One thing that I have learned from this past year is that tomorrow is not going to be the same. The hidden optimist in me says that this is a good thing. We are on the cusp of “the 4th industrial revolution” and although the world will be significantly different, some things are going to be the same. One of the things that will be the same is that companies and organizations that cannot or will not adapt to the new environment will not be here in a short period of time. Awareness and adaptation are the keys to business survival.
Darwin theorized and it is now widely accepted that “survival of the fittest” rules supreme in the animal kingdom. In business, “fittest” is not just about strength, it is also driven by intelligence and adaptation. The current economic situation will force many individuals to fend for themselves and build and sell goods and services that will compete with and erode the foundations of “Big-ger Businesses”. The “New Normal” will become a competitive environment with small players grabbing larger and larger shares of available sales. These small players will arise and merge and disappear, not unlike those in the “computer revolution” that ultimately turned into Microsoft, Apple, Dell, et
The first question that must be asked is, “Is your company on the endangered species list?” If the answer is, “I do not know.” Then think back over the past year. If the changes in the business and economic environment changed your business’ profitability negatively, your business is on the list. If it has passed through unscathed, you need not worry. But it still does not mean that your business is out of danger.
Things have changed. Even in the realm of company and organizational improvement. Current process improvement and Operational Excellence (OpEx) methodologies had been effective because they address issues of established businesses. These methodologies will continue to work on some existing issues, but the changing environment has introduced an entirely new set of challenges. Things are changing, fully depending on the tried and proven process improvement methods will not do much more than prolong the life of a business or organization. One can only improve the proverbial “button hook” for so long. When the need for a “button hook” disappears, so too does the business that produced and sold them.
What will your Company look like at the
end of this?
“Survival of the fittest” goes beyond being strong and intelligent, Darwin recognized that evolution meant having the ability to adapt and change. Sometimes the changes are in form or function; or both simultaneously. We can learn much from that! The one aspect that holds true in every evolution is that it occurs as an adaptation to the environment. “If it is not broken and it works, do not change or fix it!” is how nature operates. The bottom line of nature is survival first and a focus on thriving second. When reversed, the species is compromised and finally is led to its demise. This is true of the single-celled creatures and the most complex species. None are above this law of nature.
It seems like we have gotten off-track and moved from a business discussion to biology, but the same principles hold true in either case. Every organism and for the sake of this discussion, every organization occupies a specific niche in its environment. Its basic composition or make-up makes it unique down to the genetic chain that allows for its replication. It exists, today, because its construction allowed it to survive and often thrive in the environment it occupied. The present, no matter how stable the environment is, contains change, sometimes small, and sometimes large. The ability of the organism to adapt to these changes creates it destiny. We do not have “ice age” mammals today, because the environment left the “ice age” and those creatures were unable to adapt given the structure and purpose they were built to serve.
The same holds true for businesses, companies, and organizations. Those that exist today, are here, because they survived yesterday. 2020 has brought with it change. Although the change appeared to be a result of a viral threat, the environment was simply accelerated by this threat. The business environment and the world environment, overall, was about to change. Some of it created by the subtle psychological needs and priorities of society and others by the demands of the consumer. Some of the changes were precipitated by the businesses themselves to gain greater market share. It is complex equation that deserves further study. Some have recognized that a change is forthcoming and labeled it “the 4th Industrial Revolution”. Given where the world has come from and what it has created the decisions and policies it has made, the world was primed for this change. The Covid virus threat was simply the catalyst of this change. The “cold and hard” truth is that it will not go back to what has been called “normal”. It is now a memory, fond or not so fond.
Business’, companies, organizations, and humanity itself, has created this environment and now it must adapt to it or face the dire consequences. All past successes are nothing more than a plaque or trophy laying in a case or a shelf gathering dust. They carry little or no value because the environment has changed significantly and a new order of “life” or business must arise, survive, and thrive. Therefore, the label “the 4th Industrial Revolution” is fitting. Everything has changed from the very foundation, upward. The individual response to this change can range from fear and anger, to celebration of the opportunities afforded. Ultimately every response will lead to acceptance of the “New Normal”, whether it is acceptance of inevitable demise and loss or an adaptation and evolution into a new entity.
Why some creatures survive, and others do not is still an unanswered question, and complete speculation. What is important to any creature or company is recognition of the threat of change and adaptation. Ignoring the current environment or “hoping” that it will revert back to the past is a “high-risk” decision. Science abounds with evidence that returning the past conditions can be equated with “time travel” and although it is a nice theory, it is still beyond the reach of anyone. The only logical strategy is to begin initiating change, based upon the organizational composition and capability.
How do they do it?
Considering all of this, every company and organization that desires to evolve and adapt to the “New Normal” must develop a dynamic change plan. The basic strategy needs to:
Assess the current state in terms of solvency and capability, providing an estimate of the remaining life expectancy, if the decision is made not to do anything. This provides an estimate of the time available for evolution. The proverbial count-down clock starts!
Assessment of current infrastructure and capabilities and potential change scan be initiated quickly to extend the life expectancy.
Assess customer needs and align them with current capabilities
Establish a plan for change
Initiate the plan while amassing performance to plan data and additional discoveries as the plan is refined and tested.
Adjust as needed and move forward.
It is much more complicated than this, but it provides an overview of a series of efforts that are alien to many established companies and organizations. As previously mentioned, the current process improvement and Operational Excellence methodologies were established to assist the “Old Normal”. Lean helps in cutting costs and reducing waste will not help if the competitive “small players” can produce an equivalent product or service at a price that is not profitable with a larger business. Lean can help extend the life expectancy of companies and organizations but not adapt them to the “New Normal.” Six Sigma can focus on reducing or eliminating product or service defects and extend a product or service life, but it is of little or no value if the “small players” can produce higher quality and adapt to the dynamic market needs rapidly.
Enter DMADD
The Cii developed and has been promoting and refining its proprietary “Define-Measure-Assess-Develop-Deliver” or DMADD Process and product improvement methodology for the past decade. Its foundation rests upon the shoulders of the Lean and Six Sigma “Giants” and their highest value contributing activities. DMADD is a strategy that can be utilized by companies and organizations to evolve into the “New Normal” and move to the “apex” of the business kingdom. If you are interested in learning more about DMADD or any of the other Expert consulting services that the Cii provides, check out our website at www.thecii.com .
Phillip C. Reinke,
Founder and President of The Continuous Improvement Institute.
After 30 years of successful organizational transformation from “ground up” and performance improvement in Fortune 100 companies such as General Electric, First Data Corporation, Western Union, BankOne/First of Chicago, National City Bank and Washington Post/Kaplan Higher Education, Phil set out to share his experience with a broader audience of companies that could not afford to fully deploy the highly demanded and much needed, Six Sigma culture.
Contact: (954) 839-8477 I phil@thecii.com