Converting Strategic Plans to Action

The best plan is only good intentions unless it degenerates into work.

The distinction that marks a plan capable of producing results is the commitment of key people to work on specific tasks.  Unless such commitment is made, there are only promises and hopes, but no plan.  A plan needs to be tested by asking managers, “Which of your best people have you put on this work today?”  The manager who comes back (as most of them do) and says, “But I can’t spare my best people now.  They have to finish what they are doing now before I can put them to work on tomorrow,” is simply admitting that he does not have a plan.

Work implies accountability, a deadline, and finally, the measurement of results, that is, feedback from results on the work.  What we measure and how we measure determine what will be considered relevant, and determine, thereby, not just what we see, but what we-and others-do.

ACTION POINT: Establish specific numerical criteria to measure results.  Set deadlines for yourself and your organization to achieve these results.

Business Process

Processes determine the effectiveness and efficiency of your company's operations, the quality of your customer's experience--and ultimately, your organization's financial success.

In short, business processes constitute all the activities your company engages in--using people, technology, and information--to carry out its mission, set goals, measure performance, serve customers, and address the inevitable challenges that arise while doing so.  Processes determine the effectiveness and efficiency of your company's operations, the quality of your customer's experience--and ultimately, your organization's financial success.

Every organization contains a large number of business processes.  Some are simple processes carried out in a single department--such as entering a customer's order into a computer.  Others are complex processes implemented throughout your company--for instance, developing successful solutions.

ACTION POINT: Use a process mindset to view your company's activities.

People, Technology, and Information

...technologies facilitate process activities 

You can also think of business processes as the series of events that bring together people, technology, and information in ways that create valuable outputs.  To do this, take a moment to glance around your offices.  Notices that:

• The people  around you are carrying out process activities based on the inputs they receive -- such as customer requests.  Their skills and knowledge constitute additional inputs.

• These people are often working with technology --for example, software applications and the Internet.  These technologies facilitate process activities  -- such as order entry, e-mailing a customer or retrieving customer data.

• Information is also all a around you--stored in data bases, provided by customers, or held in people's minds.  As such, information can be a process  input (such as the number of parts in the warehouse)  or an output (for instance, a consultant's report).

ACTION POINT:  Recognize the people, technology and information used in all of your business processes.

Inputs, Activities and Outputs

But processes exist in every company--not just those that make physical goods. 

Technically, a business process is the set of steps a business performs to create value for customers.  A process consists of three basic components.

• Inputs - They start the process.  For example, if you're building a bicycle, the inputs are the tires, wheels, nuts, bolds, chains, gears and so forth.
• Activities - These transform inputs into outputs.  In the bicycle example, activities would include building a frame, attaching the wheels and tuning the gears.
• Outputs - Sometimes also called outcome, outputs are the result of the activities.  In this example, the finished bicycle.

Processes are easier to understand when you consider physical goods like bicycles.  But processes exist in every company--not just those that make physical goods.  For instance, in a company that provides management consulting services, there are still inputs (such as a consultant's knowledge) activities, (for example, conducing an employee-morale survey at a client organization), and outputs (such as a plan for cultural-change initiative at the client organization).

ACTION POINT: Identify process areas in your organization and determine the inputs, activities and outputs.

Improving Business Processes

Even small improvements to a relatively simple process can pay big dividends for your organization.  

Your organization's success hinges in large part on how ell it carries out its business processes--activities that turn inputs such as knowledge and raw materials into products and services that create value for customers. 

Every time you improve your company's business processes, you generate crucial benefits for your organization in the form of cost savings, efficiency gains, and greater customer loyalty and profitability.

Even small improvements to a relatively simple process can pay big dividends for your organization.  

ACTION POINT: Master the basics of business process improvement and help sharpen your company's competitive edge and position your business for sustained success.