5 Steps to successful Business Transformation
The only constant in business these days is change, and with continual disruption, survival is dependent on it. For some change brings fear but the ‘if it ain’t broke, don’t fix it’ mentality of not doing anything leads to a far greater threat.
Acknowledging disruption in your industry
Over the years there have been some monumental failures from CEOs underestimating the threat of disruption to their industry:
“Television won’t be able to hold onto any market it captures after the first six months. People will soon get tired of staring at a plywood box every night”, Daryl Zanuck, co-founder of 20th Century Fox
“There is no reason anyone would want a computer in their home”, Ken Olsen, founder of Digital Equipment Corporation (1977)
“Neither RedBox nor Netflix are even on the radar screen in terms of competition”, Jim Keyes, Blockbuster CEO (2008)
Delivering successful business transformation
With Gartner estimating that 70% of all business transformation initiatives fail, how do you set your organisation up for success? Here are Keypath’s five steps to successful change management:
1. Dynamic system
Obviously, your first step is to assess where you are now (A), identify your strategic goal (B), and outline what steps need to be taken to get from A to B.
There are many tools that we use to assess our current internal and external environments; SWOT, PEST, Porter’s Four Corners, Six Forces etc, but these come with a health warning! Don’t fall in to the trap of creating your strategic plan based on the current situation. Was your 2015 company strategy based on Britain leaving the EU and Trump being President? It’s unlikely. Nor do we have a crystal ball to gaze into. So, your strategic plan needs to be dynamic enough to cope with change, as you can guarantee the internal and external landscape will have changed versus your 10, or 5, or 3, or even 1 year plan.
2. Transformation framework
To avoid chaos in the change programme you need an underlying stable platform so that day-to-day processes are controlled, customers are kept happy and employees know what to do.
It is important to maintain / introduce a set of working guidelines for business-as-usual to provide stability and resilience. Using an operating system that integrates people, processes and technology will support and guide employees, keeping constant focus during the implementation of the new strategy and its associated dynamic action plan. The Excellence Model comes highly recommended as a basis for establishing this framework.
3. Integration platform
As mentioned above, integrating your people, processes and technology is essential for the efficient running of the business, now and in the future.
- Engage people – so they are ‘on board’ and committed
- Control processes – so that they are effective and efficient in serving the Customer
- Link applications – so that they are used effectively and to prevent disruption to service.
Use KPIs and assessments to review processes and ensure actions are being completed as planned. Remember, maintain a level of flexibility to change according to what is coming over the horizon.
4. BPM using a digital twin
We’ve already established the need to maintain business-as-usual whilst modelling the future but how you can you achieve this with minimal disruption?
Effective Business Process Mapping (BPM) will outline the steps needed to achieve your strategic goal and you can go one step further to assess the impact of those steps by using a digital twin. For more information on what a digital twin is and how it works, this article and video will help guide you through.
5. Effective and efficient tools
Tools serve a multitude of purposes; process automation, assessment, communication and feedback to name a few. Of course they are designed to help but they can be a hindrance. Departments working in different applications and legacy systems can lead to frustration and confusion.
In an ideal world, when embarking on a transformation initiative, you would start from scratch on your systems but not many budgets will stretch to this.
Carte blanche isn’t always the answer, ultimately the goal with technology is that it connects the people and systems within an organisation. Integration is key here and what is needed is a central ‘umbrella’ system that connects systems together and links them to the strategy.
Are you planning or currently undergoing business transformation?
Keypath has over 27 years of consultancy experience in delivering successful change management initiatives across the globe. As a partner to Mavim (enterprise transformation platform) and a member of EFQM, Keypath can provide the complete business transformation service for your organisation.
For more information and to discuss your initiatives, please get in contact:[contact-form-7 404 "Not Found"]