Organizational improvements through analysis


Any organization in course of its routine working or growth is likely to face problems. The problems can be internal or external. Internal may be due to non availability of requisite skills or technology. External can be due to change in market conditions and more competitors entering the field with better products. Whatever may be the situation the improvements have to be evolved for which analytical methods and systems have to be adopted, so as to finally implement the improvements for profitability and over all improvements. What should be the approach to the analysis?

Analysis means getting a grip on the problem and creating a structure so that the problem does not recur. The difference between the problem situation and the desirable / ideal situation is due to the waste, strain, inconsistency and loss being incurred. It is a way to discover clues for improvements, and used in reorganization. Analysis is used to make an improvement plan for the set objective systematize to set standards, measure the effects of an improvement plan when it is put into practice and compare the present situation with what the situation should be.

Analysis is used to If “reorganization� is supposed to mean “keeping necessary things and getting rid of unnecessary things�. The handling of analysis in case of problem items will be different than if it is supposed to mean “grouping necessary and unnecessary things into categories, deleting unnecessary things, and grouping necessary things by purpose, function, and type, and storing them for easy access.

Identifying a main objective which will lead to profits by understanding problems and loss occurring causes needs analyzing data. This is mainly macro-analysis which looks for loss and waste.

Analysis used for systematization considers what sort of structures each of the system elements should have if the goals and directions of the objective improvements are to be successful. Then the analysis is used to decide whether or not these structures are viable and consider the necessary methods.

In analyzing loss, various types of strain, waste, and inconsistencies will appear. Find out the major loss causing inconsistencies. Combine them, and then set about tentative improvement objectives, and set the direction for improvement. This is the creative indicator for improvement implementation.

In order to fulfill the improvement indicator (purpose) as described above, think of various methods of improvements, and, from these, select the one which fulfills most of the objectives and costs the least.

Today we fine a lot of acquisitions, mergers and expansions of many successful companies. The companies after extensive analysis of both internal and external situations set up their objectives. These can be for core competency, market leadership, synergy or disproportionate efforts in comparison to profits and revenues. One of the recent examples is Larsen & Toubro selling its cement division to Grasim. The former improved their core competency and the latter market leadership or growth. The latest is Tata Steel acquiring Corus to be in the world’s top 5 steel manufacturers.