Power in the Balance: Managing Today While Shaping Tomorrow

Organisations face an ongoing challenge: balancing day-to-day operations with strategic business transformation. Understanding the distinction between normal operations and change initiatives can empower leaders to navigate this complexity effectively. This blog post explores the differences between running normal operations and implementing changes through portfolios, projects, and programs. We will also delve into managing change and maximising benefits through these processes.

Understanding Normal Operations

Normal operations refer to the regular, ongoing tasks and processes that organisation staff perform daily to maintain business functionality. These include activities such as production, service delivery, and routine administrative and maintenance tasks.

Effective normal operations are crucial since they ensure that an organisation meets its short-term targets while maintaining customer satisfaction. For instance, a restaurant that consistently delivers high-quality food and service is operating its normal operations efficiently.

In organisational contexts, normal operations can be thought of as business as usual (BAU). These functions uphold stability and enable the company to generate revenue, but they do not drive fundamental changes to the company's direction or capabilities.

When to Focus on Normal Operations

Normal operations should be the primary focus in situations where stability is essential. For example, during economic downturns or times when customer retention is critical, businesses must prioritise efficient service delivery and cost control to maintain profitability.

Moreover, normal operations are necessary when the organisation is in a consolidation phase, where the focus is on maximising existing capabilities rather than pursuing new initiatives. In such instances, it is vital to allocate resources toward improving efficiency and sustaining existing customer relationships.

The Role of Change in Business Transformation

Change initiatives, encompassing projects and programmes, represent structured efforts to shift an organisation toward a different operational environment or strategic direction. These initiatives often require substantial investment and risk, but they can also lead to significant rewards.

Portfolio Management

Portfolio management involves overseeing a collection of projects and programmes, alongside BAU, that align with an strategic objectives. It encompasses prioritising initiatives based on factors such as resource availability, timing, and expected benefits.

For example, a software company may maintain a portfolio that includes various projects aimed at enhancing product features, entering new markets, or developing new technologies. Effective portfolio management allows organisations to optimise their investment in growth initiatives and ensures that they are working on the most relevant projects.

Project Management

Project management refers to the practice of planning, executing, and closing projects within a specified timeline, budget, and scope. Different from normal operations, projects are temporary endeavours with a specific goal.

For instance, constructing a new office building is a project with defined start and end dates, objectives, and deliverables. Once the building is completed and occupied, the project concludes.

Organisations use project management to introduce initiatives that have a point of change, such as launching a new product line, improving current systems, or enhancing customer engagement strategies.

Programme Management

Programme management encompasses managing interconnected projects that aim to achieve a common goal or strategic objective. Unlike projects, which typically focus on specific outputs, programmes are oriented toward long-term benefits and organisational change.

Using the earlier example of a software company, it may have a programme dedicated to improving overall user experience across its suite of products. This program could consist of several interrelated projects, each targeting different areas of user feedback and enhancement.

When to Deploy Change Initiatives

Organisations should deploy change initiatives when they need to adapt to changing market conditions, customer preferences, or competitive pressures. For example, if a retail business observes that consumers are increasingly shopping online, it may decide to adopt an e-commerce strategy, which entails launching new projects and programmes to enhance its digital capabilities.

Furthermore, companies may initiate change during mergers or acquisitions when integrating cultures, systems, and structures is vital. A clear change strategy will help ensure a smooth transition and highlight the benefits of the new organisational structure.

Managing Change Effectively

Successful change management requires a structured approach to implementing new processes, systems, or strategies. This involves clearly defining objectives, engaging stakeholders, communicating effectively, and providing necessary training and support.

1. Engagement: Stakeholder engagement is pivotal to the success of change initiatives. Including employees in decision-making processes fosters ownership and boosts morale, making individuals feel valued and heard.

   
   

2. Communication: Transparent and clarity-driven communication around the change is crucial. Leaders should explain the reasons for the change, its benefits, and how it impacts employees at every level.

   
   

3. Training and Support: Providing training ensures employees feel equipped to adapt to the change. Offering resources such as workshops, mentoring, and access to information helps individuals adjust successfully.

   
   

4. Monitoring and Adaptation: Continuous monitoring of the change process helps organisations identify areas needing adjustments. Regular feedback loops create opportunities for real-time improvements.

   
   

Maximising Benefits from Change Initiatives

Organisations embark on change initiatives with the primary goal of capturing specific benefits, such as increased efficiency, enhanced competitiveness, or improved employee satisfaction. However, to maximise these benefits, organizations must focus on a few key areas:

• Clear Metrics: Establishing clear key performance indicators (KPIs) enables organizations to measure the success of their change initiatives. Tracking these metrics ensures that efforts to adapt and transform remain aligned with strategic goals.

  
  

• Long-Term Vision: Keeping a long-term perspective during change initiatives encourages teams to look beyond immediate outputs. Understanding that some benefits may take time to materialise fosters a resilient organisational culture.

  
  

• Sustainability: Ensuring that the benefits gained from change initiatives are sustainable in the long run requires embedding new practices into the organisation’s culture. This way, improvements become part of the organisation’s normal operations.

  
  

Conclusion

Navigating the complex landscape of operational management and business transformation is essential for organisations striving for success in a dynamic environment. By recognising the differences between normal operations and change initiatives—encompassing portfolio, project, and programme management—leaders can make informed decisions on when to focus on stability versus pursuing transformation.

Effectively managing change and maximising benefits should be at the forefront of any organisation’s strategic plan. Engaging stakeholders, communicating transparently, and fostering an adaptable culture will set the stage for a successful transition. In positioning your organisation for the future, remember: the art of balancing operations with change is where true power lies.