our mission e⁴

Strategic Transformation

Client Situation: Our client was a major regional retailer who encountered significant new business threats when an international, well known retail competitor expanded its market into the region. Buoyed by the appeal of "one-stop" shopping and store proximity, the business threat to market share and revenue impact was real and significant.

To stave off this threat and achieve other operational benefits, the company undertook a massive reengineering project driven by a complete change of core operational systems.  The scope comprised the reengineering of core business processes,modernization of critical business technology and the redesign of the store organization and culture. Core business processes evaluated and reengineered included product development, facility design, supply chain management, and merchandising, as well as enabling processes for human resources, finance and administration, and information technology.

Near-term and longer-term projects were identified with a targeted five-year savings of close to a half-billion dollars on a constant level of business basis. Even within the initial first year period, the program had already delivered millions of dollars in documented savings driven by a revised operations strategy for the company and enhanced experience for the customer.

Endeavor Management served as the principal architect for process reengineering and change management.  This role evolved over the life of the program with Endeavor Management providing expertise in detailed process analysis, design and reengineering methods and techniques, change management and communication, as well as providing overall project management and risk management support.  In addition, we have provided project management support for implementing tactical projects spun out of reengineering efforts in supply chain, merchandising and support functions.  The program has been periodically reviewed by independent third party retail experts and has been deemed one of the best in terms of structure, accomplishments and risk management.

Endeavor Management Solution: The first step was to conduct a scope and time limited reengineering assessment to determine the transformation approach and the anticipated business benefits if the transformation was successful.  The assessment confirmed the magnitude of the potential business benefits, the transformation approach and the conceptual vision that would initially guide the reengineering initiative.  It was during this same time that the executive leadership approved the transformation program, the business case and made their commitments to lead the change.

The program was organized around the core processes of the business with an overall program strategy that is supported by a time phased, integrated delivery of new capabilities.  The long term transformation elements are balanced with the identification and delivery of short term changes that are directionally correct and have tangible business benefits.  The program vision and plan has been periodically reevaluated and modified to adjust to the changes expected in their dynamic business environment. The mechanics of our approach are described in great detail in our Change Management Toolkit.

The associated change strategy was based on the Endeavor Management philosophy of simultaneously balancing the demands of running the business with changing the business (RTB/CTB) described in our book Change is the Rule.  The major change elements were derived from the Endeavor Management change engineering model that addresses

• Creating and sustaining a living vision of the desired change
• Altering the work processes, technology and organizational capabilities to deliver on the envisioned reengineering company
• Applying a disciplined program management approach to plan, resource, and implement both major new capabilities with frequent incremental improvements

Another key component of our approach was to transfer or develop new competencies in the client organization such that they could confidently take on and sustain the change leadership.  This aspect of our involvement comprised of formal training in topics such as change leadership, process reengineering, communications, and program/project management. Informally we served as teammates, coaches, mentors, independent advisers to a broad spectrum of clients ranging from senior executives to individual team members.  

The cultural influence on the success or failure of the reengineering initiative was addressed at the onset of the program. The cultural contributors to the success or failure of previous change efforts were analyzed.  Both the positive and the negative factors were identified.  The positive aspects were celebrated and reinforced through communications and acknowledgments.  Mitigation and change plans were developed to address the negative aspects and incorporated into the execution of each project.  Simultaneously, the executives and leaders were provided with a combination of education and guidance on how to reinforce or model the desired changes. Several executives had formal roles as change leaders while key executives took on critical leadership roles to sponsor the desired changes into operations.

The implementation continues today with the client clearly in the lead and having ownership.  Our role has evolved from being the initial reengineering change architect and methodology expert to where we provide support to implement or integrate a specific project or portfolio of projects.

Results and Benefits: The reengineering initiative was huge in its scope, extensive in the breadth of organizational involvement and lengthy in time required to fully implement and realize the benefits. When one stands back and looks at where the client began and where they are today, the progress is impressive and has delivered significant value.  

Financially, the program has delivered hundreds of millions of dollars in direct and indirect benefits annually (The actual figures are client confidential).  On a non-financial basis, the company has developed new disciplines and competencies that are having a significant contribution to the client's business agility.  Some of these new disciplines are a direct result of addressing cultural challenges and include the application of project management, implementing process to balance business priorities with change priorities, incorporating a more comprehensive approach to the change management aspects related to implementing a new major capability and recognizing that operating in a "standard" manner does not preclude being entrepreneurial.  It is a source of pride that we can walk in to the client stores, distribution centers and offices and see many of these projects in full operation.