Demystify Velocity to Value

Value, the potential one, begins to decrease from day 1, in the tough and uncertain digital ambition – transformation, with the buzzword – velocity; velocity to bring change, velocity to reduce risk, velocity to optimize costs. The transformation ambitions, lose velocity, for ignoring the critical priority- core capability building, in the target and goals commitment setting phase.

Per McKinsey Transformational Change Survey 2021:

Financial business benefit drops 22% in target setting phase, 23% in planning phase, a whopping 35% in implementation and 20% in after implementation phase.

That’s an exhausted organization. True laggards, wondering consistency to tame ambitions. Crucially, searching their distinct Velocity-to-Value strategy.

Velocity to value strategy falls into one of the four categories; Value-chain based, technology focused, customer experience driven, or capability driven. What enables transformation sequence, or confronts long term competitive advantage, is organization’s core existential purpose – TSR (Total shareholder returns), revenue or customer experience.

The suffering organizations must resist temptations to search for the digital building blocks, with short term moves to defend and expand core business. This only recreates the very silos it’s trying to break apart. Such moves, also divert investments into default behaviors- perfectionism and caution, instead of adapting to customer experience, industrial or technological or even cultural shifts. Case in example – the exhausted but perfectionist organizations, constantly remain uncomfortable to reconcile, minimum or viable product or the compromises in between the definition of done.

The frustrated reconciliation needs discovery and adaptation into velocity to value perspective, the structured predictability in the cultural change game plan. The perspective, that allows range of possibilities instead of prescribed compliance, the game plan, that becomes living and breathing capability laced with creativity and flexibility. The capability, that encourages collaboration, rewards value and abandons focus on productivity.

Compelling though the opportunities are, in pursuit of building sustainable and explicit link to Velocity to Value business case, organizations must reconstruct commercial benefits with resilient business conditions that drift to:

1.?? Put foundations in place for organizational right-to-win “category” correlation to their velocity to value strategy.

2.?? Breakdown internal clusters to unpack “Customers” and not the competition.

3.?? Staple structure to predictability in organizational “Cultural” change game plan

To get ahead of threats, embedding exit barriers, uncovering commonalities and untap efficiencies for velocity and value, is not a luxury - it’s a necessity.