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Strategy for corporate transformation

Management systems

Performance management Diagnostic tools Implementation
Value-added design and techniques index
IT infrastructure
External relationships Business performance Critical mass of support
Change management metric
Problem orientation
Value-added metric
Programme management
Change situation Organizational diagnosis
Focus
Implementation exercise
Radical changes
Shift to self-managed teams
New organization designs

Figure 19.1 Building blocks for corporate transformation

These will include performance management systems, for example. To what
extent is performance management focused on outputs? To what extent are those
outputs linked to key result areas identified in the strategy and the budget
process? To what extent does performance management present a framework for
market-induced change?
Similarly, value-added design represents a set of design principles and
approaches using the balanced scorecard, activity-based costing, value chain prin-
ciples and output models which focus on creating highly responsive organiza-
tional arrangements. Both approaches require an external focus and good change
management skills.
These management systems can be complemented by the diagnostic tools and
techniques included in this book, not least because the use of these tools and
techniques will help to develop our management systems to cope better with the
radical environmental changes to which we have referred. These elements taken
together leave us with some capacity to implement transformation. In broad
terms we look at this in terms of four main elements in an implementation index:

1 Critical mass of support.
2 Problem-solving orientation.
3 Programme management skills.
4 Clarity of strategic focus.
If these elements are positive the conditions are more likely to be conducive to
strategic change.
In my view for too long the discussion of change has been hijacked by those
arguing that it was a behavioural issue. If only we could deal with the people
issue in change, all would be well. My view is that this is dangerously mislead-
ing. If people need to see changes as relevant and critical before they commit
themselves – and that appears to be a non-controversial point – then strategic or
transformational change has an important cognitive component. If ‘mind-set’
change is a vital component then the same point holds.

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