Page 127 - Managing Change in Organizations

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Chapter 7 ■ Organizations in the twenty-first century: the value-added organization
of each activity (value-added profile), build a balanced scorecard and assess overall
business performance. Each represents a successively higher level of analysis.
The workbook is designed to focus on the application of the first four steps of
stage A1 in the organization design process. The combination of these techniques
is shown in Figure 7.1.
The main stages in the organization design process are:
A Assess the strengths, weaknesses and development priorities of the business
(A1: business performance metric) and the value added from the existing busi-
ness (A2: value-added metric).
B Assess the process design by identifying the value-adding activities in the busi-
ness, identifying cost drivers and seeking new business process configurations
both to manage cost effectively and to enhance the performance and value-
added metrics.
C Using the business performance metric development priorities as a starting
point, develop a balanced scorecard for the unit, business, etc. (see below).

Stage A1: Business capability profile
The business capability profile below seeks to assess a company’s managerial, com-
petitive, financial and business process strengths and weaknesses. The completed
profile reveals ‘gaps’ which need to be corrected and strengths on which to build.
To complete the profile you should first go through each item scoring it 1 to 7
for the current situation (actual). Thus, is your company growth rate currently
low–high, scored 1–7? Having completed that you should then identify no more
than 24 high-priority items from the items in the profile.
This exercise should enable you to identify strengths, weaknesses and devel-
opment priorities. Development priorities are those where the priority is high but
the current score is low.

Business Capability Profile

A1.1 Corporate position

Score (1 to 7)
Low Actual/priority High
Growth
Profit (last 5 years)
Financial stability
Technological capability
Asset utilization
Capital intensity
Productivity
New entrants to market
Other
Low High

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