Organizations that are looking to introduce a change have a vision of how they want their business to be improved. To achieve this, they must create a new vision with a long-term plan for implementation. Cultural and corporate changes are typically slow-motion transformations, and the managerial challenge is to stay focused on the direction and objective of the change. This requires a long-term vision, patience, and a spirit of continuous learning and improvement throughout the transformation process.
Business transformation is much more than just creating a more efficient digitized system. It involves a change of mentality and the development of a business strategy that can continue to evolve in the future. Leadership must develop a digital business transformation strategy and decide how modern technology can improve the product and all aspects of the customer experience. From strategy to integration, there are seven essential steps for developing a business transformation strategy.
First, identify all areas, work processes, and systems that will be affected by the transformation. This helps to outline subprojects, their objectives, timelines, and budget limits. It's also crucial to plan how the changes will be communicated to staff and customers. Depending on the size of the company, the time from strategy to execution can take several years.
It is important to involve staff and periodically reevaluate the implementation plan and adjust it throughout the transformation process if necessary. The cyclonic MBT framework takes a holistic approach that is integrated in a systematic and repeatable way. This allows companies to make incremental improvements. Nokia Corporation is an example of a company that had to transform itself dramatically in the face of changing market dynamics. Between 1985 and 1995, they expanded their original product portfolio and began to specialize in consumer electronics. IBM serves as an example of another impressive business transformation that lasted several decades.
Netflix is another example of successful business transformation. While most successful transformations address most of an organization's value creation opportunities, some transformations focus on particular topics such as transforming the workforce to adopt agile working methods. The CEO, board of directors, business architects, and business architects are in charge of all efforts to manage business transformation and redefine the company's vision. With their help, any company can maximize its performance and undergo digital transformation to unlock new potential. McKinsey research has long documented that enterprise-wide transformation is difficult as less than a third of transformations achieve their goals of improving organizational performance and maintaining these improvements over time. Different transformations require different approaches but can also be interconnected. The term business transformation is relatively new and first emerged in the field of IT and management consulting.
The managerial tasks in a negotiated transformation are to participate in debates, exert influence, and skillfully prepare the organization for transformation. Business transformations vary in terms of content, pace, and place of start.