Info Source - Volume IX, Issue 1 - Spring, 2009

A Foundation for Transformation by Dan Feely, TSI - Managing Partner

Most of us would agree, regardless of company size or industry, we are all facing unimaginable market conditions.  It seems like every day we hear about another company eliminating tens of thousands of jobs-- Caterpillar, Sprint Nextel, Pfizer, Home Depot, General Motors… the list goes on. 

Following are some brief comments with respect to how organizations can adapt, if not transform, during this current state of economic affairs and come out on the other side better equipped with a stronger foundation for growth, increased market share and rising EBITDA in the forthcoming months.

Who are you when times are tough?
With unemployment rates soaring, many households are dealing with a loss of income - and in some cases - a loss of identity. It is captivating to see how different organizations are  responding to today’s circumstances.  Many are clearly shell shocked and thrashing around trying to determine how to navigate these uncharted waters.  Others are using this opportunity to reestablish their vision, mission and values and refine themselves, while their competition may be faltering.  What kind of organization do you work for and what kind of leadership do you have in charge?  How does your business model need to change and how will that impact your organization structure, policies, processes and use of technology?

Transform when you are Healthy
Some experts say that our economic conditions, following on Obama’s platform for change, have created a culture for change that is revolutionary, not evolutionary,  in a way that has not been seen for decades.  Think about it this way, do you really stop investing when the stock you really like is trading at a cheaper price?  Now is not the time to slow your improvement and productivity efforts.  The time to transform, for many organizations, is now, not when you are a week away from your bank recalling your loans.

What action are you taking?

How can today’s organizations adapt or transform during today’s state of economic affairs?  The following outlines some approaches TSI is taking to help our clients weather these rocky times and come out better equipped with a stronger foundation for growth, increased market share and rising EBITDA.

1. Process analysis and improvement - When was the last time you took a hard, objective look at the operations and processes within your organization? TSI is seeing many organizations look to take a process improvement-driven approach to improve efficiency and cost reduction versus more common approaches.   Process-centric approaches prove to have greater success as they are performed in the context of the work that needs to be performed.   In 2009, we are working with organizations to identify what results we can implement in significantly shorter time frames (i.e., days/weeks versus months).  

2. PMO or ePMO Development and Process Management/Improvement Training – A number of organizations are seeking to build more internal capabilities and enhance internal consulting skills, rather than use external consulting expertise. TSI is being hired to help guide organizations in gaining the necessary skills (e.g. strategic planning, process and organizational transformation, change management and project management), so they can function effectively on their own.  

3. IT Spend Analysis and Improvement - TSI, based on its experience managing IT projects and departments, has created a focused approach to improve IT value relative to its operational and capital expense.  At a high-level, our approach includes the following phases:
   a.    Collect and categorize IT related spend
   b.    Analyze costs and identify opportunities to reduce short and long term spend
   c.    Perform trade off analysis as required
   d.    Implement cost reduction recommendations.

4. Organization-wide culture change – Numerous organizations are struggling with a number of market-related issues and common for some to become paralyzed with the myriad of issues mounting on top of each other.  TSI is helping them develop a focus and address their most critical short and long-term challenges in a manner that both addresses their key issues and leverages their core competencies.   For many of our clients, TSI will facilitate one or several work sessions and monitor their progress as needed.

Coping, Stabilizing, Thriving
Each day, over the past month or so, something occurs during a “typical work day” that reminds us of the stresses that people at all levels in nearly all industries are experiencing.  Clearly what worked a year ago as a change management approach now requires critical thought before acting. The amount and type of communication that is required, for example, is remarkably different and much more consuming. Why?  Example?

In Summary...
TSI sees these conditions as a "once in a lifetime opportunity " for organizations to set a culture of efficiency and profitability based on an undeniable platform for change.  The question is, what type of action will you take and when?