Improving Organization Performance & Agility
Banking & Financial Services
In most organizations in the financial industry today, the value creation and delivery processes as well as the support administrative processes and resources are being stretched to attract new customers, while protecting existing market share against nonbank competitors. Technology upstarts and retail giants alike are offering convenient low-cost alternatives to bank services, including peer-to-peer payment methods and instore banking. tech-infused Millennial have high and growing expectations for online and mobile banking, as well as individualized services and financial guidance. Along with these market challenges, and post-crisis regulatory security and oversight pose potentially grave financial and organization consequences. In addition, with cyber security risks escalating across the globe, financial services bear the unwelcome distinction as the industry most targeted by crooks.
Together these disparate forces are compelling bank leaders to make critical strategic, financial, and operational decision choices that require a structured approach to capture the breath of considerations involved.
In most organizations in the financial industry today, the value creation and delivery processes as well as the support administrative processes and resources are being stretched to attract new customers, while protecting existing market share against nonbank competitors. Technology upstarts and retail giants alike are offering convenient low-cost alternatives to bank services, including peer-to-peer payment methods and instore banking. tech-infused Millennial have high and growing expectations for online and mobile banking, as well as individualized services and financial guidance. Along with these market challenges, and post-crisis regulatory security and oversight pose potentially grave financial and organization consequences. In addition, with cyber security risks escalating across the globe, financial services bear the unwelcome distinction as the industry most targeted by crooks.
Together these disparate forces are compelling bank leaders to make critical strategic, financial, and operational decision choices that require a structured approach to capture the breath of considerations involved.
-
Strategy Hierarchy
-
Functional Strategy
-
Operating Model
-
Operations Systems
<
>
In most organizations in the financial industry today, the value creation and delivery processes as well as the support administrative processes have gone through a number of re-engineering efforts and improvement initiatives a number of times, and are fairly efficient. The premise underlying process engineering and improvements is that most organizational processes were never really engineered but just grew out of the operations of these co0mpanies. After a certain number of re-engineering efforts most companies reach a point of diminishing return on improvement investments. Most residual inefficiencies and ineffectiveness result from problems with managerial processes and organizational behavioral processes.
Most organizations and consultants are ill equipped to address these types of process issues because the current tools don't support modeling behavioral processes ans managerial processes to enable analysis and improvement of these processes to address operations and strategic performance issues.
Determining Effective Capacity For Business Continuation
Effect of factors such as customer account transactions on the day-to-day operation of a firm e.g., banks, etc.).
Most organizations and consultants are ill equipped to address these types of process issues because the current tools don't support modeling behavioral processes ans managerial processes to enable analysis and improvement of these processes to address operations and strategic performance issues.
Determining Effective Capacity For Business Continuation
Effect of factors such as customer account transactions on the day-to-day operation of a firm e.g., banks, etc.).
Effective Strategy Implementation
A Strategy is a hypothesis of the best way (means) for the organization to achieve its long-term vision through support of the mission. It implies options (strategic decision choices) for the organization, and requires selection among alternative strategies. Strategies specify the means (courses of action) or roads if taken would lead the organization to its future state. A strategy is expressed by an intentional goal model which defines the desired outcomes in terms of strategic objectives, and vision in terms of high level goals. The goals and objectives are aligned with the desired organization structures (i.e. cascaded decision rights) comprising logical actors that denote functional areas and actors that represent the individuals and groups that comprise these functional areas. The organizational structures are modeled as organizational social system networks in terms of strategic goal dependency relations network models.
Functional Strategies
Marketing and Sales
HR
IT
Product Development
[TBD]
Implementation Gap
The implementation gap is defined in terms of the gap between the organization's current capacity and the capacity needs that the organization's corporate and competitive strategies call for in other to achieve the strategic objectives and the deliver the mission and vision. Strategic gaps can be conceptualized as risk factors that can negatively influence successful achievement of the vision. Risk factors collectively result in consequences (financial/operational losses/opportunities).The risk measure is the ‘cost’ associated with failure to achieve a strategic objective which contributes to failure to attain the vision.
The strategic implementation gap is identified through gap analysis techniques such as between SWOT analysis, Capacity Development Assessment, etc.
