Link: http://enterprisebusinessarchitecturecoach.com/figuring-identify-strategic-change-opportunities/
From Louise A Harris on Enterprise Business Architecture
There is a new technology around every corner. Customer and client expectations are evolving at an ever increasing pace. How do you determine what strategic changes you should make that will deliver value to your enterprise? Whether you are for-profit, non-profit or public sector enterprise, figuring out WHY you want to implement change in your enterprise is the first and most important step. This will serve as a solid reference point for the subsequent steps and decisions you will need to make as summarized in my previous post. A solid reference point keeps you focused and enables you to ensure that all the small decisions you make in designing and implementing the change are aligned to the result you want to achieve.
Change Context – Drivers and Results
There are two key parts to figuring out the WHY. First of all, clearly articulate and agree on the one or two key change drivers and the result you want to achieve. This will define the context and the direction of the change you introduce and the value to your enterprise of investing in this change.
If you have too many or vaguely understood change drivers, you will not be able to focus your business change to attain the specific results that you require. Some common change drivers are an expanding market share, cost or resource challenges, strengthening customer relationships, entering new markets, addressing regional economic or quality of life challenges, and new regulations or standards to name but a few. Your strategic response to the significant change drivers must lead you in the direction of achieving a clearly identifiable result. Define this result in terms of one or more goals that are S.M.A.R.T. (Specific, Measurable, Achievable, Relevant, Time-bound). You may not always be able to specify a time bound target measure at the outset but it must be set prior to detailed design of the change.
New technology may be a significant contributor to a change driver but it is not itself a change driver. The rapid growth and improvements in technology are causing shifts in customer expectations, creating new markets and enabling streamlining of operations which are all potential change drivers. In responding to technological advancements you must identify the key change drivers that are the most relevant to your situation, directing you to achieve specific results such as cost reduction, stronger relationships with clients or market expansion. The adoption of new technology must be a means to your intended result rather than the desired result of the change.
Value Proposition
The second part to figuring out the WHY is defining the value proposition to your stakeholders of implementing change. These value propositions will provide a reference point to direct and bound the scope and design of the change. A stakeholder value proposition is a description of measurable value that addresses one or more stakeholder basic needs for solving a problem, performing a job, or improving their experience. Value propositions are very specific to the situation being addressed and the type of stakeholder.
There are a number of different recognised techniques for defining stakeholder value propositions such as Customer Journey Mapping, the Value Proposition Canvas, or a variation of the Five Why’s. In the end, all of these techniques share a common aspect as they are aimed at discovering the fundamental need of the stakeholder in terms of an outcome that they, the stakeholder, wish to achieve. That outcome may be related to accomplishing a task, reaching a financial goal, realizing a quality of life, or delivering value to their own stakeholders.
You may also include adjectives in the value proposition that address key expectations that the stakeholder has about the product or service that increases its value to them.
Wherever possible, engage with your stakeholders to confirm their needs and gain a clear appreciation of the outcome they are trying to achieve. This is important not only with customers and clients but also with groups and organizations that partner with you in the delivery or your products and services.
Understanding the stakeholder’s desired outcome will give you a much more focused understanding of their key needs and expectations. This will lead to more relevant and effective value propositions and is the critical first step to fostering stronger commitment on behalf of your stakeholders to engage with your strategic change.
This is the first decision gate to determine which value propositions are worth further exploration.
The WHY
Identify what the drivers are that are necessitating change, and determine your desired results. Then understand and articulate what value the change will provide for your stakeholders. Following these two key principles will allow you to focus your strategic change and produce desired outcomes both for your enterprise and your stakeholders.
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