Summary
- The business faced operational challenges due to a lack of standardized language and varying descriptions across multiple teams and systems.
- Developed a universal taxonomy, unifying various teams under a new controlled vocabulary and restructuring systems to align with the taxonomy.
- Resulted in a 45% increase in operational capacity, with a significant reduction in taxonomic complexity and improved efficiency in data management.
- The team supported an expansion in the product portfolio and new initiatives, facilitating the business's growth and adaptability to market trends.
Problem
In the midst of a critical phase of growth, the business faced a challenge in harnessing the full potential of its marketing efforts due to fragmented and inefficient data management practices. Despite achieving a substantial 100% year-over-year (YoY) increase in revenue, the company was experiencing a downturn in customer engagement, with ARPC decreasing by 66% after a previous cycle of growth. This situation underscored the need for an expansion in active customers and an increase in ARPC to improve revenue efficiency and build a more sustainable business model. To support this strategic direction, the business planned a significant 60%-70% expansion of its product portfolio, which was expected to result in a 50%-60% increase in workload for the marketing team. However, with only a 15% increase in workforce, there was a noticeable gap in operational capacity.
Compounding this issue was the lack of a unified, coherent taxonomy across the marketing department. More than 200 individuals from over 15 teams were executing upwards of 20 cross-functional workflows to support 5 product categories and 4 brands. Each team had developed its own language and methodology for describing and managing workflows, leading to a patchwork of vocabularies and practices codified through their system usage and documentation. This disparity in workflow conception and description resulted in misaligned system reports, making it difficult to derive coherent insights from analysis and system integrations. The absence of standardized terminology and processes made it nearly impossible to achieve efficiencies through integrations and automations. Crucially, the disjointed nature of the reporting systems meant that reports were only comprehensible within the confines of their local groups, rendering them illegible to partners and leadership. As a result, vital information regarding capacity, output, and time spent had to be collated manually, without the aid of systems, making accurate and timely data gathering a significant challenge. This operational disarray not only limited the team's capacity to handle the increased workload but also hindered their ability to play a crucial role in supporting and executing the business's new strategic initiatives.
Solution
To address the growing complexity in describing and managing an expanding range of products, workflows, and teams, a solution was needed to standardize the business's vocabulary and conceptual constructs. The aim was to create a unified understanding across various teams and systems, improving coherence and efficiency.
Requirements:
As the business scaled and diversified its offerings, it faced the challenge of multiple teams forming unique vocabularies to describe their work. This led to confusion and inefficiencies, with teams working on the same projects but under different conceptual understandings.
Challenges:
The organization was managing a vast array of assets, workflows, and projects across multiple brands and verticals. With over 35 system hubs or tools in use, each with its own taxonomy, the situation was compounded by the lack of standardized language and conceptual frameworks. This resulted in an estimated 138 million system nodes, with significant variations in descriptions, naming conventions, and conceptual understanding across the teams.
Process:
- Developing a Universal Taxonomy: A key part of the solution was to develop a universal taxonomy that was legible and usable by all team members. This involved a deep understanding of the different vocabularies and conceptual structures used across the organization.
- Creating a Controlled Vocabulary: Unifying the various teams under a new controlled vocabulary was crucial. This step ensured that all teams had a common language to describe their workflows, projects, and deliverables.
- Restructuring Systems for Alignment: Existing systems were restructured to align with the new taxonomy. This alignment ensured consistency in data organization and retrieval across all systems.
- Documenting and Distributing the Glossary: A comprehensive glossary, defining all key terms and concepts, was created and distributed across all user groups. This step was vital in fostering a common understanding and easing the transition to the new system.
- Planning for Future Integrations: The solution included building a roadmap for future system integrations enabled by the new taxonomy. This planning was critical for ensuring that the taxonomy was adaptable and could support the organization's evolving needs.
- Enhancing Reporting Capabilities: With the clearer categorization and tracking afforded by the new taxonomy, reporting mechanisms were enhanced. This improvement allowed for better visibility into team capacity and productivity.
Impact:
The development of the universal taxonomy and managed vocabulary significantly enhanced the operational efficiency of the organization:
- It fostered a more cohesive and efficient communication framework across various teams and departments.
- The restructuring of systems and the introduction of a common language improved data management and reduced confusion.
- Enhanced reporting capabilities enabled by the taxonomy provided clearer insights into capacity and productivity.
- The taxonomy's adaptability and future-proof design ensured that it could evolve with the organization's changing needs.
Overall, this initiative marked a significant advancement in the client's operational excellence, streamlining communication and collaboration, and setting a strong foundation for future growth and system integration.
Results
The implementation of a universal taxonomy project significantly enhanced the team's operational efficiency, enabling them to cope with increased workload and system complexity.
Handling Increased Workload and Complexity:
Following the project's launch, the business faced an expected increase in workload and a rise in system complexity. This development created a capacity target that required careful management and strategic operational improvements.
Operational Improvements and KPI Enhancements:
- Capacity Enhancement: The team achieved a 46% increase in capacity, maintaining stable workforce turnover rates. This improvement was directly attributed to enhancements in managing complexity, efficiency, and productivity rates brought about by the taxonomy project.
- Complexity Reduction: The standardization efforts led to a system landscape that was 45% simpler than the projected complexity, had no changes been made. This simplification meant that for each project, team members had to contend with 25% fewer system nodes.
- Efficiency Gains: Efficiency per project hour increased by 30% compared to the previous year. The active time spent on each project was reduced from 54.5 hours to 38.61 hours year-over-year, with the average man-hour per final deliverable dropping from 1.4 hours/asset to 0.99 hours/asset.
- Productivity Boost: The team's productivity saw a significant increase, producing approximately 519,000 deliverables, equating to an additional 690 units per person compared to the previous year's average.
Strategic Impact and Business Growth:
The operational improvements enabled the client to meet the increased demands of the expanding business. The implementation of the universal taxonomy and managed vocabulary led to a more organized, efficient, and productive workspace. This allowed the business to adapt swiftly to industry trends and manage the increased complexity and workload effectively, contributing to its establishment as a market leader.
Strategically, the business achieved substantial growth, with a 103% increase in revenue, rising from $3.75 billion to $7.6 billion. Additionally, the business saw a 140% year-over-year increase in active customers, growing from 3 million to 7.22 million, fueled by innovation in product, acquisition efforts, reactivation, and retention strategies.