Data analysis, and data-driven working in particular, enables organizations to make the most of their improvement potential. But in order to live up to their fullest potential, some proverbial sacred cows will have to be sacrificed on the altar of progress. So says Daan van Beek, founder of Passionned Group and author of management books such as The Intelligent Organization. The idea of BI as a separate department, for example, is a thing of the past. "But that's okay, because change releases new energy," according to Van Beek.
The increasingly dynamic world and growing mountain of data impacts the way in which intelligent organizations develop their products, services, and IT. They have to be agile by working and thinking in short cycles: agile working through scrum. Traditional project management and product development according to the waterfall method has had its day. In many cases, it's too sluggish and unresponsive. The difference is not unlike repairing clothes with needle and thread instead of a sewing machine.
The world around us is changing faster than ever. But most organizations aren’t agile enough to keep up. In China they can make a new car faster than you can make a PowerPoint presentation. The agile organization requires agile employees, autonomous, self-steering teams, a decision-making layer in the organization, and excellent information provision. Here are some reasons why agile working is a necessity:
The difference between genuine key performance indicators (KPIs) and no KPIs (or false KPIs) is night and day. Genuine KPIs directly impact the three most important result areas of the organization: profit, employee satisfaction, and customer satisfaction. Normal (performance) indicators like revenue or profit margins don't directly impact all three of these, or only do so with a greatly delayed effect.
Earlier, we covered several methods of defining the right key performance indicators. Many organizations still use "false" KPIs: they may be indicators, but they're not necessarily key! There are several negative side effects of measuring performance using false indicators instead of genuine KPIs (de Bruin, 2001). This can lead to perverse incentives and negatively impact the business. Below, you'll find seven common pitfalls of working with false KPIs.
Earlier, we covered the strategy-driven approach to determining KPI requirements. Today we'll cover the process-driven approach. Closely examining your business processes in the framework of the process-driven approach will give you insight into how your organization adds value, and how you can measure the performance of its activities. The business processes are a crucial starting point for defining the information needs and improving the performance of the organization (Kerklaan, 2009; Van Leeuwen, 1997; Tideman, 1993). This approach gives “certainty” that the required information is also relevant for the user. “Every company on earth consists of processes. Processes are what companies do” (Hammer, 1995).
There are various approaches you can use when identifying, defining, loading, benchmarking, visualizing, and operationalizing Key Performance Indicators (KPIs). This article will discuss the strategy-driven approach, a top-down method where the mission, strategy, and goals of the organization are the starting point. To start off, we’ll answer the question of how to derive a strategy from the organization’s mission, and how to derive indicators from goals.
Change is a fact of life. New software, processes, and system updates cause minor upheavals on a daily basis. And that's to say nothing of the digital transformation. Without learning about the psychology behind change processes, without clear communication, and without investing in human, "warm", contacts, such projects are doomed to fail. Those are the steadfast beliefs of Ericka Petrignani, associate partner with Passionned Group. With her refined stakeholder approach, she's helped many organizations out of a tight spot. What's the "secret sauce" she uses in change projects?
Strategy maps are an excellent way to visualize and communicate the company strategy and its management. In the public sector we usually talk about policy instead of strategy. Passionned Group believes that a strategy map isn't only useful in the context of performance management, but also as an instrument for scenario planning, organizational development, and making investment decisions. A strategy map can consist of several different parts. Firstly there is the organization's mission, which communicates (as concretely as possible) what the organization wants to be, where and for whom. It's essentially a short text describing the essence of the organization. Secondly, there are the blocks, which display the most critical processes of the organization. Thirdly, there are the arrows. These arrows display the dependencies between the blocks. This is displayed in the image below.
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It's said that wisdom comes with age. Does this also apply to organizations? Do they become wiser and smarter as they get older? There are examples of old-fashioned companies. They constantly reinvent the wheel, such as IBM. But think of beverage producers like the Brand (since 1340), Bols and Grolsch. They have existed, and managed to survive, for a very long period of time. These types of organizations are an exception.
Change is hard. This goes double for organizations which do all kinds of different things, like the government. Given society's pressure on them to perform better, many governments are betting big on digital services. What can be done through the internet, what has to be done in person? According to the plans, at least 65% of government services should be provided through the internet. Citizens and entrepreneurs can do business with the government using the internet in many cases. At first glance, that's not a bad result.
'The Agile Organization - Agility-Based Strategy in Practice' has been recently published, which is the latest book written by Mr. Leo Kerklaan. Besides being an associate partner at Passionned, Leo is an administrator, lawyer and author of several successful management books, including 'The Organization's Cockpit'. In honor of publishing his latest book, he talks more about the insights that the book brings up, and he also shares his opinion on the intelligent organization.
