Contact UsOverview to E-21 System
Many organizations achieve a great level of outperformance, but many of them cannot maintain the hard gained pre-eminent position in their marketplace; sometimes, some of these organizations can disappear or merely survive. It means that is not the same to achieve excellence or outperformance as it is to achieve the sustainable viability.
E-21 considers the sustainable viability as “the capability of an organization to compete efficiently, achieve and maintain a pre-eminent position in their marketplace on a long period of time”.
It is possible to build an effective management system for organizations that help them to achieve sustainable viability. However, organizations need not only to achieve sustainability, but also to measure and control this concept. The reason is simple: how many organizations are in the position of investing over a period of 3 or 4 years until they achieve some good results as a consequence of a process of change? Then, later, to wait a further 3 or 4 years maintaining and improving these results, until they are able to demonstrate that they can achieve outperformance over a long period of time?
If the answer to these questions is “very few”, the consequence is that management theories should have a complement; the short/medium term results management is not enough. This complement could be a methodology that allows organizations to measure and control the sustainable viability from the first moment. They will then be able to know the exact impact of the changes implemented the first year as well as the results of the following years (long term). Therefore, long term approach should be added to manage organization’s results.
Main Axes
E-21 is focused on giving to organizations the exact level of needed change, at any moment, in order to guarantee a constant competitive advantage at the minimum cost.
The E-21 approach is on competitive evolution. This concept tries to introduce within the organization a permanent attitude of proactivity to innovation and adaptability to change, no matter if the change needed is radical or incremental.
The result of an organization focused on competitive evolution should be a process design where all activities add value in order meet and exceed customer’s expectations in a unique value workflow.
For E-21, the main axes to achieve paramount levels of competitive advantage are the following:
| Profound Cause Analysis |
Avoid the ‘symptomatic cycle’. When a low performance is detected, the real causes must be found, implementing the needed changes, no matter how deep those changes can be. A constant focus on innovation and adaptation to change must be guaranteed within the organization. |
| Available Potential |
Achieving full people’s potential on a sustainable way. The word ‘sustainable’ means implementing a full set of coherent policies that permit a permanent motivation on organization’s people. |
| Costs & Knowledge |
A holistic knowledge system must be implemented, in order to promote a permanent quest of the best balance between costs and knowledge. |
| Quality |
Permanent focus on ‘voice of customer’ as origin of both product and process design. Benchmarking must be adopted as a best practice |
How does E-21 work?
The what: Sustainable Viability Coefficient
The Sustainable Viability Coefficient (SVC) is the value that indicates the organization’s sustainable viability by computing the average mean of the three sustainable factors.
The organization is able of applying simultaneously a short/medium term (Critical Factors) or a long term (Viability Factors) results management at any moment.
The Factors Matrix is the method that allows this ‘two approaches’ way of management.
The calculation of the Sustainable Viability Coefficient, from any of both approaches (short/medium or long term), is made as shown in the following schema:
The how: Sustainability Reaction
The achievement of the sustainable viability through theSustainable Viability Coefficient (SVC) is the consequence of a reaction of intertwined events, which constitute the Sustainability Reaction.
The application of the Sustainability Reaction to each one of the metrics, as shown in the graphic below, leads to the achievement of the sustainable viability
