bringing in valuable experience, it is important to share a vision for the company and identify the core values of each team member. These values could include business acumen, healthcare experience, and technical skills. Using networking platforms to recruit co-founders is a great way to find a team that shares your vision.
 
Creating a team with the right skills is an essential part of a biotech company's success. While the biotech industry is experiencing an incredible time, finding the right talent to translate these innovations to reality is an ongoing challenge. A recent published survey report stated that 51 percent of CEOs in life sciences and pharmaceuticals companies mentioned- Finding the right people is one of their biggest challenges.
 
I have a separate post on ‘Best practices for biotech talent management’. You may check it out here. And here’s a post giving Best practices for talent management in pharma companies.
 
Finding the right team is essential when you're trying to compete with the big players. It's essential to have the right mix of people with relevant experience in sales, marketing, and research and development. It's also crucial to be able to hire people with the right technical skills, such as engineers, statisticians, and data analytics.
 
Managing execution

Managing execution challenges is an important part of leading a new biopharma Startup. As a company grows and its goals change, execution expertise becomes increasingly important to achieve those goals. Fortunately, the biotech community has many resources to help new startups navigate the execution challenges that come with bringing a new biopharmaceutical to market.
 
Tracking performance
 
Tracking performance is critical to the success of any biopharma Startup. It can be challenging to measure the impact of key decisions, especially in the R&D phase of a new biotech. The process may take years; that's why it's crucial to include the right information and discussion in key decisions.
 
Today's biopharma companies are in the midst of a transformation. Digital technologies are driving new processes and reducing time to market. A global pandemic has increased the importance of these next-generation capabilities. These capabilities include more efficient manufacturing, process automations, more effective supply chains, more efficient and flexible networks, and more. They also allow biopharma companies to pursue new value through M&As and patient engagement ventures.
 
Creating a company culture
 
Creating a company culture for a biotech Startup is an important step towards achieving sustainable success. It's crucial to build a cohesive team and ensure that the culture reflects the values of the company. Employees feel more engaged when they feel that the leadership is transparent and demonstrates their commitment to the company mission. It's also important to share goals and objectives with the team.
​

• How to Bring in Organizational Culture Change
• What Role Does Culture Play in Business Transformation?

 
Companies that focus on creating a strong company culture have a greater chance of success than those that ignore it. An unfavorable corporate culture can lead to high turnover and burnout among employees, which in turn leads to a less-productive organization. A positive company culture is marked by a high level of employee satisfaction and a healthy, stimulating environment. Employees who feel valued are more likely to stay with a company, which in turn attracts top talent.
 
It is important to create a company culture that emphasizes innovation. Innovation requires continuous improvement and new ideas. Innovation promotes progress on a company and individual levels. A company culture that encourages experimentation and constant learning is an ideal environment for innovation.
 
In addition to a strong company culture, it's important to hire people with diverse backgrounds and experiences. A well-rounded employee can bring a unique perspective to the company, and their diverse experiences can help them adapt to changing roles. While working in silos in Big Pharma may result in specialized skills, working in diverse parts of the organization can foster humility and a fresh perspective.
 
Creating a company culture is not easy. It requires a commitment by the senior management team to model the mindsets and behaviors they want. They should also provide ongoing coaching and engage teams in capability building. This approach can be highly effective in creating a shared culture and helping the company achieve its goal.
 
Building a biotech company requires a dynamic, ever-growing team. To succeed, the company should be able to attract motivated team members and build shareholder value. Furthermore, the company must be able to implement a business model that encourages growth and is easy to execute.
 

Related Reading:​

1. Kaizen for pharmaceutical, medical device and biotech industries
2. How to cut costs strategically using Kaizen
3. Streamline processes and workflows with Gemba Walk.
4. Top Ten Strategic Decision-Making Tools for Operational Excellence

​Follow Shruti on Twitter, Facebook, YouTube, LinkedIn

Categories:  Biotechnology | Operational Excellence | Leadership 

Keywords and Tags:
​#operationalexcellence #operationalexcellenceforbiotechindustry #strategymanagement  #strategicplanning  #leadingbiotech  #workculture  #bestpracticesinbiotech #managechange  #culturechange #startup #biotechstartup #digitaltransformation

Leadership with a different flavor to it is essential for steering organizations in uncertain times. It requires strong leadership skills and the ability to adapt to change to tide thru difficult waters. And it is not just the fittest who survive, but the most adaptive that survive longer.
 
