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Friday 23rd October 02:54 (UK)

New Codexx branding

March 13th, 2015

Working with our design partner, Realise Design, we’ve just updated our Codexx brand logo.

New Codexx logo elements:

  • The removal of the circular ‘improvement arrow’ of the old logo and the use of a leaner and modern font echoes our progressive focus on streamlining working methods using best practices and Lean thinking.
  • We’ve linked the Codexx X’s to model a DNA strand to symbolise our core competency of business innovation – helping our clients innovate the value they provide to customers and their ways of working.
  • We’ve retained our tagline – ‘energizing change’ – that has been with us since we started up in 2002, because it still captures the essence of what we do, in just two words. Assessing, catalysing, provoking, inspiring, focusing, directing, mentoring, supporting and evaluating are other key descriptors in how we help our clients (but we’d never get that past the brand police….).

We hope you like the new logo – we do!

Codexx Logo V3-13 - less space around

Product development – ten best practices

October 17th, 2014

Product development is a critical function for product-based businesses. The ability to develop new products with features and functionality that are valued by users, to bring them to market quickly, cost effectively and at acceptable quality and then to support and enhance them during their lifetime has always been a complex undertaking.

Today’s additional requirements to serve a global market, to exploit new technologies – including the opportunities provided by the internet – to meet ever higher customer expectations and to compete against new low cost, but increasingly high value, rivals from China and other emerging economies simply adds to the challenge.

How do companies ensure that their product development practices are good enough?

Over the past decade Codexx has worked with a number of clients on assessing and improving product development practices, most recently we performed a global R&D benchmarking assessment covering Europe, US and China. In 2010-12 Codexx carried out two major research studies on what we call ‘the innovation journey’ for technology-based product businesses, from new ideas to value (e.g. [products) in the marketplace. This covered 43 technology businesses in the UK and Denmark.*

New Directions 18 - Figure 1

Figure 1: An end-to-end product innovation process

From our experience, we have put together a ‘top ten’ list of practices that we consider have a key impact on the success of product development. In no particular order:

  •  Become a user. Get the ‘voice of the user’ into R&D and keep it there. This can be done in a number of ways: by ensuring that development engineers and product managers spend time with relevant users, or by nominating a ‘user advocate’ in the development team, or by regularly and systematically bringing field feedback into R&D. A measure of the importance of this practice is that our innovation journey study found that end-user involvement in new product development was the practice with the fourth highest correlation with innovation performance.
  • Effectively explore new ideas. This means using a rich approach to exploration that involves personnel from development, marketing and production as well as potential users and partners, to determine the potential user and business opportunities and also the risks of new concepts and to identify potential improvements. The use of rough-prototyping is very effective here to help evaluate the concept. This level of exploration ‘shakes up’ the concept to determine whether it has sufficient merits to consider taking it forward. In our innovation journey study of 2012-13, the effective use of rough prototyping for idea exploration was the practice with the second highest correlation with overall innovation performance.
  • Enhance existing products. It can be easy for R&D to over-focus on new products, at the expense of enhancing existing products – from an engineering perspective it can be seen as less challenging and less exciting. But enhancing an existing product instead of investing in a new one has many advantages – less technical risk, less investment, easier for sales personnel to sell (minimal training required). Enhancements can be through updated technology elements in an existing platform, through accessories (which can be provided by 3rd parties) or through software and services. This does not mean we are ‘anti-new products’, but simply that the development investment portfolio should give sufficient weight to existing product enhancement as well as new products.
  • Establish an ‘end-to-end’ product innovation process. Whilst most product businesses will have a formal New Product Development (NPD) process, this only covers part of the journey from new ideas to products in the market. The NPD process needs to be complemented by a front-end process for idea generation and exploration (covering the key ‘fuzzy front end’ of product development), a back-end support & enhancement process and a parallel process for capturing learning from the field (as shown in Figure 1). Front-end exploration projects will often “fail” in the sense that the results are disappointing – which is an acceptable outcome as not all new ideas should (or can) proceed. Engineers must be judged on whether they do good, disciplined investigations in this stage, not on whether the ideas work out. Some element of waste is inevitable at the front end. Without such an end-to-end approach, the NPD process will waste resources on weak concepts and deliver sub-optimum products to the market. Product innovation must be guided by a clear stage gate process with an objective Go/No go at all the stage gates, especially, of course in the ‘Fuzzy Front’ end. Few companies are good at biting the bullet and stopping unpromising projects early on. But these processes have tendency to become more onerous with time as extra checks are inserted every time a problem occurs. This can become a bureaucratic nightmare. Beware of making the process any more formal than is absolutely necessary.
  • Reduce development time and team size. A major proportion of development cost is engineering hours – and this is a function of team size and project duration. So short development times and small teams have many benefits. Small teams are easier to coordinate, require less project management time and thus are able to make faster decisions. Shorter development cycles are less likely to require specification ‘resets’ due to competitive product announcements, new technologies, regulatory changes or delays from resource shortages. Frankly long development cycles and large teams generate waste in lost time, rework and non-value-adding coordination. Philosophies such as ‘Lean Startup’ (see the book by Eric Reis of the same name) support fast development time as this enables products to get to market faster and then user-based learning can start. So the mantra ‘keep it short and keep it small’ should be the guide for product development.

