Business Transformation: 9 Things You Didn't Know
What is Business Transformation?
In today’s fast-moving,technology-focused world organisations face considerable external pressures to which they must respond. This often results in a need to effect rapid internal changes simply to remain in existence let alone to be highly successful. Business transformation is a change to the way a business organises itself to successfully align with its goals and strategy.
To improve is to change; to be perfect is to change often.
Winston S. Churchill
How to achieve Business Transformation
There are 9 key aspects to consider when embarking on a successful business transformation.
1. Why?
There must be clarity in why the transformation is needed. What is driving the change. An organisation needs to understand the impact of external factors and internal value drivers. Tools such as PERSPECTIVE and CHOICES for external and internal (cultural) assessment will help.
The organisation should seek to identify the objectives, outcomes and benefits that are expected to be achieved by the business transformation. And over what period of time.
2. What?
To what are we transforming?
The organisation needs a clear strategy that defines what the future organisation looks like. There must be a shared clarity of purpose and objectives across the organisation. It must be ensured that the strategy is aligned with the core values and purpose of the business.
3. How and when?
The organisation must ensure it has in place robustly developed and joined up plans. A well-defined roadmap will set out the optimum path for the transformation journey for the organisation. This shows what needs to be achieved, by when.
The organisation should have a plan that embeds and sustains the transformation and links action back to the strategy to give a line of sight.
4. Finance and resources
A costed transformation plan and provision of appropriate budgets is essential. It must be recognised that there is often a significant financial investment required to achieve organisational transformation. The organisation must identify and manage the return on investment through benefits management and realisation.
It is essential to ensure that appropriate resources (extra capacity and appropriate capability) are identified and funded. Don’t just expect existing staff to squeeze transformation activities into their day jobs.
5. Leadership
Change must have top down ownership, leadership and direction in order to drive change across the organisation. The leaders of the organisation must have personal ownership of the transformation if it is to be successful.
6. Governance
An aspect of business transformation which is often overlooked is the need for a well-defined and appropriate governance model. This helps govern and manage the transformation in thecontext of maintaining business as usual operational services.
Effective use of portfolio, programme and project management is critical in order to deliver the transformation plans successfully.
7. Personal ownership
Clearly defined roles and responsibilities in owning and managing the transformation are essential. These include those that are Accountable, Responsible, Consulted, Informed andSupporters (ARCIS).
Staff must be fully engaged at the right time with an understanding of their personal contribution to the transformation. They must also have an understanding of what’s in it for me? both the positive and the negative impacts on them.
8. Communication
Communication is absolutely essential to a successful business transformation. Relentless consultation, communication and engagement with staff across the organ isation are essential. A key success factor is the signposting of action back to the strategy (reinforcing the line of sight).
9. Risk management
An integrated approach to risk is required that identifies and manages risks to the achievement of the transformation as well as to business-as-usual operations.
Business transformation is a necessity for the survival of organisations in a rapidly changing world.
Success depends on 9 key factors:
clarity of purpose
defined strategy
robust plans
dedicated resources
strong leadership
effective governance
genuine ownership
effective communication
integrated risk management.
In addition, while governing the transformation the organisation has the challenge of effectively governing the business as usual activities. This will ensure no loss of day-to-day effectiveness.
Methodology and tool for business transformation
We have adopted an innovative change methodology, the Business Lifesystem®.This is supported by the QOREX suite of web -based software tools that structures and manages the business transformation of any organisation.
For more information please contact me.
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