Uncertainty breeds change and vice versa. And change is good if you, as a leader, make good use of the opportunity and create a positive difference in your organization.
 
Uncertainty is an opportunity to survival (although a difficult one), and that leaders who can bring about change are needed. In this post, I shall touch upon areas leaders can focus to help themselves achieve success!
 
Leadership style
 
There are many styles of leadership. Some styles are passive, while others can be called active. The passive leadership style is focused on avoiding risk. The directive style of leadership is the opposite. It relies on rewards, coercion and positional authority to reach goals. These leaders place more importance on their own knowledge than on the contributions of others.
 
Leadership styles must be modified over time. Impeccable leadership is essential for any organization or individual in today's uncertain world. Business leaders are particularly important because of the increasing challenges they face. It is important to continuously evaluate and adapt your style.
 
Communication
 
In times of uncertainty, leaders must communicate clearly with employees. Employees need to be informed about the company's activities, regardless of whether it is going through a crisis or restructuring a division. Employees may believe the worst if they are not kept informed. The company's credibility could be at risk.
 
It is normal to wait and see how communications go during difficult times. However, this is not a good idea. You can help people deal with uncertainty and make the most of it by presenting the facts early. This will reduce misinterpretation risk and increase trust.
 
People look to their leaders when they are in trouble. You must act as a calm force and a catalyst for stability within the organization. 
 
Transparency in dealings is the key to trust-building. You must communicate truthfully and in a timely manner, but you must also be optimistic about the future.
 
Scenario-planning
 
Leaders of organizations in uncertain times can use scenario-planning to their advantage. Scenario-planning helps leaders make better decisions by making assumptions about the future. By creating different scenarios, a leader can envision different "realities" for a future business. Scenario- planning can be used to predict the potential future and help companies develop agility, alignment, and flexibility as well as mitigate risks.
 
Scenario-planning involves creating or many a times envisioning scenarios and stress-testing them. It is important to recognize biases and develop the skills necessary to conduct these exercises. 
 
Embracing change
 
Leaders who embrace change and see it as an opportunity to improve processes and discover new markets, increase profitability and become more effective are the ones who succeed. They see change as a way to generate new ideas and innovations and turn uncertainty into a positive force. Organizations that embrace change positively experience higher productivity, greater engagement, and renewed pride.
 
Leaders must align their personal priorities and the company's strategy to embrace change. Leading change involves changing attitudes, behaviors, and how leaders communicate with employees, superiors, peers and their teams.
 
Leaders must also link their day to the overall initiative for change and exhibit their leadership style. This is especially true if you have taken over a new role. For a new boss, in the beginning it is perception that brings-in following. Only after employees work with you long enough do they get to know the real you- the individual. 
 
Manage resistance
 
Leadership is also the ability to manage resistance. Overextended or inexperienced leaders are often reluctant to make tough decisions and take too long to implement them.
 
To ensure team buy-in and minimize resistance, changes must be carefully implemented. Here are some tips to manage resistance within organizations and get buy-in from employees: Open door policies are a great way to encourage employees asking questions. All employees should have access to communication channels and should have career opportunities available.
 
Understanding the elephant in the room: It's crucial to pay attention to the concerns of employees when managing change. These conversations can expose weaknesses in your plan and reveal the reasons for employee resistance. You can also build trust between employees and management by listening to their concerns and thereby increase their sense of contribution and value.
​

Related Reading:​

1. Up to speed with workflow- How to choose business process improvement methodology for your organization and measure the positive change. 
2. Kaizen for pharmaceutical, medical device and biotech industries
3. How to cut costs strategically using Kaizen
4. Streamline processes and workflows with Gemba Walk.
5. Top Ten Strategic Decision-Making Tools for Operational Excellence
6. Leading organizations through crisis.

Follow Shruti on Twitter, Facebook, YouTube, LinkedIn

Categories:  Strategy | Operations | Leadership

Keywords and Tags:
#operationalexcellence #strategicdecisionmaking #strategy #strategymanagement #businessresilience #continuousimprovement #managingforchange #managingforgrowth #leadingorganizationsthroughturbulentimes

Building resilience is critical to building a long-term business. It is not only about the ability to survive crises, but also about how you manage your business in those situations. To increase your business's resilience, you should measure the components of your business. To do this, you can use KPIs and essentially a strategic plan with a defined methodology (such as Kaizen, Lean, Six Sigma etc.) to increase business process robustness.
 
