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Execution-MiH ENCYCLOPEDIA →
Execution Making-it-Happen →
SECTION - Resilience & Flexibility →
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CHAPTER -
| Business Adaptation |
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This Chapter works on explaining with many examples on how various functions can adapt to the change so to ensure the Results Continuity. This includes financial adaptation, customer adaptation, process adaptation, service adaptation, sales adaption and product adaptation.
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Topics
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Financial Adaptability & Flexibility
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Financial adaptability is an organization's ability to sustain & tune its liquidity, its asset-liability ratio and its recycling the money. It also includes an ability to protect its cash, change or exit its long-term commitments or contracts, the hedging they have done for future risks. It also includes ability for an organization to slash-down the non-core costs to almost zero in the face of a shock.
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Customer Adaptability & Flexibility
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Customer adaptability is an ability to rationalize customer base,
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Operations and Fulfillment Adaptability
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Operations adaptability includes handling variability in volumes, flexibility of assembly lines to manufacture different products, flexibility in vendor matrix and adaptability in changing the outsourcing model. It also means an ability to deliver to changed operational metrics on cost, quality and turn-around times. There is a cost of flexibility & speed. A business should use its anticipation to predict future business scenarios, look at the industry benchmark, look at its strategic priorities and its money-making machine** to decide for their spending on adaptability.
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Human Capital Adaptability & Felxibility
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Human capability adaptability enables a business to change its skill-base, its competencies and head-counts. The training and development platforms need to be quick-response. The rewards & incentive systems should be highly configurable to deliver the messages and calculations to the lowest levels in the organization including your agents & third party channels. The performance management systems need to be flexible to change the frequency (refer **execution intensity) and intensity of performance management.
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Sales and Distribution Adaptability
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Sales and distribution channels are long-term investments as it takes years to develop and stabilize them. The adaptability of sales & distribution is typically most strenuous to achieve. The communication and training capability has to be agile. The sales incentive programs, the calculations and incentive stalemating needs to be robust. While developing a new channel takes time, an organization should have an ability to change its channel-mix for existing products.
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Service Adaptability
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Customer servicing flexibility is mainly to do with the adding new skills needed to service new products, changing the service response time, turn-around time for spare-parts availability. At strategic level, one should be able to add or subtract to the service channels and locations.
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Product Adaptability
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Product design should be ideally modular, with possibility of some universal modules across the products. The product management requires most cross-functional co-ordination as it is linked to sales, supply chain, service, finance and other domains. A business should be able to add new layers of features without disturbing the core-product base. A capacity to change the look & feel and equivalent positioning should also exist. If a totally new product needs to be designed, the product analysis, design, testing and prototyping should be a process-driven capacity.
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All Chapters in "Resilience & Flexibility." Section
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