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New Business or Service Delivery Model
Sometimes continuous improvement isn’t enough to respond to the challenges of competition, a downturn in the economy, or globalization, so organizations must change their business model or service delivery model. While a new business model or service delivery model often results in reorganization like moving from decentralization to centralization, and which can also include the use of new technology or equipment.
Any change effort involves people adopting a new mindset about expectations, their role, and their behavior. In other words, a transformation in the way they view their job, their relationships and standards of performance. This is what results in resistance, confusion and breakdown. In many cases, the problem begins with senior managers who are afraid of losing control, and then moves quickly to middle management who cannot represent the change effort to their direct reports.
It is critical for the Senior Management Team to be actively aligned on the Picture of Success for the new business or service model (as opposed to giving lip service). They also need to operate in an environment that supports the new model. They must be speak with “one voice” to the rest of the organization and be consistent in their actions and behaviors.
Ultimately, the key in making such a dramatic change rests with middle management, as a “unified team,” that works cross-functionally with “shared ownership” to create the new operating paradigm and the culture to support it. Middle management’s ability to understand and resolve the challenges of operationally moving from one paradigm to another is critical for a rapid and comprehensive change.
- The transformation to a new business model or service delivery model is implemented ahead of schedule
- Reduced resistance to change, greater cooperation and shared ownership from all levels of leadership to implement the change
- Improved problem solving, decision making and faster recovery from mishaps while implementing the change
- The culture changes to support the new business model are demonstrated while the change is being implemented rather than after implementation is completed
- Overall morale and commitment increase during and after implementation of the new business model