The transformation of a company can only be successful if there is a clear picture of how the organisation should look and function in the future. Such a target image must answer a wide variety of questions. These can be divided into two main topics:
1. What will our “service provision” look like, i.e., how do we satisfy known needs of (target) customers with specific products and services generated by high-performance business processes in a process-based leadership structure?
Typical questions that need to be answered are: How is the company positioned in the market? Which value creation stages are being addressed? Which customer needs are satisfied, and what is the corresponding value proposition? What core competencies do we need for this? What is a business process model that most efficiently generates or procures the products and services required for this value proposition? What does this mean for the management structure - especially in larger and internationally active organisations? How can end-to-end responsibilities and clearly defined contact points between main processes be ensured?
2. What does our “innovation” look like, i.e., how do we systematically deal with changes in the market and with technologies, and continually adapt our “system for service provision” to new requirements?
Typical questions that need to be answered are: Which innovation areas differentiate our offer and are particularly critical for our customers? How can they influence today’s value proposition or the “architecture of our market performance”? How do we ensure that ideas for improvements and innovations can be systematically reviewed and agilely tested for their suitability for our organisation? What does this mean for our management structure?
Achieving the target image through strategic enterprise design
Strategic enterprise design is a scientifically based methodology for designing companies. It is about making the right (positioning) better (end-to-end responsible processes and an appropriate organisational structure). Enterprise design is the holistic view and design of a company (or a business unit, an institution, or a public authority) according to a clear design logic – from strategic positioning with clear market performance and the derived architecture of the offered products and services to the design of responsible processes, management structure, and empowerment of the organisation and employees. The enterprise design ensures that the company is successfully positioned and that the right strategic goals are achieved. Strategic enterprise design ensures that an enterprise can achieve its full performance (“high performance”), both at the planned “operating point” (measurable point for optimal performance) and in the event of deviations from the planned operating point, for example, caused by economic fluctuations. Strategic enterprise design enables flexibility and scalability. Business-critical elements are optimally coordinated, resulting in the highest possible level of performance – a high-performance organisation.
The steps towards a high-performance organisation
The strategic enterprise design looks at a company (or a business unit, an institution, a public authority) from a holistic perspective. It is like with a soccer team: It is no use having the best defense if the striker fails. Neither is it any use having good goalies if the defense fails with every enemy attack.
A well-coordinated team is more successful than a team with individual exceptional talents that are uncoordinated and do not have a good formation. It is just as crucial for a company’s success that its core business elements are perfectly coordinated, complement each other, and operate well together.