Big cross-organizational change can be difficult and not all organizational transformation is the same. Rapid advances in technology, a growing global creative workforce, and market with fewer and fewer barriers to entry are driving a hyper-creative volatile marketplace. New ideas are making established business positions obsolete at an increasing rate. Products and services that survive are exposed to commodifying price pressure.
The world has started to repeatedly demand operational excellence not only in innovation but in the delivery of customer service. Continuous improvement has been deeply emphasized with the increasing demand in the marketplace. Companies must recognize the fundamental market shifts that are occurring and must learn to respond effectively. This can be done by building an organization that discovers, shapes, and brings Lean-led Business Transformation to scale as part of its core business direction and purpose.
Lean-led Business Transformation provides the business the institutional capability and framework to adapt to rapidly changing opportunities
Understanding the Lean-led Approach
An approach based on Lean Thinking provides business tangible results that are evident in financial performance, customer and employee satisfaction, and risk mitigation.
From Lean-led Approach to Lean-led Transformation
Companies are increasingly under pressure to cut costs and grow. Applying the principles of Lean Management allow companies to fundamentally transform their operating models.
Using a Lean-led Business Approach, the company can effectively undertake a Lean-led Business Transformation. An effectively undertaken Lean-led Business Transformation can help the company build a robust, factual understanding of its current state, exposing improvement opportunities to design an end-state operating model with enabling capabilities.
In effect, the company can achieve insurmountable results that competitors will find difficult to follow.
- The company will achieve best-in-class efficiency.
- It will reduce client, financial, and regulatory risk.
- It will create measurable client impact.
- It will lead the company to scale-up with growth.
A Lean-led Business Transformation embeds continuous improvement in the organization. It engages employees to help business leaders successfully govern and execute change.
What Companies Are Facing Today
Changing market trends have pushed companies towards Lean-led Transformation. These market trends are adding pressure on companies to simultaneously cut costs and grow.
- Commoditization of Basic Services. The value of basic stand-alone services is declining leading to the increase in integrated services. As a result of the trend, there is a decreased unit margin per transaction
- Increased Complexity and Globalization of Investments. There is growth in cross-border activity, alternative investments, and alternative exchanges. As a result, technology and compliance investment requirements are changing. Likewise, it has opened an opportunity for growth and revenue diversification.
- Stricter Regulation. There is increased regulatory oversight such as consumer protection. As a result, new processes and technologies need to comply with regulations. There has also been an increased client need for advisory services.
- Increasing Focus on Risk Management. There has been an increase in risk aversion and a demand for risk management. In effect, new risk assessment capabilities and oversight practices have been developed.
- Change in Consumer Behavior. There has been reduced willingness to incur debt as well as deterioration of trust and customer loyalty. Because of this trend, businesses have been experiencing declining profitability and increased competition for creditworthy consumers.
These changing market trends are here to stay and more trends will soon evolve and affect business. Failure to heed these market trends can lead to decreased margins and profitability that can be highly detrimental to business.
Undertaking this form of Business Transformation can drive businesses to undertake executable Lean Programs that will strengthen their capability to meet these challenges.
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