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- Hexagon IT Solutions' Take
At Hexagon IT Solutions, we fundamentally agree with the premise that simply redrawing the organizational chart is a superficial fix. True, lasting value capture comes from surgically addressing the underlying workflows, behaviors, and data flows. This isn't just about making things faster; it's about making them smarter and aligning every step with the organization's ultimate strategic goals. What VALUE the organization brings.
Our approach reinforces this philosophy by focusing on three key areas that directly address the pain points highlighted in the research: siloed data, inefficient cross-functional processes, and cultural resistance.
1. The Digital Backbone: From Silos to Seamlessness
The article points out that data often "lives in silos and spreadsheets," which cripples scalable efficiencies. For Hexagon, this is an unacceptable state.
Integrated Data Platforms: We don't just "connect" systems; we architect unified data platforms (e.g., modern ERP and CRM systems integrated with cloud-native data lakes) that establish a single source of truth. This immediately addresses the problem of "fragmented manual data with varying truths" by providing consistent, real-time metrics for market size, labor costs, and growth potential across all functions and markets.
Automated Intelligence: The McKinsey article advocates for the Automate lever. We embed Generative AI and advanced analytics dashboards directly into core business processes (like integrated business planning and performance reviews). This drastically cuts the 1,000 hours of manual preparation time and eliminates the need for redundant, backward-looking reports. Instead, managers get predictive insights for proactive decision-making.
2. Engineering Cross-Functional Accountability
The research shows that typical cross-cutting management processes can consume 40 to 65 percent of management and overhead time. This massive drain is often due to duplicated work, redundant governance, and a lack of clear ownership.
Process Mapping to Value Stream: Our initial diagnostic is not structure-based; it is value-stream based. We map the end-to-end journey for key processes (e.g., "Idea-to-Launch" or "Order-to-Cash") and assign cross-functional Process Owners who are accountable for the process's final outcome, not just their functional slice. This directly tackles the "Parallel organizations" and "Redundant governance structures" issues.
Goal and KPI Alignment: To break the "us versus them" mentality, we implement enterprise performance management (EPM) solutions that cascade aligned KPIs from the strategic level down to individual contributor goals. For example, instead of a marketing team being rewarded only for cutting costs, their KPI is a blend of cost-efficiency and market share/customer acquisition growth. This prevents siloed decisions like the global retailer's market share blunder.
3. The "Simplify and Unify" Framework: Our Four-Step Playbook
Hexagon IT Solutions operationalizes the McKinsey article's four levers (Eliminate, Synchronize, Streamline, Automate) into a focused and executable playbook:
Hexagon's Focus | To Do | Action & Impact |
Surgical Pruning | Eliminate | Systematically review all non-value-add activities (meetings, reports, decision points). Example: Reducing the frequency of non-critical reviews from monthly to quarterly (as the apparel maker did) and digitally archiving low-use data points, leading to a 30% cut in reported data points. |
Cadence Integration | Synchronize | Optimize the time required for information to flow and decisions to be made. Example: Implementing a single digital workflow to cut the information cascade time from a market performance review from 30 days to 15 days across all regional and HQ levels. |
Decision-Centric Design | Streamline | Refactor governance and reporting to focus only on the input and output necessary for high-quality decisions. Example: Cutting performance review decks from 50+ pages to 10-page executive summaries by automating backward-looking commentary and focusing manually-prepared content on future actions. |
Digital Acceleration | Automate | Deploy Robotic Process Automation (RPA) and AI-driven workflows to execute manual, repetitive, and time-consuming tasks. Example: Seamlessly linking monthly financial data into forecasting and annual budgeting systems, moving from manual aggregation to a one-click digital process. |
That's an insightful article from McKinsey on how companies can create sustained value by focusing on process simplification over just structural reorganization.
If we were to look at this through the lens of Hexagon IT Solutions, the core message about prioritizing end-to-end process optimization and leveraging digital tools (including AI) becomes incredibly relevant and forms the backbone of our strategic approach.
