Managing business organizations and adding business value. An Agile Manager’s Guide to the Theory of BVOP.org

What is business value, and how to increase the value of a business organization according to BVOP.org?

https://bvop.org has announced the following organizational value-added business categories:

  • Organizational culture
  • Human Resources
  • Employee behavior, skills, and maturity
  • Workflows
  • Human relations
  • Total contribution
  • Reduced production processes
  • Relationships between business and people
  • Reducing organization and team surpluses (time, money, work)
  • Consumer and customer satisfaction
  • Innovation
  • Usability, utility, and value of the products
  • Time to reach the market


Although each of the 13 topics is important and develops the organization in a different direction, in my opinion, their prioritization should not be absolute, but determined by how much and whether they are present in the particular company. I would arrange them one way for one company, another for another, different for a third, etc.

With this principle of order, I follow the logic that priority should be given to those topics which, for one reason or another, have remained in the background or are completely absent, which in no way means to abandon the others.
I also think it is important to strike a balance between internal (eg, organizational culture, work processes, human relationships, etc.) and outward targeting (customer and customer satisfaction, time to market, usability and utility of products, etc.). .n.) business value trends, because overemphasis in one direction alone would adversely affect either the internal climate of the organization or the company’s performance on the market.

For example, with a company focused mainly on sales, customer satisfaction, product improvements, and innovation, I would leave these topics back on the list (because they are already a priority and are set at different levels in the organization), and in higher positions has arranged purely internal topics concerning staff satisfaction, the achievement of a positive work environment and good organization of work. In such a situation, my “ranking” would look like this:

  1. Organizational culture
  2. Human resources
  3. Employee behavior, skills, and maturity
  4. Workflows
  5. Human relations
  6. Overall contribution
  7. Reduced production processes
  8. Business-People Relationships
  9. Reduction of surpluses in the organization and among the teams (time, money, work)
  10. Consumer and customer satisfaction
  11. Innovation
  12. Usability, utility, and value of products
  13. Time to reach the market

The first five topics in the situation under consideration are, to me, fundamental and could be treated similarly to the first line of “hygiene” factors in Maslow’s pyramid in his theory of motivation. If they are missing, it would be very difficult to work on the others and achieve positive results. For the reasons listed above, ranking them from 1 to 5 is rather conditional, because they are largely interconnected. Here’s a more detailed explanation for my choice:

Organizational culture

Organizational culture: The culture of one organization defines and differentiates it from the others. To ignore its meaning is tantamount to depersonalization. Organizational culture is multidimensional, which is why its influence is great. For me, the focus on organizational culture is extremely important for any type of company, regardless of its field of activity, priorities, and sizes.

Human resources

Human resources: the organization – these are the people. Even with state-of-the-art technology, state-of-the-art facilities, and numerous clients, there is no way an organization can function well without properly selected, trained, and motivated staff.

Employee behavior, skills, and maturity

Employee behavior, skills, and maturity: Employee behavior is a combination of their individual qualities and the impact of the work environment and organizational culture. Skills should not only be seen as those with which the employee enters the company but should be developed within the company, and this process should be supported and stimulated by the organization.

If a company invests in the development of its employees, then the likelihood of them being satisfied and loyal and staying their increases and turnover is one of the factors that speak a lot about an organization. Conversely, incompetent, and uninterested employees find it difficult to achieve any goals. Here I return to the previous point, where I mentioned that the organization – these are the people, with whom I confirm my position that all aspects of business value are related in some way.

Workflows

Workflows: Even the most trained and skilled employees can be demotivated by cumbersome or poorly defined workflows. In today’s world and in most fields of activity, the situation is dynamic, and the influence of many factors is constantly changing its weight. In such a changing work environment, it is extremely important to update and maintain current work processes and the way they are documented.

In order for this to happen properly, there is also a need for coordination between the various processes and levels within the organization.

Human Relations

Human Relations: Even if everything is “perfect” on paper, it should not be forgotten that we are human, and relationships between us are key to our motivation, enterprise, and productivity. I find the next item in the list of topics (“common contribution”) very important for any organization, but to make it possible, good human relationships must be built. A sense of belonging to a team or organization could be a powerful driving force.

Examples of a Business Value-added for business organizations. Detailed Agile guide

Organizational culture provokes people to be proactive, to contribute, to share, and to be aware of the business goals of the organization: in order for this to be possible, companies often define their “business values” and familiarize them with employees from the very moment they enter the organization. However, in order for these values ​​and goals to remain just hollow words, it is necessary for people to see the real meaning behind them.