New Directions 18 - Figure 2

Figure 2: A system for innovation within an organisation

  • Employ platform thinking. This approach supports fast development time by introducing modular thinking into product design, to create a platform-based architecture. Thus new products become a mix of existing, evolved and new modules – for example a new mobile phone may have the same casing and screen, but updated processor, camera and new version of the operating system. This approach reduces development cost and risk and enables innovation to be focused on the new platform modules (rather than unnecessary re-invention). Platform thinking is well established in sectors such as automotive with cars such as the Volkswagen Golf and Audi A3 sharing much of the floorpan and chassis. Our innovation journey study showed that the separation of technology and product development (which is a key aspect of platform thinking) and the re-use of design or technology elements in new products were both top ten practices for correlation with overall innovation performance.
  • Ensure development proven practices are deployed. There are some proven practices for the design of new products such as documented user requirements – to provide a firm base for specification, QFD (Quality Function Deployment) – to build a functional specification that is aligned with user requirements, FMEA (Failure Mode Effect Analysis) – to identify potential design weaknesses, Design Peer Reviews – to provide an independent ‘fresh view’ on a design before it is frozen and Post Project reviews – to capture lessons learned and required improvements to working methods. These good practices are well known, so it can be surprising how poorly these are in place in product development teams. We have been in firms where these practices have simply ‘faded away’ or only have ‘lip service’ paid to them. It is the responsibility of development management to ensure that these proven development practices are in place and used effectively.
  • Establish an innovative culture. We have worked in product development teams where employees have said ‘We don’t have time for innovation, we’re too busy developing products’. Of course incremental product development is indeed one type of innovation. But the point is well made – employees need to have time, management support and encouragement to identify new ideas and concepts. This requires a supportive culture for innovation – a key element of the ‘climate’ for innovation within a firm. This is one of the seven key practice areas required for an effective innovation system (see Figure 2). A key aspect of an innovative culture is a clear and overt tolerance for failure when new ideas don’t work out. Of course, this is not the same as a tolerance for bad work…
  • Don’t overload! Management ambitions can lead to the commitment of new projects and a development roadmap that simply exceeds development capacity. The result is a climate of project slippage and postponement – which further wastes development resources in re-planning and stop-start activities. Development capacity should not be loaded more than 80% of capacity to avoid short-term overloads of some resources and also to allow personnel time to get involved in new concept exploration work, platform development or other improvements. Overloading inevitably leads to queueing, and extra inefficiency comes if engineers need to swap from project to project.
  • Have an effective Go/No Go to market. Stage-gate management in product development is a proven and effective way of managing cost and risk exposure. Just as cost and risk exposure significantly increase once a new product concept is accepted for development, so does cost and risk exposure increase significantly once a product is released to be taken to market as large investments in manufacturing and sales are required. This is why the decision to go/no go to market needs to involve all the key functions affected (such as marketing, sales, manufacturing and development) – it is not a decision for development management alone. Indeed marketing involvement in signoff of product release to market was the practice that had the highest correlation with high innovation performance in our innovation journey study.