"Lean brings out the best in everyone" Passionned Group keeps growing and is consistently working on improving services. People are essential in making an organization work smarter. Because once the processes are arranged smarter and the 'Lean'-thinking is embraced, the new method of work should also be anchored into the organization's DNA. So, companies must learn to think both vertically and horizontally, and again put their teams in the driver's seat with the help of information that really matters.
Rituals Cosmetics, Noord-Holland Noord Safety Region, and Tempo-Team recruitment agency have been nominated for the award for the 'Smartest Organization of the Netherlands’. The Dutch Business Intelligence Award jury will announce that today. These three organizations excel in effective, intelligent, and agile business processes through the smart use of (big) data. On December 3, 2015, the winner will be announced during "Intelligence at the Speed of Business" annual conference.
On December 3, the 9th selection of the 'Smartest Organization of the Netherlands' along with the corresponding awarding of the Dutch Business Intelligence Award 2015 was conducted. Noord-Holland-Noord (North Holland) Safety Region was named as the winner. They took home both the public award and the jury award. The jury reports and justifies their choices. An intelligent, agile organization The field of Business Intelligence (BI) has developed significantly in recent years. It is increasingly used both as a tool to incrementally implement improvements and to innovate. Ten years ago the emphasis was on the use of smart technology to unlock data, especially in terms understanding the organization better. Today, the emphasis is on the advanced combination of smart management and the structural use of business analytics in supply chain processes. The major drivers of this new emphasis are the ever increasing turbulence and uncertainty that affect organizational operations today. This makes it increasingly complicated for future developments to be noted. The time remaining for the organization to react is short, often too short. Adequately implemented Business Intelligence helps the organization to be properly informed as soon as possible; the smart organizing and re-designing of processes are mandatory prerequisites to respond quickly. Timely informing and short reaction times are the two key conditions for a smart, agile organization.
North Holland Safety Region is the top winner of the Dutch Business Intelligence Award 2015 and was nominated as the Smartest Organization of the Netherlands. The organization is a great example through the use of smart data combinations and interactive dashboards in reducing acute heart attack care processing time by up to 20 minutes. Data-driven improvements with major human and social impact, which are appreciated both by the Jury and the public.
Company processes are the arteries of an organization. When an organization grows and puts on weight, these arteries become narrower and eventually get blocked altogether. Getting people to work together becomes more difficult, the organization structure and the company hierarchy play a more important role and management becomes more difficult. We pay less attention to the needs of the customer. The “organization jungle” with its countless departments, business units, task forces and all their meetings becomes so dense that we can no longer see the wood for the trees. This is true for not only our staff but also for our customers.
You can't live without it. What information do you use? There are profound differences between Dutch companies and institutions. Various rounds of Dutch BI Award proved this to be true. Some organizations adhere primarily to Performance Management; that is, how well do certain departments or employees groups perform? We can see this approach even in healthcare, where they look at outcomes of a particular treatment methods. However, such an approach has been generally a retrospective one. Fortunately, there are organizations that are trying to look forward.
Entrepreneurs analyze data in order to innovate, to adjust their strategy, or to think up an advertising campaign. But business intelligence does not make sense if it only draws some data from a database, explains expert Daan van Beek. Simply put, business intelligence is data collection within your own sector in order to do smart things with it. Explaining the term is not needed when mentioning Big Data, a term that is used to indicate big amounts of data.
Customer focus is a well-worn term and it seems so obvious. Especially in light of the fact that customers generally have numerous options to choose from. Customers can endlessly collect information on the internet and, so they mostly know exactly what they want and how they want it. Yet it still seems difficult for businesses to be customer-oriented. Not that they don't think it's important: every year, in the Netherlands alone, tens of millions of Euros are spent on change management, staff training, CRM systems, and processes.
This article looks at dumb organizations, what characterizes them, and how their business intelligence can be improved. A breakthrough is needed, but first let's have a look at a brief profile of the smartest organizations in the Netherlands. How do the smartest organizations behave? Organizations in our study (266 organizations) that managed to achieve excellent results thanks to business intelligence – the brainiacs – know that they must use information consistently for analysis and action.
So far on this website, we have reviewed various general principles for creating more agile organizations. Aspects that stand out are coherence and integration. Research confirms (Collins 2004) that companies, which continue to perform very well for several years ensure that everything improves coherently. Organization and technique, culture and strategy, perseverance and belief, employees and managers, processes, structures and systems all have to reinforce and serve one another. In this way we can cooperate better.
"It's almost science fiction what we do with BI." Elie van Strien is commander of the Amsterdam-Amstelland Fire Department. Two years ago, his fire department was chosen as the Smartest Organization in the Netherlands, thanks to a revolutionary BI innovation: Fire Department Intelligence. This year, Van Strien is a member of the jury for the selection of the Smartest Organization in the Netherlands 2015, organized by Passionned Group. Commander Van Strien feels like a little boy in the BI toy store.
