Case Study: How to change a process that has been broken for 10+ years?

If you are unhappy about a work process, you have two choices – Accept it or Change it.
And let’s face it, not all problems are worth fixing.
But if it is to be, it is up to you.
Early in my career, I had to manage a business that I felt unnecessarily complex. At the time, I had no formal authority or long experience on the job (being 3 months in role) to change it, but by pure curiosity, partnership and persistence, I was able to bring about a change that 8x simplified that business, freeing up much time for myself and others that followed. I didn’t know at the time this was a historical thing that bothered at least the 3 previous analysts on the role, covering over 10 years.
Hope this gives you some inspirations and tips to drive a positive change for yourself and your team.

Situation

I was on the Canadian business of a global company. Typically the 1:10 Canada to US rule of thumb applies. But in that case, my brand was less than 1/20 the US business due to market dynamics. Many financial processes are designed for consistency and completeness, so regardless of business size, the exact steps had to be followed.
There were 3 other complications:
First, because the US business was 20 times bigger, they manage the business at a very low level (by product form), and we have to follow that structure. In other words, we managed a $20m business with the complexity of a $500m empire.
Second, my role actually covered 8 different brands ranging from $100m to pre-revenue, but I had to repeat all the routine processes 16 times because of that sub-division.  Think about forecasts, budgets, reports, and often moving very small amounts that didn’t impact anything.
Third, my priority for the year was a 5-year strategic plan to double a $50m portfolio (of which the $20m business was in).  It simply didn’t make sense if all my time was spent “manipulating data”, right?

Approach

Full credit to Industrial Engineering training – this was not rocket science but natural.

1. Stakeholder Discussion – discussed with practically EVERYONE involved and affected by the process, on both the Canadian and US business. I wanted to understand the rationale for the current process and incorporate all requirements in the design.
2. Process Map – step by step description of the workflow made it much easier to communicate and understand the scope and concepts, especially when most people do not typically see the end-to-end process. The current state process map was the foundation for the discussions and redesign.
3. Future State – given what we know now, would we define the goal of the process the same way? Will we then arrive at the same solution?
4. Implementation Plan – how will people’s role change? This includes both real and perceived changes, the What and the How.
5. Case for Change – just because we have a better solution does not mean we will be successful.  What does it take to overcome the status quote?
6. Formal Request – the ultimate decision maker was the regional CFO, but we all knew that he would consult his people before giving the nod. Having pre-alignment with all stakeholders made that easy.
7. Execution and Review – after celebrating the “win”, I actually went back to my team and thanked each of them for their support. Now it’s about delivering the goods and confirming the change was a positive one.

So what was the Solution? (in case you are curious)

We made some changes to go to market as one mega-brand, and streamlined the financial processes for Canada (to be different than the US) by consolidating the 8 “brands” into 1 using the biggest segment in the US.  This way our roll-ups will flow naturally to their structure, all without requiring system changes.
Benefits? A simple design that reflected how we manage the business while meeting the needs of all the stakeholders. Of course, it would save lots of time for myself and others in the process, every single month going forward.  This was also integrated into the portfolio investment / resourcing discussion to help us deliver our strategic plan.

After Thought (how to get unstuck)

Clarity – on the Problem you face, its Impact, the Solution and its Benefits. You need to be able to explain it in a way that resonates with all stakeholders. Why? Because they need to believe in it and likely communicate with their team (or manager).
Case for Change – Change can bring about risks and distraction. What is in it for your stakeholders, why now? Process changes will benefit everyone differently, but generally people want to be a part of something that makes a positive impact. Your success depends on your ability to articulate that.
Sponsorship – who is the decision maker and what is important to him/her? Even if a proposal demonstrates improvement doesn’t mean it will be approved.  Priorities and Contexts do matter.   If the change is aligned, or better a solution, to enable the strategic goals, it will much more likely be supported.