Most organizations are engaged in change efforts - often focused solely on eliminating waste in specific departments or "silos." That's the "lean paradigm," and while it's a good place to start, enterprise transformation goes much further. It begins with the big picture: What are the strategic objectives? How is the enterprise performing against those objectives? How should it be? Who are the stakeholders and what do they value? Then it moves forward toward an audacious vision of the enterprise's future. Based on years of research and implementation, Beyond the Lean Revolution provides a roadmap for achieving sustainable, bottom-line results, delivering value to stakeholders, and reaching that future vision. Filled with illuminating examples, the book moves well beyond traditional lean thinking, showing readers how to: * Ensure senior leadership commitment* Assess the enterprise's current state* Analyze stakeholder values* Develop a future vision* Create a plan for transformation From inception to implementation and beyond, this book provides a holistic framework for bridging the gap from mere change... to genuine transformation.

List of Figures and Tables	p. xi
Acknowledgments	p. xv
Why Enterprise Transformation?	p. 1
Paradigms of Change	p. 4
Going Beyond Lean	p. 6
What Is an Enterprise?	p. 8
The Value Proposition	p. 8
Seeing Things Holistically	p. 10
The Seven Principles of Enterprise Transformation	p. 12
Principle: Adopt a Holistic Approach to Enterprise Transformation	p. 13
Principle: Secure Leadership Commitment to Drive and Institutionalize Enterprise Behaviors	p. 18
Principle: Identify Relevant Stakeholders and Determine their Value Propositions	p. 19
Principle: Focus on Enterprise Effectiveness Before Efficiency	p. 21
Principle: Address Internal and External Enterprise Interdependencies	p. 23
Principle: Ensure Stability and Flow Within and Across the Enterprise	p. 24
Principle: Emphasize Organizational Learning	p. 25
Chapter 2 Takeaways	p. 28
A Roadmap to Successful Enterprise Transformation	p. 29
Why Enterprise Transformation Fails	p. 29
Avoid Failure with the Roadmap	p. 32
Enterprise Transformation and Strategic Planning	p. 35
Strategic Cycle: Determine The Strategic Objectives and Engage the Leadership	p. 38
Planning Cycle: Understand, Envision, Design, Align	p. 40
Execution Cycle: Nurture, Embed, Implement, Coordinate	p. 43
Chapter 3 Takeaways	p. 46
Transformation Leadership	p. 47
Strategic Perspectives	p. 48
Urgency	p. 50
Enterprise Thinking	p. 52
Executive Buy0In	p. 53
Executive Transformation Council	p. 54
How It All Comes Together	p. 55
Chapter 4 Takeaways	p. 59
The Stakeholder Lens	p. 60
Stakeholder Identification	p. 62
Stakeholder Prioritization	p. 66
Stakeholder Value Elicitation	p. 72
Stakeholder Value Exchange Analysis	p. 73
Chapter 5 Takeaways	p. 78
The Process Architecture Lens	p. 79
Identify Enterprise Processes	p. 80
Collect Enterprise Process Data	p. 84
Develop the Enterprise Process Map	p. 88
Analyze the Enterprise Process Map	p. 90
Analyze the Enterprise Process Interactions	p. 91
Chapter 6 Takeaways	p. 96
The Performance Measurement Lens	p. 97
The Actual Metrics Matter	p. 99
Select and Structure a System of Metrics	p. 102
Develop and Sustain an Enterprise Performance Measurement System	p. 107
Performance Measurement Systems and Transformation	p. 110
Chapter 7 Takeaways	p. 112
The Integrative Lenses	p. 113
The Alignment Lens	p. 113
The Resource Lens	p. 118
The Maturity Lens	p. 121
The Waste Lens	p. 127
Bringing the Lenses Together	p. 130
Chapter 8 Takeaways	p. 133
Preparing to Transform	p. 134
Begin with the Current State	p. 135
Set Long-Term Goals	p. 137
Articulate What the Future Enterprise Looks Like	p. 139
Align the Enterprise Infrastructure	p. 141
Is the Enterprise Organized to Support Transformation?	p. 142
Does the Enterprise Have the Information Systems It Needs?	p. 144
Will the Enterprise's Policies Promote Transformation?	p. 145
Are the Enterprise Metrics Appropriate for Transformation?	p. 145
Who Are Your Change Agents?	p. 146
Chapter 9 Takeaways	p. 147
Transformation Planning	p. 148
Identify Focus Areas	p. 150
Select and Sequence Enterprise Projects	p. 159
Develop Actionable Projects	p. 161
Develop the Transformation Plan	p. 164
Chapter 10 Takeaways	p. 167
Executing the Transformation Plan	p. 168
Communicate the Transformation Plan	p. 169
Provide Education and Training	p. 171
Implement Projects and Track Their Progress	p. 172
Monitor Overall Transformation Progress	p. 173
Nurture the Transformation and Embed Enterprise Thinking	p. 174
Capture and Diffuse the Lessons Learned	p. 177
Adjust and Align the Planning and Execution Cycles	p. 178
Reentering the Strategic Cycle	p. 180
Chapter 11 Takeaways	p. 182
