Strategic analysis: approaching continuous improvement proactively

Review of Business, Fall, 2008 by Lisa B. Ncube, Mara H. Wasburn

During this phase, the Appreciative Evaluation process involved asking the question "What has been our major discovery?" To respond to this question, Visualization Inc collected data from customers that indicated they had concerns about some aspects of ImageSeek. The team determined that their current software had some limitations. Having determined that the focus of the continuous improvement would be on software development, CTO Venetria Johnson emerged as the most appropriate team leader. The identification of the team leader enabled the team to move to the Dream stage in the model.

Phase II: Dream. This was the ideation phase where ideas were formed and related. This phase involved identifying and researching alternative solutions. At this point, the software development team took over most of the process. There were also many alternatives to consider with respect to the current system. Common themes and patterns were identified to construct a vision of an improved organization. The organization was re-created by developing "provocative propositions," to merge the best of what has been into visions of what the organization could become, grounded in the reality of the organization's experiences.

The team generated a list of criteria that ImageSeek needed to address. They wanted a program that promoted better program planning, allowing project managers to have at their fingertips parts/components available in the company's internal repository as well as across the supply-chain. The software program should also enable sourcing and procurement personnel to identify similar parts for easy categorization and consolidated sourcing, even if part numbers are different. In so doing, companies using this software should be able to lower their sourcing costs and overall production costs.

Before moving on to the next phase, the team evaluated their efforts during the Dream phase. The Appreciative Evaluation question for this phase was "What challenges might come our way and how might we meet them?" (32). By asking this question, the team was better able to anticipate any problems that might arise.

Phase III: Design. Once the list of criteria that ImageSeek needed to address was developed, the project was assigned to the software design team. They began by evaluating potential solutions to support the continuous improvement process. The list of criteria gathered in the Dream phase was used by the designer to create prototypes. Input from stakeholders, including customers and technical staff, was involved throughout the process to ensure that all their requirements were incorporated into the new design.

Recognizing the need to provide a smooth transition for current users, the elimination and refinement of alternatives led to a number of options. These varied from actions that marginally enhanced the current system to replacing it entirely. Each option clearly specified a course of action, estimated costs, outlined benefits and listed pros and cons (19). The first option was the least financially risky and technologically aggressive. This entailed continuing with the current levels of software development investment and not funding major software development efforts. The second option was moderately economically aggressive and would have been a riskier move for the company. However, the dividends from this investment, if realized, would be enormously beneficial to both the company and the customers. The causes of the software problems of the current system would need to be identified and suggested options and prototypes developed to resolve them. This would require a substantial outlay of capital. The team decided to go with the second option, because while it was financially risky, it was not as risky as the third option, which required a much greater financial outlay to completely revamp the software. While there were no guarantees in terms of financial dividends, a totally revised system would ensure that there would be fewer problems with the software in the future and would allow for much easier updates.