Waching daily Feb 17 2018

Could you easily explain how your business works?

[Gigante Consulting] [presents]

[Business Agility] [Based on busagilitymanifesto.com] [by R. Burlton, R. Ross and John Zachman]

[Episode 5] [Value Chain]

To understand our business you will need

an internship time in each of our departments

and also, operator for a while each one of our systems

and also, there are the spreadsheets... And... Oh god!

No! To understand our business you just follow the value chain´s flow.

A value chain contains all the business knowledge and

work needed to deliver products or services to a market.

from end to end.

It should be organized according natural dependencies.

It's simple: what comes before what?

A stakeholder mapped out in our process is usually another department.

Sometimes it is also a system.

Anyone from the market can understand our value chain.

It does not depend on our structure.

There is nothing wrong in structuring the chain

of command and control of your company

in a hierarchical decomposition of bosses and subordinates.

But, to believe that this same structure will serve to delimit the boundaries of the

value chain: this is a big mistake.

A value chain should not be limited by a vision of a department.

It should consider the business from end to end, through various departments.

We have set a goal for our analysts

they have to map 12 new specifications per day.

We only create a local goal if it is related to the client's journey map.

It must generate benefits to the business.

Companies that organize themselves as a set of fiefdoms,

where each one takes care of his/her own department, are very difficult to change.

When a new project appears, here in our company,

it's a fight to see who will take over.

It´s you! It´s you! hahaha, it's you!

Usually it is leftover me.

Here it is easy for us to identify responsibles

just delimiting the boundaries of the business processes

witch will be impacted by a change.

A value chain organized by natural dependencies,

and not by departments,

facilitates impact analysis and the definition of boundaries

whenever you're going to make any kind of change.

We have tried to integrate the sales system with the financial system once.

It was a chaos. Each one speaks a different language in this company.

We have created a business concept model aligned with all

departments and all areas. It helps a lot.

Try to work collaboratively with a group of people

without having a well-defined concept model, is very difficult.

The concept model is a key piece of the business knowledge.

And business knowledge is the theme of our next episode of Business Agility.