Thanks to Rick Mitchell, Visiting Professor of Innovation Management at the University of Cambridge for his contribution to this article.

*‘The Innovation Journey for technology-rich product businesses – Phase 2 – Final study report’, October 2013, Codexx Associates Ltd, The University of Exeter Business School, The University of Aalborg Business School. More information.

For further information on our innovation and product development solutions, contact us at www.codexx.com.

Study of innovation in 35 UK & German law firms – report published

October 3rd, 2014

 

Front page pictureToday Codexx published the final report on a study of innovation in 35 UK and German law firms, carried out in 2013 with the support of the University of Exeter Business School and the University of Leipzig Graduate School of Management. The objective of the study was to understand the current level of innovation, the methods being applied, the results achieved and the challenges faced by law firms in these two countries. Participating firms have already received a copy of the report, including their scoring in the study, to help in their innovation activities.

Alastair Ross, Codexx Director and author of the report said “Innovation is increasingly important for law firms, particularly those in the UK faced with new ABS entrants from deregulation, new internet-based business models and price-focused clients. It is very encouraging to see progressive firms seizing the opportunities for improved competitiveness through innovation. It is also useful to understand the typical difficulties that firms are facing in their innovation activities. This will help firms in developing their innovation capabilities and assist Codexx in providing best guidance to our legal clients.”

Report highlights:

  • 35 law firms in the UK and Germany were surveyed for their innovation methods and results during 2013.
  • Innovation was defined as anything new to the firm that generates value.
  • Overall UK and German firms,  scored similarly – at a middle to low level compared to best practices.
  • UK firms focused their innovation mainly on process improvement and German firms on services.
  • The study showed that improved innovation practices resulted in better business performance.
  • Firms’ key challenges in improving their innovation were in resourcing, culture and leadership.

 

Overall scatter picture

 

Executive summary:

  • A study of innovation practices and performance in law firms in the UK and Germany was performed during 2013, led by Codexx in partnership with the University of Exeter Business School and the University of Leipzig Graduate School of Management. The study involved a total of 35 firms, 14 in the UK and 21 in Germany. Firms participating from the UK were typically larger than those from Germany with a median yearly revenue of £70m compared to £17m.
  • We defined innovation as anything that was new to a firm and brought value – this broad definition covered incremental as well as ‘step-change’ innovation.
  • This study followed a previous one run by Codexx in 2006 with 16 UK law firms. The objective of the 2013 survey was to perform a more in-depth study of UK firms’ approach to innovation, particularly since the 2008 economic downturn and the legal services deregulation. The opportunity to perform a similar study with German firms and contrast approaches and outcomes brought additional value.
  • The study found an overall similar level of innovation practices and performance in the participating UK and German firms, which was typically at a middle to low level, compared to best practices. Whilst UK firms had their main focus on process innovation, German firms’ focus was on service innovation. The difference, we believe, results from the impact of the legal services deregulation and the post 2008 economic challenges in the UK, with firms giving increased focus to efficiency.
  • The study also found a good level of correlation between innovation practices and performance – showing that if these practices were put in place, it was likely that improved performance in key metrics such as revenue from new services and cost reduction from process innovation, would follow.
  • Analysis of those firms who were leading in innovation performance, showed that UK performance leaders had an average level of practices ahead of the study sample in every practice area, though this was not the case for German leaders (this might indicate some practice inconsistencies in the generally smaller German firms). This finding gives support to the recommended comprehensive approach to innovation, establishing a system to cover the the key practices.
  • Firms identified their key innovation challenges as in resourcing innovation, establishing a supportive culture and process and in leadership. Improving innovation resources and process were cited as common improvement priorities for firms.
  • The report defined five guiding principles for law firms seeking to improve their innovation capabilities, based on Codexx experience in working with law firms in innovation since 2005.