Dividing the organization up into effectors can increase the speed at which the organization responds and adapts. Effectors are flexible, autonomous and market-oriented teams that act as a unit. In their purest form such effectors can be seen as small organizations within the large organization, often responsible for one or more processes. However, they frequently use the organization’s common infrastructure and its standards and values. These people are very motivated and collaborative.
Traditional organizations make decisions occasionally, intelligent organizations make decisions constantly and at all levels, even beyond the boundaries of the organization. It is therefore quite conceivable that professional Business Intelligence – using innovative IT – could halve the response time of organizations, thereby enhancing the adaptability by a factor of two. The adaptability of an organization is, among others things, a direct result of how quickly the organization responds to changing market conditions (Liautaud and Hammond, 2001), for example aggressive competitors entering the market or the industry regulator tightening or loosening certain rules. We examine the boundaries of the Intelligent Organization from three different perspectives that harmonize with the three stages of the Intelligent Organization:
What we see in practice is that successful organizations do not normally develop the sensors, processors and effectors simultaneously but often progress in a logical sequence. In most cases, attention is given first to developing and improving sensitivity, for example by defining relevant KPIs. The actual development and usage of processors and effectors follows later. These organizations realize that wanting everything at once, is the same as wanting and ending up with nothing. The three stages and the four ambition levels of Business Intelligence are closely related. This is depicted in the following figure.
Over recent years, the professional jury of the “Smartest Organization” election (Dutch BI Award) has seen a large number of very smart organizations pass their review. The jury and audience have both been amazed by the ingenuity that organizations have used to break through the traditional Business Intelligence boundaries. Bit by bit, innovations in information provision are having a very positive impact on business goals. And in this digital age, developments in the BI area are taking place at a breakneck speed. We hear and read about new solutions that stimulate the imagination on an almost daily basis.
In our present society and economy, change has become a constant factor. Everything changes and few things are predictable. The only certainty we have is the knowledge that uncertainty is an increasingly important phenomenon. Company executives need to realize that in these uncertain times and environments, managing an organization necessitates different ways of thinking, doing business, organizing, informing and reporting.
Some essential social and economic developments accentuate the necessity to stimulate intelligent behavior within organizations and more specifically, within enterprises (Schnabel, 2000): individualization; informalization (hierarchies and boundaries are fading); information technology and computerization; internationalization, globalization and liberalization; intensification of the increasing influence and market dynamics.
The book 'The Intelligent Organization' aims to get you started with both the concept and the implementation of Business Intelligence to ultimately grow towards an intelligent, adaptive organization. The key themes are dealt with in ten chapters: Business Intelligence: importance and objectives (chapter 1) looks at the benefits of Business Intelligence for organizations and at the opportunities BI offers. We emphasize both the value and the importance of Business Intelligence from four different perspectives: market, organization, people and technology.
The question that we are being increasingly asked lately is, ‘Could the credit crisis and its consequences have been avoided with an intelligent organization?’ In this article, we explore where and how the credit crisis began, its effects and the characteristics of an intelligent organization that should have been able to play a role in that. Finally, we give a number of options on how you can reduce the current consequences with concepts from the intelligent organization and can even exploit opportunities. Even if you have no business intelligence (BI) system.
The title may cause you to raise your eyebrows. organizations that are intelligent? Do they exist? Moreover, what is the point of an organization being very smart? The answer is simple: intelligent organizations perform better across the board. They make more profit, have more satisfied customers, manage their workload better and innovate more successfully. This is apparent from a large-scale Passionned Group study of nearly three hundred and sixty-six companies with more than two hundred and fifty employees.
Twelve months ago, Walraven, an international wholesaler dealing in construction and installation materials, was named as the smartest organization in the Netherlands. In an interview with Tino Hartsink, IT manager of Walraven, we look back at the successful 2010 Business Intelligence Award contest. The existence of the Business Intelligence Award was pointed out to Walraven by their own customers and suppliers. “It was not obvious to us that we should enter for the BI Award”, IT manager Tino Hartsink told us. “Customers drew our attention to the prize and at the same time indicated that they felt Walraven would have a good chance of winning the Award because Walraven has such well organized business processes”.
Both the audience and the jury prize for the smartest organization in the Netherlands The Amsterdam-Amstelland Fire Brigade emerged as the big winner at the presentation of the Dutch BI Awards in 2013. They were able to take home not only the audience prize, but also the jury prize. The ability to predict potential fire locations and subsequently conduct targeted awareness campaigns specifically at those locations and therefore prevent fires, made a huge impression on both the jury and the audience.