What are the purposes and examples of internal reforms?

In recent years, the situation surrounding companies is changing dramatically due to the impact of the new coronavirus. There are many cases where the work styles and management policies that have been used so far no longer apply, and significant internal reforms are required. In this article, I will introduce examples of various internal reforms and explain the important points of doing them.

Table of contents

Purpose of internal reforms

The contents of internal reforms are wide-ranging, and each company should have a trigger event and a detailed purpose to achieve. However, in a broad sense, all companies should have some common goals, such as improving operational efficiency, improving productivity, securing competitiveness, retaining human resources, and improving business performance.

The important thing in carrying out internal reforms is that reforms are just a means. Rather than simply implementing reforms, it is necessary to clarify “what do you want to achieve through reforms” and “how do you want to change the current situation?” and then select the appropriate method.

Examples of internal reforms

From here on, I will introduce a pattern of how to proceed with internal reforms. These are not necessarily completely independent reforms, but they are related to other patterns and have a comprehensive relationship with each other, so companies need to carefully determine which ones to adopt.

Organizational reform

Organizational reform means reforming the internal structure and operations of a company. Companies create their own rules and systems and carry out their daily work within those systems. This makes it easier to control the organization and makes irregular mistakes less likely to occur. In addition, wasteful work can be reduced, and there are also effects such as work efficiency improvement and productivity improvement.

However, the external circumstances surrounding companies are not constant and change due to various factors. As a result, the operating methods of companies that have worked in the past may no longer work. Organizational reform is necessary to respond flexibly to external changes and to look ahead to the sustainable growth of the company.

Work style reform

Work-style reform, as the term suggests, refers to reforms related to the way employees work, and in many cases, the focus is on promoting diverse work styles such as overtime work, appropriate wages, and the introduction of remote work. increase.
In recent years, companies that have introduced more flexible office environments and companies that are working to reduce overtime hours have been attracting attention, and many companies are probably considering such reforms.

In recent years, laws related to workstyle reform have been established, and the government is also promoting workstyle reform. Due to the spread of remote work and homework due to the influence of the new coronavirus, more flexible work styles are required, so interest in work styles will continue to increase in the future. Responding to the external environment can be said that it is a reform that companies cannot ignore.

Management reform

The range of management reforms is wide, ranging from reforms related to corporate management and existing/new businesses to the management of group companies and human resource development.

A company is sometimes likened to a “living thing” and has a growth cycle such as a “foundation period”, “growth period”, “maturity period”, “decline period”, and “regeneration period”. It is said that the lifespan of a company is 30 years, but companies that flexibly respond to changes in the business environment and formulate strategies without overlooking turning points will be able to continue producing results for a longer period.

Although management reform is named “Management”, it is not a reform carried out only by the management team. Depending on the content of the reform, it may also focus on employees, and it will cover a wide range of factors related to corporate decision-making.

Business reform

Business process reform, also known as BPR (Business Process Re-engineering), is reform related to business processes and flows. It may be that there is waste in the workflow that causes slow productivity and poor work efficiency. In many cases, large-scale reforms involving information systems are carried out, and new processes are constructed.

The characteristic of business reform is not only partial business improvement but also drastic reform with a view to the entire process. There is a similar word “business improvement”, but business improvement refers to fine adjustments and rule changes performed in daily operations. On the other hand, in business reform, we will abolish existing processes and explore ways to dramatically improve business efficiency.

Mindset change

Awareness reform is to change the values ​​and way of thinking within the company to achieve goals and solve problems.
No matter how much the management’s way of thinking about the company changes, if it is not communicated to employees, they will not be able to share the same values. For the entire company to work from the same point of view, the management must encourage employees to change their mindsets.

What is important in mindset reform is not forcibly instructing the management to change their mindset, but to bring out the spontaneity of employees. Encouraging employees is very important, but if it is difficult to convert from mental theory to action, or if employees are restricted or forced to act, their motivation may decrease.

Digital transformation (DX)

Digital transformation (DX) is the use of digital technology to reform services, operations, business models, organizations, etc. Originally, it meant “changing people’s lives for the better through the penetration of digital technology and IT. is progressing.

Behind the progress of companies’ conversion to DX are issues such as legacy system problems and securing future competitiveness by reforming business models based on the introduction of IT. In recent years, the development of digital technology has created many new business models and services. Market needs are diverse and rapidly changing, so it is necessary to use data to make decisions quickly.

Points to keep in mind in order not to fail in internal reform

The content of internal reforms is wide-ranging, and the situation differs from company to company. Although it does not apply to all reforms, there should be some troubles that can be prevented by knowing in advance the points that are likely to cause failure. Here are three keys to successful corporate reform.

Setting goals and visions

It is not enough to simply implement internal reforms; Since the content of the reforms to be introduced will differ depending on what you are looking at, first of all, pick up the current problems and set the purpose and vision of the reforms.

In addition, it is important not only for the management to understand them but for them to be properly shared with employees. By making employees feel the benefits of good and making it their own, the independence of employees can be enhanced. Therefore, it is important to focus on what kind of compensation employees will receive if the company improves through internal reforms.

Analysis of the current situation and issues

To decide on initiatives for internal reform, it is necessary to accurately grasp the current situation of the company. In some cases, frameworks such as 3C analysis and 7S analysis can be used to organize and analyze the current situation.

3C analysis is an analysis of a company from the three perspectives of Company, Customer, and Competitor, and can identify the company’s strengths and issues.

On the other hand, 7S analysis is a way of thinking that evaluates a company from seven perspectives: Structure, Strategy, System, Staff, Skill, Style, and Shared Value. Excellent companies are said to have a good balance of these.

Responding to backlash and resistance

The more radical an internal reform is, the more likely it is that there will be backlash and resistance. There are many cases in which internal reforms do not proceed smoothly due to comments such as “I can’t get used to the new tools and systems” and “I liked the previous method.”
If you are considering a major reform, you need to anticipate those dissatisfactions and think about how to deal with them. In addition, it is important to make eye contact carefully, as insufficient sharing of the purpose and vision of reform can easily lead to opposition.

Summary

To prevent failures in internal reform, it is necessary to determine the situation of the company and the purpose to be achieved and to deal with it appropriately. For example, starting with Workplace Analytics, which can integrate and analyze various information within an organization, Microsoft products have a wide range of solutions for internal reform, from analyzing the current state of the company to promoting DX. Why not consider introducing it when working on internal reforms?