Transformation journey is a journey of changes. A path which is not easy to drive yet once you drive to the final stage, the results are wonderful. You might have heard about many organizations have started working on transformation journeys. But there are very few organizations that make through the journey.
Are you also planning to begin with the transformation journey or already on board? Want to know what right these other organizations are doing to make through the transformation? Start with this simple habit!
Priortize well, apply PARETO principles: The Pareto principle (also known as the 80/20 rule, the law of the vital few, or the principle of factor sparsity) states that, for many events, roughly 80% of the effects come from 20% of the causes. PARETO’s principle serves as a general reminder that the relationship between the inputs and the outputs are not balanced.
For example, if you can figure out which 20% of your time produces 80% of your results then you can spend more time on those activities and less time on the other non-value adding activities. Similarly, by analyzing the characteristics of the top 20% of your customers who represent 80% of your business, you can find more clients like them and thus increase business
Hence, one must understand and prioritize the challenges, solving which will help the organization in the long run.
Pareto principle can help in several ways. Say, we take example of improving profitability, which entices many. It is almost a common scenario in any business that approximately 20% of your sales efforts (team, products/ services, geographies, etc) produce 80% of your revenues. Depending on your business objective, the Pareto Principle can be used to determine whether you need to focus your effort and resources on the 20% of sales efforts, that get most of your business to further sharpen the 20% efforts or to focus on the 80% of other sales efforts which are struggling to bring business.
Next on the operations front, if we look at identifying and fixing issues – A Pareto analysis can be useful method for prioritizing problems so that you can determine which issues have the greatest impact on the outcome of a given situation. This not only allows you to identify the problems, but it also allows you to take corrective actions to resolve the most important problems affecting your business.
Therefore, one should not begin with the transformation journey without well-defined goals and roadmap. For eg If we talk about Five S, rolling out “sorting” all the times does not mean that one is leading towards continual improvement. Sorting is just one of the steps. If one follows, all the steps of Five S at right situation, then one can reap real benefits of the Five S process.
Hence, don’t just do things with partial impact and without prioritizing. It may lead to sub optimal results. First, understand what you are planning to do, go through its process, plan how to implement, analyze and implement it thorough for delivering the desired results.
Team Faber Infinite has been helping organizations in their transformation journey using their unique Organizational Transformation Framework©. We have worked with clients across sectors and geographies and delivered exponential results at the client site. To know more about our offerings contact us at [email protected]
Written & Compiled by Faber Priyal & Faber Mayuri.
