Businesses experience significant benefits when implementing the 9-step digital transformation strategy, Integrated Enterprise Excellence (IEE).
The IEE system offers a no-nonsense methodology for enhancing components of a digital transformation strategy, which includes:
- Enhanced performance metrics and Key Performance Indicator (KPI) reporting that leads to most appropriate actions or non-actions
- Structural linkage of performance metrics with the processes that created them
- Business process improvement efforts so the whole enterprise benefits
- Statistical analysis of data in its decision-making process
- Enhanced customer understanding and improved satisfaction
- Business governance leading to the 3 Rs of business, i.e., everyone doing the Right things and doing them Right at the Right time
- Use of automation for process understanding and execution
- Improved status reporting so there is enhanced business-process-understanding that creates the best actions or non-actions
- Orchestration of business metrics, processes, strategy creation, and improvement efforts with risk avoidance so there is enterprise as a whole benefit
The digital transformation strategy IEE 9-steps are:
Summary of the 9-step IEE digital transformation strategy System
An overview of the IEE 9-step digital transformation strategy system is:
- Step 1: Includes the company’s vision, mission, values, and responses to Jim Collins’ three-circle questions about a business: What can you be the best in the world at? What drives your economic engine? What are you deeply passionate about? High-level statements created in a traditional executive retreat often could be considered an aspect of this first step of the IEE digital transformation system, which provides direction for the subsequent eight steps.
- Step 2: The organization creates an IEE value chain, which includes its satellite-level and 30,000-foot-level performance metrics reports. Satellite and 30,000-foot-level reports provide a high-level perspective (not unlike viewing the earth from an airplane in flight) for performance metric tracking that can provide a predictive statement more often than not. When a futuristic view of a performance measurement statement is undesirable, there is a need for process improvement. An IEE value chain describes what an organization does and how it measures what is done. For an organization, an IEE value chain should maintain fundamental consistency over time, independent of leadership, competition, and environmental changes. However, the specifics of what is done in an organization’s IEE value chain should be enhanced continuously to make the enterprise, as a whole, better over time. The identification and execution of enterprise-as-a-whole enhancement activities are the next steps of the IEE 9-step system.
- Step 3: In ‘Analyze enterprise,’ the current state of high-level value-chain metrics are evaluated collectively with other information such as Voice of the Customer (VOC), Theory of Constraints (TOC) information, and competitive analyses. This analysis should use statistical techniques, when appropriate, to determine the strengths and shortcomings of an organization for providing direction in the execution of Step 4 through Step 7.
- Step 4: This step of the 9-step system states ‘ Establish SMART satellite-level metric goals.’ In IEE, satellite-level measures are financial. As the response to underlying processes, this step’s objective is to have a numerical quantity consistent with fulfilling step 1’s organizational vision and mission statements and satisfying customer needs. For a for-profit organization, an appropriate financial satellite-level goal might be a mean monthly EBITDA objective.
- Step 5: The results from Steps 1 – 4 provide input to targeted strategy creation.
- Step 6: Identify high potential improvement areas and establish 30,000-foot-level performance metric goals. An enterprise improvement plan (EIP) graphic presents the results of this work.
- Step 7: Identify and execute process improvement projects that improve operational 30,000-foot-level metrics and benefit the enterprise as a whole.
- Step 8: Assess how the completion of projects impacts the achievement of step 4’s enterprise goal. An EIP is to show the alignment of undertaken projects to the needs of the enterprise and step 4’s fulfillment. The staging of a project’s 30,000-foot-level to an enhanced level of performance shows the amount of statistical benefit achieved to a metric through a project’s execution.
- Step 9: Error-proofing a process is the best process control; however, that is impossible for all situations. A high-level metric-tracking control methodology is available by the periodic monitoring of organizational 30,000-foot-level process-output responses to ensure nothing has degraded. EPRS software provides a means for automatic updates for a project’s 30,000-foot-level metric in the organization’s IEE value chain, which can be monitored periodically for degradation so that there will be timely corrective action when appropriate.
An EIP visually describes the results from steps 4 – 7 of the IEE system and agreed-to 30,000-foot-level metric process improvement efforts that align with the achievement of step 4’s organizational performance-metric goals. A significant component of this effort should be enhancing the fulfillment of customer deliverables relative to the customer’s wants, needs, and desires in the most efficient and effective means possible.
With the focus on improving organizational IEE value chain metrics, which has owners and is a part of an organization’s EIP, regularly scheduled leadership meetings discuss the status of process-improvement projects. In these meetings, presentations provide the current state of the identified strategic 30,000-foot-level responses targeted for improvement with the level of their associated process-improvement projects. Such a presentation and discussion lead to a sense of urgency for the timely completion of identified projects and enhancements to associated performance metric responses.
To illustrate the benefit of the IEE approach for focusing on organizational improvement activities over traditional executive retreat strategies, as described earlier, consider this situation. A for-profit company used the 9-step IEE system to determine the most critical opportunity for improving its financials, as described in its EIP. The company found that it should focus on enhancing its processes, so that customer non-conformance rates decline. Such a targeted enterprise-as-a-whole focus to improve an organization’s financials and customer satisfaction would typically never have such a highlighting using a traditional executive-retreat-strategic-creation-statements approach.
A comparison of the IEE system to other methodologies for digital transformation attributes is described in the table:
Additional Information about the IEE Digital Transformation Strategy
The IEE digital transformation strategy system addresses the business needs described in the one-minute video:
A recorded webinar provides an overview of the details of an IEE digital transformation implementation with EPRS software.
Two books describe the details for Implementing the 9-steps of the IEE digital transformation system:
Software: IEE Enterprise Performance Reporting System (EPRS) Digital Transformation
Enterprise Performance Reporting System (EPRS) software provides a vehicle for implementing the IEE digital transformation system.
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