Striking the Balance between Innovation & Operational Excellence.
A recent survey of Chief Information Officers (CIOs) echoes a broader dichotomy I hear a lot.
Balancing investment and focus between competing business priorities, strategic objectives and operational performance, is often like walking a tightrope.
75% of CIOs confirm that it is challenging to find the right balance between business innovation and operational excellence.
They are not alone.
There is no bright future without a healthy present, hence the challenge.
The increasing emphasis on digital transformation and artificial intelligence (AI) is driving the demand for innovation.
In 2024, over a quarter of CIOs reported that their primary CEO-driven objective was to lead digital business initiatives, a significant increase from the previous year.
This push towards innovation often competes with the imperative to develop and sustain operational excellence.
There are 3 pieces of advice offered by the authors of the survey;
- Embrace a Dualย ๐๐ ๐๐ง๐๐: Get used to it! Equally prioritize operational excellence and innovation.
- Strengthenย ๐๐ฎ๐ฌ๐ข๐ง๐๐ฌ๐ฌ ๐๐จ๐ฅ๐ฅ๐๐๐จ๐ซ๐๐ญ๐ข๐จ๐ง: Strengthening the collaboration and shared vision between units remains a top priority.
- Developย ๐ ๐ ๐ฅ๐๐ฑ๐ข๐๐ฅ๐ ๐๐๐ฌ๐จ๐ฎ๐ซ๐๐ ๐๐ฅ๐ฅ๐จ๐๐๐ญ๐ข๐จ๐ง ๐๐จ๐๐๐ฅ: Create an agile environment to manage the dynamic demands of both innovation and operational tasks effectively.
I would add two other strategies, critical for success;
- Start with end-to-end Business Processes:ย Both innovation and operational excellence have their hearts in your 4 or 5 key business cycles. Leading with the business and process opportunities before technology innovation accelerates the path to genuine value.
- Balance strategy with short cycle initiatives:ย For each end-to-end process, develop a series of 100 day P&L impacting plans, based on prioritised initiatives, delivering tangible, short term business and financial outcomes.
Together, these 5 steps help untie the โGordian Knotโ that locks so many organizations into the โno-mans landโ between innovation and operational excellence.
You can read the โState of the CIO Study 2024โ from Foundry (IDG) here . . .
Thanks for reading . . . .