Monday, February 02, 2009

Now is the Time for Emphasis on Organizational Effectiveness

The business climate we are facing today is unquestionably a painful one for the semiconductor industry, as well as most others. Energized by the cost sensitive nature of this climate, a focus on efficiency provides the benefit of organizational growth. The growth I am referring to is best characterized as an improvement in efficiency that results in financial growth through reduced development costs and earlier new product revenue.

Organizations that will grow stronger during this depressed economic period share a common vision that efficiency of operations carries significant importance. They believe now more than ever that there is something to be improved upon, something that could be done different, or a possibility of newly discovered opportunities for organizational success. This accent on change for these groups will yield positive results through specific improvement actions. Growth organizations will be motivated by a passion to seize this current emphasis on cost reduction as a motivation for creating a new level of operational effectiveness. Stronger organizations will evolve from a belief in doing things differently, that sustainable change is achievable, that the status quo is just not acceptable. They will take positive steps to jettison the project execution baggage that has long been accepted and tolerated through the more prosperous periods.

Organizations that bolster efficiency during this period share a vision that has no room for waste in their development processes or their portfolio management. They will have the right product ready to generate revenue when the demand floodgates open. An achievement that will be enabled through focused actions today, during a period when many organizations will fall prey to an emphasis purely on cost reduction. The winners out of this downturn will have emphasized NPD efficiency improvements as a complement to the routine cost reductions.

Prospering organizations during this challenging business period will display many of the attributes in the figure below.

Lean and mean must be the mantra in this battle for survival. This is not a time for accepting less than the best out of people, decisions, strategies, workflows, product portfolios, suppliers and customers. An emphasis on organizational effectiveness in the current cost conscious climate will ensure organizations are well prepared for long term financial success. Unbeatable organizations will be highly efficient in their execution and brilliant in creating products that exceed market expectations.

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