Why You Can and Must Make a Quantum Leap

As I’ve promised, I will prove beyond the reasonable doubt that you, indeed, can and must make a quantum leap in aggregate value of your company and in the value-generating power of your ‘corporate machine’ (your business system).

Let’s start with why you can. The simple answer is that a potential for this quantum leap is there. Right there, in your company. Practically every company can potentially at least quadruple its performance – and many can do much better than that. Plus, now you have the tools that you need to make this quantum leap. BDL and BDL-based products.

Why at least quadruple? Because of the omnipresent Pareto principle (also called the ‘80/20 rule’ or, more poetically ‘the law of the vital few’). In aggregate value generation context, it states that 20% of your activities generate 80% of value in your company; the remaining 80% activities generate only 20% of value.

More specifically:

·         80% of a company's profits come from 20% of its customers

·         80% of a company's complaints come from 20% of its customers

·         80% of a company's profits come from 20% of the time its staff spend

·         80% of a company's sales come from 20% of its products

·         80% of a company's sales are made by 20% of its sales staff

Et cetera, et cetera. If you make a simple calculation, you will find out that the ‘80/20 rule’ means that your company operates at 25% of its top achieved performance (which can – and usually is – substantially lower than its top possible/achievable performance). Which means that you can at least quadruple your corporate performance. A quantum leap – right there. As promised.

Michael Hammer and James Champy in their timeless classic bestseller: ‘Reengineering the Corporation: A Manifesto for Business Revolution’ present even more striking examples, when business process reengineering (BPR) project made it possible to increase the performance of a business process by a factor of TEN and performance of a functional unit by a factor of TWENTY. Now, that was quite a quantum leap. And you can achieve the same (or very similar) spectacular results.

There was a major problem, however. The suboptimization problem. Hammer and Champy – and those managers that produced such spectacular results were able to generate these results only locally. At the level of a particular business process or a functional unit.

Why? Because the BPR methodology that they used (and continue using) can perform only local jobs. It simply does not have the tools to visualize, measure and analyze the whole company. And, therefore, to deliver a quantum leap for the whole business entity. Hence, the title ‘Reengineering the Corporation’ is a bit misleading. It is still a piecemeal approach to increasing the corporate performance.

BDL provides exactly such tools. With BDL you can visualize (make transparent), measure and reengineer the whole company – and thus make a corporate-wide quantum leap. In other words, BDL offers a truly holistic approach to business analysis and reengineering. And, therefore, makes these projects radically more efficient in maximizing your corporate performance and aggregate value.

With these tools and this potential, you definitely can make this quantum leap. But you not only can; you must. Why? Because you are at war. At war with your competition for the wallets and checkbooks of your customers. The war where the winner is ultimately determined by its aggregate corporate performance and aggregate value.

If you do not make this quantum leap, your competitor will. And, therefore, will win this war. It’s cut and dry, plain and simple – either you acquire your competitor (or drive him out of business), or your competitor will do the same to you.

That’s why you have really no choice – you absolutely have to make that quantum leap.