Organizations increasingly navigate a highly volatile, complex environment in which uncertainty, change, and the rise of technology, new business models and competitive threats are the only constants.
Companies seeking to out-perform in this environment require operational dexterity, and business agility is critical to being responsive to increasingly changing market conditions. The pragmatic and operational definition of business performance and business agility, that is, how to achieve and to sustain them within the context of a supporting IT environment, varies considerably.
In the TIPS model one aligning Technology, Intellectual capital (people), Processes and Strategy as one major tools.
The TIPS model is developed by the management consult Glenn Hole (phd) to secure efficiency in turnaround cases, but can be used to strive for operational excellence in an organization.
Strategy: The model starts on the bottom where Strategy is the purpose driver of the organizations. It is the road map of to the future for the organization. Business excellence is a strong and clear vision and a logical, applicable strategy, comprehensible to everybody inside and all partners outside of the organisation, to adopt.
Processes: Is the second parameter of the TIPS model. To support and the strategy, the organization need to have an end to end value stream of their work processes, it need to be measured, customer adapted, standardized methods and tools is needed.
Intellectual Capital: Is the third parameter. The employees need skills and training, be aware of their roles and responsibilities, learning on how to cope with and be part of a continuous improvements culture. The organization need to drive HR development of its employees.
Technology: Is the fourth and last parameter. Technology needs to support the work processes of the organizations and not vice versa where the technology comes first and then working processes. The technology is also a support tool for employees, it is as much about organizational change and new ways of working, where IT and technology is support functions for the organization.
Figure 1. The TIPS model:
An enterprise can thrive, or struggle, based on how well the corporate strategy is understood, how its business process works, its people and technology function together.
Typically, these four elements evolve somewhat independently, with new leaders bringing preferred strategy, business processes and tools, for example, while technology is often implemented piecemeal in reaction to pain points. Over time, a once solid relationship between these four parameters can become inefficient or dysfunctional.
Since 2002 Hole have been in several interim and consulting positioned where he has used his management and technology consulting expertise to advise organizations on how to optimize their strategy processes, design of business processes, and how people, processes, and technology can work together in an optimal way.
In these cases, one have used a methodical approach to assessing and analysing problems, designing new organizational architectures and streamlined workflows and processes. This has enabled significant improvements in quality, customer service, time management, operational cost efficiencies, and other measurable impacts—on time and on budget. Just as important, one need to be sensitive to the change management implications of the recommendations and design of the customer’s strategies to ensure buy-in from the people who will drive adoption of the new environment.
Together with the customer one have got breakthrough results where one have contributed to transform several enterprises, from having served in leadership roles within the organizations to executing on extensive strategic, operational and technical consulting engagements.
It is important to customize all Business Transformation and Business Process Optimization services to emphasize cost-effective solutions that don’t sacrifice innovation. By organizing around outcomes, as opposed to tasks, one can enable greater efficiency, collaboration, and accountability within an organization.
Transforming your corporate organization requires time and patience, investment in people (I, intellectual capital, TIPS model) and technology (T, TIPS model) and commitment from executive leadership, middle management, and the workforce.
The TIPS model and Continuous Improvement
The TIPS model and Continuous improvement is a way of ruling, a way of working and a way of thinking – which contribute to increased value in the short and long term for clients, employees, owners and society. It’s about the organization manages to have two thoughts simultaneously:
- Completion of work processes in the right way
- Daily improvement of the way the work processes performed on
- Some key principles for successful Continuous Improvement
The TIPS model and Continuous improvement must be anchored at board level to ensure understanding of the importance of continuous improvement efforts. For example, as the board of directors of the Norwegian Insurance company Storebrand has decided that continuous improvement (Lean) is a strategic business area that is equal the insurance business. Management must engage themselves and all employees in the development and continuous improvement.
Implementation and training is critical to building a culture of continuous improvement.
We see time and again that organizations fail to succeed in a process of change. In the implementation of a process of change that continuous improvement is, there’s a risk of getting lost. It is important that you work from a standard that Lean and ISO. On the other hand, it is important not to become “regular riders’ ie that all the focus will be on tools, methodologies, templates and structure and where you lose focus on what actually matters – creating lasting results through reel change. Most of us have probably been involved ‘rule riders “who should only follow a template, fill out paperwork from A – without understanding what it is all about. Then it is also no change in the organization when such persons sitting as process managers.
To be able to create a culture that works with continuous improvement one must add a significant resource in training to provide an understanding of why and how to work with this. Through this training, one will be able to create a fertile ground for the continuous development in the organization.
One must treat causes, not symptoms, often we see that organizations treat symptoms rather than the underlying causes. To summarize it all, one need to focus more on the customer and see it from the customer’s perspective (Lean thinking). Focus on achieving value-creating flow and reducing waste (not value-added services, from LEAN) and variety Decisions must be based on facts and data and not emotions.