Enterprise Transformation from Inception to Implementation	p. 183
Background on the Enterprise	p. 184
Strategic Issues	p. 186
Strategic Objectives	p. 189
StayCool's Stakeholder Lens	p. 191
StayCool's Process Architecture Lens	p. 196
StayCool's Performance Measurement Lens	p. 200
StayCool's Alignment Lens	p. 201
StayCool's Resource Lens	p. 203
StayCool's Maturity Lens	p. 204
StayCool's Waste Lens	p. 208
StayCool's Future-State Vision	p. 209
StayCool's Focus Areas	p. 210
Revisiting Transformation Through the Seven Principles	p. 213
Lean Enterprise Self-Assessment Tool: Case Studies	p. 221
A Brief Comparison of Other Approaches to Process Analysis	p. 252
Endnotes	p. 249
Key Terms	p. 259
Index	p. 261
Table of Contents provided by Ingram. All Rights Reserved.

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<html><head></head><body>Why Enterprise Transformation? The whole is greater than the sum of its parts. ----Aristotle1 PERHAPS YOU and your company are standing at the edge of the proverbial cliff. Challenges beset you from within and without. The competitive environment is changing. Your R&D organization has an idea that has great promise, but you just can’t find a way to capture the opportunity. Employees are finding it difficult to be heard when they have ideas for making the business run more efficiently. A supplier has advised you about a problem with providing your manufacturing organization what you need, and you can’t figure out where in the business that problem originates. How do you fix something you can’t find? Or perhaps you and your company are not standing at the edge of the cliff. Maybe everything is humming along, but the general sense is that the organization is not coming close to meeting its potential. Even though you’ve been trying to improve your business processes, things aren’t making it to the next level. All those Six Sigma black belts are helping run projects, but the incremental changes don’t seem to amount to very much. You’re not achieving the kind of total benefit you thought you would. We encounter businesses and organizations all the time that are facing one or all of these challenges. Many of them have been working hard to change. Again and again, though, they tell us they are failing to sustain change. They feel as if they are taking two steps forward and one step back. Their improvement projects suffer from false starts. Or they get only so far, and then whatever they were changing plateaus and cannot reach a higher level of efficiency or effectiveness. The bottom- line effects are just not happening. Why do improvement efforts so often fail to provide all the benefits expected? Typically, it’s because businesses are trying to do things in a piecemeal fashion—in silos. They spend a lot of time on things that do not affect the bottom line or that are not linked to the company’s most important strategic objectives. They may not even know that their efforts are disconnected. To be sure, you can make some improvements through these sorts of efforts, and your company might even realize some big benefits. However, the best opportunities to transform an organization are usually found somewhere other than in the silos. Often, they are found in the interfaces. They become clear only when you look at the entire enterprise—a complex, integrated, and interdependent system of people, processes, and technology that creates value as determined by its key stakeholders. A stakeholder is any group or individual that can affect or that is affected by the achievement of the enterprise’s objectives. Value is the particular worth, utility, benefit, or reward that stakeholders expect in exchange for their respective contributions to the enterprise. Enterprise transformation is the taking of an enterprise from its current state to an envisioned future state, a process that requires a significant change in mindset, the adoption of a holistic view, and execution to achieve the intended transformational goals and objectives. Transformation requires that you know the enterprise. You have to take a step back and look at the big picture. You need to gain a deep understanding of where things stand. What are your strategic objectives? How are you currently performing against those objectives? How should you be performing? How will you close the gap? What is the current state of the different key components and levers that comprise your enterprise? We have seen many organizations undertake improvement projects with a lot of fanfare but with little or no sense of the big picture. We have seen them adopt lean—a term describing the philosophy centered on minimizing resources and eliminating waste to create value. We’ve