We like to describe ROUNDMAP™ as a growth-oriented, customer-focused, purpose-driven, and people-centric integrated business framework. But what exactly do we mean by ‘integrated business’? What do we mean by circular? What distinguishes the ROUNDMAP methodology? And why do we emphasize growth orientation and the customer value-driven aspect of ROUNDMAP?
Harvard’s Heidi Gardner has found that firms with better cross-functional collaboration achieve more customer loyalty and higher margins:
“As innovation hinges more and more on interdisciplinary cooperation, digitalization transforms business at a breakneck pace, and globalization increasingly requires people to work across national borders, the demand for executives who can lead projects at interfaces keeps rising.”
To survive and thrive in our digital age, firms need to communicate and collaborate effectively across the entire value chain, including the traditional business enterprise and key external partners in the supply chain and those in the demand chain. Having a highly connected, digitalized value chain is part of driving an integrated business (IB).
A recent McKinsey study found that the average supply chain has a digitization level of 43 percent, the lowest of five business areas that were examined (products, marketing and distribution, processes, supply chains, and new entrants at the ecosystem level).
According to the study, a mere 2 percent of the surveyed executives said the supply chain is the focus of their digital strategies. According to McKinsey, “most of the disparity between potential and actual gains from supply-chain digitization can be explained by technology gaps and management choices.”
By perceiving a business integral, it makes sense to take advantage of differences in digital maturity to provide the organization with unique on-stage and backstage competitive advantages while increasing the firm’s ability to increase customer satisfaction.
Considering an operation holistically also leads to better results, for instance, by boosting demand satisfaction rates by up to 80% (the amount of demand met by stock availability) or shortening the Cash Conversion Cycle (CCC or C2C). Research showed that 75% of companies are more profitable due to more liquidity from a higher Cash Conversion Ratio (CCR). Furthermore, highly-digitized supply and demand chains could, according to McKinsey, boost annual growth of EBIT by 3.2% and annual revenue growth by 2.3%.
Oracle on IBP: Think of modern integrated business planning, or IBP, as a mashup of supply chain optimization, financial planning and analysis, and operational best practices, powered by a company-wide culture that’s all about delivering the speed, savings, and responsiveness of today’s consumers demand while managing risk. It’s usually implemented to unify siloed sales, supply, financial and operational resources — before more nimble competitors relegate them to the former Fortune 500 list.
The ability to run projects, programs, and business processes across the entire value chain requires people with a breadth of perspective as well a depth of expertise. We refer to these people as Grandmasters of Business™. They have the (soft) skills and experience, taken from diverse roles in (similar) organizations, and understand how to create and deliver value across a digitalized value chain.
As found by Harvard’s Heidi Gardner, Financial Times’s Gillian Tett, author Patrick Lencioni, and Harvard’s Vikram Mansharamani, horizontal or cross-functional collaboration are critical to the success of any business endeavor.
Because of a lack of a shared sense of purpose and confusion about what the company aims to achieve, departments have become separated, “each defending its products, its ideas, its brilliance,” as stated by Tett, thereby creating disconnected organizations crowded with people that alienated from the whole. Needless to say that employees’ passion and commitment suffer deeply because of the disconnectedness and alienation ─ as predicted by Karl Marx.
Why is this harmful today?
To appreciate this, you’ll need to understand more about the characteristics of business cycles, in particular the Kondratieff long waves or K-waves. We explain more about it in the article Ascending from Decline.
Don’t be surprised that your organization will lose 20-25% of its staff because of what is already deemed The Great Resignation, in the United Kingdom, in the US, and elsewhere (90% of employees fear an employee exodus don’t act on it). These figures are alarming. According to Gallup, 48% of employees want to resign sooner rather than later. The impact of high employee turnover is painful. For any organization to lose more than a third of its workforce could even be devastating.
A survey of over 30,000 workers conducted by Microsoft found that 41 percent are considering quitting; that number jumps to 54 percent when Gen-Z is considered alone. Gallup found that 48 percent of employees are actively searching for new opportunities.
ROUNDMAP™ combines two perspectives: a business roadmap (linear mindset) and several cyclical models, the round trip (cyclical mindset) part. The two perspectives together, linear and cyclical, respectively ‘round trip’ and ‘roadmap,’ explain the framework’s name.
ROUNDMAP’s Customer Roundtable Blueprint offers an effective tool for frontline employees to communicate and collaborate across the silos and dissolve the mental and functional barriers. The Framework at large offers various instruments to allow for the discovery of new opportunities (and threats) and to translate these opportunities into new viable, feasible, and desirable business ventures.
The cyclical parts of the ROUNDMAP™ Framework, the round trip part of the ROUNDMAP Framework, can best be perceived as a stack of four layers (excluding Leadership):
- Four Management Functions:
- Four Mastery Components:
- Four Maturing Lifecycles:
- Business Lifecycle
- Product Lifecycle
- Customer Lifecycle
- Growth Lifecycle
- Four Frontline Departments:
Another way of looking at the Framework is to see it as a stack: Leader(ship), Management, Grand Scheme, Development Cycles, and Customer Roundtable (Blueprint):
Additionally, the Business Roadmap offers the roadmap part of the ROUNDMAP Framework. The four management functions are cross-related to the business roadmap.
The Practitioner Program, offered by ROUNDMAP Academy, will provide more insights into each of these components. Just be aware that success is a delicate balance, requiring leadership, management, and staff to be in close contact with the market to be able to effectively respond to the forces exerted onto the business (text continues below image).
By perceiving the stack, we’ll need to relearn that to be successful, we need to keep everything and everyone aligned. It is the ability to bring it all together, in the correct order, that is considered an achievement. Similarly, employees want to feel and understand that they contribute in a meaningful way to the whole and not be left in the dark and feel like a cog in the wheel.