The illustration above shows a five-stage journey of performance maturity:
- In Stage 1, companies react to problems without a systemic capability or any processes for performance improvement.
- In Stage 2, companies build projects with experts to solve problems (e.g. quality, demand forecast accuracy, Lean). The issue is that a collection of projects on its own is difficult to manage and build end-to-end process value network capabilities.
- In Stage 3, integrated functional processes are created around core business processes, but they are not holistically end-to-end and demand-driven as described (for example quality or demand planning). This is, however, the first transition to process-based operations and a cultural shift (necessary but not sufficient).
- In Stage 4, the company unconsciously operates as an end-to-end demand-driven network. All aspects or people, process and technology combine holistically to create a culture of performance improvement. This stage is the big cultural jump.
- In Stage 5, the business operates as an end-to-end DDVN focused on translating value from demand into the business.