Large scale Organizational transformation Russia

Organization transformation program has three distinctive phases: Communication of the Operational Mission, Vision and the Strategy, Development of the Organiational Strategy, and the delivery of the Operational strategy and the Organizational strategy.

The functional competencies like: finance, marketing, production, sales are needed in order to develop and efficiently deliver the Operational strategy.

But economical efficiency of the Firm depends on supporting the Operational strategy delivery by the Firm employees, using their capacity to align and work across organizational boundaries of the functions.

There is concrete economical gain of the Organizational transformation program.
The aim of the Program was to shift mindsets and attitudes to work through desired organizational practices. Thanks to the repeating the practices, employess of the Firm develop and apply the organizational competencies, that are needed to increase the economical efficiency of the Company.

Project covered each of the three phases of the Organizational transformation.

Operational strategy had been already developed by the Firm before the beginning of the Project.

Before the Transformation process started, the Firm had perfomed the communication on the Operational strategy to thelimited circle of the managers, who had developed the Strategy- mainly to the Management team.

In the frames of the Transformation project the structure of the Communication process and the messages, were developed and delivered to the employees at every level of the organization.

CEO of the Firm addressed personally the core Objectives and Plans of the Operational strategy to approximately 20% of the employees.

The Communication process had an interactive character. Such approach helped not only to deliver the Strategy messages to the minds of the employees. It also enabled the Firm to plant the seeds of the strategy in employees hearts, thus to get the Transformational process started.

The process of the development of the Organizational strategy was designed and deployed. The methodology of the Process was developed and then implemented. The methodology was based on the series of the interactive workshops at each phase of the Process, and at each level of the Firm's organization. Employees of the Firm developed the Mission, Vision and the plans of the Organizational strategy.

As the result, the employees of the Firm were co- authors of the Organizational strategy. This approach supported buidling the desired attitute to the Organizational strategy, enabling better work at the implementation stage of the Organizational and the Operational strategies.

The measurements of the Organizational strategy implementation were developed in paralell to the Strategy itself.

The organizational gap was described. It was calculated as a difference between the desired level of the Strategy measurements, and their starting values.

At the Firm level- or the Management team level, there were the following measurements of the Organizational strategy:
1. The deficit in how the desired organizational practices were used across the organization, 2. and the level of the organizational competencies, needed to support the practices.

The Operational strategy that already existed, and the Organizational strategy that was developed, both were cascaded from the Management team level to the Supervisors and the front line levels.

The OGSM methodology (Objectives-Goals-Strategies-Mesurements) was applied to cascade the Strategic objectives to the Objectives of the front line level.

The OGSM methodology helped to develop the set of integrated KPIs (Key Performance Indicators), which would help to monitor the progress at the implementation phase of the Operational and the Organizational strategies.

This way, the link was established between the Objectives and KPIs of the Management team and Supervisors, as well as The Objectives and KPIs of the Front line level.
The other link was establshed as well: between the Objectives and the KPIs of the Operational strategy and the Objectives and the KPIs of the Organizational strategy.
Each department like- Marketing, Production, R&D, Sales, Finance etc., had their Operational objectives integrated with relevant Organizational objectives, as the result of the second link.

The Objectives and the KPIs were allocated to the managers at each level of the Firm's organization. Existing MBO system was used for this purpose.

The process of Closing of the organizational gap had started. The process aimed at increasing the level of the organizational competencies and practices, that are relevant for delivery of the specific Operational objectives.