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Companies risk drowning in alphabet soup if the latest three-letter acronym improvement strategy isn't clearly linked to business strategy.
While other industry sectors have adopted prepackaged improvement programs since the 1980s, it is only in the past decade that the biopharmaceutical industry has witnessed the rise to prominence of the three-letter acronym (TLA)-based improvement initiative. Business process management (BPM) and human error reduction (HER) are currently in vogue. While much has been promised by these prescribed solutions to improve business performance, much of this promise has proved illusory. Even where measurable improvement has been achieved, it has not always shown where it matters in overall operational performance and on the bottom line.
The truth is that while most of these approaches do have intrinsic value, unless the approaches are rigorously adapted to the situation of the business and the needs of strategy, the results are unlikely to be what is required. Many managers intuitively know from their own experience that just improving things without a clear link to strategy will not necessarily produce better business results. In some companies, the problem has been exacerbated by changes in priorities and direction caused by the switch from one TLA to another, as disillusion with the previous approach has set in. A few unfortunate organizations have nearly drowned in the resulting alphabet soup.
Change needs to be focused on delivering the business strategy. It is through realizing the strategy that the company gains competitive edge, and it is this that delivers the bottom line. Moreover, for the biopharmaceutical industry, GMP compliance needs to be up front and center along with productivity and service.
Many improvement programs do not derive their change agenda directly from the business strategy but come complete with their own. Too often, this leads to change being driven by the dictates of the approach, not by the needs of the business. Things frequently end up being done because the selected approach says "it's a good thing" and not because improving the way a particular task is done is essential for the company to deliver its strategy. As a result, precious resources can be diverted away from the important things.
There are no simple solutions or short cuts to improved business performance, but there are some fundamentals upon which a pragmatic, strategy-directed change program can be built.
To perform over the long term, the winners will be those companies that can most effectively deliver their strategies. Any change initiative that is not directed by the requirements of the strategy and tailored to the needs of the business is unlikely to succeed because it will lack true relevance. It is only by creating a clear link with strategy and following through with a pragmatic approach to implementation that a company makes the best of its strategy and thereby gives itself the best chance of success.
Simon Chalk is director of the BioPhorum Operations Group, email@example.com.