The value multiplier
January 6, 2022
January 6, 2022
We recognize that when it comes to operations, it’s important to tailor a journey to suit an individual organization’s own path. But it helps to know what to do to accelerate progress—especially when profitability and efficiency are at stake.
Our earlier research identified four levels of operations maturity—stable, efficient, predictive and future-ready—based on our respondents’ assessments of eight characteristics. The research "Fast-track to future-ready performance” showed that a small group of leaders, just 7% of the sample, were future-ready by operating more efficiently and more profitably. But 66% of respondents risked failing to achieve similar outcomes in the next three years.
For simplicity, we’ve grouped the eight characteristics into four levers: Technology, Process, Data and Talent—to better understand how organizations can apply them to improve their position and shift the dial to achieve future-ready performance.
The peak multiplier impact of applying each of the four levers to achieve future-ready operations maturity
We found there are considerable gains to be realized at every stage of any operations journey. For example, there’s a 1.5X improvement in business value generated from data and a 1.5X boost in speed of product and service innovation available for organizations moving from stable or efficient to future-ready levels. And, there’s a 1.8X increase in employee engagement and retention for taking the next step to future-ready.
And when all four levers are applied in an integrated manner, organizations not only double their chances of becoming future-ready, but also gain the potential for a massive 14.2X boost in moving up one maturity level—and we calculate that making that step could see a 1.2X boost in overall profitability.
“Getting your technology partners to understand business needs and helping the business understand technology opportunities drives success at a much faster pace.”
– ALAN KRONOVET, Managing Director and Head of Commercial Mortgage Servicing – Wells Fargo
14.2x
boost in moving up one maturity level using all four levers—Technology, Process, Data and Talent—in an integrated way
1.2x
boost in potential profitability using all four levers— Technology, Process, Data and Talent—in an integrated way
1.5x
boost in business value or speed of product and service innovation by moving from stable or efficient to future-ready
1.8x
boost in employee engagement and retention by moving from stable or efficient to future-ready
Here’s how moving the different levers can affect organizations’ operational maturity:
“We can equip colleagues with all the tools, services and know-how but, at the end of the day, we need these critical colleagues in front of our stakeholders making our offer come to life.”
– MIKE BENVENUTO, Chief Procurement Officer – Aon
Although the journey to future-ready may look different for every organization, based on our in-depth findings and experience, there are a number of steps to consider to progress its operations maturity journey.
Taking into account the four levers, here’s how to move from:
What it takes to deliver core finance activities and strategic value at Stanley Black & Decker. Read more.
Aon’s Chief Procurement Officer shares insights on what it takes to drive operational maturity. Read more.
Bob Schrug from Mondelēz International shares how to build a resilience and relevant supply chain. Read More.
People are your core asset, and an agile, future-ready workforce is just as foundational to transformation as technology. Read more.
Aon’s Chief Procurement Officer shares insights on what it takes to drive operational maturity. Read more.
If the last 18 months has taught us anything, it’s that change happens fast.
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How to boost intelligent operations maturity