Planning for a pandemic
 
Understanding pandemics and their effects is critical to business resilience. Using a pandemic impact analysis template, business leaders can identify the most critical roles, processes, and assets. Developing a pandemic recovery plan requires patience and understanding of the situation. Once the plan has been implemented, businesses can return to normal operations.
 
In the wake of the COVID-19 pandemic backdrop, companies have begun to take a more holistic approach to risk management. Eight in 10 businesses indicated that they needed to adopt an enterprise-wide approach to risk management in order to tackle complex issues and maintain operational resiliency. This has led many companies to broaden their risk perspective and create pandemic-response plans.
 
Organizational resilience enables organizations to meet short-term and long-term financial goals, maintain operational capacities, and cope with fluctuating demand. Organizational resilience fosters a healthy culture within the workforce and maximizes retention. It also enforces higher standards of performance. A culture of resilience teaches staff to align their values with their actions and responds to criticism with meaningful change.
 
Planning for a pandemic can help businesses and organizations deal with the financial consequences of a pandemic. Governments can help businesses and organizations adapt by deferring tax payments or providing incentives for digital investments. In addition, business systems and strategies need to be designed to be resilient and offer sustainable products.
 
Managing for resilience
 
Business resilience is the ability to take a blow and bounce back. It embodies the principles of business continuity but goes beyond these to strengthen an organization's immune system. It entails managing for change and takes into account the relationship between all relevant forces and their potential impacts. In addition, it requires contributions from different management disciplines.
 
Resilience is the ability of a business to withstand a range of threats, including disruptions to ICT (information and communication technologies) systems, cyber attacks, consumer demands, and market changes. It is essential to the continued operation of a business, and this requires a long-term mindset. Businesses must consider the risks associated with these risks and build contingency plans to address them.
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While business resilience varies greatly from company to company, many leading companies are attempting to create a more resilient culture. For example, go for local solutions, servant leadership, multi-stakeholder engagement, and long-term goals to build resilience.
 
How to succeed in building business resilience?
 
Business resilience requires a commitment from senior management and is distinct from business continuity. It requires employees to think on their feet and leaders to anticipate and respond to challenges. As a result, business leaders must be clear in communicating their resilience approach and making sure that people are aware of it.
 
Managing for growth
 
Managing for growth can increase your business resilience, which is the ability to withstand unexpected change. In today's world, technology is evolving at an exponential rate, and many organizations are struggling to keep up. This can have serious consequences for your business if it goes unaddressed.
 
The most resilient companies are those that can take advantage of unexpected opportunities and minimize damage from new threats. This requires a flexible organizational structure, modern processes, and effective communications. In addition, business leaders should avoid micromanagement and focus on the development of an inclusive culture. They should eliminate silos in the organization and integrate their IT and business functions. Developing a culture of business resilience requires strategic planning to ensure the long-term health of the company.
 
As part of building business resilience, a company's management team should understand the business's KPIs and share a common understanding of its resilience track record. They should also agree on how much risk they will tolerate in the future. It is important not to use generic risk assessments but insist on specific goals based on hard questions. The process of determining these goals will be a back-and-forth process, and they are most likely to fall in a gray area of marginal risks.
 
Embed ‘Continuous Improvement’ in your organization’s DNA-
 
Resilience is essential for business survival, but many companies are not building enough of it. In today's turbulent world, more companies are becoming vulnerable to crises. However, by investing in resilience, companies have the potential to increase their profitability. However, they must be aware of the trade-offs that come with resilience. For example, investing in infrastructure may lead to increased costs, while reducing revenue.
 
High-budget investment plans to build business resilience may not work for all companies, especially the small setups and startups. A more doable approach is to install Lean, Kaizen in your company’s DNA. Kaizen-ing by default minimizes risks, reduces operational costs, improves product quality and catapult’s customer satisfaction.
 
Kaizen-ing hence brings dual benefit- It increases both topline and bottom line of a business, regardless of its size or industry sector. Contact us to know more about How Lean, Kaizen can help your business?
 
An important to note is- While taking steps to build business resilience, it is also necessary to measure success. A Bain Resilience Index measures the resilience of individual companies. I’ve a separate post on this, check it out here.


Related Reading:​

1. Up to speed with workflow- How to choose business process improvement methodology for your organization and measure the positive change. 
   
2. Kaizen for pharmaceutical, medical device and biotech industries
3. How to cut costs strategically using Kaizen
4. Streamline processes and workflows with Gemba Walk.
5. Top Ten Strategic Decision-Making Tools for Operational Excellence

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Categories:  Strategy | Operations | Leadership

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