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Organization Assessment That Works

Operating a successful enterprise comes from a series of choices leadership makes to accomplish the overall enterprise purpose and satisfy a group of enterprise constituents – including customers, business partners, employees, shareholders and the community – along the way. The five-step organization assessment model for represents a timeless foundation for success that is applicable to any business, regardless of size, shape or industry.


The Five Phase Organization Assessment


1. Situation

Situation encompasses the environmental conditions that an organization must consider when choosing to do business. It consists of key considerations, including Requirements, Expectations, Competitors, Capabilities, and Trends that must be assessed prior to setting the overall organization strategy.  Requirements are the wants and needs of customers and business partners that impact the viability of the organization. Expectations are the desired conditions and outcomes of stakeholders, which include employees, shareholders, lenders, the industry and the community in which the organization conducts its business.   Competitors are the organizations and their capabilities that must be considered when defining the value proposition. Capabilities come from a self-awareness of strengths and weaknesses, which inform business model decisions and strategy. Trends are the surrounding conditions and events that potentially impact competitiveness, including political, environmental, industry, and technology.



2. Strategy

A strategy is comprised of a series of choices that the organization makes concerning its Purpose, Value Proposition, Business Model and Business Plan. It expresses the intent to execute a successful business model that delivers value to customers, loyalty from constituents and profits for shareholders.  Purpose represents the reason for existing and the noble intention that the organization brings to the market to satisfy customers’ wants or needs. The Value Proposition is expressed by defining the customer, identifying their painful problem that needs solving, delivering a unique and effective solution, and then defining the net benefit received by the customer. The Business Model represents the organization design that delivers the Value Proposition and contains elements such as go-to-market, supply chain, product development, marketing, finance, administration, and culture. The Business Plan represents the near term execution plan (often on year) to deliver the intended Strategy and Business Model.



3. Deployment

Deployment is the execution of the Strategy and Business Plan, including Workflow Transformation, Resource Management, Knowledge Management, and Measurement and Feedback. Workflow Transformation includes the identification, organization, and definition of the business systems and processes necessary to execute the work of the enterprise. Resource Management is the acquisition and management of the assets that enable the execution of the business systems and processes previously defined. These assets include people, facilities, equipment, and information technology. Knowledge Management includes the intellectual property of the enterprise that is accessed by business processes, such as training, work instructions, trademarks and patents, brand guidelines, regulatory requirements, proprietary knowledge, and business records. Measurement and Feedback represent the scorecard of the organization and the systems that provide the scorecard information.



4. Performance

Performance monitors organization execution and provides feedback to the enterprise, including Definition, Effectiveness, Productivity, and Financial Definition documents business systems and processes to monitor the delivery of the organization’s purpose while operating in compliance with applicable standards. Effectiveness monitors the extent to which the enterprise is delivering the desired value proposition to loyal customers. Efficiency monitors the resources consumed by the transformation of enterprise inputs into products and services. Productivity monitors the value-added contribution of the enterprise assets purchased to enable the transformation business model. Financial monitors the costs of products and services and the need for working capital to support the transformation business model.



5. Outcomes

Outcomes assess the extent to which the organization is meeting the requirements and expectations established by the organization’s constituents.   This includes shareholder and lender Profitability and Return on Asset expectations, Customer, Business Partner, and Employee satisfaction, and Third-Party Regulatory Agencies.



Many organizations grow through a series of choices that stack up over time. Successful leaders make intentional organization choices addressing the five-step organization assessment model that lead to well-rounded competitive capabilities.



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