Practice leaders v sampleFor more information on the study or to request a copy of the report, contact Alastair Ross at Codexx.

Alastair Ross to lecture on service innovation at University of Southampton

September 10th, 2014

southampton university logo copy

Alastair Ross, Director of Codexx,  has been invited to lecture on service innovation at the Management School of the University of Southampton. His lectures will be in support of the MSc in Strategy & Innovation. The masters programme aims to respond to those interested in strategic thinking and the challenges of developing new products and services. Alastair’s initial series of lectures will be in October 2014.

Alastair Ross said, “I’m pleased to be able to work with the University in this way and hopefully to bring some of my experience from Codexx in helping businesses in service innovation. And it’s nice to go back to the University at the other end of the lecture theatre – I did my first degree there more than a few years ago!”

For more information on the Masters programme in Strategy & Innovation, click here.

Alastair Ross to speak on law firm differentiation at LexisNexis webinar

May 9th, 2014

Alastair Ross will be speaking on law firm differentiation at a LexisNexis webinar on 6th June 2014 from 12.30-1.30pm. He will be discussing the use of innovation and re-engineering approaches to enable firms to develop new offerings and price competitiveness. For more information and to register, go to:

http://www.lexiswebinars.co.uk/practice-areas/legal-practice-management/differentiation-lead-generation-and-branding

The Innovation Journey for technology businesses – Phase 2 report

October 14th, 2013

 

Report on innovation programme 2009-2013

Today we are publishing the Phase 2 report of ‘The innovation journey for technology-rich product businesses’. This provides an updated report on our study of innovation practices and performance in technology-based product businesses. The study covers a total of 43 UK and Danish companies and was supported by our academic partners, The University of Exeter  in the UK and The University of Aalborg in Denmark. This study programme commenced in 2009, with a Phase 1 report in February 2011. We then extended the study with additional focus on ‘Disruptive Innovation’ adding 18 more UK and Danish companies. Our study took an ‘end-to-end’ view of product innovation as shown in Figure 1.Blog picture - 3 balls

Figure 1: Innovation Journey model

Practice – Performance correlation

Our study found significant correlation between the practices in place across the innovation journey processes and the resulting innovation performance (see Figure 2). Some stages of the innovation journey had more impact on innovation performance than others. In particular, innovation performance leaders were typically more user-focused across the innovation journey than other companies. Specifically the leaders (i.e those companies with the stronger innovation performance) were significantly ahead in the practices applied in the ‘Idea Exploration’ and the ‘Go/No Go to Market’ stages and ahead in ‘Development’ itself.  The differences between the innovation practices of leaders and others can be seen in Figure 3. We also examined how companies seek to manage the potential for ‘Disruptive Innovation’ in their market – we found that in general few companies have robust approaches in place.

Figure 2:  Practice v Performance for innovation

 

Blog picture - Scatter

Learning points

We have identified key learning points from this study and made recommendations for businesses who are seeking to improve their effectiveness in their own ‘innovation journeys’.  Our report is intended for a broad audience of business practitioners as well as academic researchers and we have especially sought to provide clarity and application for business readers. All participating companies were sent a copy of the report together with their unique code to enable them to review their performance on an anonymous basis.

