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Value-stifling Bureaucracy

Thursday 24 August, 2006

With every project, there are two broad focuses: value creation and project administration. Many businesses often sacrifice significant value creation in preference of placating the internal process auditor!

Value creation for exchange is the reason why businesses exist in the first place. When people focus ceaselessly on the administrative aspects of projects in order to satisfy rigid procedures, they can quickly lose sight of this higher purpose.

Although some level of administration, control and process discipline is necessary, a blinkered focus on administration can be costly because ultimately, customers don’t care whether a certain internal procedure was followed to the letter or not.

So, what should you do if your projects are grinding to a halt and your meetings are replete with: “Has this (minor change) been signed off?”, “What template shall we use to create those reports?”, “Where is that form?”, “The original plan said this is out of scope”, and “This is not your role”?

  1. Remind everyone why they’re here. Re-state the grand vision of the project and its aims, and reinforce how their contribution is essential to create value for customers. Strike the right emotional chords, inspire them to turn vision into reality, and most people will pull out all stops to get the job done.

  2. Change/dump the process. Sometimes it is okay to bend the rules. You can’t expect innovation to emerge from the strict conformance to a plan that was set in stone when your project was a bare fleeting thought! Processes should accommodate on-the-fly value-add!

  3. Work backwards. Be very clear on the project’s vision and what will constitute extraordinary outcomes at its conclusion. Then design (or tweak) your processes accordingly to best allow your team to achieve this. Focus on the outcomes, use processes to manage the project, but don’t let it get in the way.

Remember, processes, policies and plans were created as guides to help manage and track projects. They are often created to the best of people’s abilities at one point in time (before the current project). Change happens. People and situations evolve. Better ideas arise. Allow yourselves to leverage last-minute insights and serendipity.

Process flexibility is imperative for any business truly serious about value creation and innovation. Never let what happens behind the scenes diminish your customer experience.

Author Credits

Paul J. Morris, Vermillion Group. Paul J. Morris is the driving force behind Vermillion. Vermillion helps companies innovate. Vermillion brings playfulness, curiosity, fearlessness, authenticity, cheekiness and simplicity to the areas of management strategy, marketing and operations. For more information visit the website: www.vermillion.com.au
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