A Strategy is a hypothesis of the best way (means) for the organization to achieve its long-term vision through support of the mission. It implies options (strategic decision choices) for the organization, and requires selection among alternative strategies. Strategies specify the means (courses of action) or roads if taken would lead the organization to its future state. A strategy is expressed by an intentional goal model which defines the desired outcomes in terms of strategic objectives, and vision in terms of high level goals. The goals and objectives are aligned with the desired organization structures (i.e. cascaded decision rights) comprising logical actors that denote functional areas and actors that represent the individuals and groups that comprise these functional areas. The organizational structures are modeled as organizational social system networks in terms of strategic goal dependency relations network models.
Functional Strategies
Marketing and Sales
HR
IT
Product Development
[TBD]
Implementation Gap
The implementation gap is defined in terms of the gap between the organization's current capacity and the capacity needs that the organization's corporate and competitive strategies call for in other to achieve the strategic objectives and the deliver the mission and vision. Strategic gaps can be conceptualized as risk factors that can negatively influence successful achievement of the vision. Risk factors collectively result in consequences (financial/operational losses/opportunities).The risk measure is the ‘cost’ associated with failure to achieve a strategic objective which contributes to failure to attain the vision.
The strategic implementation gap is identified through gap analysis techniques such as between SWOT analysis, Capacity Development Assessment, etc.
Operating Systems
The "Operating System" is an enacted instance of a component of the Organization Operating Model. The operating system is a joint configuration of resources and processes such that the resulting competencies are aligned with the organization's desired competitive position. The existence of trade-offs and constraints in the operating system configuration imply that no single operating system can be universally appropriate for all organizations; rather each company's operating strategy requires a tailored operating system, its resources and processes configured such that its competencies best fit the customer value proposition specified by its chosen competitive strategy.
Modeling the Environments
The environments model is comprised of the external and internal environments’ model. The Environment model is denoted by the External Entity actor construct which is an abstraction that is used to capture the definition of forthcoming developments, either inside or outside of the organization which are likely to have important impact on the ability of the organization to meet its objectives. The external entity abstraction is an abstraction over the concept of strategic issue, and the concept of influencer in Motivational Modeling.
The category of external entities (influencers) is large and inclusive. Every business has hundreds of potential influencers. There will always be too many influencers to model. The decision as to what influencers to model is determined by the influencers that impact the organization's strategies and tactics, and affect the achievement of goals and objectives of the organization.
The "Operating System" is an enacted instance of a component of the Organization Operating Model. The operating system is a joint configuration of resources and processes such that the resulting competencies are aligned with the organization's desired competitive position. The existence of trade-offs and constraints in the operating system configuration imply that no single operating system can be universally appropriate for all organizations; rather each company's operating strategy requires a tailored operating system, its resources and processes configured such that its competencies best fit the customer value proposition specified by its chosen competitive strategy.
Modeling the Environments
The environments model is comprised of the external and internal environments’ model. The Environment model is denoted by the External Entity actor construct which is an abstraction that is used to capture the definition of forthcoming developments, either inside or outside of the organization which are likely to have important impact on the ability of the organization to meet its objectives. The external entity abstraction is an abstraction over the concept of strategic issue, and the concept of influencer in Motivational Modeling.
The category of external entities (influencers) is large and inclusive. Every business has hundreds of potential influencers. There will always be too many influencers to model. The decision as to what influencers to model is determined by the influencers that impact the organization's strategies and tactics, and affect the achievement of goals and objectives of the organization.
Mergers and Acquisitions
In a mergers and acquisition situation where a bank was acquiring retail banks in its market to create economies of scale to make the decision to stay in the retail banking business sound even in light of the razor thin margins, integrating and aligning organizational processes and managerial processes is paramount.
In a mergers and acquisition situation where a bank was acquiring retail banks in its market to create economies of scale to make the decision to stay in the retail banking business sound even in light of the razor thin margins, integrating and aligning organizational processes and managerial processes is paramount.
- Develop organizational work processes for retail banking function/business unit
- Identify and define roles that abstract over the human actors involved in these work processes
- Create organizational behavioral model by developing role responsibility assignment policies that define the selection rules for assigning activities/tasks to specified roles which are then reo0lved to particular individuals or groups through Resource Manager responsible for managing the current configuration of human resource schedules.
- Identify decision-making tasks using the behavioral process model and develop a goals model for the desired outcomes of the decisions.
- Develop managerial processes for the retail banking functional area.
Copyright Enterprise Design Labs 2005 - 2022