Blog picture - snake

Figure 3: Differences between innovation leaders and others

 

Improvement recommendations

We made a number of recommendation based on the study findings:

  • Increase user focus throughout the innovation journey with the ‘voice of the user’ represented throughout the end-to-end innovation process.
  • Keep flexible to enable late changes from users – a key practice of innovation leaders.
  • Focus on users not customers.  When it comes to product innovation, it is the users who are key.
  • Examine your New Product Introduction/Development) process – to ensure it is covering the front end Idea Generation, Exploration and Selection steps and the back end steps. All too often these areas are not covered.
  • Give sufficient emphasis to the management of Intellectual Property in your innovation processes. IP can offer key strategic benefits if managed effectively.
  • Review your overall innovation system. Whilst the innovation processes as reviewed in this study are a key enabler to innovation success, there are other key factors such as Leadership, Culture and Strategy within the business that are major determining factors in innovation success. Businesses that wish to become successful at innovators need to improve their overall innovation practices.
  • Consider the opportunities and threats of Disruptive Innovation. With the rapid development of technology and the ability for new start-ups to quickly enter a market and receive venture capital funding to support rapid growth, established businesses need to actively look out for the opportunity/threat of disruption.

Overall we believe that companies would benefit in taking a broader ‘end-to-end’ view across their innovation journey to enable improved innovation performance.

If you would like further information about this study or would be interested comparing your company’s innovation practices against this model, then please contact Alastair Ross.

The power of mapping – for professional services

May 13th, 2013

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Process mapping has been around for many years – indeed it has been part of Work Study activities in industrial businesses for a good 50 years. The emergence of Lean thinking in the West in the mid 1980s created a resurgence of interest with the focus on ‘Value Stream Mapping’ to identify and eliminate waste activities as part of a Lean transformation. The ability of process mapping to draw a clear picture of how a complex series of tasks (such as the process from receipt of an order through manufacturing to delivery of a product) is performed has proven to be very powerful. Process mapping achieves the following:

  • Makes a process visible – showing the detailed steps of how it is performed
  • Involves those who perform the work – to produce a realistic picture
  • Is easily readable – much more so than a text-based document
  • Is an effective way to engage personnel to identify wastes in the process
  • Provides a good base for developing and the improved process
  • Is a key part of Lean or Process Re-engineering
  • Gives a good foundation for automating the process using workflow or other software

Mapping professional services
But process mapping had little use or impact in Professional Service firms until comparatively recently. Why is this? Simply because process thinking is not applied in most professional service firms. The culture in professional service firms is practitioner-focused and typically does not see the service provided as ‘a process’. However this is changing due to increasing competitive pressures over the last 5 years. Firms are under increasing financial pressures driven by price-focused clients and alternative providers (some enabled by deregulation as in the UK legal market; some by the internet and others by globalisation). They are having to improve their efficiency – ‘doing more with less’.

‘Doing more with less’ has often been a synonym for redundancies rather than any systematic approach to improve efficiency. Indeed an unstructured approach to redundancies in a service organization can backfire with service quality being impacted and professional morale lowered.

Process mapping makes the invisible, visible
A first powerful step to improving efficiency is looking at how work is performed today and to determine what improvements in efficiency could be made. This is the so-called ‘AS-IS’ phase of a re-engineering programme. In our re-engineering work with major UK professional service firms, the process mapping stage is a key element in giving a shared view of how things are done today. This is especially important in a professional service environment as the process (be it a client service or a back-office activity such as client inception or billing) is not immediately visible. In a factory a process can be viewed by simply walking across the shop-floor. However a tour through a law, accounting or consulting firm’s offices will not unearth much evidence of processes among the employees, desks, computers and (usually) lots of paper. Process mapping makes the ‘invisible’ processes in professional service firms visible. Once processes are visible they can be analysed and improved. So mapping is a key foundation for improvement.