For example, it would be possible to select an employee of the month or year in different categories that match these values ​​and thus distinguish the people who contribute to their realization and development. The same aspirations of the organization should be evident in its initiatives. Team leaders could associate the assessment of a team or an employee for a certain period with these goals and values ​​and share it in individual, and team meetings and thus engage their people with them. Employees would be more proactive and dedicated if they associate themselves with the “thinking” of the company, and if they knew their suggestions and ideas would be heard.

Managers and managers at different levels play a huge role again, but in addition, methods such as employee satisfaction surveys could be used.

Modernization and innovation

Modernization and innovation: The role of new technologies and the benefits for both employees and customers are indisputable. To reach them first, an analysis of the “current situation” is needed, followed by an adequate decision on what can be facilitated or reduced through technology and modernization. The so-called innovation labs are more and more common nowadays, and the need for automation is inevitable if we are to remain competitive. In my opinion, it is important for an organization to listen to the suggestions and needs of its employees in all such processes, because they themselves know best what would make their working life easier (and from there it would save the company money and reduce the final cost to the client). The competition also plays a role here, and it is good to be aware of the innovations used by other companies in the field.

People in the organization show respect for each other and work productively

People in the organization show respect for each other and work productively: a number of studies in organizational psychology show that relationships between people in the work environment are key to their motivation and results.

Organizational culture itself largely determines this relationship. If the respect and feeling that a person is ready to help are felt during the selection and training process, and then within the teams themselves, then the chance of a new employee to adapt more quickly and find a “place” in the organization is pretty good. Here again, senior executives have an important role to play as leaders, to unite their teams, and to promote the values ​​of the organization.

The number of people leaving the organization is limited to a minimum: satisfied employees do not leave. I mentioned a survey recently about measuring employee satisfaction, and here I will come back to this idea again.

If it is clear what makes people happy at work, it is much easier to work in that direction, and further contribute to that satisfaction. Another possible approach is a baseline interview with the departed to clarify the reasons for their choice, to analyze the main factors influencing the turnover, and to formulate and follow up measures to solve the problem.

Drawing a clear career path with all the opportunities for development for employees in different positions would motivate them to stay and seek development inside the company, not outside. Standard benefits such as bonuses, additional health insurance, vouchers, sports cards, modern rest and games rooms, team building, etc. also attract certain groups of people. The so-called. Work-life balance, for which measures such as home-office, flexible working hours, overtime compensation, and others work. If it is clear what makes people happy and demotivates them accordingly, it is easy to determine the exact measures and direction of action.

Conflicts and the negative environment are minimized

Conflicts and the negative environment are minimized: when there are clear rules defining the optimal volume of working relationships, the chance of conflict decreases. However, we are people with our characters and feelings, and there is no way that rules and procedures can govern every type of relationship between us. Here again, comes the business ethics and role of the internal climate built-in teams. If conflicts arise, it is important to analyze what is causing them and who are involved in order to find the most appropriate way to solve the problem.
The key is, again, the role of people managers. The organization, for its part, can ensure a great deal of peace of mind by avoiding factors that would annoy employees, such as late pay, in-office work, missing supplies, etc.

The image of the organization is increasing

The image of the organization is increasing: the opinion of a company is formed mainly by its customers and employees, so it is important that both groups are satisfied. The quality of the products and services offered, coupled with a good marketing strategy and PR, provide good reviews among consumers and customers. The measures listed in the preceding paragraphs, on the other hand, contribute to employee satisfaction. We should not miss the impression left during the recruitment process (ie, recruiters build the image in question).

Everyone in the organization is constantly improving their personal and professional qualities

Everyone in the organization is constantly improving their personal and professional qualities: internal programs and training to improve the skills of employees, company-funded external courses, online knowledge base, and last but not least personal example and knowledge sharing.

Team members look for and remove obstacles without waiting for management to do so: even when forming teams, the exact profile of their members’ matters. Building on a sound knowledge base during training, combined with clear documentation and carefully worded processes, as well as encouraging direct leadership initiative, would help. Restrictions on the procedures that bind the types of decisions to a certain hierarchical level, as well as the maturity of teams, should not be overlooked.

Management and team members work together to streamline processes and accelerate development time

Management and team members work together to streamline processes and accelerate development time: Here, the balance between the actual team optimization needs and the management’s tendency to comply with them must be found. Often, teams may be inclined to ask for unfulfilled things, with management focusing on cost rather than the real benefit.