seen improvement projects on the shop floor aimed at reducing overall company costs by, say, a stated goal of 20 percent. Only after later analysis did the businesses discover that less than 5 percent of company costs could be attributed to direct labor. Talk about failing to see the forest for the trees! Why does this happen? It has to do with how the business world has embraced concepts from lean manufacturing. All too often, we hear senior business leaders talking as though all they have to do is figure out a way to adopt the Toyota Production System (TPS, to which lean traces its origins), and Toyota-like results will fall into place. This perspective is very narrow and tends to miss the strategic element. Many organizations embrace TPS but apply its concepts only to certain operations in the organization, such as manufacturing, but not to others, such as the leadership and enabling operations: Together, these constitute the whole organization. Still others apply lean principles and TPS to their manufacturing operations quite well, but they never look beyond their internal organizations to embrace a broader perspective that might include, for example, suppliers or other stakeholders. People in business also tend to think that TPS is a bottom-up miracle worker, missing the fact that it is driven strategically from the highest level of the Toyota enterprise. It is only a means to enact the enterprise’s strategy, not the strategy itself. When we visit companies, we often see telltale signs that the focus of change efforts is askew. One day, when we were invited to visit Mega-Corp (a pseudonym for a company that makes aerostructure parts and components and that employs some ten thousand people), a group of managers presented the firm’s improvement plan. It sounded plausible enough, but there wasn’t a senior leader of the company in the room. That was the first clue that something was amiss. Then we were given a tour that began in the manufacturing area (a typical starting place, we’ve found). On bulletin boards, we found performance measures posted, but they were either not very current or partially obscured by other postings. In the office areas and elsewhere, we saw the same thing. It was obvious that these metrics—the objective, quantified data or information that an enterprise collects to support decision making—were not at the heart of people’s daily work lives. No one was paying much attention to them. The types of metrics were telling too. Mega-Corp was measuring machine and operator utilization on its manufacturing line, as well as the quality of parts coming in from its suppliers. But where were the metrics about Mega-Corp’s performance with respect to its suppliers? When we visited the engineering department, we found nothing about how well the company was supplying specifications to its suppliers. On top of all that, no one in manufacturing or engineering could explain how what he or she did on the job worked toward achieving any vision or strategic objective. Yet Mega-Corp had a full-blown set of improvement projects underway. Build-Create Corp. (a pseudonym for a five-thousand-employee firm in southern California that makes space system components) told a different story. A worker on the manufacturing line described how his work was part of the larger process and how people in his organization had redesigned some of the process flow. He cited some specific reductions in costs and cycle times that had been achieved and explained where the company stood with respect to work-in-process. The worker put everything he told us in a context that sounded like a strategic objective that the enterprise expected to achieve four or five years down the road. A production manager introduced us to someone on his team who turned out to be a supplier. An engineer in Build-Create’s R&D group explained how they had reduced their cycle time for new product development. The differences between Mega-Corp and Build-Create were palpable. At Build-Create, everyone was enthusiastic about transforming the enterprise. The employees used a similar vocabulary to talk about change and improvement, suggesting to us that they were all on the same page. They could share insights into processes, metrics, stakeholders, resources, and other aspects of their enterprise, implying that they had been part of figuring out analytically where things stand. With ease, they put what they were doing into a larger context and explained how it fit with a vision of the future. At Mega-Corp, the senior leaders could go on and on about how they are transforming their enterprise. But we saw no evidence beyond some disconnected change initiatives related to lean. </body></html>