Keep it simple
Effective process mapping is performed collaboratively using paper and pen  – rather than computer – as this enables easy collaboration. Effective mapping requires the involvement of representatives of those personnel who perform the process/service being mapped. The objective of the ‘AS-IS’ mapping is to capture the process as it is actually performed today. In a service environment it is important to identify key tasks, who performs them and the amount of chargeable and elapsed time consumed. It is also important to include those routinely performed activities which represent waste – such as delays, reviews, corrections, duplication and different methods used by teams and offices. Once the paper-based model has been completed, it can be captured by digital photo or better still converted into a software-based model using a tool such as Microsoft Visio – this enables easier modification, distribution, review and archive.

Realising the value from your  process maps
Process maps have little value  unless they are put to work to support improvement activities – such as a Re-engineering or Lean programme. Ways of using process maps in your improvement activities include:

  • Analysing them to identify and quantify waste activities
  • Quantify the time required for tasks to set ‘target times’ for work elements
  • Identify the documents & templates used within the process – to enable standardisation
  • Displaying maps in work areas, to engage other personnel and get their ideas & comments
  • Use the AS-IS map as the base to develop the improved TO-BE process
  • Use the TO-BE map for configuring workflow or case management software

Mapping brings real benefits
We have used process mapping with a number of professional service firms covering processes such as: Bid to Bill, Client Inception, Matter Management, Probate, Commercial Property Purchase, Insurance Claims, Inquests, Employment Tribunals and Commercial Due Diligence. This mapping has been a key foundation for a re-engineering or Lean programme. These programmes have delivered the following benefits:

  • Enabled direct cost reduction of between 20-40%
  • Supported the development of new client services
  • Enabled collaborative improvement with clients
  • Provided a foundation for implementation of case management systems

Process mapping is a powerful tool for business improvement and professional service firms need to add it to their improvement capabilities.

For further information on how you could use process mapping or re-engineering within your firm contact us at www.codexx.com

Codexx innovation solution selected for new benchmarking product

April 22nd, 2013

F4i logo

Codexx Associates Ltd and PROBE Network LLP agree to develop new innovation benchmarking product

Monday 22nd April 2013

Codexx Associates Ltd and Probe Network LLP today announced their agreement for the development of a new best practice benchmarking solution for business innovation. PROBE for Innovation Excellence will be based on the ‘Foundations for Innovation’ (F4i) assessment solution developed by Codexx and used in a number of business sectors including manufacturing, insurance and professional services.

The development of PROBE for Innovation Excellence is being supported by IEL Santa Catarina, Brazil (Euvaldo Lodi Institute of Santa Catarina).The first version will be available during the summer of 2013. Codexx and PROBE have had a long standing relationship since 2002 as Codexx has been a user of PROBE’s benchmarking tools in its consulting work.

Announcing the agreement, Alastair Ross, Director of Codexx, said “I am delighted to be working with PROBE on this exciting new product. PROBE’s expertise and global market reach in benchmarking will maximise the value of our investment in F4i.” Jeff Taylor, Senior Partner of PROBE Network LLP  said “Innovation is a key driver of business success, so we are delighted to be working with Codexx on the development of a new PROBE tool that will spur innovation and act as a catalyst for overall business excellence.”

For further information contact Codexx at www.codexx.com.

Innovation challenges for professional service firms – study report

March 13th, 2013

What are the key challenges that lawyers, accountants, consultants and other professional service firms face when they seek to innovate? As part of our work on helping professional service firms improve their innovation capabilities, we ran a recent study to find this out. The attached report summarises our findings: Innovating Professional Services – Study of key challenges 2013

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The challenge of efficiency for Private Client lawyers

March 11th, 2013

These are challenging times for all businesses – but the UK legal sector is facing major changes, driven by de-regulation, the internet and the tough economy. Firms are having to look at how they improve their efficiency and value to clients.

A recent article by Alastair Ross in ‘Private Client Adviser’ outlines how re-engineering has been applied to Private Client departments, to drive major cost savings – whilst maintaining service quality.

Lawyers on waste

Re-engineering Private Client legal services – February 2013

The attached pdf article was first published in Private Client Adviser in February 2013 and is reproduced by kind permission.

Energizing Change

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