Tuesday, December 2, 2014

Making a Quantum Leap



To make this quantum leap, you will need to follow eight key steps:

1.      Find the right paradigm for your business system (I already did that for you)

2.      Using this paradigm and the appropriate business system description tools (e.g., BDL) derived from this paradigm, describe (‘visualize’) the ‘ideal’ condition (‘state’) of your company in which both your aggregate value and value-generating power of your business system are maximized. Such description usually includes both visual diagrams and textual description and, therefore, follows a hypertext format. It also includes detailed and comprehensive description of both the structure of your company and values of its KPI. A vital requirement for the right description – no limits. Think that everything is possible. In fact, this statement is much closer to the truth than you might think.

3.      Using the same paradigm and tools, describe the current (‘AS IS’) condition of your company. To come up with this description (which must be comprehensive, well-structured, accurate and up-to-date), you will need to use both the appropriate questions from the CBA Questionnaire (CBAQ) and values of appropriate KPI.

4.      Using both descriptions (‘ideal’ and ‘AS IS’) and the same paradigm and tools, develop a detailed vision of your desired (‘target’) condition (‘TO BE’). Which must be as close as possible to the ideal version, but still realistic. In other words, with the maximum possible (and, therefore, optimal) degree of ‘stretch’. Remember – almost all (in fact, practically all) limits are inside you, not outside. And no one can stop you but yourself. Therefore, you must go for the quantum leap, not small improvements.
  
5.      Develop financial and operational plans (supported by all necessary corporate documentation) for a quantum leap from ‘AS IS’ to ‘TO BE’. These plans must include both achievement of target KPI values and corporate restructuring/re-engineering.

6.      Execute these plans (make the quantum leap)

7.      Evaluate the results. Which might require a few small improvements… or another quantum leap

8.      When you are confident that you have, indeed, made it (‘climbed the Mount Everest’), develop and deploy kaizen (‘continuous improvement’) system. Which must make sure that you always stay on top. In other words, operate at maximum value-generating performance


Can you really make such quantum leap? In the next section I will demonstrate beyond the reasonable doubt that yes, you can. And must

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