Best in Class is AMA
When I composed this Edition I took 45 minutes to plan it and about 15 to write it up. LinkedIn will tell you that it will take you between 3 to 4 minutes to read it. I just found that an interesting ratio, one hour of my time to 4 minutes max of yours.
I also decided to write it first in long form and then produce the 25 minute Podcast whilst the thoughts were racing through my head. You will find the Podcast Episode on your Podcast platforms by about 1pm today.
As you know from listening to the Podcast I started out by giving you a 9 Step Success Framework for your Finance Transformation program in order to increase its chances of Success. Remember that 97% of Projects are delivered late or over Budget so the opening Phase is critical if you are serious about Success.
In Episode 3 I discussed the Project Baseline which you must create and described the intrinsic 'dance' between Organisation Design and Process Analysis. The 9 Steps will tell you how to create your Current Operating Model and then options for your Target Operating Model.
A key component of this is understanding exactly where you are at from the very start. This invariably leads to the use of phrases such as 'we want best in class', 'we are moving to best in class the current failings don't matter...' and of course 'we have benchmarked ourselves'.
The most emotive part of the start of a Finance Transformation program is the 'comparison'. how do you measure up to yourself, your team, your function, your competitors, your sector leaders, the best in the world. This causes no end of debate and in many instances causes the debate to be lost.
Don't believe me? Go stand on the scales and then look up weight for your average height. Starting to appreciate where Benchmarks cause issues and getting slightly emotive now aren't you.?
Whatever phrase you use, Best in Class, Best Practice or Good Practice you will always have somebody say 'ahh but we are different, unique or just special.' As a former signed up member of the Big 4 Alumni I know all about Benchmarks, where they come from, their composition, their use, their cost and subsequently their value.
I long ago reached the conclusion that Internal Benchmarks beat External Benchmarks every day and twice on Sunday. I read a few Books during the Summer, well truth be told I listened on Audible, well you know me by now I can't sit still so I walk and listen.
I read one by a well known American sales guru about making your Goals the highest standard they can be. Which I get if it applies to me personally but try applying that to a Client team and the relationship will quickly break. Objectives driven by comparison from where we are now to where we want to be, have to have stretch but they can't be unobtainable by definition and this is where 'Best in Class' causes more debates then Utd's first choice 11.
They also require buy in or you just set yourself up for a fall. As a result I developed my own 3 Step approach to helping you achieve YOUR Best in Class, which I neatly dubbed AMA. It is very easy to remember when you are next faced with a Consulting team hell bent on making you Best in Class. Come with me through the round window...
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Agree The basis of comparison. Be that internal or external, by function, by sector or by geography. It doesn't matter all that matters is you agree it at the start. I have access to world class benchmarks but I always start with an internal comparison it drives the emotion in a different way, it drives competitiveness internally in a tangible manner. You have to remember that all change is psychological and that is the lever you are looking for.
Measure The hardest step of all go look in the mirror, stand on the scales, start the stopwatch run a mile or calculate the cost of processing an invoice. Do it in numbers, do not do it by asking an opinion. We need a concrete base to start from not an opinion. Quote Client Eastwood at this point as you see fit.
Action When you see the results of Measurement its usually a shock. Now don't be too hard on yourself as people seldom take stock unless forced to do so. Nobody woke up one bright and sunny morning and said lets Transform our Business, trust me it always has an external prompt. Trouser belt notches have the same effect, oops better cut back on something.
Draw up an Action Plan, and start improving what you can straight away. Improvement has a momentum so draw on it and push yourself to improve.
You don't have to be the Best in Class, as there can only be one of those, you just need to be better than YOU were yesterday.
As an example whilst typing this I got interrupted by the Man Utd Instagram page, we need to be difficult to beat they say. A total betrayal of a great Football legacy if you ask me. Whatever happened to 'Attack, attack, attack'.
Best Regards,