It is important for employees to know that they can give their feedback and that it matters, and that management, in turn, should look for one and consider its decisions (here the channels for this communication should be clear to all). An option is to have space in the internal section of the company website or some SharePoint site where employees can share their needs and recommendations.
Such a field could also be integrated into the employee appraisal form, as well as if there were employee satisfaction surveys.

Costs are managed and planned carefully: analysis by specialists and optimization of current expenses for each reporting period; investments with expected high returns; Setting up a “crisis” fund, which is set aside on a monthly basis but can only be used in certain situations (something like the Condominium Renovation Fund and the minimum reserve with banks).

The tools and the environment are constantly improving

The tools and the environment are constantly improving: employee feedback and analysis + management measures.

Unnecessary documents, processes, and communications are avoided: all documented processes are arranged and uploaded to a common location so that duplication and finding are not a challenge for employees.

The documentation should be written in an accessible language, where necessary with schematics, tables, and examples and not unnecessarily burdened with unnecessary terms and verbosity. Make it clear who is necessarily involved in a particular type of written communication so that there is no unnecessary forwarding of emails and omission of interested parties.

A position or role as a knowledge manager or similar responsible for maintaining and updating documentation. Facilitated routine internal procedures such as filing and approving an application for paid annual leave, completing a monthly timesheet for hours worked, filing an application for reference, etc.

The root causes of problems, defects, and obstacles are analyzed, tracked, and eliminated: defining a procedure for how to do it and who is involved in the process — a strategy for continual service improvement.

Quality standards are followed and implemented without significant waste of time and resources

Quality standards are followed and implemented without significant waste of time and resources: incorporating technology to manage this process; processes are implemented in this direction at all levels of the organization; relies on monitoring + feedback (from users and employees).

Overwork is managed, and teams do not spend too much time in trivial tasks: adequate distribution of teamwork; routing the types of tasks performed by individual team members; measuring the workload of the team as a whole and of its individual members; optimization and automation of parts of tasks where possible; flexible working hours, if so the employee will have a better rest, and this does not affect the work or home office, in order to avoid wasting time to move to and from the office; work restrooms and compulsory rest periods (may give extra at the discretion of the manager).

The documentation and requirements are created and maintained in an easy and convenient style so that everyone can understand them easily and save time from unnecessary discussions and misunderstandings: it complements the above point related to documentation.

Meetings and discussions do not lead to a waste of time and always lead to desired results

Meetings and discussions do not lead to a waste of time and always lead to desired results: a pre-determined agenda with defined goals; clear and specific allocation of tasks, not idle talk; an email to all participants with the highlights of the meeting afterwards; accurately determine the required frequency of regular meetings (not to be unnecessarily frequent or too far apart in time).

Employee commitment to the goals of the company already discussed plays a role here, as well.
Product development focuses on the most important goals and needs: first, the goals in question need to be identified. This could again be done through feedback, good market knowledge, and error analysis.
All product results, concepts, and versions are validated with real users, and the risk of an unwanted product is limited: similar to the previous point — feedback on customer satisfaction and analysis of market factors.

Customer and consumer satisfaction is steadily increasing

Customer and consumer satisfaction is steadily increasing: this can be achieved by analyzing survey data and defining measures to address the negative aspects of feedback. At the same time, the high quality, competitiveness, and positives of a product or service should not fall from their level. If automation and optimizations are applied, the cost could fall, and this would further increase customer popularity.

The impact of the organization on the whole market is positive

The impact of the organization on the whole market is positive: the introduction of new products or upgraded versions of existing ones, is beneficial for the development of the sector, and customers “make the most” of the competition.

Betting social commitment on the goals and values ​​of an organization

Betting social commitment on the goals and values ​​of an organization: the maturity of an organization can also be judged by its activities beyond the realm of its own profit. Setting aside a certain percentage of the proceeds of a product for charity or for the overall improvement of the social environment enhances brand credibility, enhances the company’s image, and leads to the satisfaction of individuals outside the direct group of users of the product or service.

Integration of a program for documenting key knowledge and skills of employees

Integration of a program for documenting key knowledge and skills of employees beyond those in their job descriptions: eg, foreign language skills, working with specific software, knowledge of a given technology, etc. In this way, the company is clear about the available human resources that would and would be needed for future projects and saves time and expenses for searching outside.
At the same time, additional development options are open for employees. Information from such a database could also be used by learning and development teams to determine the need for training related to the development of particular competencies and knowledge.

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