Business transformation initiatives can include mergers and acquisitions, personnel changes, outsourcing, supply chain reorganization, and new business models. In practice, the business transformation process typically involves making significant changes to an organization's people, processes, and technology.
Business transformationis a change management strategy that can be defined as any fundamental change, realignment, or alteration in business operations. This is when the organization's leaders introduce a new vision with a long-term plan for implementation.
Cultural changes and corporate changes are typical slow-motion transformations. The managerial challenge of slow-motion transformations is to stay focused on the direction and objective of the change. This requires a long-term vision and patience, as well as a spirit of continuous learning and improvement throughout the transformation process. These initiatives are also introduced in response to domestic needs, but are characterized by an urgent challenge to the status quo.
Examples of a hasty transformation include a sudden corporate restructuring or the introduction of a new strategic initiative. Sometimes they are enacted in response to management fads or new corporate buzzwords, but when the right initiatives are put in place, it can be a very efficient and effective way to change. The managerial challenge in an accelerated transformation is to build a powerful narrative to create the energy and motivation needed for change. Without a motivated workforce, it will be impossible to move in the desired direction.
The managerial tasks in a negotiated transformation are to participate in debates, to exert influence, and to skillfully prepare the organization for transformation. A common mistake is to act too quickly, which can result in the need for subsequent efforts when the true scope is finally known. The managerial challenge with hijacked transformations is to move quickly and not invest great efforts in debating the trigger factor. Not accepting external demand and the established schedule will have detrimental effects on companies.
You won't succeed when you try to manage a hijacked transformation with processes intended to manage a slow-motion transformation, or vice versa. It is essential that you know the different processes that each type of transformation requires and that you develop all four processes and implement them accordingly. While different transformations require different approaches, the transformations can also be interconnected. For example, a hijacked transformation of your supply chain, such as those imposed by the war in Ukraine, can put pressure on a hasty transformation of your e-commerce transformation in your domestic market.
Therefore, make it a priority to also understand the interconnections of the transformations. Companies that are more advanced in their transformation efforts have succeeded in turning their business culture into an internal accelerator of innovation and transformation. Having everyone involved and informed before and during the business transformation process can be quite a challenge. For business transformation to succeed, employees must understand what is happening in the organization before, during, and after the implementation of the changes.
Therefore, from the start, any business transformation project must be based on clear and constant communication between the project team, management at all levels, and the organization as a whole. The ability to achieve transformation and, at the same time, manage the business as usual (BAU) is critical. Business transformations vary in terms of content, pace, and place of start, and it's rare for companies to only experience them one at a time. You've probably already understood the importance of effective business communication for successful business transformation.
One of the most important factors of a successful business transformation strategy is employee engagement. Once they are convinced of the benefits, they are much more likely to be a powerful ally in communicating the role of business transformation in setting and achieving organizational objectives throughout the organization. And it is the CFO, along with the director of transformation, who is usually most involved in establishing the transformation program itself. Below is a guide to meeting the challenges of business transformation with ideas and advice from BIE's panel of business transformation experts:
- Setting clear objectives and communicating them to employees is very important during business transformation.
- As mentioned earlier in this blog post, employee engagement and communication are some of the most important prerequisites for successful business transformation efforts.
- Business transformation is about identifying techniques, new processes, and technologies that are not being used to their full capacity.
- The goal of every business transformation project should be to ensure that the best processes and systems are implemented within an organization.
- It is essential that you know how different types of transformations require different approaches so that you can develop all four processes accordingly.
- It is also important to understand how these transformations can be interconnected so that you can anticipate any potential issues or challenges that may arise during your business transformation journey.
- Having everyone involved and informed before and during your business transformation process can be quite a challenge but it is essential for success.
- Therefore from start any business transformation project must be based on clear communication between project team members management at all levels as well as entire organization.
- The ability to achieve successful business transformations while managing day-to-day operations (BAU) is critical for success.
- Therefore make sure you set clear objectives communicate them effectively with employees so they understand what's happening before during after implementation.
- Finally one of most important factors for successful business transformations is employee engagement once they understand benefits they will become powerful ally communicating role of business transformations setting achieving organizational objectives throughout organization.